ECON 293 HomeWork 2 (solutions)

Question 1 (1 point)

 

 To achieve a high standard of living, a nation should:

Question 1 options:

 

a) 

use less capital and more labor in the production process.

 

b) 

 promote economic growth.

 

c) 

 increase welfare payments to the poor.

 

d) 

 increase the tax deduction for child dependents.

Question 2 (1 point)

 

 Of the world’s population of 6.7 billion people, _________ are scraping by on incomes that average less than $2 per day.

Question 2 options:

 

c) 

2.6 billion

Question 3 (1 point)

 

Which of the following is most likely to contribute to economic growth as measured by GDP per capita?

Question 3 options:

 

a) 

increased capital formation

 

b) 

 an increase in marginal tax rates

 

c) 

the imposition of tariffs and quotas on imported goods

 

d) 

 rapid population growth

Question 4 (1 point)

 

An economy’s rate of productivity growth is closely linked to the growth rate of its ______________, although the two aren’t identical.

Question 4 options:

 

a) 

 technology

 

b) 

output

 

c) 

GNP

 

d) 

 GDP per capita

Question 5 (1 point)

 

Over the long run, ____________ per hour is the most important determinant of the average wage level in any economy.

Question 5 options:

 

a) 

 dollars

 

b) 

productivity

 

c) 

 demand

 

d) 

 supply

Question 6 (1 point)

 

 To achieve a high standard of living, a nation should:

Question 6 options:

 

a) 

use less capital and more labor in the production process.

 

b) 

increase welfare payments to the poor.

 

c) 

 increase the tax deduction for child dependents.

 

d) 

 promote economic growth.

Question 7 (1 point)

 

 A nation can achieve higher economic growth if:

Question 7 options:

 

a) 

 taxes are imposed on investment in capital.

 

b) 

 the productivity of labor declines.

 

c) 

 more resources are allocated to consumption goods.

 

d) 

it devotes more resources to research and development.

Question 8 (1 point)

 

 Assuming a country's economy maintains an 8% rate of growth, young adults starting at age 20 would see the average standard of living in their country more than double by the time they had reached age __________.

Question 8 options:

 

a) 

 60

 

b) 

50

 

c) 

 30

 

d) 

 40

Question 9 (1 point)

 

The unemployment rate measures:

Question 9 options:

 

a) 

 the number of people unemployed divided by the number of people employed.

 

b) 

 unemployed workers as a percentage of the population age over-sixteen.

 

c) 

 unemployed workers as a percentage of the labor force.

 

d) 

 unemployed workers as a percentage of the population.

Question 10 (1 point)

 

The rise in unemployment that occurs because of a recession is known as cyclical unemployment, because it is closely tied to the ______________.

Question 10 options:

 

a) 

 natural rate of unemployment

 

b) 

 supply curve

 

c) 

 business cycle

 

d) 

 labor supply


Question 11 (1 point)

 

During the deep recessions of the early 1980s and of 2007-2009, unemployment reached roughly __________.

 

Question 11 options:

 

a) 

 30%

 

b) 

 40%

 

c) 

 10%

 

d) 

 20%

Question 12 (1 point)

 

The labor force consists of:

Question 12 options:

 

a) 

 all adults who are working, plus those not working.

 

b) 

 all adults who are able to work.

 

c) 

 all adults who are working or actively seeking work.

 

d) 

discouraged workers, employed workers, plus those actively seeking work.

Question 13 (1 point)

 

If the unemployment rate is 8 percent, then this means:

Question 13 options:

 

a) 

 8 percent of the labor force is unemployed.

 

b) 

 8 percent of the population age over sixteen is unemployed.

 

c) 

the number of unemployed persons equals 8 percent of the employed persons.

 

d) 

8 percent of the population is unemployed.

Question 14 (1 point)

 

Insofar as government public policy is concerned, the best way to battle unemployment would be __________________.

Question 14 options:

 

a) 

 to minimize recessions

 

b) 

to minimize labor unions

 

c) 

to maximize unemployment payments

 

d) 

 to maximize unemployment insurance duration

Question 15 (1 point)

 

 If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals:

Question 15 options:

 

a) 

 20%.

 

b) 

 8%.

 

c) 

 32%.

 

d) 

 25%.

Question 16 (1 point)

 

 Reginald looked for work for six months but could not find a job to his liking. He now spends his time at the beach. For purposes of employment he is considered:

Question 16 options:

 

a) 

unemployed.

 

b) 

out of the labor force.

 

c) 

 employed in the underground economy.

 

d) 

 underemployed.

Question 17 (1 point)

 

 Craigburg has a working age population of 20 million. Of those, 11 million are employed and 1 million are unemployed. The unemployment rate is ________ and the participation rate is __________.

 

Question 17 options:

 

a) 

 5%; 55%.

 

b) 

 8.3%; 60%.

 

c) 

 5%; 60%.

 

d) 

 8.3%; 55%.

Question 18 (1 point)

 

A payment is said to be ________________ if it is automatically adjusted for inflation. 

Question 18 options:

 

a) 

 maintained

 

b) 

matched

 

c) 

 cross referenced

 

d) 

 indexed

Question 19 (1 point)

 

The basket of goods in the Consumer Price Index consists of about _________ products; that is, several hundred specific products in over __________ broad-item categories.

Question 19 options:

 

a) 

80,000; 400

 

b) 

 200; 800

 

c) 

800; 200

 

d) 

 80,000; 200

Question 20 (1 point)

 

Which of the following is an example of one of the major categories in the overall CPI?

Question 20 options:

 

c) 

transportation 

Question 21 (1 point)

 

The situation where the buying power of money in terms of goods and services increases is called:

Question 21 options:

 

a) 

 inflation.

 

b) 

hyperinflation.

 

c) 

 deflation.

 

d) 

stationary pricing.

Question 22 (1 point)

 

One of the reasons that a rise in the price of a fixed basket of goods over time tends to overstate the rise in a consumer’s true cost of living, is:

Question 22 options:

 

a) 

 complimentary bias

 

b) 

 substitution bias

 

c) 

 preference bias

 

d) 

attribution bias

Question 23 (1 point)

 

 The __________________ is the nominal interest rate minus the rate of inflation.

Question 23 options:

 

a) 

real GDP

 

b) 

nominally adjusted

 

c) 

annualized interest rate

 

d) 

 real interest rate

Question 24 (1 point)

 

Nancy's union has negotiated a three-year wage contract that provides for a 2.4% increase indexed to inflation. The rates of inflation are forecast to be 1.62%, 1.93% and 2.21% respectively. How will Nancy's wage increase be expressed in the new contract?

Question 24 options:

 

a) 

COLA plus 1.9%

 

b) 

COLA plus 2.4%

 

c) 

 COLA plus 2.2%

 

d) 

 COLA plus 1.6%

Question 25 (1 point)

 

 When Anders took out his first two-year membership with Maxima Gym in 2004, the fee was $540.00.  He renewed his membership three times; in 2006 for $580.00, in 2008, for $600.00, and again in 2010, for $630.00. What is the overall rate of inflation for Anders' gym membership? 

Question 25 options:

 

a) 

 7.87%

 

b) 

16.66%

 

c) 

 8.6%

 

d) 

 5.4%

Question 1 (1 point)

 

Which of the following factors contribute to economic growth?

Question 1 options:

 

a) 

 an increase in the average wage rate paid to workers

 

b) 

an increase in the proportion of the population that is college educated

 

c) 

 a decrease in the productivity of labor

 

d) 

 an increase in the standard of living

Question 2 (1 point)

 

 In the long run, the most important source of increase in a nation's standard of living is a:

Question 2 options:

 

a) 

high rate of labor force growth.

 

b) 

 high rate of consumption.

 

c) 

 high rate of economic growth.

 

d) 

 zero rate of population growth.

Question 3 (1 point)

 

 Which of the following is correct?

Question 3 options:

 

a) 

 Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital.

 

b) 

 An increase in the quantity of labor always leads to economic growth.

 

c) 

 Third World countries are rich in human capital.

 

d) 

 A decrease in the productivity of labour leads to economic growth.

Question 4 (1 point)

 

 

____________ is a term which refers to the widespread use of power-driven machinery and the economic and social changes that resulted in the first half of the 1800s.

Question 4 options:

 

a) 

Capital deepening

 

b) 

Living standard

 

c) 

 Industrial Revolution

 

d) 

 Technology

Question 5 (1 point)

 

 In certain African countries like Niger, Tanzania, Nigeria, and Sudan, for example, GDP per capita at the start of the 2000s was still less than $___________.

Question 5 options:

 

a) 

 300

 

b) 

 30

 

c) 

 3000

 

d) 

30,000

Question 6 (1 point)

 

Some prominent members of the slow-economic growth country club include a high-income country like _________.

Question 6 options:

 

a) 

 Nigeria

 

b) 

 Bolivia

 

c) 

Somalia

 

d) 

 Germany

Question 7 (1 point)

 

 In the early 2000s in Bangladesh, the illiteracy rate for girls between the ages of 15 and 24 was __________ and the illiteracy rate for males in this age group was ______________.

Question 7 options:

 

a) 

 72%; 69%

 

b) 

78%; 75%

 

c) 

 67%; 70%

 

d) 

 80%; 83%

Question 8 (1 point)

 

Country Alpha and Country Beta initially have the same real GDP per capita. Country Alpha experiences no economic growth, while Country Beta grows at a sustained rate of 5 percent. In 14 years, Country Alpha's GDP will be approximately _________ that of Country Beta.

Question 8 options:

 

a) 

one-fourth

 

b) 

 triple

 

c) 

one-half

 

d) 

 double

Question 9 (1 point)

 

 Frictional unemployment is:

Question 9 options:

 

a) 

 unemployment caused by lack of training and education.

 

b) 

unemployment that is due to normal turnover in the labor market.

 

c) 

 unemployment that is due to the friction of competing ideological systems.

 

d) 

unemployment caused by automation in the workplace.

Question 10 (1 point)

 

 Women composed __________ of the paid workforce in 1900 and 50% of the paid workforce in 2012. 

Question 10 options:

 

a) 

33%

 

b) 

 18%

 

c) 

 60%

 

d) 

 2%

Question 11 (1 point)

 

 

 Each month the Census Bureau carries out the Current Population Survey (CPS) (which has been carried out every month since 1940). A total of __________ households are contacted every month.

Question 11 options:

 

a) 

 600,000

 

b) 

600

 

c) 

60,000

 

d) 

 6000

Question 12 (1 point)

 

 Through good economic years and bad, many European economies had unemployment rates hovering near _________ since the 1970s.

Question 12 options:

 

a) 

 1%

 

b) 

 10%

 

c) 

 5%

 

d) 

20%

Question 13 (1 point)

 

 The U.S. unemployment rate moves up and down as the economy moves in and out of recessions. But over time, the unemployment rate seems to return to a range of ____________. 

Question 13 options:

 

a) 

6%-8%

 

b) 

 4%-6%

 

c) 

 8%-10%

 

d) 

 2%-4%

Question 14 (1 point)

 

 During the Great Depression of the 1930s, the unemployment rate reached more than _________ of the labor force. 

Question 14 options:

 

a) 

 25%

 

b) 

 65%

 

c) 

 45%

 

d) 

85%

Question 15 (1 point)

 

In November 2014 the labor force in Siouxtown, was 14,800. There were 14,483 persons employed. The local unemployment rate:

 

 

Question 15 options:

 

a) 

was 5.6%.

 

b) 

was 1.2%.

 

c) 

was 7.1%.

 

d) 

was 2.1%.

Question 16 (1 point)

 

 Craigburg has a working age population of 20 million. Of those, 11 million are employed and 1 million are unemployed. The unemployment rate is ________ and the participation rate is __________.

 

Question 16 options:

 

a) 

 5%; 55%.

 

b) 

 8.3%; 60%.

 

c) 

 5%; 60%.

 

d) 

 8.3%; 55%

Question 17 (1 point)

 

 If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals:

Question 17 options:

 

a) 

 8%.

 

b) 

 20%.

 

c) 

 25%.

 

d) 

 32%.

Question 18 (1 point)

 

 Another term used to describe negative inflation is:

Question 18 options:

 

a) 

 hyperinflation

 

b) 

 GDP deflator

 

c) 

 counter inflation

 

d) 

deflation

Question 19 (1 point)

 

 What name is given to the index based on the prices of exported or imported merchandise?

Question 19 options:

 

a) 

 U.S. Producer Trade Index

 

b) 

 International Trade Index

 

c) 

 U.S. Producer Price Index

 

d) 

 International Price Index

Question 20 (1 point)

 

The ____________________ is based on the prices of merchandise that are exported or imported.

Question 20 options:

 

b) 

 International Price Index

Question 21 (1 point)

 

Which of the following is the name used to describe the price index that consists of intermediate goods and finished goods?

Question 21 options:

 

a) 

 Employment Cost Index

 

b) 

 Processing Price Index

 

c) 

 Consumer Price Index

 

d) 

 Producer Price Index 

Question 22 (1 point)

 

The percentage change in the price level from one time period to the next, whether the price level is measured in terms of money or as a price index, will be the _____________.

Question 22 options:

 

a) 

 consumer price index

 

b) 

 inflation rate

 

c) 

 price index rate

 

d) 

 producer price Index

Question 23 (1 point)

 

The GDP deflator is a price index that includes the following components of GDP:

Question 23 options:

 

a) 

Consumption, Investment plus Exports minus Imports

 

b) 

Consumption 

 

c) 

Consumption, Investment, Government plus Exports minus Imports

 

d) 

 Consumption plus Investment but not Exports

Question 24 (1 point)

 

An analyst needs to adjust the nominal GDP for the years 2000 and 2010 into real terms to conclude his comparison analysis. The nominal GDP in 2000 was $672 billion and $1,690 billion for 2010; the real interest rate was 6.79% in 2000 and 3.71% in 2010; the 2000 deflator was 24 and 51 in 2010. What is the real gain?

