1: This type of unemployment reflects the normal amount of unemployed workers who possess skills that will enable them to find another job.

Select one:

a.frictional unemployment

b.None of the above ANSWERs is correct.

c.structural unemployment

d.cyclical unemployment

2:An expansion occurs when the level of real GDP is

Select one:

a.at a cyclical trough.

b.decreasing.

c.at a cyclical peak.

d.increasing.

3:The labor force is the sum of the

Select one:

a.number of employed people and the number of unemployed people.

b.total population and the number of unemployed people.

c.number of employed people and the working-age population.

d.working-age population and the number of unemployed people.

4: he percentage of the people of working age who have jobs is called the .............

Select one:

a.inverse of the unemployment rate

b.employment-to-population ratio

c.labor force

d.employment-to-working-age-population ratio

5: An individual with good job prospects who is between jobs is best considered as

Select one:

a.not in the labor force.

b.structurally unemployed.

c.cyclically unemployed.

d.frictionally unemployed.

6: Consumption expenditure is the payment by households for consumption of

Select one:

a.goods and services.

b.goods but not services.

c.services but not goods.

d.services and for saving.

7: An expansion ends when the economy

Select one:

a.hits a trough and then enters a recession.

b.begins to grow following a peak.

c.hits a peak and then enters a recession.

d.has grown for two quarters in a row.

8:he unemployment rate equals the number of

Select one:

a.unemployed workers divided by the population then multiplied by 100.

b.unemployed workers divided by the number of employed workers then multiplied by 100.

c.unemployed workers multiplied by 100.

d.unemployed workers divided by the labor force then multiplied by 100.

9:in the calculation of gross domestic product by the expenditure approach, the ?investment? component is

Select one:

a.gross investment.

b.gross investment plus depreciation.

c.net investment.

d.gross investment minus depreciation.