Chapter 7 randomQuestion 1 1 / 1 point

Which of the following is most likely to contribute to economic growth as measured by GDP per capita?

a)   an increase in marginal tax rates

b)  increased capital formation

c)  the imposition of tariffs and quotas on imported goods

d)   rapid population growth

Question 2

1 / 1 point

_____________________ is a term which refers to the widespread use of power-driven machinery and the economic and social changes that resulted in the first half of the 1800s.

a)   Investment and inventions

b) The Industrial Revolution

c)   GDP per capita

d)  The living standard

Question 3

1 / 1 point

 In the long run, the most important source of increase in a nation's standard of living is a:

a)   high rate of labor force growth.

b) zero rate of population growth

c)   high rate of economic growth.

d)   high rate of consumption.

Question 4

1 / 1 point

 Which of the following is correct?

a)  An increase in the quantity of labor always leads to economic growth.

b)   Third World countries are rich in human capital.

c)   Increased education adds to the stock of human capital, not unlike

building factories adds to the stock of physical capital.

d)  A decrease in the productivity of labour leads to economic growth.

Question 5

1 / 1 point

 

____________ is a term which refers to the widespread use of power-driven machinery and the economic and social changes that resulted in the first half of the 1800s.

a)   Industrial Revolution

b)   Technology

c) Living standard

d) Capital deepening

Question 6

1 / 1 point

Which of the following factors contribute to economic growth?

a)   an increase in the standard of living

b)   a decrease in the productivity of labor

c) an increase in the proportion of the population that is college educated

d)  an increase in the average wage rate paid to workers

Question 7

1 / 1 point

 Economists typically measure economic growth by tracking:

a)   real GDP per capita.

b)   averaged GDP growth

c)   the employment rate.

d)  the unemployment rate.

Chapter 7 Problems

Question 8 1 / 1 point

 Assuming a country's economy maintains an 8% rate of growth, young adults starting at age 20 would see the average standard of living in their country more than double by the time they had reached age __________.

a) 50

b)   30

c)   60

d)   40

Chapter 8 Random

Question 9 1 / 1 point

 Women composed __________ of the paid workforce in 1900 and 50% of the paid workforce in 2010. 

a)   2%

b)   18%

c)   60%

d) 33%

Question 10

1 / 1 point

 Cyclical unemployment arises when:

a)  the agriculture sector completes the cycle of planting, cultivating, and harvesting the nation's food supply.

b)  the business cycle enters an expansionary phase.

c)   business activity in the macroeconomy declines.

d)   labor unions strike for higher wages.

Question 11

1 / 1 point

 Through good economic years and bad, many European economies had unemployment rates hovering near _________ since the 1970s.

a)   5%

b)   1%

c) 20%

d)   10%

Question 12

1 / 1 point

 Frictional unemployment is:

a) unemployment that is due to normal turnover in the labor market.

b) unemployment caused by automation in the workplace.

c)   unemployment caused by lack of training and education.

d)  unemployment that is due to the friction of competing ideological systems.

Question 13

1 / 1 point

 The most significant real economic cost of high unemployment is:

a)  the potential goods and services that might have been produced but weren't.

b) the money cost of unemployment insurance payments to the unemployed.

c)   the money cost of retraining persons to obtain new jobs.

d)  the lost tax revenue that might have been paid by persons if they had worked.

Question 14

1 / 1 point

The rise in unemployment that occurs because of a recession is known as cyclical unemployment, because it is closely tied to the ______________.

a)   business cycle

b)   supply curve

c)  natural rate of unemployment

d)   labor supply

Chapter 8 Problems

Question 15 1 / 1 point

 Craigburg has a working age population of 20 million. Of those, 11 million are employed and 1 million are unemployed. The unemployment rate is ________ and the participation rate is __________.

 

a)   5%; 55%.

b)   8.3%; 55%.

c)   8.3%; 60%.

d)   5%; 60%.

Question 16

1 / 1 point

In November 2010 the labor force in Siouxtown, was 14,800. There were 14,483 persons employed. The local unemployment rate:

 

a) was 7.1%.

b) was 1.2%.

c) was 2.1%.

d) was 5.6%.

Question 17

1 / 1 point

 If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals:

a)   20%.

b)   32%.

c)   25%.

d)   8%.

Chapter 9 random

Question 18 1 / 1 point

Which of the following is the name used to describe the price index that consists of intermediate goods and finished goods?

a)   Producer Price Index 

b)   Employment Cost Index

c)   Consumer Price Index

d)   Processing Price Index

Question 19

1 / 1 point

A payment is said to be ________________ if it is automatically adjusted for inflation. 

a)  maintained

b) matched

c)   indexed

d)   cross referenced

Question 20

1 / 1 point

The situation where the buying power of money in terms of goods and services increases is called:

a)   deflation.

b) hyperinflation.

c)   inflation.

d) stationary pricing.

Question 21

0 / 1 point

The ____________________ is based on the prices of merchandise that are exported or imported.

a)   Producer Price Index

b)   International Product Index

c)  International Price Index

d) Foreign Price Index

Question 22

1 / 1 point

 Inflation can be calculated in terms of how the overall cost of ___________________ changes over time.

a) all goods and services

b)   the basket of goods 

c)  all services

d)   all goods

Question 23

1 / 1 point

 The __________________ is the nominal interest rate minus the rate of inflation.

a)  real interest rate

b)  real GDP

c) annualized interest rate

d) nominally adjusted

Chapter 9 Problems

Question 24 1 / 1 point

Nancy's union has negotiated a three-year wage contract that provides for a 2.4% increase indexed to inflation. The rates of inflation are forecast to be 1.62%, 1.93% and 2.21% respectively. How will Nancy's wage increase be expressed in the new contract?

a) COLA plus 2.4%

b)   COLA plus 1.6%

c)   COLA plus 2.2%

d) COLA plus 1.9%

Question 25

1 / 1 point

An analyst needs to adjust the nominal GDP for the years 2000 and 2010 into real terms to conclude his comparison analysis. The nominal GDP in 2000 was $672 billion and $1,690 billion for 2010; the real interest rate was 6.79% in 2000 and 3.71% in 2010; the 2000 deflator was 24 and 51 in 2010. What is the real gain?

a)   70.61%

b)   38.58%

c) 18.34%

d) 151.48%