Question 24 options:

 

a) 

 38.58%

 

b) 

18.34%

 

c) 

151.48%

 

d) 

 70.61%

Question 25 (1 point)

 

 When Anders took out his first two-year membership with Maxima Gym in 2004, the fee was $540.00.  He renewed his membership three times; in 2006 for $580.00, in 2008, for $600.00, and again in 2010, for $630.00. What is the overall rate of inflation for Anders' gym membership? 

Question 25 options:

 

a) 

 5.4%

 

b) 

 7.87%

 

c) 

16.66%

 

d) 

 8.6%

Question 1 (1 point)

 

 To achieve a high standard of living, a nation should:

Question 1 options:

 

a) 

use less capital and more labor in the production process.

 

b) 

 promote economic growth.

 

c) 

 increase welfare payments to the poor.

 

d) 

 increase the tax deduction for child dependents.

Question 2 (1 point)

 

 Of the world’s population of 6.7 billion people, _________ are scraping by on incomes that average less than $2 per day.

Question 2 options:

 

c) 

2.6 billion

Question 3 (1 point)

 

Which of the following is most likely to contribute to economic growth as measured by GDP per capita?

Question 3 options:

 

a) 

increased capital formation

 

b) 

 an increase in marginal tax rates

 

c) 

the imposition of tariffs and quotas on imported goods

 

d) 

 rapid population growth

Question 4 (1 point)

 

An economy’s rate of productivity growth is closely linked to the growth rate of its ______________, although the two aren’t identical.

Question 4 options:

 

a) 

 technology

 

b) 

output

 

c) 

GNP

 

d) 

 GDP per capita

Question 5 (1 point)

 

Over the long run, ____________ per hour is the most important determinant of the average wage level in any economy.

Question 5 options:

 

a) 

 dollars

 

b) 

productivity

 

c) 

 demand

 

d) 

 supply

Question 6 (1 point)

 

 To achieve a high standard of living, a nation should:

Question 6 options:

 

a) 

use less capital and more labor in the production process.

 

b) 

increase welfare payments to the poor.

 

c) 

 increase the tax deduction for child dependents.

 

d) 

 promote economic growth.

Question 7 (1 point)

 

 A nation can achieve higher economic growth if:

Question 7 options:

 

a) 

 taxes are imposed on investment in capital.

 

b) 

 the productivity of labor declines.

 

c) 

 more resources are allocated to consumption goods.

 

d) 

it devotes more resources to research and development.

Question 8 (1 point)

 

 Assuming a country's economy maintains an 8% rate of growth, young adults starting at age 20 would see the average standard of living in their country more than double by the time they had reached age __________.

Question 8 options:

 

a) 

 60

 

b) 

50

 

c) 

 30

 

d) 

 40

Question 9 (1 point)

 

The unemployment rate measures:

Question 9 options:

 

a) 

 the number of people unemployed divided by the number of people employed.

 

b) 

 unemployed workers as a percentage of the population age over-sixteen.

 

c) 

 unemployed workers as a percentage of the labor force.

 

d) 

 unemployed workers as a percentage of the population.

Question 10 (1 point)

 

The rise in unemployment that occurs because of a recession is known as cyclical unemployment, because it is closely tied to the ______________.

Question 10 options:

 

a) 

 natural rate of unemployment

 

b) 

 supply curve

 

c) 

 business cycle

 

d) 

 labor supply


Question 11 (1 point)

 

During the deep recessions of the early 1980s and of 2007-2009, unemployment reached roughly __________.

 

Question 11 options:

 

a) 

 30%

 

b) 

 40%

 

c) 

 10%

 

d) 

 20%

Question 12 (1 point)

 

The labor force consists of:

Question 12 options:

 

a) 

 all adults who are working, plus those not working.

 

b) 

 all adults who are able to work.

 

c) 

 all adults who are working or actively seeking work.

 

d) 

discouraged workers, employed workers, plus those actively seeking work.

Question 13 (1 point)

 

If the unemployment rate is 8 percent, then this means:

Question 13 options:

 

a) 

 8 percent of the labor force is unemployed.

 

b) 

 8 percent of the population age over sixteen is unemployed.

 

c) 

the number of unemployed persons equals 8 percent of the employed persons.

 

d) 

8 percent of the population is unemployed.

Question 14 (1 point)

 

Insofar as government public policy is concerned, the best way to battle unemployment would be __________________.

Question 14 options:

 

a) 

 to minimize recessions

 

b) 

to minimize labor unions

 

c) 

to maximize unemployment payments

 

d) 

 to maximize unemployment insurance duration

Question 15 (1 point)

 

 If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals:

Question 15 options:

 

a) 

 20%.

 

b) 

 8%.

 

c) 

 32%.

 

d) 

 25%.

Question 16 (1 point)

 

 Reginald looked for work for six months but could not find a job to his liking. He now spends his time at the beach. For purposes of employment he is considered:

Question 16 options:

 

a) 

unemployed.

 

b) 

out of the labor force.

 

c) 

 employed in the underground economy.

 

d) 

 underemployed.

Question 17 (1 point)

 

 Craigburg has a working age population of 20 million. Of those, 11 million are employed and 1 million are unemployed. The unemployment rate is ________ and the participation rate is __________.

 

Question 17 options:

 

a) 

 5%; 55%.

 

b) 

 8.3%; 60%.

 

c) 

 5%; 60%.

 

d) 

 8.3%; 55%.

Question 18 (1 point)

 

A payment is said to be ________________ if it is automatically adjusted for inflation. 

Question 18 options:

 

a) 

 maintained

 

b) 

matched

 

c) 

 cross referenced

 

d) 

 indexed

Question 19 (1 point)

 

The basket of goods in the Consumer Price Index consists of about _________ products; that is, several hundred specific products in over __________ broad-item categories.

Question 19 options:

 

a) 

80,000; 400

 

b) 

 200; 800

 

c) 

800; 200

 

d) 

 80,000; 200

Question 20 (1 point)

 

Which of the following is an example of one of the major categories in the overall CPI?

Question 20 options:

 

c) 

transportation 

Question 21 (1 point)

 

The situation where the buying power of money in terms of goods and services increases is called:

Question 21 options:

 

a) 

 inflation.

 

b) 

hyperinflation.

 

c) 

 deflation.

 

d) 

stationary pricing.

Question 22 (1 point)

 

One of the reasons that a rise in the price of a fixed basket of goods over time tends to overstate the rise in a consumer’s true cost of living, is:

Question 22 options:

 

a) 

 complimentary bias

 

b) 

 substitution bias

 

c) 

 preference bias

 

d) 

attribution bias

Question 23 (1 point)

 

 The __________________ is the nominal interest rate minus the rate of inflation.

Question 23 options:

 

a) 

real GDP

 

b) 

nominally adjusted

 

c) 

annualized interest rate

 

d) 

 real interest rate

Question 24 (1 point)

 

Nancy's union has negotiated a three-year wage contract that provides for a 2.4% increase indexed to inflation. The rates of inflation are forecast to be 1.62%, 1.93% and 2.21% respectively. How will Nancy's wage increase be expressed in the new contract?

Question 24 options:

 

a) 

COLA plus 1.9%

 

b) 

COLA plus 2.4%

 

c) 

 COLA plus 2.2%

 

d) 

 COLA plus 1.6%

Question 25 (1 point)

 

 When Anders took out his first two-year membership with Maxima Gym in 2004, the fee was $540.00.  He renewed his membership three times; in 2006 for $580.00, in 2008, for $600.00, and again in 2010, for $630.00. What is the overall rate of inflation for Anders' gym membership? 

Question 25 options:

 

a) 

 7.87%

 

b) 

16.66%

 

c) 

 8.6%

 

d) 

 5.4%

Question 1 (1 point)

 

Which of the following factors contribute to economic growth?

Question 1 options:

 

a) 

 an increase in the average wage rate paid to workers

 

b) 

an increase in the proportion of the population that is college educated

 

c) 

 a decrease in the productivity of labor

 

d) 

 an increase in the standard of living

Question 2 (1 point)

 

 In the long run, the most important source of increase in a nation's standard of living is a:

Question 2 options:

 

a) 

high rate of labor force growth.

 

b) 

 high rate of consumption.

 

c) 

 high rate of economic growth.

 

d) 

 zero rate of population growth.

Question 3 (1 point)

 

 Which of the following is correct?

Question 3 options:

 

a) 

 Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital.

 

b) 

 An increase in the quantity of labor always leads to economic growth.

 

c) 

 Third World countries are rich in human capital.

 

d) 

 A decrease in the productivity of labour leads to economic growth.

Question 4 (1 point)

 

 

____________ is a term which refers to the widespread use of power-driven machinery and the economic and social changes that resulted in the first half of the 1800s.

Question 4 options:

 

a) 

Capital deepening

 

b) 

Living standard

 

c) 

 Industrial Revolution

 

d) 

 Technology

Question 5 (1 point)

 

 In certain African countries like Niger, Tanzania, Nigeria, and Sudan, for example, GDP per capita at the start of the 2000s was still less than $___________.

Question 5 options:

 

a) 

 300

 

b) 

 30

 

c) 

 3000

 

d) 

30,000

Question 6 (1 point)

 

Some prominent members of the slow-economic growth country club include a high-income country like _________.

Question 6 options:

 

a) 

 Nigeria

 

b) 

 Bolivia

 

c) 

Somalia

 

d) 

 Germany

Question 7 (1 point)

 

 In the early 2000s in Bangladesh, the illiteracy rate for girls between the ages of 15 and 24 was __________ and the illiteracy rate for males in this age group was ______________.

Question 7 options:

 

a) 

 72%; 69%

 

b) 

78%; 75%

 

c) 

 67%; 70%

 

d) 

 80%; 83%

Question 8 (1 point)

 

Country Alpha and Country Beta initially have the same real GDP per capita. Country Alpha experiences no economic growth, while Country Beta grows at a sustained rate of 5 percent. In 14 years, Country Alpha's GDP will be approximately _________ that of Country Beta.

Question 8 options:

 

a) 

one-fourth

 

b) 

 triple

 

c) 

one-half

 

d) 

 double

Question 9 (1 point)

 

 Frictional unemployment is:

Question 9 options:

 

a) 

 unemployment caused by lack of training and education.

 

b) 

unemployment that is due to normal turnover in the labor market.

 

c) 

 unemployment that is due to the friction of competing ideological systems.

 

d) 

unemployment caused by automation in the workplace.

Question 10 (1 point)

 

 Women composed __________ of the paid workforce in 1900 and 50% of the paid workforce in 2012. 

Question 10 options:

 

a) 

33%

 

b) 

 18%

 

c) 

 60%

 

d) 

 2%

Question 11 (1 point)

 

 

 Each month the Census Bureau carries out the Current Population Survey (CPS) (which has been carried out every month since 1940). A total of __________ households are contacted every month.

Question 11 options:

 

a) 

 600,000

 

b) 

600

 

c) 

60,000

 

d) 

 6000

Question 12 (1 point)

 

 Through good economic years and bad, many European economies had unemployment rates hovering near _________ since the 1970s.

Question 12 options:

 

a) 

 1%

 

b) 

 10%

 

c) 

 5%

 

d) 

20%

Question 13 (1 point)

 

 The U.S. unemployment rate moves up and down as the economy moves in and out of recessions. But over time, the unemployment rate seems to return to a range of ____________. 

Question 13 options:

 

a) 

6%-8%

 

b) 

 4%-6%

 

c) 

 8%-10%

 

d) 

 2%-4%

Question 14 (1 point)

 

 During the Great Depression of the 1930s, the unemployment rate reached more than _________ of the labor force. 

Question 14 options:

 

a) 

 25%

 

b) 

 65%

 

c) 

 45%

 

d) 

85%

Question 15 (1 point)

 

In November 2014 the labor force in Siouxtown, was 14,800. There were 14,483 persons employed. The local unemployment rate:

 

 

Question 15 options:

 

a) 

was 5.6%.

 

b) 

was 1.2%.

 

c) 

was 7.1%.

 

d) 

was 2.1%.

Question 16 (1 point)

 

 Craigburg has a working age population of 20 million. Of those, 11 million are employed and 1 million are unemployed. The unemployment rate is ________ and the participation rate is __________.

 

Question 16 options:

 

a) 

 5%; 55%.

 

b) 

 8.3%; 60%.

 

c) 

 5%; 60%.

 

d) 

 8.3%; 55%

Question 17 (1 point)

 

 If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals:

Question 17 options:

 

a) 

 8%.

 

b) 

 20%.

 

c) 

 25%.

 

d) 

 32%.

Question 18 (1 point)

 

 Another term used to describe negative inflation is:

Question 18 options:

 

a) 

 hyperinflation

 

b) 

 GDP deflator

 

c) 

 counter inflation

 

d) 

deflation

Question 19 (1 point)

 

 What name is given to the index based on the prices of exported or imported merchandise?

Question 19 options:

 

a) 

 U.S. Producer Trade Index

 

b) 

 International Trade Index

 

c) 

 U.S. Producer Price Index

 

d) 

 International Price Index

Question 20 (1 point)

 

The ____________________ is based on the prices of merchandise that are exported or imported.

Question 20 options:

 

b) 

 International Price Index

Question 21 (1 point)

 

Which of the following is the name used to describe the price index that consists of intermediate goods and finished goods?

