Question 1

What is the value of all goods and services produced during the specifiedperiod in current prices (e.g. end of period prices)?

a. Nominal GDP

b. Real GDP

c. Both of the above

d. None of the above

Question 2

What is the value of all goods and services produced during the specified period, but they're priced in the prices of some base year?

a. Nominal GDP

b. Real GDP

c. Both of the above

d. None of the above

Question 3

Which of the following is NOT a consumption spending used to calculate GDP?

a. Durable goods (items expected to last more than three years)

b. Nondurable goods (food and clothing)

c. Services

d. Roads

Question 4

Which of the following is NOT a government spending used to calculate GDP?

a. Defense

b. Durable goods

c. Roads

d. Schools

Question 5

Which of the following is NOT an investment component used to calculate GDP?

1. Defense
2. Nonresidential (spending on plants and equipment)
3. Residential (single-family and multi-family homes)
4. Business inventories

Question 6

Which of the following would be included as a member of the labor force?

a. I am a full time college student.

b. A recent high school graduate looking for a first job.

c. A homemaker contributing 15 hours per week as a volunteer worker in a hospital.

d. A retired school teacher collecting social security benefits.

Question 7

Which of the following people would be considered unemployed?

a. I am a full-time college student.

b. A recent high school graduate looking for a first job.

c. A retired school teacher collecting social security benefits.

d. A homemaker contributing 15 hours per week as a volunteer worker in a hospital.

Question 8

Which one of the following persons would NOT be considered unemployed?

a. An auto worker vacationing in Florida during the layoff period, before the production of new models begins next month. He does not know for sure whether he will be called back to work when this happens, and looked for a new job last week.

b. A college student actively searching for a summer job.

c. A construction worker who has given up looking for work after 18 months without a job.

d. A retiree actively looking for part-time work to supplement Social Security income.

Question 9

Frictional unemployment often occurs when:

a. The economy enters a recession.

b. People first enter the labor force.

c. People are discriminated against.

d. People lose a job because their skills are no longer needed.

Question 10

Workers at a steel plant are laid off because the economy is weak and the demand for products requiring steel has fallen. What type of unemployment best describes theworkers' situation?

a. Cyclical unemployment.

b. Full unemployment.

c. Structural unemployment.

d. Frictional unemployment.

Question 11

	In Millions
Population	210
Unemployed	50
Not in the labor force	65
Employed	95

Using the table above, the unemployment rate is:

a. 30 percent.

b. 51 percent.

c. 17 percent.

d. 29 percent.

Question 12

	In Millions
Population	270
Unemployed	60
Not in the labor force	70
Employed	140

. Using the table above, the unemployment rate is:

a.30.33 percent.

b. 5.06 percent.

c. 17.50 percent.

d. 45.23 percent.