Case 1 Ahmad, Ph.D. in economics, 32, not working but looking for a full-time job. (c) Laura, 20, is a full time student who is not working. (d) Sarah, 50, works full-time but hates her job and really wants a new job. Hawaraa, 42, is a university teacher, works 20 hours per week. (c) Samir, 40, used to work as a fisherman but believed that everyone hated him and has given (D) up in disgust. Wajih, a hugely successful film star, aged 12, has earned over $10,000,000 each year for the past five years. Currently, Wajih is filming a new movie on location on Sunny Island. 1. Refer to case 1. The unemployment rate is * a) 33.33% b) 25% c) 20% d) 23.12% 2. Refer to case 1. The labor force participation rate is equal to * a) 80% b) 20% () 66% d) 60% 3. Refer to case 1. The number of people in the labor force is * a) 3 b) 4 6 d) 2 4. Lisa recently quit her job at the university because she is looking for a job in a small town, Lisa is _ a) Frictionally unemployed b) Structurally unemployed () A discouraged worker and is part of the unemployment statistic d) Not part of the labor force and does not contributes to the unemployment rate 5. If cyclical unemployment is zero then * a) The unemployment rate is zero b) The unemployment rate is equal to the seasonal unemployment rate c) The unemployment rate is equal to the natural unemployment rate d) The unemployment rate is negativeTable 3 Gross Investments 25 Government expenditure 30 Imports 10 Expenditure on durable goods 10 Expenditure on non-durable goods 35 Underground activities estimation 10 Changes in inventory 3 Exports 15 Financial transactions 50 Residential housing 10 Expenditure on services 60 1) Refer to table 3. What is the Gross Domestic Product using the Expenditure Approach? * a) 178 bj 118 198 dj 208 2) Refer to table 3. What is the amount of consumption? * a) 75 bj 135 c) 145 dj 155 3) Which of the following is CORRECT? * :) Nominal GDP does not change when the production of goods and services increases bj Nominal GDP is not affected by changes in prices of goods and services c] Nominal GDP increases when the prices of goods and services increases dj Real GDP changes only when the prices of goods and services really change 4) Refer to table 3. What is the amount of Investment? * bj 28 13 d) 68 5) Refer to table 3. How much is the "Net exports"? * a) 15 -5 5 1 25Table 2 Table 2 1990 2005 Goods Quantities 1990 Prices Quantities 2005 Prices papayas 10 $1.00 20 50.50 fish 15 $0.60 20 $0.80 skirts $4.00 15 $4.00 1) Refer to table 2. Assume that this economy produces only three goods. If year 1990 is the base year, the growth rate for this economy between 1990 and 2005 is * =) 80.3% b) 85% 78% d) 82% 2) Refer to table 2. Assume that this economy produces only three goods. If year 1990 is the base year, the value for this economy's real GDP in year 2005 is' * a) $100 bj $ 92 $ 120 d) $70 3) In a business cycle, a peak occurs before the beginning of a(n)_and a trough occurs before the beginning of a(n)_ Depression, expansion Trough, peak Expansion, recession Recession, expansion 4) Refer to table 2. Assume that this economy produces only three goods. The value for this economy's nominal GDP in 2005 is ' * a) $ 25 bj $ 15 $ 86 d) 592 5) Refer to table 2. Assume that this economy produces only three goods. If year 1990 is the base year, the value for this economy's real GDP in year 1990 is' * a) $ 50 bj $ 57 $49 d') $51