Question 21 options:

 

a) 

 Employment Cost Index

 

b) 

 Processing Price Index

 

c) 

 Consumer Price Index

 

d) 

 Producer Price Index 

Question 22 (1 point)

 

The percentage change in the price level from one time period to the next, whether the price level is measured in terms of money or as a price index, will be the _____________.

Question 22 options:

 

a) 

 consumer price index

 

b) 

 inflation rate

 

c) 

 price index rate

 

d) 

 producer price Index

Question 23 (1 point)

 

The GDP deflator is a price index that includes the following components of GDP:

Question 23 options:

 

a) 

Consumption, Investment plus Exports minus Imports

 

b) 

Consumption 

 

c) 

Consumption, Investment, Government plus Exports minus Imports

 

d) 

 Consumption plus Investment but not Exports

Question 24 (1 point)

 

An analyst needs to adjust the nominal GDP for the years 2000 and 2010 into real terms to conclude his comparison analysis. The nominal GDP in 2000 was $672 billion and $1,690 billion for 2010; the real interest rate was 6.79% in 2000 and 3.71% in 2010; the 2000 deflator was 24 and 51 in 2010. What is the real gain?

Question 24 options:

 

a) 

 38.58%

 

b) 

18.34%

 

c) 

151.48%

 

d) 

 70.61%

Question 25 (1 point)

 

 When Anders took out his first two-year membership with Maxima Gym in 2004, the fee was $540.00.  He renewed his membership three times; in 2006 for $580.00, in 2008, for $600.00, and again in 2010, for $630.00. What is the overall rate of inflation for Anders' gym membership? 

Question 25 options:

 

a) 

 5.4%

 

b) 

 7.87%

 

c) 

16.66%

 

d) 

 8.6%

Question 1 (1 point)

 

 To achieve a high standard of living, a nation should:

Question 1 options:

 

a) 

use less capital and more labor in the production process.

 

b) 

 promote economic growth.

 

c) 

 increase welfare payments to the poor.

 

d) 

 increase the tax deduction for child dependents.

Question 2 (1 point)

 

 Of the world’s population of 6.7 billion people, _________ are scraping by on incomes that average less than $2 per day.

Question 2 options:

 

c) 

2.6 billion

Question 3 (1 point)

 

Which of the following is most likely to contribute to economic growth as measured by GDP per capita?

Question 3 options:

 

a) 

increased capital formation

 

b) 

 an increase in marginal tax rates

 

c) 

the imposition of tariffs and quotas on imported goods

 

d) 

 rapid population growth

Question 4 (1 point)

 

An economy’s rate of productivity growth is closely linked to the growth rate of its ______________, although the two aren’t identical.

Question 4 options:

 

a) 

 technology

 

b) 

output

 

c) 

GNP

 

d) 

 GDP per capita

Question 5 (1 point)

 

Over the long run, ____________ per hour is the most important determinant of the average wage level in any economy.

Question 5 options:

 

a) 

 dollars

 

b) 

productivity

 

c) 

 demand

 

d) 

 supply

Question 6 (1 point)

 

 To achieve a high standard of living, a nation should:

Question 6 options:

 

a) 

use less capital and more labor in the production process.

 

b) 

increase welfare payments to the poor.

 

c) 

 increase the tax deduction for child dependents.

 

d) 

 promote economic growth.

Question 7 (1 point)

 

 A nation can achieve higher economic growth if:

Question 7 options:

 

a) 

 taxes are imposed on investment in capital.

 

b) 

 the productivity of labor declines.

 

c) 

 more resources are allocated to consumption goods.

 

d) 

it devotes more resources to research and development.

Question 8 (1 point)

 

 Assuming a country's economy maintains an 8% rate of growth, young adults starting at age 20 would see the average standard of living in their country more than double by the time they had reached age __________.

Question 8 options:

 

a) 

 60

 

b) 

50

 

c) 

 30

 

d) 

 40

Question 9 (1 point)

 

The unemployment rate measures:

Question 9 options:

 

a) 

 the number of people unemployed divided by the number of people employed.

 

b) 

 unemployed workers as a percentage of the population age over-sixteen.

 

c) 

 unemployed workers as a percentage of the labor force.

 

d) 

 unemployed workers as a percentage of the population.

Question 10 (1 point)

 

The rise in unemployment that occurs because of a recession is known as cyclical unemployment, because it is closely tied to the ______________.

Question 10 options:

 

a) 

 natural rate of unemployment

 

b) 

 supply curve

 

c) 

 business cycle

 

d) 

 labor supply


Question 11 (1 point)

 

During the deep recessions of the early 1980s and of 2007-2009, unemployment reached roughly __________.

 

Question 11 options:

 

a) 

 30%

 

b) 

 40%

 

c) 

 10%

 

d) 

 20%

Question 12 (1 point)

 

The labor force consists of:

Question 12 options:

 

a) 

 all adults who are working, plus those not working.

 

b) 

 all adults who are able to work.

 

c) 

 all adults who are working or actively seeking work.

 

d) 

discouraged workers, employed workers, plus those actively seeking work.

Question 13 (1 point)

 

If the unemployment rate is 8 percent, then this means:

Question 13 options:

 

a) 

 8 percent of the labor force is unemployed.

 

b) 

 8 percent of the population age over sixteen is unemployed.

 

c) 

the number of unemployed persons equals 8 percent of the employed persons.

 

d) 

8 percent of the population is unemployed.

Question 14 (1 point)

 

Insofar as government public policy is concerned, the best way to battle unemployment would be __________________.

Question 14 options:

 

a) 

 to minimize recessions

 

b) 

to minimize labor unions

 

c) 

to maximize unemployment payments

 

d) 

 to maximize unemployment insurance duration

Question 15 (1 point)

 

 If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals:

Question 15 options:

 

a) 

 20%.

 

b) 

 8%.

 

c) 

 32%.

 

d) 

 25%.

Question 16 (1 point)

 

 Reginald looked for work for six months but could not find a job to his liking. He now spends his time at the beach. For purposes of employment he is considered:

Question 16 options:

 

a) 

unemployed.

 

b) 

out of the labor force.

 

c) 

 employed in the underground economy.

 

d) 

 underemployed.

Question 17 (1 point)

 

 Craigburg has a working age population of 20 million. Of those, 11 million are employed and 1 million are unemployed. The unemployment rate is ________ and the participation rate is __________.

 

Question 17 options:

 

a) 

 5%; 55%.

 

b) 

 8.3%; 60%.

 

c) 

 5%; 60%.

 

d) 

 8.3%; 55%.

Question 18 (1 point)

 

A payment is said to be ________________ if it is automatically adjusted for inflation. 

Question 18 options:

 

a) 

 maintained

 

b) 

matched

 

c) 

 cross referenced

 

d) 

 indexed

Question 19 (1 point)

 

The basket of goods in the Consumer Price Index consists of about _________ products; that is, several hundred specific products in over __________ broad-item categories.

Question 19 options:

 

a) 

80,000; 400

 

b) 

 200; 800

 

c) 

800; 200

 

d) 

 80,000; 200

Question 20 (1 point)

 

Which of the following is an example of one of the major categories in the overall CPI?

Question 20 options:

 

c) 

transportation 

Question 21 (1 point)

 

The situation where the buying power of money in terms of goods and services increases is called:

Question 21 options:

 

a) 

 inflation.

 

b) 

hyperinflation.

 

c) 

 deflation.

 

d) 

stationary pricing.

Question 22 (1 point)

 

One of the reasons that a rise in the price of a fixed basket of goods over time tends to overstate the rise in a consumer’s true cost of living, is:

Question 22 options:

 

a) 

 complimentary bias

 

b) 

 substitution bias

 

c) 

 preference bias

 

d) 

attribution bias

Question 23 (1 point)

 

 The __________________ is the nominal interest rate minus the rate of inflation.

Question 23 options:

 

a) 

real GDP

 

b) 

nominally adjusted

 

c) 

annualized interest rate

 

d) 

 real interest rate

Question 24 (1 point)

 

Nancy's union has negotiated a three-year wage contract that provides for a 2.4% increase indexed to inflation. The rates of inflation are forecast to be 1.62%, 1.93% and 2.21% respectively. How will Nancy's wage increase be expressed in the new contract?

Question 24 options:

 

a) 

COLA plus 1.9%

 

b) 

COLA plus 2.4%

 

c) 

 COLA plus 2.2%

 

d) 

 COLA plus 1.6%

Question 25 (1 point)

 

 When Anders took out his first two-year membership with Maxima Gym in 2004, the fee was $540.00.  He renewed his membership three times; in 2006 for $580.00, in 2008, for $600.00, and again in 2010, for $630.00. What is the overall rate of inflation for Anders' gym membership? 

Question 25 options:

 

a) 

 7.87%

 

b) 

16.66%

 

c) 

 8.6%

 

d) 

 5.4%

Question 1 (1 point)

 

Which of the following factors contribute to economic growth?

Question 1 options:

 

a) 

 an increase in the average wage rate paid to workers

 

b) 

an increase in the proportion of the population that is college educated

 

c) 

 a decrease in the productivity of labor

 

d) 

 an increase in the standard of living

Question 2 (1 point)

 

 In the long run, the most important source of increase in a nation's standard of living is a:

Question 2 options:

 

a) 

high rate of labor force growth.

 

b) 

 high rate of consumption.

 

c) 

 high rate of economic growth.

 

d) 

 zero rate of population growth.

Question 3 (1 point)

 

 Which of the following is correct?

Question 3 options:

 

a) 

 Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital.

 

b) 

 An increase in the quantity of labor always leads to economic growth.

 

c) 

 Third World countries are rich in human capital.

 

d) 

 A decrease in the productivity of labour leads to economic growth.

Question 4 (1 point)

 

 

____________ is a term which refers to the widespread use of power-driven machinery and the economic and social changes that resulted in the first half of the 1800s.

Question 4 options:

 

a) 

Capital deepening

 

b) 

Living standard

 

c) 

 Industrial Revolution

 

d) 

 Technology

Question 5 (1 point)

 

 In certain African countries like Niger, Tanzania, Nigeria, and Sudan, for example, GDP per capita at the start of the 2000s was still less than $___________.

Question 5 options:

 

a) 

 300

 

b) 

 30

 

c) 

 3000

 

d) 

30,000

Question 6 (1 point)

 

Some prominent members of the slow-economic growth country club include a high-income country like _________.

Question 6 options:

 

a) 

 Nigeria

 

b) 

 Bolivia

 

c) 

Somalia

 

d) 

 Germany

Question 7 (1 point)

 

 In the early 2000s in Bangladesh, the illiteracy rate for girls between the ages of 15 and 24 was __________ and the illiteracy rate for males in this age group was ______________.

Question 7 options:

 

a) 

 72%; 69%

 

b) 

78%; 75%

 

c) 

 67%; 70%

 

d) 

 80%; 83%

Question 8 (1 point)

 

Country Alpha and Country Beta initially have the same real GDP per capita. Country Alpha experiences no economic growth, while Country Beta grows at a sustained rate of 5 percent. In 14 years, Country Alpha's GDP will be approximately _________ that of Country Beta.

Question 8 options:

 

a) 

one-fourth

 

b) 

 triple

 

c) 

one-half

 

d) 

 double

Question 9 (1 point)

 

 Frictional unemployment is:

Question 9 options:

 

a) 

 unemployment caused by lack of training and education.

 

b) 

unemployment that is due to normal turnover in the labor market.

 

c) 

 unemployment that is due to the friction of competing ideological systems.

 

d) 

unemployment caused by automation in the workplace.

Question 10 (1 point)

 

 Women composed __________ of the paid workforce in 1900 and 50% of the paid workforce in 2012. 

Question 10 options:

 

a) 

33%

 

b) 

 18%

 

c) 

 60%

 

d) 

 2%

Question 11 (1 point)

 

 

 Each month the Census Bureau carries out the Current Population Survey (CPS) (which has been carried out every month since 1940). A total of __________ households are contacted every month.

Question 11 options:

 

a) 

 600,000

 

b) 

600

 

c) 

60,000

 

d) 

 6000

Question 12 (1 point)

 

 Through good economic years and bad, many European economies had unemployment rates hovering near _________ since the 1970s.

Question 12 options:

 

a) 

 1%

 

b) 

 10%

 

c) 

 5%

 

d) 

20%

Question 13 (1 point)

 

 The U.S. unemployment rate moves up and down as the economy moves in and out of recessions. But over time, the unemployment rate seems to return to a range of ____________. 

Question 13 options:

 

a) 

6%-8%

 

b) 

 4%-6%

 

c) 

 8%-10%

 

d) 

 2%-4%

Question 14 (1 point)

 

 During the Great Depression of the 1930s, the unemployment rate reached more than _________ of the labor force. 

Question 14 options:

 

a) 

 25%

 

b) 

 65%

 

c) 

 45%

 

d) 

85%

Question 15 (1 point)

 

In November 2014 the labor force in Siouxtown, was 14,800. There were 14,483 persons employed. The local unemployment rate:

 

 

Question 15 options:

 

a) 

was 5.6%.

 

b) 

was 1.2%.

 

c) 

was 7.1%.

 

d) 

was 2.1%.

Question 16 (1 point)

 

 Craigburg has a working age population of 20 million. Of those, 11 million are employed and 1 million are unemployed. The unemployment rate is ________ and the participation rate is __________.

 

Question 16 options:

 

a) 

 5%; 55%.

 

b) 

 8.3%; 60%.

 

c) 

 5%; 60%.

 

d) 

 8.3%; 55%

Question 17 (1 point)

 

 If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals:

Question 17 options:

 

a) 

 8%.

