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| 1 | |
If prices in the current year are higher on average than in the base year, real GDP in the current year _________ nominal GDP in the current year. |
| | A) | is greater than |
| | B) | is less than |
| | C) | is equal to |
| | D) | could be greater or less than |
| | E) | is one-third of |
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| 2 | |
In a small town of 120 people there are 15 children under 16, 15 retired people, 69 people with full-time jobs, 3 people with part-time jobs, 3 full-time students over 16, and 4 full-time homemakers. The remaining people did not have jobs, but wanted them. All but two of these had actively looked for a job in the previous four weeks. What is the unemployment rate in this town? |
| | A) | 7.5% |
| | B) | 11.1% |
| | C) | 12.5 % |
| | D) | 14.3% |
| | E) | 20.0% |
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| 3 | |
The labor force divided by the working age population equals the: |
| | A) | unemployment rate. |
| | B) | employment rate. |
| | C) | participation rate. |
| | D) | population rate. |
| | E) | duration rate. |
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| 4 | |
Leaving the labor force or finding a job are two ways that : |
| | A) | a person can become a discouraged worker. |
| | B) | a person can become an involuntary part-time worker. |
| | C) | an unemployment spell can begin. |
| | D) | an unemployment spell can end. |
| | E) | unemployment duration can be extended. |
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| 5 | |
The length of an unemployment spell is called its: |
| | A) | rate. |
| | B) | participation rate. |
| | C) | duration. |
| | D) | cycle. |
| | E) | period. |
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| 6 | |
People who say that they would like to have a job but have not made an effort to find a job in the past four weeks are called _______ workers. |
| | A) | unemployed |
| | B) | involuntary part-time |
| | C) | discouraged |
| | D) | chronically unemployed |
| | E) | short-term unemployed |
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| 7 | |
If Bountiful Orchard grows $200,000 worth of peaches, sells $50,000 worth of peaches to consumers and uses to rest to make jam that is sold to consumers for $200,000, Bountiful Orchard's contribution to GDP is: |
| | A) | $50,000. |
| | B) | $100,000. |
| | C) | $200,000. |
| | D) | $250,000. |
| | E) | $450,000. |
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| 8 | |
Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process:
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What is the value added of Friendly Groceries? |
| | A) | $1.00 |
| | B) | $2.50 |
| | C) | $5.00 |
| | D) | $7.50 |
| | E) | $8.50 |
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| 9 | |
Given the following data for an economy, compute the value of GDP.
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| | A) | 2,800 |
| | B) | 2,900 |
| | C) | 3,200 |
| | D) | 3,400 |
| | E) | 6,700 |
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| 10 | |
GDP is an imperfect measure of economic well being because it excludes: |
| | A) | spending on services. |
| | B) | the value of leisure. |
| | C) | government spending on health care. |
| | D) | the change in business inventories. |
| | E) | goods produced domestically, but sold abroad. |
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