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| 1.
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A country produces two goods X and Y. The following table gives production and prices for each good in 2004 and 2005.
 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::Table 1::/sites/dl/free/0077108310/329314/ch18Table_1.JPG','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif">Table 1 (23.0K)</a>]]>Table 1
Using 2004 as the base year real GDP is ______ in 2004 and ______ in 2005. |
| | A) | €800; €700 |
| | B) | €730; €700 |
| | C) | €700; €730 |
| | D) | €800; €740 |
| | E) | €740; €800 |
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| 2.
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In a small town of 120 people there are 15 children under the working-age, 15 retired people, 72 people with full-time jobs, 3 full-time students, and 4 full-time homemakers. Off the
remaining people all but two are actively looked for a job. What is the unemployment rate in this town? |
| | A) | 7.5% |
| | B) | 11.1% |
| | C) | 12.5 % |
| | D) | 4.3% |
| | E) | 20.0% |
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| 3.
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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.
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Leaving the labour 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.
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In a population of 2,000 55 per cent are male and 45 per cent are female. 80 per cent of males and 90 per cent of females are of working age. 660 males and 648 females are either
working or actively seeking employment. The male participation rate is ______ and the female participation rate is ______. |
| | A) | 80%; 90% |
| | B) | 75%; 70% |
| | C) | 75%; 80% |
| | D) | 44%; 56% |
| | E) | 80%; 75% |
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| 6.
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6 All of the following government expenditures would be included in GDP except: |
| | A) | Salaries paid to government ministers |
| | B) | Salaries paid to security forces stationed abroad |
| | C) | Pensions paid to retired government workers |
| | D) | Expenditures on new warships |
| | E) | Subsidies paid to state owned radio stations |
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| 7.
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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.
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Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process:
 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::Table 2::/sites/dl/free/0077108310/329314/ch18Table_2.JPG','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif">Table 2 (32.0K)</a>]]>Table 2
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.
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Given the following data for an economy, compute the value of GDP.
 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::Table 3::/sites/dl/free/0077108310/329314/ch18Table_3.JPG','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif">Table 3 (46.0K)</a>]]>Table 3 |
| | A) | 2,800 |
| | B) | 2,900 |
| | C) | 3,300 |
| | D) | 4,400 |
| | E) | 6,700 |
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| 10.
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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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