 

b) 

 20%.

 

c) 

 25%.

 

d) 

 32%.

Question 18 (1 point)

 

 Another term used to describe negative inflation is:

Question 18 options:

 

a) 

 hyperinflation

 

b) 

 GDP deflator

 

c) 

 counter inflation

 

d) 

deflation

Question 19 (1 point)

 

 What name is given to the index based on the prices of exported or imported merchandise?

Question 19 options:

 

a) 

 U.S. Producer Trade Index

 

b) 

 International Trade Index

 

c) 

 U.S. Producer Price Index

 

d) 

 International Price Index

Question 20 (1 point)

 

The ____________________ is based on the prices of merchandise that are exported or imported.

Question 20 options:

 

b) 

 International Price Index

Question 21 (1 point)

 

Which of the following is the name used to describe the price index that consists of intermediate goods and finished goods?

Question 21 options:

 

a) 

 Employment Cost Index

 

b) 

 Processing Price Index

 

c) 

 Consumer Price Index

 

d) 

 Producer Price Index 

Question 22 (1 point)

 

The percentage change in the price level from one time period to the next, whether the price level is measured in terms of money or as a price index, will be the _____________.

Question 22 options:

 

a) 

 consumer price index

 

b) 

 inflation rate

 

c) 

 price index rate

 

d) 

 producer price Index

Question 23 (1 point)

 

The GDP deflator is a price index that includes the following components of GDP:

Question 23 options:

 

a) 

Consumption, Investment plus Exports minus Imports

 

b) 

Consumption 

 

c) 

Consumption, Investment, Government plus Exports minus Imports

 

d) 

 Consumption plus Investment but not Exports

Question 24 (1 point)

 

An analyst needs to adjust the nominal GDP for the years 2000 and 2010 into real terms to conclude his comparison analysis. The nominal GDP in 2000 was $672 billion and $1,690 billion for 2010; the real interest rate was 6.79% in 2000 and 3.71% in 2010; the 2000 deflator was 24 and 51 in 2010. What is the real gain?

Question 24 options:

 

a) 

 38.58%

 

b) 

18.34%

 

c) 

151.48%

 

d) 

 70.61%

Question 25 (1 point)

 

 When Anders took out his first two-year membership with Maxima Gym in 2004, the fee was $540.00.  He renewed his membership three times; in 2006 for $580.00, in 2008, for $600.00, and again in 2010, for $630.00. What is the overall rate of inflation for Anders' gym membership? 

Question 25 options:

 

a) 

 5.4%

 

b) 

 7.87%

 

c) 

16.66%

 

d) 

 8.6%

Question 1 (1 point)

Question 1

 

 To achieve a high standard of living, a nation should:

 

Question 1 options:

 

a) 

use less capital and more labor in the production process.

 

b) 

 promote economic growth.

 

c) 

 increase welfare payments to the poor.

 

d) 

 increase the tax deduction for child dependents.

 

a) 

use less capital and more labor in the production process.

 

b) 

 promote economic growth.

 

c) 

 increase welfare payments to the poor.

 

d) 

 increase the tax deduction for child dependents.

 

a) 

use less capital and more labor in the production process.

 

a) 

use less capital and more labor in the production process.

a) 

use less capital and more labor in the production process.

a) 

use less capital and more labor in the production process.

a) 

use less capital and more labor in the production process.

a) 

a) 

use less capital and more labor in the production process.

use less capital and more labor in the production process.

 

b) 

 promote economic growth.

 

b) 

 promote economic growth.

b) 

 promote economic growth.

b) 

 promote economic growth.

b) 

 promote economic growth.

b) 

b) 

 promote economic growth.

 promote economic growth.

 

c) 

 increase welfare payments to the poor.

 

c) 

 increase welfare payments to the poor.

c) 

 increase welfare payments to the poor.

c) 

 increase welfare payments to the poor.

c) 

 increase welfare payments to the poor.

c) 

c) 

 increase welfare payments to the poor.

 increase welfare payments to the poor.

 

d) 

 increase the tax deduction for child dependents.

 

d) 

 increase the tax deduction for child dependents.

d) 

 increase the tax deduction for child dependents.

d) 

 increase the tax deduction for child dependents.

d) 

 increase the tax deduction for child dependents.

d) 

d) 

 increase the tax deduction for child dependents.

 increase the tax deduction for child dependents.

Question 2 (1 point)

Question 2

 

 Of the world’s population of 6.7 billion people, _________ are scraping by on incomes that average less than $2 per day.

 

Question 2 options:

 

c) 

2.6 billion

 

c) 

2.6 billion

 

c) 

2.6 billion

 

c) 

2.6 billion

c) 

2.6 billion

c) 

2.6 billion

c) 

2.6 billion

c) 

c) 

2.6 billion

2.6 billion

Question 3 (1 point)

Question 3

 

Which of the following is most likely to contribute to economic growth as measured by GDP per capita?

Question 3 options:

 

a) 

increased capital formation

 

b) 

 an increase in marginal tax rates

 

c) 

the imposition of tariffs and quotas on imported goods

 

d) 

 rapid population growth

 

a) 

increased capital formation

 

b) 

 an increase in marginal tax rates

 

c) 

the imposition of tariffs and quotas on imported goods

 

d) 

 rapid population growth

 

a) 

increased capital formation

 

a) 

increased capital formation

a) 

increased capital formation

a) 

increased capital formation

a) 

increased capital formation

a) 

a) 

increased capital formation

increased capital formation

 

b) 

 an increase in marginal tax rates

 

b) 

 an increase in marginal tax rates

b) 

 an increase in marginal tax rates

b) 

 an increase in marginal tax rates

b) 

 an increase in marginal tax rates

b) 

b) 

 an increase in marginal tax rates

 an increase in marginal tax rates

 

c) 

the imposition of tariffs and quotas on imported goods

 

c) 

the imposition of tariffs and quotas on imported goods

c) 

the imposition of tariffs and quotas on imported goods

c) 

the imposition of tariffs and quotas on imported goods

c) 

the imposition of tariffs and quotas on imported goods

c) 

c) 

the imposition of tariffs and quotas on imported goods

the imposition of tariffs and quotas on imported goods

 

d) 

 rapid population growth

 

d) 

 rapid population growth

d) 

 rapid population growth

d) 

 rapid population growth

d) 

 rapid population growth

d) 

d) 

 rapid population growth

 rapid population growth

Question 4 (1 point)

Question 4

 

An economy’s rate of productivity growth is closely linked to the growth rate of its ______________, although the two aren’t identical.

Question 4 options:

 

a) 

 technology

 

b) 

output

 

c) 

GNP

 

d) 

 GDP per capita

 

a) 

 technology

 

b) 

output

 

c) 

GNP

 

d) 

 GDP per capita

 

a) 

 technology

 

a) 

 technology

a) 

 technology

a) 

 technology

a) 

 technology

a) 

a) 

 technology

 technology

 

b) 

output

 

b) 

output

b) 

output

b) 

output

b) 

output

b) 

b) 

output

output

 

c) 

GNP

 

c) 

GNP

c) 

GNP

c) 

GNP

c) 

GNP

c) 

c) 

GNP

GNP

 

d) 

 GDP per capita

 

d) 

 GDP per capita

d) 

 GDP per capita

d) 

 GDP per capita

d) 

 GDP per capita

d) 

d) 

 GDP per capita

 GDP per capita

Question 5 (1 point)

Question 5

 

Over the long run, ____________ per hour is the most important determinant of the average wage level in any economy.

Question 5 options:

 

a) 

 dollars

 

b) 

productivity

 

c) 

 demand

 

d) 

 supply

 

a) 

 dollars

 

b) 

productivity

 

c) 

 demand

 

d) 

 supply

 

a) 

 dollars

 

a) 

 dollars

a) 

 dollars

a) 

 dollars

a) 

 dollars

a) 

a) 

 dollars

 dollars

 

b) 

productivity

 

b) 

productivity

b) 

productivity

b) 

productivity

b) 

productivity

b) 

b) 

productivity

productivity

 

c) 

 demand

 

c) 

 demand

c) 

 demand

c) 

 demand

c) 

 demand

c) 

c) 

 demand

 demand

 

d) 

 supply

 

d) 

 supply

d) 

 supply

d) 

 supply

d) 

 supply

d) 

d) 

 supply

 supply

Question 6 (1 point)

Question 6

 

 To achieve a high standard of living, a nation should:

 

Question 6 options:

 

a) 

use less capital and more labor in the production process.

 

b) 

increase welfare payments to the poor.

 

c) 

 increase the tax deduction for child dependents.

 

d) 

 promote economic growth.

 

a) 

use less capital and more labor in the production process.

 

b) 

increase welfare payments to the poor.

 

c) 

 increase the tax deduction for child dependents.

 

d) 

 promote economic growth.

 

a) 

use less capital and more labor in the production process.

 

a) 

use less capital and more labor in the production process.

a) 

use less capital and more labor in the production process.

a) 

use less capital and more labor in the production process.

a) 

use less capital and more labor in the production process.

a) 

a) 

use less capital and more labor in the production process.

use less capital and more labor in the production process.

 

b) 

increase welfare payments to the poor.

 

b) 

increase welfare payments to the poor.

b) 

increase welfare payments to the poor.

b) 

increase welfare payments to the poor.

b) 

increase welfare payments to the poor.

b) 

b) 

increase welfare payments to the poor.

increase welfare payments to the poor.

 

c) 

 increase the tax deduction for child dependents.

 

c) 

 increase the tax deduction for child dependents.

c) 

 increase the tax deduction for child dependents.

c) 

 increase the tax deduction for child dependents.

c) 

 increase the tax deduction for child dependents.

c) 

c) 

 increase the tax deduction for child dependents.

 increase the tax deduction for child dependents.

 

d) 

 promote economic growth.

 

d) 

 promote economic growth.

d) 

 promote economic growth.

d) 

 promote economic growth.

d) 

 promote economic growth.

d) 

d) 

 promote economic growth.

 promote economic growth.

Question 7 (1 point)

Question 7

 

 A nation can achieve higher economic growth if:

 

Question 7 options:

 

a) 

 taxes are imposed on investment in capital.

 

b) 

 the productivity of labor declines.

 

c) 

 more resources are allocated to consumption goods.

 

d) 

it devotes more resources to research and development.

 

a) 

 taxes are imposed on investment in capital.

 

b) 

 the productivity of labor declines.

 

c) 

 more resources are allocated to consumption goods.

 

d) 

it devotes more resources to research and development.

 

a) 

 taxes are imposed on investment in capital.

 

a) 

 taxes are imposed on investment in capital.

a) 

 taxes are imposed on investment in capital.

a) 

 taxes are imposed on investment in capital.

a) 

 taxes are imposed on investment in capital.

a) 

a) 

 taxes are imposed on investment in capital.

 taxes are imposed on investment in capital.

 

b) 

 the productivity of labor declines.

 

b) 

 the productivity of labor declines.

b) 

 the productivity of labor declines.

b) 

 the productivity of labor declines.

b) 

 the productivity of labor declines.

b) 

b) 

 the productivity of labor declines.

 the productivity of labor declines.

 

c) 

 more resources are allocated to consumption goods.

 

c) 

 more resources are allocated to consumption goods.

c) 

 more resources are allocated to consumption goods.

c) 

 more resources are allocated to consumption goods.

c) 

 more resources are allocated to consumption goods.

c) 

c) 

 more resources are allocated to consumption goods.

 more resources are allocated to consumption goods.

 

d) 

it devotes more resources to research and development.

 

d) 

it devotes more resources to research and development.

d) 

it devotes more resources to research and development.

d) 

it devotes more resources to research and development.

d) 

it devotes more resources to research and development.

d) 

d) 

it devotes more resources to research and development.

it devotes more resources to research and development.

Question 8 (1 point)

Question 8

 

 Assuming a country's economy maintains an 8% rate of growth, young adults starting at age 20 would see the average standard of living in their country more than double by the time they had reached age __________.

 

Question 8 options:

 

a) 

 60

 

b) 

50

 

c) 

 30

 

d) 

 40

 

a) 

 60

 

b) 

50

 

c) 

 30

 

d) 

 40

 

a) 

 60

 

a) 

 60

a) 

 60

a) 

 60

a) 

 60

a) 

a) 

 60

 60

 

b) 

50

 

b) 

50

b) 

50

b) 

50

b) 

50

b) 

b) 

50

50

 

c) 

 30

 

c) 

 30

c) 

 30

c) 

 30

c) 

 30

c) 

c) 

 30

 30

 

d) 

 40

 

d) 

 40

d) 

 40

d) 

 40

d) 

 40

d) 

d) 

 40

 40

Question 9 (1 point)

Question 9

 

The unemployment rate measures:

Question 9 options:

 

a) 

 the number of people unemployed divided by the number of people employed.

 

b) 

 unemployed workers as a percentage of the population age over-sixteen.

 

c) 

 unemployed workers as a percentage of the labor force.

 

d) 

 unemployed workers as a percentage of the population.

 

a) 

 the number of people unemployed divided by the number of people employed.

 

b) 

 unemployed workers as a percentage of the population age over-sixteen.

 

c) 

 unemployed workers as a percentage of the labor force.

 

d) 

 unemployed workers as a percentage of the population.

 

a) 

 the number of people unemployed divided by the number of people employed.

 

a) 

 the number of people unemployed divided by the number of people employed.

a) 

 the number of people unemployed divided by the number of people employed.

a) 

 the number of people unemployed divided by the number of people employed.

a) 

 the number of people unemployed divided by the number of people employed.

a) 

a) 

 the number of people unemployed divided by the number of people employed.

 the number of people unemployed divided by the number of people employed.

