Question 1

Capital income includes:

Accepted Answer

A)  profits, rent, and interest.
B)  wages and salaries.
C)  earnings of the self-employed.
D)  capital gains from stock sales.E) B) and C)
F) A) and D)

Question 2

If two countries are economically identical except that citizens in one country have more leisure time, then the level of GDP:

Accepted Answer

A)  will be higher in the country with more leisure time.
B)  will be higher in the country with less leisure time.
C)  will be the same in both countries.
D)  will be greater than the level of economic well-being in each country.E) None of the above
F) B) and D)

Question 3

Involuntary part-time workers are:

Accepted Answer

A)  chronically unemployed.
B)  considered out of the labor force.
C)  short-term unemployed workers.
D)  not counted as unemployed.E) B) and D)
F) B) and C)

Question 4

The duration of an unemployment spell is a measure of the:

Accepted Answer

A)  income lost while unemployed.
B)  length of time a spell of unemployment lasts.
C)  number of times during a year a worker becomes unemployed.
D)  number of workers unemployed during a specific period of time.E) A) and C)
F) All of the above

Question 5

The four components of aggregate expenditures are:

Accepted Answer

A)  consumption, imports, government spending, and net exports.
B)  consumption, interest payments, government spending, and net exports.
C)  consumer durables, investment, government spending, and net exports.
D)  consumption, investment, government spending, and net exports.E) B) and C)
F) A) and D)

Question 6

Net export spending is expenditures on:

Accepted Answer

A)  stocks, bonds, and other financial instruments.
B)  goods and services sold abroad minus goods and services produced abroad.
C)  consumer durables, nondurables, and services.
D)  goods and services by federal, state, and local governments.E) A) and B)
F) None of the above

Question 7

The most commonly used measure of an economy's output is:

Accepted Answer

A)  the rate of employment.
B)  the rate of inflation.
C)  gross domestic product.
D)  the Dow Jones stock market indexE) A) and B)
F) A) and C)

Question 8

Which of the expenditure components of GDP can be negative?

Accepted Answer

A)  Consumption spending on durables
B)  Net exports are negative when imports exceed exports
C)  Consumption spending on services
D)  Net exportsE) A) and D)
F) A) and B)

Question 9

If an automobile manufacturer pays $200 for a car windshield, $400 for four car tires, $100 for a car radio, and sells cars made with these parts for $20,000, then each car the automobile manufacturer sells contributes how much to GDP?

Accepted Answer

A)  $19,300
B)  $20,000
C)  $20,200
D)  $20,700E) None of the above
F) A) and C)

Question 10

Two groups of workers not counted as unemployed in the official unemployment statistics are ________ workers.

Accepted Answer

A)  chronically unemployed and short-term unemployed
B)  chronically-unemployed and discouraged
C)  chronically unemployed and involuntary part-time
D)  discouraged and involuntary part-timeE) None of the above
F) A) and D)

Question 11

Educational services provided by public schools are:

Accepted Answer

A)  included in GDP at market prices.
B)  included in GDP at cost.
C)  excluded from GDP because they are not sold in markets.
D)  excluded from GDP because they are intermediate goods.E) All of the above
F) A) and C)

Question 12

Assume an economy produces only footballs and baseballs and the base year is 2016.   
 Given the data in the table above, what is the value of nominal GDP in 2017?

Accepted Answer

A)  $10,000
B)  $12,000
C)  $12,500
D)  $16,500E) B) and D)
F) B) and C)

Question 13

In a country with 200 million people aged 16 years and older, 120 million are in the labor force, and 114 million are employed, what is the participation rate?

Accepted Answer

A)  40 percent
B)  57 percent
C)  60 percent
D)  95 percentE) C) and D)
F) B) and D)

Question 14

Which of the following is not classified as a final good?

Accepted Answer

A)  New clothing purchased by a college student
B)  Fresh vegetables purchased by a restaurant
C)  A new car purchased by a family
D)  A new machine purchased by a businessE) B) and C)
F) A) and B)

Question 15

Which of the following is NOT a capital good?

Accepted Answer

A)  Batteries purchased by a car manufacturer to install in new cars
B)  Machines purchased by a car manufacturer to measure metal thicknesses
C)  A new house purchased by a family
D)  A new apartment building purchased by a corporationE) None of the above
F) A) and B)

Question 16

________ is/are the market value of final goods and services produced within a country during a given period of time.

Accepted Answer

A)  GDP
B)  Consumption
C)  Value added
D)  Transfer paymentsE) All of the above
F) A) and C)

Question 17

Susan Suarez would like to work forty hours per week, but can only find twenty hours per week of work. In the official employment statistics, Susan is classified as:

Accepted Answer

A)  employed.
B)  unemployed.
C)  out of the labor force.
D)  underemployed.E) A) and B)
F) B) and C)

Question 18

Which of the following events would increase the unemployment rate, if nothing else changed?

