question
A nation's GDP is
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C + I + G + (X-M)
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the university of michigan releases a study showing that spending by firms has declined. what would the effect be to the overall economy?
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GDP declines
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a laptop computer purchased by you is ___, and the same laptop computer purchases by the US Department of Agriculture is _____
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consumption spending; government spending
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The demand for cookies will increase if...
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population increases
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Real GDP is used most effectively to...
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Analyze the growth rate of the economy over time.
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The sum of value added...
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Is one way to compute the GDP
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Real GDP is the...
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Value of final output produced in a given period measured in constant prices.
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The value of final output produced in a given period, measured in current prices, is
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Nominal GDP
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If a farmer grows a head of cabbage with fertilizer costs of $0.10 and seed costs of $0.15 and sells it to a wholesaler for $0.55, the total value added by the farmer is
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$0.30
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Real GDP is more accurate than nominal GDP in making comparisons of output over time because
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Nominal GDP can increase simply because of price increases over time.
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in periods of rising prices, percentage increase in nominal GDP will...
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exceed percentage increase in real GDP
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an economy's production possibilities curve indicates...
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how much the economy can produce
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To be officially counted as unemployed, one must be:
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Actively seeking employment and currently not working.
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Suppose Blu-Ray players cost consumers $300 and Blu-Ray discs cost consumers $30. What contribution does the production of 250 Blu-Ray players and 3000 Blu-Ray discs make to the GDP?
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$165,000
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If a nation has GDP of $12,500 billion and GDP per capita of $62,500, what is the nation's population?
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200 million
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which of the following is excluded from calculations of GDP?
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The value of lawn mowing provided by a teenager for his own family
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economic growth is...
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an expansion of production possibilities
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To be officially counted as unemployed, one must be...
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Actively seeking employment and currently not working.
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if the population of a country is 250,000 people, it's labor force consists of 145,000 people, 35,000 are unemployed, 10,000 are unable to work, and 5,000 are unwilling to work, the unemployment rate is...
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24.1%
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all of the following are true when the economy is growing except...
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Underemployment rises
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After a fruitless two-year search for a job, a former executive gives up and decides to live off the land in the Rocky Mountains. This former executive is considered
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discouraged worker
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Suppose you volunteer to help clean up your neighborhood, and the only payment you receive is the sense of goodwill that develops with your neighbors. Your efforts cause the GDP of the economy to
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remain unchanged
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which of the following is not a final good or service?
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Paper purchased by a textbook company
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suppose there are 6 million unemployed workers actively seeking a job. After a period of time 1,500,000 of these workers become discouraged and no longer look for employment. if everything else remains constant the unemployment rate will...
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decrease
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A furniture factory produces dining room sets. The lumber it purchases from the lumberyard is a/an
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intermediate good
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the type of unemployment that economists generally associate with normal growth of the labor force and expanding job opportunities in a dynamic economy is...
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frictional unemployment
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the total value of intermediate goods is...
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included in the value of final goods in the GDP
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Nancy returns to school to study medicine. After graduating, she spends six months looking for a job. During this period she is considered:
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frictionally unemployed
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frictional unemployment could result from each of the following except...
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The inability of people to find work during certain seasons of the year.
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a computer manufacturer sells laptops to retail stores for $450 each. if the manufacturer pays 200 for components of the laptop and 75 for wages the value added to each
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$175
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when there is a mismatch between the skills required for a job and the skills of job seekers, the unemployment that results is an example of...
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structural unemployment
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inflation is...
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an increase in the average level of prices of goods and services
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If the price of iPods rises 10 percent during a year when the level of average prices rises 3 percent, the relative price of iPods compared with other goods
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increases
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the amount of money income received in a given time period, measured in current dollars is...
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nominal income
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Inflation ___ the purchasing power of money.
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decreases
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which of the following groups is protected from a sudden increase in inflation?
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Borrowers who have loans at fixed interest rates.
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During a period of unanticipated inflation...
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Debtors are better off and creditors are worse off.
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hyperinflation is...
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An inflation rate in excess of 200% lasting at least one year
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during a period of deflation...
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people on fixed incomes are better off
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the consumer price index is...
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a measure of changes in the average price of consumer goods and services
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