1 Classifying discouraged workers as unemployed would

have an indeterminate impact on the unemployment rate

increase the unemployment rate.

not change the unemployment rate.

decrease the unemployment rate.

2 What is meant by the strategic-industry argument?

It is good strategy for a country to impose tariffs on the importation of luxury products.

A country should protect its strategic industries from foreign competition.

A country should assist newer industries which are not yet mature enough to compete with foreign industries.

It is to a country's benefit to buy strategic products as cheaply as possible.

3 The unemployment that occurs during recessions and depressions is

structural unemployment

cyclical unemployment.

frictional unemployment.

the natural rate of unemployment

4 How is the GDP for Canada defined?

It is the value of all goods and services produced by Canadians in a given year.

It is the value of all goods and services, final and intermediate, produced in Canada in a given year.

It is the value of all final goods and services produced in Canada in a given year.

It is the value of all economic resources used in the production of a year's output.

5 A country has favourable terms of trade when:

The average price of its exports increases relatively more than does the average price of its imports.

The average value of its imports increases relatively more than does the average value of its exports.

The average volume of its exports decreases more than does the average volume of its imports.

The average price of its imports increases relatively more than does the average price of its exports.