QUESTION 15

Ms.Ecksteinhas lost her job in a Quebec textile plantbecause of importcompetition. She intends to take a short course in electronics and move to Alberta whereshe anticipates new jobs will be available. We can say that Ms Ecksteinis faced with:

a.structuralunemployment

b.secular unemployment

c.frictional unemployment

d.cyclical unemployment

QUESTION 16

The four-firm concentration ratio for an industry measures the:

a.level of production in the industry

b.geographic concentration of firms

c.percentage of the industry's capital facilities owned by the four largest firms

d.extent to which the four largest firms dominate the production and sale of a good

QUESTION 17

Suppose that a person's nominal income rises from $10 000 to $11 000 and the consumer price index rises from 100 to 105. The person's real income will:

1.fall by about 1 percent

2.l>

3.fall by about 5 percent

4.rise by about 10 percent

5.rise by about 5 percent

QUESTION 18

At the economy's natural rate of unemployment:

a.only seasonal unemploymentexists

b.there is a relatively low level of cyclical unemployment

c.the economy achieves its potential output

d.only frictional unemployment exists

QUESTION 19

GDP can be calculated by adding:

a.consumption, gross investment, government purchases, exports, and imports

b.consumption, gross investment, government purchases, and imports

c.gross investment, government purchases, consumption, and net exports

d.consumption, gross investment, government purchases, and exports

QUESTION 20

Professor Shieldsgrowstomatoes in her garden for her family and friends. This activity is:

a.excluded from GDP because no money changeshands

b.included in GDP because it reflects production

c.excluded from GDP becausean intermediate product is involved

d.excluded from GDP to avoid double counting

QUESTION 21

If the consumer price index rises from 116to 120in a particular year, the economy has experienced:

1.deflation of 3.33 percent

2.deflation of 4.35 percent

3.inflation of 3.45 percent

4.inflation of 4 percent