Accepted Answer

A)  Unemployed workers leave the labor force
B)  Employed workers leave the labor force
C)  Workers from outside the labor force become employed
D)  Unemployed workers become employedE) All of the above
F) A) and B)

Question 19

A person 16 years or older who does not work and does not look for work is officially classified as:

Accepted Answer

A)  employed.
B)  unemployed.
C)  chronically unemployed.
D)  out of the labor force.E) All of the above
F) B) and D)

Question 20

Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process:  
  Name of Campany  Revenues  Cast af Pur chased Inguts  Fulton Farrily Farm $0.500 DeLux Popconl Co. $2.50$0.50 Friendly Groceries $4.00$2.50\begin{array} { | l | c | c | } \hline { 	ext { Name of Campany } } & 	ext { Revenues } & 	ext { Cast af Pur chased Inguts } \\hline 	ext { Fulton Farrily Farm } & \$ 0.50 & \mathbf { 0 } \\hline 	ext { DeLux Popconl Co. } & \$ 2.50 & \$ 0.50 \\hline 	ext { Friendly Groceries } & \$ 4.00 & \$ 2.50\end{array} Name of Campany  Fulton Farrily Farm  DeLux Popconl Co.  Friendly Groceries ​ Revenues $0.50$2.50$4.00​ Cast af Pur chased Inguts 0$0.50$2.50​​   
 What is the value added of Fulton Family Farm?

Accepted Answer

A)  $0.00
B)  $0.50
C)  $1.50
D)  $2.50 E) B) and C)
F) B) and D)

Exam 17: Measuring Economic Activity: GDP and Unemployment

Involuntary part-time workers are:

Correct Answer
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Which of the expenditure components of GDP can be negative?

Correct Answer
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Correct Answer
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The duration of an unemployment spell is a measure of the:

Correct Answer
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Capital income includes:

Correct Answer
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The four components of aggregate expenditures are:

Correct Answer
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Which of the following events would increase the unemployment rate, if nothing else changed?

Correct Answer
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A person 16 years or older who does not work and does not look for work is officially classified as:

Correct Answer
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If two countries are economically identical except that citizens in one country have more leisure time, then the level of GDP:

Correct Answer
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________ is/are the market value of final goods and services produced within a country during a given period of time.

Correct Answer
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Susan Suarez would like to work forty hours per week, but can only find twenty hours per week of work. In the official employment statistics, Susan is classified as:

Correct Answer
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In a country with 200 million people aged 16 years and older, 120 million are in the labor force, and 114 million are employed, what is the participation rate?

Correct Answer
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Net export spending is expenditures on:

Correct Answer
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Which of the following is NOT a capital good?

Correct Answer
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Educational services provided by public schools are:

Correct Answer
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Which of the following is not classified as a final good?

Correct Answer
verified

If an automobile manufacturer pays $200 for a car windshield, $400 for four car tires, $100 for a car radio, and sells cars made with these parts for $20,000, then each car the automobile manufacturer sells contributes how much to GDP?

Correct Answer
verified

Assume an economy produces only footballs and baseballs and the base year is 2016. Given the data in the table above, what is the value of nominal GDP in 2017?

Correct Answer
verified

The most commonly used measure of an economy's output is:

Correct Answer
verified

Two groups of workers not counted as unemployed in the official unemployment statistics are ________ workers.

Correct Answer
verified

Exam 17: Measuring Economic Activity: GDP and Unemployment

Involuntary part-time workers are:

Correct AnswerverifiedShow Answer

Which of the expenditure components of GDP can be negative?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The duration of an unemployment spell is a measure of the:

Correct AnswerverifiedShow Answer

Capital income includes:

Correct AnswerverifiedShow Answer

The four components of aggregate expenditures are:

Correct AnswerverifiedShow Answer

Which of the following events would increase the unemployment rate, if nothing else changed?

Correct AnswerverifiedShow Answer

A person 16 years or older who does not work and does not look for work is officially classified as:

Correct AnswerverifiedShow Answer

If two countries are economically identical except that citizens in one country have more leisure time, then the level of GDP:

Correct AnswerverifiedShow Answer

________ is/are the market value of final goods and services produced within a country during a given period of time.

Correct AnswerverifiedShow Answer

Susan Suarez would like to work forty hours per week, but can only find twenty hours per week of work. In the official employment statistics, Susan is classified as:

Correct AnswerverifiedShow Answer

In a country with 200 million people aged 16 years and older, 120 million are in the labor force, and 114 million are employed, what is the participation rate?

Correct AnswerverifiedShow Answer

Net export spending is expenditures on:

Correct AnswerverifiedShow Answer

Which of the following is NOT a capital good?

Correct AnswerverifiedShow Answer

Educational services provided by public schools are:

Correct AnswerverifiedShow Answer

Which of the following is not classified as a final good?

Correct AnswerverifiedShow Answer

If an automobile manufacturer pays $200 for a car windshield, $400 for four car tires, $100 for a car radio, and sells cars made with these parts for $20,000, then each car the automobile manufacturer sells contributes how much to GDP?

Correct AnswerverifiedShow Answer

Assume an economy produces only footballs and baseballs and the base year is 2016. Given the data in the table above, what is the value of nominal GDP in 2017?

Correct AnswerverifiedShow Answer

The most commonly used measure of an economy's output is:

Correct AnswerverifiedShow Answer

Two groups of workers not counted as unemployed in the official unemployment statistics are ________ workers.

Correct AnswerverifiedShow Answer

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