 

b) 

 unemployed workers as a percentage of the population age over-sixteen.

 

b) 

 unemployed workers as a percentage of the population age over-sixteen.

b) 

 unemployed workers as a percentage of the population age over-sixteen.

b) 

 unemployed workers as a percentage of the population age over-sixteen.

b) 

 unemployed workers as a percentage of the population age over-sixteen.

b) 

b) 

 unemployed workers as a percentage of the population age over-sixteen.

 unemployed workers as a percentage of the population age over-sixteen.

 

c) 

 unemployed workers as a percentage of the labor force.

 

c) 

 unemployed workers as a percentage of the labor force.

c) 

 unemployed workers as a percentage of the labor force.

c) 

 unemployed workers as a percentage of the labor force.

c) 

 unemployed workers as a percentage of the labor force.

c) 

c) 

 unemployed workers as a percentage of the labor force.

 unemployed workers as a percentage of the labor force.

 

d) 

 unemployed workers as a percentage of the population.

 

d) 

 unemployed workers as a percentage of the population.

d) 

 unemployed workers as a percentage of the population.

d) 

 unemployed workers as a percentage of the population.

d) 

 unemployed workers as a percentage of the population.

d) 

d) 

 unemployed workers as a percentage of the population.

 unemployed workers as a percentage of the population.

Question 10 (1 point)

Question 10

 

The rise in unemployment that occurs because of a recession is known as cyclical unemployment, because it is closely tied to the ______________.

Question 10 options:

 

a) 

 natural rate of unemployment

 

b) 

 supply curve

 

c) 

 business cycle

 

d) 

 labor supply

 

a) 

 natural rate of unemployment

 

b) 

 supply curve

 

c) 

 business cycle

 

d) 

 labor supply

 

a) 

 natural rate of unemployment

 

a) 

 natural rate of unemployment

a) 

 natural rate of unemployment

a) 

 natural rate of unemployment

a) 

 natural rate of unemployment

a) 

a) 

 natural rate of unemployment

 natural rate of unemployment

 

b) 

 supply curve

 

b) 

 supply curve

b) 

 supply curve

b) 

 supply curve

b) 

 supply curve

b) 

b) 

 supply curve

 supply curve

 

c) 

 business cycle

 

c) 

 business cycle

c) 

 business cycle

c) 

 business cycle

c) 

 business cycle

c) 

c) 

 business cycle

 business cycle

 

d) 

 labor supply

 

d) 

 labor supply

d) 

 labor supply

d) 

 labor supply

d) 

 labor supply

d) 

d) 

 labor supply

 labor supply


Question 11 (1 point)


Question 11

 

During the deep recessions of the early 1980s and of 2007-2009, unemployment reached roughly __________.

 

Question 11 options:

 

a) 

 30%

 

b) 

 40%

 

c) 

 10%

 

d) 

 20%

 

a) 

 30%

 

b) 

 40%

 

c) 

 10%

 

d) 

 20%

 

a) 

 30%

 

a) 

 30%

a) 

 30%

a) 

 30%

a) 

 30%

a) 

a) 

 30%

 30%

 

b) 

 40%

 

b) 

 40%

b) 

 40%

b) 

 40%

b) 

 40%

b) 

b) 

 40%

 40%

 

c) 

 10%

 

c) 

 10%

c) 

 10%

c) 

 10%

c) 

 10%

c) 

c) 

 10%

 10%

 

d) 

 20%

 

d) 

 20%

d) 

 20%

d) 

 20%

d) 

 20%

d) 

d) 

 20%

 20%

Question 12 (1 point)

Question 12

 

The labor force consists of:

Question 12 options:

 

a) 

 all adults who are working, plus those not working.

 

b) 

 all adults who are able to work.

 

c) 

 all adults who are working or actively seeking work.

 

d) 

discouraged workers, employed workers, plus those actively seeking work.

 

a) 

 all adults who are working, plus those not working.

 

b) 

 all adults who are able to work.

 

c) 

 all adults who are working or actively seeking work.

 

d) 

discouraged workers, employed workers, plus those actively seeking work.

 

a) 

 all adults who are working, plus those not working.

 

a) 

 all adults who are working, plus those not working.

a) 

 all adults who are working, plus those not working.

a) 

 all adults who are working, plus those not working.

a) 

 all adults who are working, plus those not working.

a) 

a) 

 all adults who are working, plus those not working.

 all adults who are working, plus those not working.

 

b) 

 all adults who are able to work.

 

b) 

 all adults who are able to work.

b) 

 all adults who are able to work.

b) 

 all adults who are able to work.

b) 

 all adults who are able to work.

b) 

b) 

 all adults who are able to work.

 all adults who are able to work.

 

c) 

 all adults who are working or actively seeking work.

 

c) 

 all adults who are working or actively seeking work.

c) 

 all adults who are working or actively seeking work.

c) 

 all adults who are working or actively seeking work.

c) 

 all adults who are working or actively seeking work.

c) 

c) 

 all adults who are working or actively seeking work.

 all adults who are working or actively seeking work.

 

d) 

discouraged workers, employed workers, plus those actively seeking work.

 

d) 

discouraged workers, employed workers, plus those actively seeking work.

d) 

discouraged workers, employed workers, plus those actively seeking work.

d) 

discouraged workers, employed workers, plus those actively seeking work.

d) 

discouraged workers, employed workers, plus those actively seeking work.

d) 

d) 

discouraged workers, employed workers, plus those actively seeking work.

discouraged workers, employed workers, plus those actively seeking work.

Question 13 (1 point)

Question 13

 

If the unemployment rate is 8 percent, then this means:

Question 13 options:

 

a) 

 8 percent of the labor force is unemployed.

 

b) 

 8 percent of the population age over sixteen is unemployed.

 

c) 

the number of unemployed persons equals 8 percent of the employed persons.

 

d) 

8 percent of the population is unemployed.

 

a) 

 8 percent of the labor force is unemployed.

 

b) 

 8 percent of the population age over sixteen is unemployed.

 

c) 

the number of unemployed persons equals 8 percent of the employed persons.

 

d) 

8 percent of the population is unemployed.

 

a) 

 8 percent of the labor force is unemployed.

 

a) 

 8 percent of the labor force is unemployed.

a) 

 8 percent of the labor force is unemployed.

a) 

 8 percent of the labor force is unemployed.

a) 

 8 percent of the labor force is unemployed.

a) 

a) 

 8 percent of the labor force is unemployed.

 8 percent of the labor force is unemployed.

 

b) 

 8 percent of the population age over sixteen is unemployed.

 

b) 

 8 percent of the population age over sixteen is unemployed.

b) 

 8 percent of the population age over sixteen is unemployed.

b) 

 8 percent of the population age over sixteen is unemployed.

b) 

 8 percent of the population age over sixteen is unemployed.

b) 

b) 

 8 percent of the population age over sixteen is unemployed.

 8 percent of the population age over sixteen is unemployed.

 

c) 

the number of unemployed persons equals 8 percent of the employed persons.

 

c) 

the number of unemployed persons equals 8 percent of the employed persons.

c) 

the number of unemployed persons equals 8 percent of the employed persons.

c) 

the number of unemployed persons equals 8 percent of the employed persons.

c) 

the number of unemployed persons equals 8 percent of the employed persons.

c) 

c) 

the number of unemployed persons equals 8 percent of the employed persons.

the number of unemployed persons equals 8 percent of the employed persons.

 

d) 

8 percent of the population is unemployed.

 

d) 

8 percent of the population is unemployed.

d) 

8 percent of the population is unemployed.

d) 

8 percent of the population is unemployed.

d) 

8 percent of the population is unemployed.

d) 

d) 

8 percent of the population is unemployed.

8 percent of the population is unemployed.

Question 14 (1 point)

Question 14

 

Insofar as government public policy is concerned, the best way to battle unemployment would be __________________.

Question 14 options:

 

a) 

 to minimize recessions

 

b) 

to minimize labor unions

 

c) 

to maximize unemployment payments

 

d) 

 to maximize unemployment insurance duration

 

a) 

 to minimize recessions

 

b) 

to minimize labor unions

 

c) 

to maximize unemployment payments

 

d) 

 to maximize unemployment insurance duration

 

a) 

 to minimize recessions

 

a) 

 to minimize recessions

a) 

 to minimize recessions

a) 

 to minimize recessions

a) 

 to minimize recessions

a) 

a) 

 to minimize recessions

 to minimize recessions

 

b) 

to minimize labor unions

 

b) 

to minimize labor unions

b) 

to minimize labor unions

b) 

to minimize labor unions

b) 

to minimize labor unions

b) 

b) 

to minimize labor unions

to minimize labor unions

 

c) 

to maximize unemployment payments

 

c) 

to maximize unemployment payments

c) 

to maximize unemployment payments

c) 

to maximize unemployment payments

c) 

to maximize unemployment payments

c) 

c) 

to maximize unemployment payments

to maximize unemployment payments

 

d) 

 to maximize unemployment insurance duration

 

d) 

 to maximize unemployment insurance duration

d) 

 to maximize unemployment insurance duration

d) 

 to maximize unemployment insurance duration

d) 

 to maximize unemployment insurance duration

d) 

d) 

 to maximize unemployment insurance duration

 to maximize unemployment insurance duration

Question 15 (1 point)

Question 15

 

 If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals:

 

Question 15 options:

 

a) 

 20%.

 

b) 

 8%.

 

c) 

 32%.

 

d) 

 25%.

 

a) 

 20%.

 

b) 

 8%.

 

c) 

 32%.

 

d) 

 25%.

 

a) 

 20%.

 

a) 

 20%.

a) 

 20%.

a) 

 20%.

a) 

 20%.

a) 

a) 

 20%.

 20%.

 

b) 

 8%.

 

b) 

 8%.

b) 

 8%.

b) 

 8%.

b) 

 8%.

b) 

b) 

 8%.

 8%.

 

c) 

 32%.

 

c) 

 32%.

c) 

 32%.

c) 

 32%.

c) 

 32%.

c) 

c) 

 32%.

 32%.

 

d) 

 25%.

 

d) 

 25%.

d) 

 25%.

d) 

 25%.

d) 

 25%.

d) 

d) 

 25%.

 25%.

Question 16 (1 point)

Question 16

 

 Reginald looked for work for six months but could not find a job to his liking. He now spends his time at the beach. For purposes of employment he is considered:

 

Question 16 options:

 

a) 

unemployed.

 

b) 

out of the labor force.

 

c) 

 employed in the underground economy.

 

d) 

 underemployed.

 

a) 

unemployed.

 

b) 

out of the labor force.

 

c) 

 employed in the underground economy.

 

d) 

 underemployed.

 

a) 

unemployed.

 

a) 

unemployed.

a) 

unemployed.

a) 

unemployed.

a) 

unemployed.

a) 

a) 

unemployed.

unemployed.

 

b) 

out of the labor force.

 

b) 

out of the labor force.

b) 

out of the labor force.

b) 

out of the labor force.

b) 

out of the labor force.

b) 

b) 

out of the labor force.

out of the labor force.

 

c) 

 employed in the underground economy.

 

c) 

 employed in the underground economy.

c) 

 employed in the underground economy.

c) 

 employed in the underground economy.

c) 

 employed in the underground economy.

c) 

c) 

 employed in the underground economy.

 employed in the underground economy.

 

d) 

 underemployed.

 

d) 

 underemployed.

d) 

 underemployed.

d) 

 underemployed.

d) 

 underemployed.

d) 

d) 

 underemployed.

 underemployed.

Question 17 (1 point)

Question 17

 

 Craigburg has a working age population of 20 million. Of those, 11 million are employed and 1 million are unemployed. The unemployment rate is ________ and the participation rate is __________.

 

 

Question 17 options:

 

a) 

 5%; 55%.

 

b) 

 8.3%; 60%.

 

c) 

 5%; 60%.

 

d) 

 8.3%; 55%.

 

a) 

 5%; 55%.

 

b) 

 8.3%; 60%.

 

c) 

 5%; 60%.

 

d) 

 8.3%; 55%.

 

a) 

 5%; 55%.

 

a) 

 5%; 55%.

a) 

 5%; 55%.

a) 

 5%; 55%.

a) 

 5%; 55%.

a) 

a) 

 5%; 55%.

 5%; 55%.

 

b) 

 8.3%; 60%.

 

b) 

 8.3%; 60%.

b) 

 8.3%; 60%.

b) 

 8.3%; 60%.

b) 

 8.3%; 60%.

b) 

b) 

 8.3%; 60%.

 8.3%; 60%.

 

c) 

 5%; 60%.

 

c) 

 5%; 60%.

c) 

 5%; 60%.

c) 

 5%; 60%.

c) 

 5%; 60%.

c) 

c) 

 5%; 60%.

 5%; 60%.

 

d) 

 8.3%; 55%.

 

d) 

 8.3%; 55%.

d) 

 8.3%; 55%.

d) 

 8.3%; 55%.

d) 

 8.3%; 55%.

d) 

d) 

 8.3%; 55%.

 8.3%; 55%.

Question 18 (1 point)

Question 18

 

A payment is said to be ________________ if it is automatically adjusted for inflation. 

