Question 1
Refer to Table 23-5. In 2016, this country's
A. real GDP was $880, and the GDP deflator was 111.4.
B. real GDP was $780, and the GDP deflator was 88.6.
C. real GDP was $880, and the GDP deflator was 112.8.
D. real GDP was $780, and the GDP deflator was 112.8.
Question 2
The Lorenz curve is a graphical representation of
A. the income to poverty ratio.
B. economic growth.
C. the percentage of total income left to spend after taxes.
D. the distribution of income.
Question 3
If the Gini coefficient is zero, there is
A. relative income equality.
B. complete income inequality.
C. complete income equality.
D. relative income inequality.
E. none of the above
Question 4
GDP per person tells us the income and expenditure of the
A. richest person in the economy.
B. poorest person in the economy.
C. average person in the economy.
D. entire economy.
Question 5
The GDP deflator is the ratio of
A. nominal GDP to the inflation rate multiplied by 100.
B. real GDP to the inflation rate multiplied by 100.
C. nominal GDP to real GDP multiplied by 100.
Question 6
Real GDP is the yearly production of final goods and services valued at
A. current prices.
B. constant prices.
C. expected future prices.
D. the ratio of current prices to constant prices.
Question 7
In the economy of Talikastan in 2015, consumption was $700, exports were $200, government purchases were $300, imports were $150, and investment was $400. What was Talikastan's GDP in 2015?
A. $1350
B. $1450
C. $1050
D. $1750
Question 8
"Economic growth" has occurred if
A. inflation rate between this year and last year is zero or less.
B. Real GDP this year is greater than Real GDP last year.
C. unemployment rate this year is above the natural rate of unemployment.
Question 9
Net exports equals
A. exports divided by imports.
B. only exports.
C. exports minus imports.
Question 10
Which of the following would definitely not be included in the measurement of GDP?
A. value of the services of a professional painter who paints your garage
B. value of the services of a person who mows his or her own lawn
C. value of the services of a professional maid who cleans your house
D. value of the services of a professional plumber who fixes your kitchen sink
Question 11
Which of the following items is a final good?
A. mustard in a deli used to make sandwiches
B. tin purchased by a tin can company
C. a sweater purchased by someone in a department store
Question 12
Which of the following is included in the consumption component of GDP?
A. household purchases of appliances.
B. household purchases of medical care.
C. household purchases of food.
D. All of the above are included in the consumption component of GDP.
Question 13
When the overall level of prices in the economy is increasing, economists say that the economy is experiencing
A. economic growth.
B. stagflation.
C. inflation.
D. deflation.
Question 14
The CPI is a measure of the overall cost of
A. the inputs purchased by a typical producer.
B. the goods and services purchased by a typical consumer.
C. the stocks on the New York Stock Exchange.
Question 15
Suppose a basket of goods and services has been selected to calculate the CPI and 2014 has been selected as the base year. In 2012, the basket's cost was $50; in 2014, the basket's cost was $52; and in 2016, the basket's cost was $58. The value of the CPI in 2016 was
A. 106.0.
B. 104.0.
C. 111.5.
D. 116.0.
Question 16
The price index was 220 in one year and 238.2 in the next year. What was the inflation rate?
A. 8.3 percent
B. 108.3 percent
C. 4.8 percent
D. 38.2 percent
Question 17
Refer to Table 24-2. If 2012 is the base year, then the CPI for 2013
Table 24-2
The table below pertains to Pieway, an economy in which the typical consumer's basket consists of 15 bushels of p eaches and 10 bushels of p emus.
|
Year
|
Price of Peaches
|
Price of Pecans
|
|
2012
|
$11 per bushel
|
$6 per bushel
|
|
2013
|
$9 per bushel
|
$10 per bushel
|
A. 95.7.
B. 100.0.
C. 104.4.
D. 110.0.
Question 18
The amount of unemployment that an economy normally experiences is called the
A. average rate of unemployment.
B. natural rate of unemployment.
C. cyclical rate of unemployment.
D. typical rate of unemployment.
Question 19
Who is included in the labor force by the Bureau of Labor Statistics?
A. Dia, an unpaid homemaker not looking for other work
B. Kevin, a full-time student not looking for work
C. Sarah, who does not have a job but is looking for work
D. None of the above is correct.
Question 20
Suppose there are a large number of men who used to work or seek work who now no longer do either. Other things the same, this makes
A. the number of people unemployed rise but does not change the labor force.
B. the number of people unemployed rise but makes the labor force fall.
C. both the number of people unemployed and the labor force fall.
D. the number of people unemployed fall but does not change the labor force.
Question 21
Scenario 28-1
Suppose that the Bureau of Labor Statistics reports that the entire adult population of Mankiwland can be categorized as follows: 25 million people employed, 3 million people unemployed, 1 million discouraged workers, and 1 million people who are either students, homemakers, retirees, or other people not seeking employment.
Refer to Scenario 28-1. What is the unemployment rate?
A. 3.3%
B. 6.7%
C. 10.7%
D. 12%
Question 22
Discouraged workers are included in
A. the number of unemployed.
B. frictional unemployment.
C. the labor force.
D. None of the above is correct.
Question 23
The unemployment due to changes in the types of skills employers require is called __________ unemployment.
A. structural
B. cyclical
C. natural
D. frictional
Question 24
The value of the consumer price index (CPI) is always equal to ______________ in the base year.
A. 1
B. 10
C. 100
D. 1,000
E. There is not enough information given to answer this question.