1. Gross domestic product is a measure of the total value of all
2. A.Final goods and services produced in an economy over a period of time.
3. B.Capital accumulation in an economy over a period of time.
4. C.Market value of all final and intermediate goods and services.
5. D.Labor payments generated in an economy in a given time period.

3 points

QUESTION 2

1. If Nike, an American corporation,produces sneakers in Taiwan,this would,
2. A.Count for both Taiwan's GDP and U.S.GDP.
3. B.Count as part of U.S>GDP since it is a U.S. corporation.
4. C.Add to neither U.S.GDP nor Taiwan's GDP.
5. D.Add to Taiwan' GDP but not to U.S.GDP.

3 points

QUESTION 3

1. Intermediate goods are excluded from GDP because
2. A.The premise of the question is incorrect because intermediate goods are directly included in calculating GDP.
3. B.Their inclusion would involve double counting.
4. C.They represent goods that have never been purchased so they cannot be counted.
5. D.Their inclusion would underestimate GDP.

3 points

QUESTION 4

1. A loaf of bread purchased by your English professor would be best described as
2. A.A final good.
3. B.A used good.
4. C.An intermediate good.
5. D.An investment.

3 points

QUESTION 5

1. If Ford produced a car in 2019,which is sold in April 2020.The car is included in
2. A.None of the choices is correct.
3. B.2020 GDP because that is when it earned revenue for Ford.
4. C.2019GDP because that was the year of production.
5. D.2020 GDP because that is when the car exited the distribution channel.

3 points

QUESTION 6

1. Which of the following is the expenditure approach equation to calculate GDP?
2. A.GDP +C +I +G +(M -X).
3. B.GDP =C +I -G +(M - X).
4. C.GDP =C +I -G +(X - M ).
5. D.GDP = C +I +G +(X -M).
6. whereas X represents exports and M represents imports.

3 points

QUESTION 7

1. Two methods of measuring GDP are
2. A.The income approach and the expenditure approach.
3. B.The income approach and the receipts approach.
4. C.The savings approach and the investment approach.
5. D.The goods approach and th services approach.

3 points

QUESTION 8

1. Which of the following expenditures is for an intermediate good?
2. A.General Motors buys new tires to put on the cars it is building.
3. B.The government buys new tires for its military vehicles.
4. C.Your friend buys new tires for his old car.
5. D.A U.S.firm sells new tires to Canada.

3 points

QUESTION 9

1. Transfer payments are not included in GDP because
2. A.They do not generate additional income.
3. B.They are not purchases of goods and services.
4. C.Their market value cannot be accurately determined.
5. D.Their value is included in government expenditure.

3 points

QUESTION 10

1. Which of the following purchases is included in personal consumption expenditures when determining GDP?
2. A.Purchase of jeans to add to a store's inventory.
3. B.Purchase of a new office building.
4. C.Purchase of a new computer by you to school work.
5. D.Purchase of a new house because of the arrival of a new baby.

3 points

QUESTION 11

1. Consumption expenditures include all of the followingEXCEPTspending on
2. A.Consumer durable goods.
3. B.New house.
4. C.Consumer services.
5. D.Consumer nondurable goods.

3 points

QUESTION 12

1. Potential GDP is
2. A.The level of GDP achieved during periods when 100 percent of the labor force is employed.
3. B.A goal that can never be achieved by the economy.
4. C.The maximum GDP that an economy actually achieves throughout its entire history.
5. D.The value of production when all the nation's resources are fully employed.

3 points

QUESTION 13

1. Frictional unemployment
2. A.Includes discouraged workers.
3. B.Is unemployment associated with recession.
4. C.Is unemployment associated with normal labor turnover.
5. D.Is voluntary part-time unemployment.

3 points

QUESTION 14

1. Which of the following best fits the definition of unemployed?
2. A.Retired and not working.
3. B.Working less than a full work week.
4. C.Not working but looking for work.
5. D.Not working and not looking for work.

3 points

QUESTION 15

1. Full employment means
2. A.None of the choices is correct.
3. B.Zero percent unemployment rate.
4. C.Only frictional and structural unemployment exist.
5. D.Only cyclical unemployment exists.

3 points

QUESTION 16

1. The three types of unemployment are
2. A.Frictional,part-time, and involuntary.
3. B.Voluntary, part-time, and involuntary.
4. C.Frictional,structural,and cyclical.
5. D.Voluntary, part-time. and cyclical.

3 points

QUESTION 17

1. The best example of a frictionally unemployed individual is
2. A.Mary who quits school to find work to support herself.
3. B.Charles who has lost his job as an autoworker because of increased foreign competition and cannot find a good job that utilizes his skills.
4. C.Sandy who has few skills and is no longer looking for work.
5. D.Sam who lost his job as a real estate salesperson when the economy slipped into a recession due to the coronaviruspandemic.

3 points

QUESTION 18

1. In a country with a working-age population of120million,95millionpeople are employed and 5million people are not working but actively looking for work. What is the unemployment rate for this country?
2. A.None of the choices is correct.
3. B.5.26%.
4. C.10%.
5. D.5%.

3 points

QUESTION 19

1. Structural unemployment is
2. A.Associated with the normal labor turnover in a dynamic economy.
3. B.Associated with the general decline of specific industries.
4. C.Almost always short-term in nature.
5. D.Associated with the general downturns in the economy.

3 points

QUESTION 20

1. Which of the following would NOT be considered unemployed>
2. A.An individual fired by his employer and started to look for a new job.
3. B.A newly retired worker.
4. C.A new entrant to the labor force.
5. D.A job leaver who is looking for a better job.

3 points

QUESTION 21

1. Alvin is a high school graduate who lost his job in a fast food restaurant when the economy plunged into a recession.After 10months,Alvin is still looking for work.He is an example of
2. A.Structural unemployment.
3. B.Cyclical unemployment.
4. C.Frictional unemployment.
5. D.The natural unemployment.

3 points

QUESTION 22

1. An example of "Investment" in computing real GDP using the expenditure approach is the purchase of
2. A.A 100-year old house purchased by a married couple.
3. B.A new computer bought my Dr.Lin's Tax Clinic.
4. C.Computerchips bought by Dell to put in its personal computers.
5. D.100 shares of IBM stock.

3 points

QUESTION 23

1. All of the following statements are correct EXCEPT:
2. A.The labor force participation rate is the labor force divided by the working-age population then multiplies 100.
3. B.The labor force is equal to the number of people employed plus the number of people unemployed.
4. C.The working-age population includes everyoneover the age of 16.
5. D.The unemployment rate is the number of people who are unemployed divided by the labor force then multiplies 100.

3 points

QUESTION 24

1. The labor force is defined as
2. A.People with full time jobs.
3. B.Workers with jobs and unemployed people.
4. C.All people capable of work.
5. D.All of the choices are correct.

3 points

QUESTION 25

1. Suppose the current unemployment rate is 5%,the labor force is 100million people,what number of people are unemployed?
2. A.25 million.
3. B.Not enough information given.
4. C.5 million.
5. D.100 million.