Question 18 options:

 

a) 

 maintained

 

b) 

matched

 

c) 

 cross referenced

 

d) 

 indexed

 

a) 

 maintained

 

b) 

matched

 

c) 

 cross referenced

 

d) 

 indexed

 

a) 

 maintained

 

a) 

 maintained

a) 

 maintained

a) 

 maintained

a) 

 maintained

a) 

a) 

 maintained

 maintained

 

b) 

matched

 

b) 

matched

b) 

matched

b) 

matched

b) 

matched

b) 

b) 

matched

matched

 

c) 

 cross referenced

 

c) 

 cross referenced

c) 

 cross referenced

c) 

 cross referenced

c) 

 cross referenced

c) 

c) 

 cross referenced

 cross referenced

 

d) 

 indexed

 

d) 

 indexed

d) 

 indexed

d) 

 indexed

d) 

 indexed

d) 

d) 

 indexed

 indexed

Question 19 (1 point)

Question 19

 

The basket of goods in the Consumer Price Index consists of about _________ products; that is, several hundred specific products in over __________ broad-item categories.

Question 19 options:

 

a) 

80,000; 400

 

b) 

 200; 800

 

c) 

800; 200

 

d) 

 80,000; 200

 

a) 

80,000; 400

 

b) 

 200; 800

 

c) 

800; 200

 

d) 

 80,000; 200

 

a) 

80,000; 400

 

a) 

80,000; 400

a) 

80,000; 400

a) 

80,000; 400

a) 

80,000; 400

a) 

a) 

80,000; 400

80,000; 400

 

b) 

 200; 800

 

b) 

 200; 800

b) 

 200; 800

b) 

 200; 800

b) 

 200; 800

b) 

b) 

 200; 800

 200; 800

 

c) 

800; 200

 

c) 

800; 200

c) 

800; 200

c) 

800; 200

c) 

800; 200

c) 

c) 

800; 200

800; 200

 

d) 

 80,000; 200

 

d) 

 80,000; 200

d) 

 80,000; 200

d) 

 80,000; 200

d) 

 80,000; 200

d) 

d) 

 80,000; 200

 80,000; 200

Question 20 (1 point)

Question 20

 

Which of the following is an example of one of the major categories in the overall CPI?

Question 20 options:

 

c) 

transportation 

 

c) 

transportation 

 

c) 

transportation 

 

c) 

transportation 

c) 

transportation 

c) 

transportation 

c) 

transportation 

c) 

c) 

transportation 

transportation 

Question 21 (1 point)

Question 21

 

The situation where the buying power of money in terms of goods and services increases is called:

Question 21 options:

 

a) 

 inflation.

 

b) 

hyperinflation.

 

c) 

 deflation.

 

d) 

stationary pricing.

 

a) 

 inflation.

 

b) 

hyperinflation.

 

c) 

 deflation.

 

d) 

stationary pricing.

 

a) 

 inflation.

 

a) 

 inflation.

a) 

 inflation.

a) 

 inflation.

a) 

 inflation.

a) 

a) 

 inflation.

 inflation.

 

b) 

hyperinflation.

 

b) 

hyperinflation.

b) 

hyperinflation.

b) 

hyperinflation.

b) 

hyperinflation.

b) 

b) 

hyperinflation.

hyperinflation.

 

c) 

 deflation.

 

c) 

 deflation.

c) 

 deflation.

c) 

 deflation.

c) 

 deflation.

c) 

c) 

 deflation.

 deflation.

 

d) 

stationary pricing.

 

d) 

stationary pricing.

d) 

stationary pricing.

d) 

stationary pricing.

d) 

stationary pricing.

d) 

d) 

stationary pricing.

stationary pricing.

Question 22 (1 point)

Question 22

 

One of the reasons that a rise in the price of a fixed basket of goods over time tends to overstate the rise in a consumer’s true cost of living, is:

Question 22 options:

 

a) 

 complimentary bias

 

b) 

 substitution bias

 

c) 

 preference bias

 

d) 

attribution bias

 

a) 

 complimentary bias

 

b) 

 substitution bias

 

c) 

 preference bias

 

d) 

attribution bias

 

a) 

 complimentary bias

 

a) 

 complimentary bias

a) 

 complimentary bias

a) 

 complimentary bias

a) 

 complimentary bias

a) 

a) 

 complimentary bias

 complimentary bias

 

b) 

 substitution bias

 

b) 

 substitution bias

b) 

 substitution bias

b) 

 substitution bias

b) 

 substitution bias

b) 

b) 

 substitution bias

 substitution bias

 

c) 

 preference bias

 

c) 

 preference bias

c) 

 preference bias

c) 

 preference bias

c) 

 preference bias

c) 

c) 

 preference bias

 preference bias

 

d) 

attribution bias

 

d) 

attribution bias

d) 

attribution bias

d) 

attribution bias

d) 

attribution bias

d) 

d) 

attribution bias

attribution bias

Question 23 (1 point)

Question 23

 

 The __________________ is the nominal interest rate minus the rate of inflation.

 

Question 23 options:

 

a) 

real GDP

 

b) 

nominally adjusted

 

c) 

annualized interest rate

 

d) 

 real interest rate

 

a) 

real GDP

 

b) 

nominally adjusted

 

c) 

annualized interest rate

 

d) 

 real interest rate

 

a) 

real GDP

 

a) 

real GDP

a) 

real GDP

a) 

real GDP

a) 

real GDP

a) 

a) 

real GDP

real GDP

 

b) 

nominally adjusted

 

b) 

nominally adjusted

b) 

nominally adjusted

b) 

nominally adjusted

b) 

nominally adjusted

b) 

b) 

nominally adjusted

nominally adjusted

 

c) 

annualized interest rate

 

c) 

annualized interest rate

c) 

annualized interest rate

c) 

annualized interest rate

c) 

annualized interest rate

c) 

c) 

annualized interest rate

annualized interest rate

 

d) 

 real interest rate

 

d) 

 real interest rate

d) 

 real interest rate

d) 

 real interest rate

d) 

 real interest rate

d) 

d) 

 real interest rate

 real interest rate

Question 24 (1 point)

Question 24

 

Nancy's union has negotiated a three-year wage contract that provides for a 2.4% increase indexed to inflation. The rates of inflation are forecast to be 1.62%, 1.93% and 2.21% respectively. How will Nancy's wage increase be expressed in the new contract?

Question 24 options:

 

a) 

COLA plus 1.9%

 

b) 

COLA plus 2.4%

 

c) 

 COLA plus 2.2%

 

d) 

 COLA plus 1.6%

 

a) 

COLA plus 1.9%

 

b) 

COLA plus 2.4%

 

c) 

 COLA plus 2.2%

 

d) 

 COLA plus 1.6%

 

a) 

COLA plus 1.9%

 

a) 

COLA plus 1.9%

a) 

COLA plus 1.9%

a) 

COLA plus 1.9%

a) 

COLA plus 1.9%

a) 

a) 

COLA plus 1.9%

COLA plus 1.9%

 

b) 

COLA plus 2.4%

 

b) 

COLA plus 2.4%

b) 

COLA plus 2.4%

b) 

COLA plus 2.4%

b) 

COLA plus 2.4%

b) 

b) 

COLA plus 2.4%

COLA plus 2.4%

 

c) 

 COLA plus 2.2%

 

c) 

 COLA plus 2.2%

c) 

 COLA plus 2.2%

c) 

 COLA plus 2.2%

c) 

 COLA plus 2.2%

c) 

c) 

 COLA plus 2.2%

 COLA plus 2.2%

 

d) 

 COLA plus 1.6%

 

d) 

 COLA plus 1.6%

d) 

 COLA plus 1.6%

d) 

 COLA plus 1.6%

d) 

 COLA plus 1.6%

d) 

d) 

 COLA plus 1.6%

 COLA plus 1.6%

Question 25 (1 point)

Question 25

 

 When Anders took out his first two-year membership with Maxima Gym in 2004, the fee was $540.00.  He renewed his membership three times; in 2006 for $580.00, in 2008, for $600.00, and again in 2010, for $630.00. What is the overall rate of inflation for Anders' gym membership? 

 

Question 25 options:

 

a) 

 7.87%

 

b) 

16.66%

 

c) 

 8.6%

 

d) 

 5.4%

 

a) 

 7.87%

 

b) 

16.66%

 

c) 

 8.6%

 

d) 

 5.4%

 

a) 

 7.87%

 

a) 

 7.87%

a) 

 7.87%

a) 

 7.87%

a) 

 7.87%

a) 

a) 

 7.87%

 7.87%

 

b) 

16.66%

 

b) 

16.66%

b) 

16.66%

b) 

16.66%

b) 

16.66%

b) 

b) 

16.66%

16.66%

 

c) 

 8.6%

 

c) 

 8.6%

c) 

 8.6%

c) 

 8.6%

c) 

 8.6%

c) 

c) 

 8.6%

 8.6%

 

d) 

 5.4%

 

d) 

 5.4%

d) 

 5.4%

d) 

 5.4%

d) 

 5.4%

d) 

d) 

 5.4%

 5.4%

Question 1 (1 point)

Question 1

 

Which of the following factors contribute to economic growth?

Question 1 options:

 

a) 

 an increase in the average wage rate paid to workers

 

b) 

an increase in the proportion of the population that is college educated

 

c) 

 a decrease in the productivity of labor

 

d) 

 an increase in the standard of living

 

a) 

 an increase in the average wage rate paid to workers

 

b) 

an increase in the proportion of the population that is college educated

 

c) 

 a decrease in the productivity of labor

 

d) 

 an increase in the standard of living

 

a) 

 an increase in the average wage rate paid to workers

 

a) 

 an increase in the average wage rate paid to workers

a) 

 an increase in the average wage rate paid to workers

a) 

 an increase in the average wage rate paid to workers

a) 

 an increase in the average wage rate paid to workers

a) 

a) 

 an increase in the average wage rate paid to workers

 an increase in the average wage rate paid to workers

 

b) 

an increase in the proportion of the population that is college educated

 

b) 

an increase in the proportion of the population that is college educated

b) 

an increase in the proportion of the population that is college educated

b) 

an increase in the proportion of the population that is college educated

b) 

an increase in the proportion of the population that is college educated

b) 

b) 

an increase in the proportion of the population that is college educated

an increase in the proportion of the population that is college educated

 

c) 

 a decrease in the productivity of labor

 

c) 

 a decrease in the productivity of labor

c) 

 a decrease in the productivity of labor

c) 

 a decrease in the productivity of labor

c) 

 a decrease in the productivity of labor

c) 

c) 

 a decrease in the productivity of labor

 a decrease in the productivity of labor

 

d) 

 an increase in the standard of living

 

d) 

 an increase in the standard of living

d) 

 an increase in the standard of living

d) 

 an increase in the standard of living

d) 

 an increase in the standard of living

d) 

d) 

 an increase in the standard of living

 an increase in the standard of living

Question 2 (1 point)

Question 2

 

 In the long run, the most important source of increase in a nation's standard of living is a:

 

Question 2 options:

 

a) 

high rate of labor force growth.

 

b) 

 high rate of consumption.

 

c) 

 high rate of economic growth.

 

d) 

 zero rate of population growth.

 

a) 

high rate of labor force growth.

 

b) 

 high rate of consumption.

 

c) 

 high rate of economic growth.

 

d) 

 zero rate of population growth.

 

a) 

high rate of labor force growth.

 

a) 

high rate of labor force growth.

a) 

high rate of labor force growth.

a) 

high rate of labor force growth.

a) 

high rate of labor force growth.

a) 

a) 

high rate of labor force growth.

high rate of labor force growth.

 

b) 

 high rate of consumption.

 

b) 

 high rate of consumption.

b) 

 high rate of consumption.

b) 

 high rate of consumption.

b) 

 high rate of consumption.

b) 

b) 

 high rate of consumption.

 high rate of consumption.

 

c) 

 high rate of economic growth.

 

c) 

 high rate of economic growth.

c) 

 high rate of economic growth.

c) 

 high rate of economic growth.

c) 

 high rate of economic growth.

c) 

c) 

 high rate of economic growth.

 high rate of economic growth.

 

d) 

 zero rate of population growth.

 

d) 

 zero rate of population growth.

d) 

 zero rate of population growth.

d) 

 zero rate of population growth.

d) 

 zero rate of population growth.

d) 

d) 

 zero rate of population growth.

 zero rate of population growth.

Question 3 (1 point)

Question 3

 

 Which of the following is correct?

 

Question 3 options:

 

a) 

 Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital.

 

b) 

 An increase in the quantity of labor always leads to economic growth.

 

c) 

 Third World countries are rich in human capital.

 

d) 

 A decrease in the productivity of labour leads to economic growth.

 

a) 

 Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital.

 

b) 

 An increase in the quantity of labor always leads to economic growth.

 

c) 

 Third World countries are rich in human capital.

 

d) 

 A decrease in the productivity of labour leads to economic growth.

 

a) 

 Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital.

 

a) 

 Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital.

a) 

 Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital.

a) 

 Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital.

a) 

 Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital.

a) 

a) 

 Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital.

 Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital.

 

b) 

 An increase in the quantity of labor always leads to economic growth.

 

b) 

 An increase in the quantity of labor always leads to economic growth.

b) 

 An increase in the quantity of labor always leads to economic growth.

b) 

 An increase in the quantity of labor always leads to economic growth.

b) 

 An increase in the quantity of labor always leads to economic growth.

b) 

b) 

 An increase in the quantity of labor always leads to economic growth.

 An increase in the quantity of labor always leads to economic growth.

 

c) 

 Third World countries are rich in human capital.

 

c) 

 Third World countries are rich in human capital.

c) 

 Third World countries are rich in human capital.

c) 

 Third World countries are rich in human capital.

c) 

 Third World countries are rich in human capital.

c) 

c) 

 Third World countries are rich in human capital.

 Third World countries are rich in human capital.

 

d) 

 A decrease in the productivity of labour leads to economic growth.

