1.A business cycle expansion will tend to cause :

Select one:

a. decrease in inflation

b. decrease in both unemployment and inflation

c. increase in bothunemployment andin inflation

d. decrease in unemployment

2.What does GDP not include?

Select one:

a. Non-market costs;

b. Value of market production;

c. Value of transactions in assets;

d. All are not included

3.Which of the following is a correct statement?

Select one:

a. United Nations (UN) report titled 'World Economic Situation and Prospects 2013', reported that a double-dip recession in several European economies had not affected the labour markets.

b. The unemployment rate continued to decline to a record low in the euro area during 2012

c. If the growth expansion continued, the unemployment rate could be expected to increase significantly

d. Prolonged duration of unemployment tends to have significant, long-lasting detrimental impacts on both the individuals who have lost their jobs and on the economy as a whole.

4.Which of the following statement is correct?

Select one:

a. Markets can fail to allocate resources efficiently when there are externalities to production

b. Resources are always allocated efficiently through decentralized markets

c. Efficiency can never be achieved through market economies

d. Government intervention can never improve market efficiency

5.Which of the following is not a social cost?

Select one:

a. broken marriages

b. personal hardship

c. GDP decrease

d. decay of unused skill

6.A growth cycle is measured by the rise and fall in:

Select one:

a. growth rate of population

b. ocean tides

c. growth rate of production

d. growth rate of school enrollments

7.Which of the following represents theHuman DevelopmentIndex?

Select one or more:

a. Life Expectancy Index

b. Literacy Rate

c. Gross Fixed Capital Formation

d. Trade Openness Index