GDP and Unemployment

Practice EOCT questions

1. Gross Domestic Product is a method for calculating how much a country produces by adding which four spending categories?A Consumption, Investment, Government, Net ExportsB Consumption, Investment, Government, Business expendituresC Consumption, Interest Rates, Goverment, Net ExportsD Wages, Rent, Interest, Dividends

2. In October, Bill is laid off from his job as a Halloween costume maker solely because of a slow Halloween season. Which statement is true?A Bill is naturally unemployed.B Bill is cyclically unemployed.C Bill is frictionally unemployed.D Bill is structurally unemployed.

3. The town of Smithville recently closed the blacksmith factory and now all of the blacksmiths are out of work. This type of unemployment is known asA structural.B frictional.C cyclical.D nominal.

• Which person below would be considered frictionally unemployed?

• A Jill, who quit her job to become a full time student.

• B Jake, who has recently entered the labor force.

• C Jennifer, whose skills are no longer needed.

• D Jimmy, whose parents shut down the family farm

key

1. A2. B3. A4. B