 

d) 

 A decrease in the productivity of labour leads to economic growth.

d) 

 A decrease in the productivity of labour leads to economic growth.

d) 

 A decrease in the productivity of labour leads to economic growth.

d) 

 A decrease in the productivity of labour leads to economic growth.

d) 

d) 

 A decrease in the productivity of labour leads to economic growth.

 A decrease in the productivity of labour leads to economic growth.

Question 4 (1 point)

Question 4

 

 

____________ is a term which refers to the widespread use of power-driven machinery and the economic and social changes that resulted in the first half of the 1800s.

Question 4 options:

 

a) 

Capital deepening

 

b) 

Living standard

 

c) 

 Industrial Revolution

 

d) 

 Technology

 

a) 

Capital deepening

 

b) 

Living standard

 

c) 

 Industrial Revolution

 

d) 

 Technology

 

a) 

Capital deepening

 

a) 

Capital deepening

a) 

Capital deepening

a) 

Capital deepening

a) 

Capital deepening

a) 

a) 

Capital deepening

Capital deepening

 

b) 

Living standard

 

b) 

Living standard

b) 

Living standard

b) 

Living standard

b) 

Living standard

b) 

b) 

Living standard

Living standard

 

c) 

 Industrial Revolution

 

c) 

 Industrial Revolution

c) 

 Industrial Revolution

c) 

 Industrial Revolution

c) 

 Industrial Revolution

c) 

c) 

 Industrial Revolution

 Industrial Revolution

 

d) 

 Technology

 

d) 

 Technology

d) 

 Technology

d) 

 Technology

d) 

 Technology

d) 

d) 

 Technology

 Technology

Question 5 (1 point)

Question 5

 

 In certain African countries like Niger, Tanzania, Nigeria, and Sudan, for example, GDP per capita at the start of the 2000s was still less than $___________.

 

Question 5 options:

 

a) 

 300

 

b) 

 30

 

c) 

 3000

 

d) 

30,000

 

a) 

 300

 

b) 

 30

 

c) 

 3000

 

d) 

30,000

 

a) 

 300

 

a) 

 300

a) 

 300

a) 

 300

a) 

 300

a) 

a) 

 300

 300

 

b) 

 30

 

b) 

 30

b) 

 30

b) 

 30

b) 

 30

b) 

b) 

 30

 30

 

c) 

 3000

 

c) 

 3000

c) 

 3000

c) 

 3000

c) 

 3000

c) 

c) 

 3000

 3000

 

d) 

30,000

 

d) 

30,000

d) 

30,000

d) 

30,000

d) 

30,000

d) 

d) 

30,000

30,000

Question 6 (1 point)

Question 6

 

Some prominent members of the slow-economic growth country club include a high-income country like _________.

Question 6 options:

 

a) 

 Nigeria

 

b) 

 Bolivia

 

c) 

Somalia

 

d) 

 Germany

 

a) 

 Nigeria

 

b) 

 Bolivia

 

c) 

Somalia

 

d) 

 Germany

 

a) 

 Nigeria

 

a) 

 Nigeria

a) 

 Nigeria

a) 

 Nigeria

a) 

 Nigeria

a) 

a) 

 Nigeria

 Nigeria

 

b) 

 Bolivia

 

b) 

 Bolivia

b) 

 Bolivia

b) 

 Bolivia

b) 

 Bolivia

b) 

b) 

 Bolivia

 Bolivia

 

c) 

Somalia

 

c) 

Somalia

c) 

Somalia

c) 

Somalia

c) 

Somalia

c) 

c) 

Somalia

Somalia

 

d) 

 Germany

 

d) 

 Germany

d) 

 Germany

d) 

 Germany

d) 

 Germany

d) 

d) 

 Germany

 Germany

Question 7 (1 point)

Question 7

 

 In the early 2000s in Bangladesh, the illiteracy rate for girls between the ages of 15 and 24 was __________ and the illiteracy rate for males in this age group was ______________.

Question 7 options:

 

a) 

 72%; 69%

 

b) 

78%; 75%

 

c) 

 67%; 70%

 

d) 

 80%; 83%

 

a) 

 72%; 69%

 

b) 

78%; 75%

 

c) 

 67%; 70%

 

d) 

 80%; 83%

 

a) 

 72%; 69%

 

a) 

 72%; 69%

a) 

 72%; 69%

a) 

 72%; 69%

a) 

 72%; 69%

a) 

a) 

 72%; 69%

 72%; 69%

 

b) 

78%; 75%

 

b) 

78%; 75%

b) 

78%; 75%

b) 

78%; 75%

b) 

78%; 75%

b) 

b) 

78%; 75%

78%; 75%

 

c) 

 67%; 70%

 

c) 

 67%; 70%

c) 

 67%; 70%

c) 

 67%; 70%

c) 

 67%; 70%

c) 

c) 

 67%; 70%

 67%; 70%

 

d) 

 80%; 83%

 

d) 

 80%; 83%

d) 

 80%; 83%

d) 

 80%; 83%

d) 

 80%; 83%

d) 

d) 

 80%; 83%

 80%; 83%

Question 8 (1 point)

Question 8

 

Country Alpha and Country Beta initially have the same real GDP per capita. Country Alpha experiences no economic growth, while Country Beta grows at a sustained rate of 5 percent. In 14 years, Country Alpha's GDP will be approximately _________ that of Country Beta.

Question 8 options:

 

a) 

one-fourth

 

b) 

 triple

 

c) 

one-half

 

d) 

 double

 

a) 

one-fourth

 

b) 

 triple

 

c) 

one-half

 

d) 

 double

 

a) 

one-fourth

 

a) 

one-fourth

a) 

one-fourth

a) 

one-fourth

a) 

one-fourth

a) 

a) 

one-fourth

one-fourth

 

b) 

 triple

 

b) 

 triple

b) 

 triple

b) 

 triple

b) 

 triple

b) 

b) 

 triple

 triple

 

c) 

one-half

 

c) 

one-half

c) 

one-half

c) 

one-half

c) 

one-half

c) 

c) 

one-half

one-half

 

d) 

 double

 

d) 

 double

d) 

 double

d) 

 double

d) 

 double

d) 

d) 

 double

 double

Question 9 (1 point)

Question 9

 

 Frictional unemployment is:

 

Question 9 options:

 

a) 

 unemployment caused by lack of training and education.

 

b) 

unemployment that is due to normal turnover in the labor market.

 

c) 

 unemployment that is due to the friction of competing ideological systems.

 

d) 

unemployment caused by automation in the workplace.

 

a) 

 unemployment caused by lack of training and education.

 

b) 

unemployment that is due to normal turnover in the labor market.

 

c) 

 unemployment that is due to the friction of competing ideological systems.

 

d) 

unemployment caused by automation in the workplace.

 

a) 

 unemployment caused by lack of training and education.

 

a) 

 unemployment caused by lack of training and education.

a) 

 unemployment caused by lack of training and education.

a) 

 unemployment caused by lack of training and education.

a) 

 unemployment caused by lack of training and education.

a) 

a) 

 unemployment caused by lack of training and education.

 unemployment caused by lack of training and education.

 

b) 

unemployment that is due to normal turnover in the labor market.

 

b) 

unemployment that is due to normal turnover in the labor market.

b) 

unemployment that is due to normal turnover in the labor market.

b) 

unemployment that is due to normal turnover in the labor market.

b) 

unemployment that is due to normal turnover in the labor market.

b) 

b) 

unemployment that is due to normal turnover in the labor market.

unemployment that is due to normal turnover in the labor market.

 

c) 

 unemployment that is due to the friction of competing ideological systems.

 

c) 

 unemployment that is due to the friction of competing ideological systems.

c) 

 unemployment that is due to the friction of competing ideological systems.

c) 

 unemployment that is due to the friction of competing ideological systems.

c) 

 unemployment that is due to the friction of competing ideological systems.

c) 

c) 

 unemployment that is due to the friction of competing ideological systems.

 unemployment that is due to the friction of competing ideological systems.

 

d) 

unemployment caused by automation in the workplace.

 

d) 

unemployment caused by automation in the workplace.

d) 

unemployment caused by automation in the workplace.

d) 

unemployment caused by automation in the workplace.

d) 

unemployment caused by automation in the workplace.

d) 

d) 

unemployment caused by automation in the workplace.

unemployment caused by automation in the workplace.

Question 10 (1 point)

Question 10

 

 Women composed __________ of the paid workforce in 1900 and 50% of the paid workforce in 2012. 

 

Question 10 options:

 

a) 

33%

 

b) 

 18%

 

c) 

 60%

 

d) 

 2%

 

a) 

33%

 

b) 

 18%

 

c) 

 60%

 

d) 

 2%

 

a) 

33%

 

a) 

33%

a) 

33%

a) 

33%

a) 

33%

a) 

a) 

33%

33%

 

b) 

 18%

 

b) 

 18%

b) 

 18%

b) 

 18%

b) 

 18%

b) 

b) 

 18%

 18%

 

c) 

 60%

 

c) 

 60%

c) 

 60%

c) 

 60%

c) 

 60%

c) 

c) 

 60%

 60%

 

d) 

 2%

 

d) 

 2%

d) 

 2%

d) 

 2%

d) 

 2%

d) 

d) 

 2%

 2%

Question 11 (1 point)

Question 11

 

 

 Each month the Census Bureau carries out the Current Population Survey (CPS) (which has been carried out every month since 1940). A total of __________ households are contacted every month.

 

Question 11 options:

 

a) 

 600,000

 

b) 

600

 

c) 

60,000

 

d) 

 6000

 

a) 

 600,000

 

b) 

600

 

c) 

60,000

 

d) 

 6000

 

a) 

 600,000

 

a) 

 600,000

a) 

 600,000

a) 

 600,000

a) 

 600,000

a) 

a) 

 600,000

 600,000

 

b) 

600

 

b) 

600

b) 

600

b) 

600

b) 

600

b) 

b) 

600

600

 

c) 

60,000

 

c) 

60,000

c) 

60,000

c) 

60,000

c) 

60,000

c) 

c) 

60,000

60,000

 

d) 

 6000

 

d) 

 6000

d) 

 6000

d) 

 6000

d) 

 6000

d) 

d) 

 6000

 6000

Question 12 (1 point)

Question 12

 

 Through good economic years and bad, many European economies had unemployment rates hovering near _________ since the 1970s.

 

Question 12 options:

 

a) 

 1%

 

b) 

 10%

 

c) 

 5%

 

d) 

20%

 

a) 

 1%

 

b) 

 10%

 

c) 

 5%

 

d) 

20%

 

a) 

 1%

 

a) 

 1%

a) 

 1%

a) 

 1%

a) 

 1%

a) 

a) 

 1%

 1%

 

b) 

 10%

 

b) 

 10%

b) 

 10%

b) 

 10%

b) 

 10%

b) 

b) 

 10%

 10%

 

c) 

 5%

 

c) 

 5%

c) 

 5%

c) 

 5%

c) 

 5%

c) 

c) 

 5%

 5%

 

d) 

20%

 

d) 

20%

d) 

20%

d) 

20%

d) 

20%

d) 

d) 

20%

20%

Question 13 (1 point)

Question 13

 

 The U.S. unemployment rate moves up and down as the economy moves in and out of recessions. But over time, the unemployment rate seems to return to a range of ____________. 

 

Question 13 options:

 

a) 

6%-8%

 

b) 

 4%-6%

 

c) 

 8%-10%

 

d) 

 2%-4%

 

a) 

6%-8%

 

b) 

 4%-6%

 

c) 

 8%-10%

 

d) 

 2%-4%

 

a) 

6%-8%

 

a) 

6%-8%

a) 

6%-8%

a) 

6%-8%

a) 

6%-8%

a) 

a) 

6%-8%

6%-8%

 

b) 

 4%-6%

 

b) 

 4%-6%

b) 

 4%-6%

b) 

 4%-6%

b) 

 4%-6%

b) 

b) 

 4%-6%

 4%-6%

 

c) 

 8%-10%

 

c) 

 8%-10%

c) 

 8%-10%

c) 

 8%-10%

c) 

 8%-10%

c) 

c) 

 8%-10%

 8%-10%

 

d) 

 2%-4%

 

d) 

 2%-4%

d) 

 2%-4%

d) 

 2%-4%

d) 

 2%-4%

d) 

d) 

 2%-4%

 2%-4%

Question 14 (1 point)

Question 14

 

 During the Great Depression of the 1930s, the unemployment rate reached more than _________ of the labor force. 

 

Question 14 options:

 

a) 

 25%

 

b) 

 65%

 

c) 

 45%

 

d) 

85%

 

a) 

 25%

 

b) 

 65%

 

c) 

 45%

 

d) 

85%

 

a) 

 25%

 

a) 

 25%

a) 

 25%

a) 

 25%

a) 

 25%

a) 

a) 

 25%

 25%

 

b) 

 65%

 

b) 

 65%

b) 

 65%

b) 

 65%

b) 

 65%

b) 

b) 

 65%

 65%

 

c) 

 45%

 

c) 

 45%

c) 

 45%

c) 

 45%

c) 

 45%

c) 

c) 

 45%

 45%

 

d) 

85%

 

d) 

85%

d) 

85%

d) 

85%

d) 

85%

d) 

d) 

85%

85%

Question 15 (1 point)

Question 15

 

In November 2014 the labor force in Siouxtown, was 14,800. There were 14,483 persons employed. The local unemployment rate:

 

 

Question 15 options:

 

a) 

was 5.6%.

 

b) 

was 1.2%.

 

c) 

was 7.1%.

 

d) 

was 2.1%.

 

a) 

was 5.6%.

 

b) 

was 1.2%.

