Question 1 5 / 5 points
The fraction of the working-age population that is in the labor force is called the __________.
labor force participation rate
Question 2 5 / 5 points
Economists say that the economy is at "fullemployment" when the __________.
structural unemployment rate is zero
total unemployment rate is zero
frictional unemployment rate is zero
cyclical unemployment rate is zero
Question 3 5 / 5 points
The value of a dollar __________.
is its purchasing power
remains constant over time
is its face value
is set by the government
Question 4 5 / 5 points
What does the Consumer Price Index (CPI. measure?
prices of durable goods
prices of non-durable goods
the cost of living over time
the cost of replacing lost items
Question 5 5 / 5 points
What are the two critical measures of a nation’s economic health?
income and spending
sales and taxes
wages and raises
production and income
Question 6 5 / 5 points
The value of all final goods and services produced during a given time period measures a nation’s __________.
gross domestic product
net national product
consumer price index
Question 7 5 / 5 points
Economists define the unemployed as individuals who are __________.
not currently working
not currently working but are actively looking for work
working but looking for a different job
working less than their desired amount of time
Question 8 5 / 5 points
Which of the following would be a macroeconomic question?
How have the retirement benefits in the auto industry changed over time?
How has inflation increased over time?
How has the price of gold increased over time?
How has the number of commercial airline flights decreased over time?
Question 9 5 / 5 points
If Sam does not have a job and is not looking for work, he is considered __________.
unemployed and in the labor force
unemployed and not in the labor force
not in the labor force
Question 10 5 / 5 points
If you negotiated a salary based on an anticipated inflation rate of 4 percent, and the actual inflation rate turned out to be 6 percent, __________.
the purchasing power of your real wages would be more than you anticipated
your employer would have gained at your expense
your real wage will increase, but your nominal wage will decrease
the purchasing power of your wages will not change, since purchasing power is based on your nominal wage
Question 11 5 / 5 points
The labor supply and demand most directly affect the level of __________ in an economy.
people attending colleges
people requiring retraining
Question 12 5 / 5 points
studies the behavior of individual consumers, firms, and markets
studies the behavior of the economy as a whole
involves the interaction between different countries in specific markets
studies how computer automation has changed economics
Question 13 5 / 5 points
The Consumer Price Index (CPI. differs from a chain-weighted price index in that the CPI __________.
requires calculation of GDP, while the chain-weighted index does not
measures the costs of a typical fixed basket of goods over time, while the chain-weighted index does not
allows for the goods consumed in an economy to change over time, while the chain-weighted index does not
compares the prices of all goods in one year to the prices of all goods in other years
Question 14 5 / 5 points
The index most widely used by the government and the private sector to measure changes in the cost of living is the __________.
Producer Price Index
Consumer Price Index
the GDP deflator
the chain-weighted price index
Question 15 5 / 5 points
Suppose the stock of capital remains constant. By adding more labor, perhaps a second work shift, output __________.
remains the same
becomes more costly
Question 16 5 / 5 points
Suppose that nominal GDP in year 1 is 200 and nominal GDP in year 2 is 242. Assume that inflation is 10 percent per year. How fast did the economy grow between these two years?
Question 17 5 / 5 points
The circular flow is used to make the point that __________.
rising prices never occur during times of unemployment
unemployment only occurs during a recession
production generates income
households purchase factors of production from firms
Question 18 5 / 5 points
The unemployment rate is the number of unemployed people __________.
divided by the number of people who are working
divided by the total working-age population
divided by the sum of the number of people who are working and the number of people who are looking for work
and the number of people working fewer than their desired number of hours, divided by the number of people who are working or looking for work
Question 19 5 / 5 points
The largest component of GDP is __________.
private investment expenditures
Question 20 5 / 5 points
We measure gross domestic product by multiplying the quantities of goods by their prices because it allows us to __________.
express the values of products in a common unit of measurement
correct for inflation
directly compare the output of one economy to that of another
calculate the total number of units of goods produced in an economy