 

c) 

was 7.1%.

 

d) 

was 2.1%.

 

a) 

was 5.6%.

 

a) 

was 5.6%.

a) 

was 5.6%.

a) 

was 5.6%.

a) 

was 5.6%.

a) 

a) 

was 5.6%.

was 5.6%.

 

b) 

was 1.2%.

 

b) 

was 1.2%.

b) 

was 1.2%.

b) 

was 1.2%.

b) 

was 1.2%.

b) 

b) 

was 1.2%.

was 1.2%.

 

c) 

was 7.1%.

 

c) 

was 7.1%.

c) 

was 7.1%.

c) 

was 7.1%.

c) 

was 7.1%.

c) 

c) 

was 7.1%.

was 7.1%.

 

d) 

was 2.1%.

 

d) 

was 2.1%.

d) 

was 2.1%.

d) 

was 2.1%.

d) 

was 2.1%.

d) 

d) 

was 2.1%.

was 2.1%.

Question 16 (1 point)

Question 16

 

 Craigburg has a working age population of 20 million. Of those, 11 million are employed and 1 million are unemployed. The unemployment rate is ________ and the participation rate is __________.

 

 

Question 16 options:

 

a) 

 5%; 55%.

 

b) 

 8.3%; 60%.

 

c) 

 5%; 60%.

 

d) 

 8.3%; 55%

 

a) 

 5%; 55%.

 

b) 

 8.3%; 60%.

 

c) 

 5%; 60%.

 

d) 

 8.3%; 55%

 

a) 

 5%; 55%.

 

a) 

 5%; 55%.

a) 

 5%; 55%.

a) 

 5%; 55%.

a) 

 5%; 55%.

a) 

a) 

 5%; 55%.

 5%; 55%.

 

b) 

 8.3%; 60%.

 

b) 

 8.3%; 60%.

b) 

 8.3%; 60%.

b) 

 8.3%; 60%.

b) 

 8.3%; 60%.

b) 

b) 

 8.3%; 60%.

 8.3%; 60%.

 

c) 

 5%; 60%.

 

c) 

 5%; 60%.

c) 

 5%; 60%.

c) 

 5%; 60%.

c) 

 5%; 60%.

c) 

c) 

 5%; 60%.

 5%; 60%.

 

d) 

 8.3%; 55%

 

d) 

 8.3%; 55%

d) 

 8.3%; 55%

d) 

 8.3%; 55%

d) 

 8.3%; 55%

d) 

d) 

 8.3%; 55%

 8.3%; 55%

Question 17 (1 point)

Question 17

 

 If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals:

 

Question 17 options:

 

a) 

 8%.

 

b) 

 20%.

 

c) 

 25%.

 

d) 

 32%.

 

a) 

 8%.

 

b) 

 20%.

 

c) 

 25%.

 

d) 

 32%.

 

a) 

 8%.

 

a) 

 8%.

a) 

 8%.

a) 

 8%.

a) 

 8%.

a) 

a) 

 8%.

 8%.

 

b) 

 20%.

 

b) 

 20%.

b) 

 20%.

b) 

 20%.

b) 

 20%.

b) 

b) 

 20%.

 20%.

 

c) 

 25%.

 

c) 

 25%.

c) 

 25%.

c) 

 25%.

c) 

 25%.

c) 

c) 

 25%.

 25%.

 

d) 

 32%.

 

d) 

 32%.

d) 

 32%.

d) 

 32%.

d) 

 32%.

d) 

d) 

 32%.

 32%.

Question 18 (1 point)

Question 18

 

 Another term used to describe negative inflation is:

 

Question 18 options:

 

a) 

 hyperinflation

 

b) 

 GDP deflator

 

c) 

 counter inflation

 

d) 

deflation

 

a) 

 hyperinflation

 

b) 

 GDP deflator

 

c) 

 counter inflation

 

d) 

deflation

 

a) 

 hyperinflation

 

a) 

 hyperinflation

a) 

 hyperinflation

a) 

 hyperinflation

a) 

 hyperinflation

a) 

a) 

 hyperinflation

 hyperinflation

 

b) 

 GDP deflator

 

b) 

 GDP deflator

b) 

 GDP deflator

b) 

 GDP deflator

b) 

 GDP deflator

b) 

b) 

 GDP deflator

 GDP deflator

 

c) 

 counter inflation

 

c) 

 counter inflation

c) 

 counter inflation

c) 

 counter inflation

c) 

 counter inflation

c) 

c) 

 counter inflation

 counter inflation

 

d) 

deflation

 

d) 

deflation

d) 

deflation

d) 

deflation

d) 

deflation

d) 

d) 

deflation

deflation

Question 19 (1 point)

Question 19

 

 What name is given to the index based on the prices of exported or imported merchandise?

 

Question 19 options:

 

a) 

 U.S. Producer Trade Index

 

b) 

 International Trade Index

 

c) 

 U.S. Producer Price Index

 

d) 

 International Price Index

 

a) 

 U.S. Producer Trade Index

 

b) 

 International Trade Index

 

c) 

 U.S. Producer Price Index

 

d) 

 International Price Index

 

a) 

 U.S. Producer Trade Index

 

a) 

 U.S. Producer Trade Index

a) 

 U.S. Producer Trade Index

a) 

 U.S. Producer Trade Index

a) 

 U.S. Producer Trade Index

a) 

a) 

 U.S. Producer Trade Index

 U.S. Producer Trade Index

 

b) 

 International Trade Index

 

b) 

 International Trade Index

b) 

 International Trade Index

b) 

 International Trade Index

b) 

 International Trade Index

b) 

b) 

 International Trade Index

 International Trade Index

 

c) 

 U.S. Producer Price Index

 

c) 

 U.S. Producer Price Index

c) 

 U.S. Producer Price Index

c) 

 U.S. Producer Price Index

c) 

 U.S. Producer Price Index

c) 

c) 

 U.S. Producer Price Index

 U.S. Producer Price Index

 

d) 

 International Price Index

 

d) 

 International Price Index

d) 

 International Price Index

d) 

 International Price Index

d) 

 International Price Index

d) 

d) 

 International Price Index

 International Price Index

Question 20 (1 point)

Question 20

 

The ____________________ is based on the prices of merchandise that are exported or imported.

Question 20 options:

 

b) 

 International Price Index

 

b) 

 International Price Index

 

b) 

 International Price Index

 

b) 

 International Price Index

b) 

 International Price Index

b) 

 International Price Index

b) 

 International Price Index

b) 

b) 

 International Price Index

 International Price Index

Question 21 (1 point)

Question 21

 

Which of the following is the name used to describe the price index that consists of intermediate goods and finished goods?

Question 21 options:

 

a) 

 Employment Cost Index

 

b) 

 Processing Price Index

 

c) 

 Consumer Price Index

 

d) 

 Producer Price Index 

 

a) 

 Employment Cost Index

 

b) 

 Processing Price Index

 

c) 

 Consumer Price Index

 

d) 

 Producer Price Index 

 

a) 

 Employment Cost Index

 

a) 

 Employment Cost Index

a) 

 Employment Cost Index

a) 

 Employment Cost Index

a) 

 Employment Cost Index

a) 

a) 

 Employment Cost Index

 Employment Cost Index

 

b) 

 Processing Price Index

 

b) 

 Processing Price Index

b) 

 Processing Price Index

b) 

 Processing Price Index

b) 

 Processing Price Index

b) 

b) 

 Processing Price Index

 Processing Price Index

 

c) 

 Consumer Price Index

 

c) 

 Consumer Price Index

c) 

 Consumer Price Index

c) 

 Consumer Price Index

c) 

 Consumer Price Index

c) 

c) 

 Consumer Price Index

 Consumer Price Index

 

d) 

 Producer Price Index 

 

d) 

 Producer Price Index 

d) 

 Producer Price Index 

d) 

 Producer Price Index 

d) 

 Producer Price Index 

d) 

d) 

 Producer Price Index 

 Producer Price Index 

Question 22 (1 point)

Question 22

 

The percentage change in the price level from one time period to the next, whether the price level is measured in terms of money or as a price index, will be the _____________.

Question 22 options:

 

a) 

 consumer price index

 

b) 

 inflation rate

 

c) 

 price index rate

 

d) 

 producer price Index

 

a) 

 consumer price index

 

b) 

 inflation rate

 

c) 

 price index rate

 

d) 

 producer price Index

 

a) 

 consumer price index

 

a) 

 consumer price index

a) 

 consumer price index

a) 

 consumer price index

a) 

 consumer price index

a) 

a) 

 consumer price index

 consumer price index

 

b) 

 inflation rate

 

b) 

 inflation rate

b) 

 inflation rate

b) 

 inflation rate

b) 

 inflation rate

b) 

b) 

 inflation rate

 inflation rate

 

c) 

 price index rate

 

c) 

 price index rate

c) 

 price index rate

c) 

 price index rate

c) 

 price index rate

c) 

c) 

 price index rate

 price index rate

 

d) 

 producer price Index

 

d) 

 producer price Index

d) 

 producer price Index

d) 

 producer price Index

d) 

 producer price Index

d) 

d) 

 producer price Index

 producer price Index

Question 23 (1 point)

Question 23

 

The GDP deflator is a price index that includes the following components of GDP:

Question 23 options:

 

a) 

Consumption, Investment plus Exports minus Imports

 

b) 

Consumption 

 

c) 

Consumption, Investment, Government plus Exports minus Imports

 

d) 

 Consumption plus Investment but not Exports

 

a) 

Consumption, Investment plus Exports minus Imports

 

b) 

Consumption 

 

c) 

Consumption, Investment, Government plus Exports minus Imports

 

d) 

 Consumption plus Investment but not Exports

 

a) 

Consumption, Investment plus Exports minus Imports

 

a) 

Consumption, Investment plus Exports minus Imports

a) 

Consumption, Investment plus Exports minus Imports

a) 

Consumption, Investment plus Exports minus Imports

a) 

Consumption, Investment plus Exports minus Imports

a) 

a) 

Consumption, Investment plus Exports minus Imports

Consumption, Investment plus Exports minus Imports

 

b) 

Consumption 

 

b) 

Consumption 

b) 

Consumption 

b) 

Consumption 

b) 

Consumption 

b) 

b) 

Consumption 

Consumption 

 

c) 

Consumption, Investment, Government plus Exports minus Imports

 

c) 

Consumption, Investment, Government plus Exports minus Imports

c) 

Consumption, Investment, Government plus Exports minus Imports

c) 

Consumption, Investment, Government plus Exports minus Imports

c) 

Consumption, Investment, Government plus Exports minus Imports

c) 

c) 

Consumption, Investment, Government plus Exports minus Imports

Consumption, Investment, Government plus Exports minus Imports

 

d) 

 Consumption plus Investment but not Exports

 

d) 

 Consumption plus Investment but not Exports

d) 

 Consumption plus Investment but not Exports

d) 

 Consumption plus Investment but not Exports

d) 

 Consumption plus Investment but not Exports

d) 

d) 

 Consumption plus Investment but not Exports

 Consumption plus Investment but not Exports

Question 24 (1 point)

Question 24

 

An analyst needs to adjust the nominal GDP for the years 2000 and 2010 into real terms to conclude his comparison analysis. The nominal GDP in 2000 was $672 billion and $1,690 billion for 2010; the real interest rate was 6.79% in 2000 and 3.71% in 2010; the 2000 deflator was 24 and 51 in 2010. What is the real gain?

Question 24 options:

 

a) 

 38.58%

 

b) 

18.34%

 

c) 

151.48%

 

d) 

 70.61%

 

a) 

 38.58%

 

b) 

18.34%

 

c) 

151.48%

 

d) 

 70.61%

 

a) 

 38.58%

 

a) 

 38.58%

a) 

 38.58%

a) 

 38.58%

a) 

 38.58%

a) 

a) 

 38.58%

 38.58%

 

b) 

18.34%

 

b) 

18.34%

b) 

18.34%

b) 

18.34%

b) 

18.34%

b) 

b) 

18.34%

18.34%

 

c) 

151.48%

 

c) 

151.48%

c) 

151.48%

c) 

151.48%

c) 

151.48%

c) 

c) 

151.48%

151.48%

 

d) 

 70.61%

 

d) 

 70.61%

d) 

 70.61%

d) 

 70.61%

d) 

 70.61%

d) 

d) 

 70.61%

 70.61%

Question 25 (1 point)

Question 25

 

 When Anders took out his first two-year membership with Maxima Gym in 2004, the fee was $540.00.  He renewed his membership three times; in 2006 for $580.00, in 2008, for $600.00, and again in 2010, for $630.00. What is the overall rate of inflation for Anders' gym membership? 

 

Question 25 options:

 

a) 

 5.4%

 

b) 

 7.87%

 

c) 

16.66%

 

d) 

 8.6%

 

a) 

 5.4%

 

b) 

 7.87%

 

c) 

16.66%

 

d) 

 8.6%

 

a) 

 5.4%

 

a) 

 5.4%

a) 

 5.4%

a) 

 5.4%

a) 

 5.4%

a) 

a) 

 5.4%

 5.4%

 

b) 

 7.87%

 

b) 

 7.87%

b) 

 7.87%

b) 

 7.87%

b) 

 7.87%

b) 

b) 

 7.87%

 7.87%

 

c) 

16.66%

 

c) 

16.66%

c) 

16.66%

c) 

16.66%

c) 

16.66%

c) 

c) 

16.66%

16.66%

 

d) 

 8.6%

 

d) 

 8.6%

d) 

 8.6%

d) 

 8.6%

d) 

 8.6%

d) 

d) 

 8.6%

 8.6%

Answers

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