The fraction of the working-age population that is in the labor force is called the __________.

Question options:

  

employment

  rate

 

unemployment   rate

 

labor   force participation rate

 

nonresponse   rate

 

Question 2

5 / 5 points

       

Economists say that the economy is at "fullemployment" when the __________.

Question options:
  

structural   unemployment rate is zero

 

total   unemployment rate is zero

 

frictional   unemployment rate is zero

 

cyclical   unemployment rate is zero

 

Question 3

5 / 5 points
       

The value of a dollar __________.

Question options:
  

is   its purchasing power

 

remains   constant over time

 

is   its face value

 

is   set by the government

 

Question 4

5 / 5 points
       

What does the Consumer Price Index (CPI. measure?

Question options:
  

prices   of durable goods

 

prices   of non-durable goods

 

the   cost of living over time

 

the   cost of replacing lost items

 

Question 5

5 / 5 points
       

What are the two critical measures of a nation’s economic health?

Question options:
  

income   and spending

 

sales   and taxes

 

wages   and raises

 

production   and income

 

Question 6

5 / 5 points
       

The value of all final goods and services produced during a given time period measures a nation’s __________.

Question options:
  

gross   domestic product

 

net   national product

 

consumer   price index

 

net   exports

 

Question 7

5 / 5 points
       

Economists define the

unemployed

as individuals who are __________.

Question options:
  

not   currently working

 

not   currently working but are actively looking for work

 

working   but looking for a different job

 

working   less than their desired amount of time

 

Question 8

5 / 5 points
       

Which of the following would be a macroeconomic question?

Question options:
  

How   have the retirement benefits in the auto industry changed over time?

 

How   has inflation increased over time?

 

How   has the price of gold increased over time?

 

How   has the number of commercial airline flights decreased over time?

 

Question 9

5 / 5 points
       

If Sam does not have a job and is not looking for work, he is considered __________.

Question options:
  

unemployed   and in the labor force

 

unemployed   and not in the labor force

 

not   in the labor force

 
unemployed
 

Question 10

5 / 5 points
       

If you negotiated a salary based on an anticipated inflation rate of 4 percent, and the actual inflation rate turned out to be 6 percent, __________.

Question options:
  

the   purchasing power of your real wages would be more than you anticipated

 

your   employer would have gained at your expense

 

your   real wage will increase, but your nominal wage will decrease

 

the   purchasing power of your wages will not change, since purchasing power is   based on your nominal wage

 

Question 11

5 / 5 points
       

The labor supply and demand most directly affect the level of __________ in an economy.

Question options:
  

people   attending colleges

 

people   requiring retraining

 
employment
 

welfare   benefits

 

Question 12

5 / 5 points
       

Macroeconomics __________.

Question options:
  

studies   the behavior of individual consumers, firms, and markets

 

studies   the behavior of the economy as a whole

 

involves   the interaction between different countries in specific markets

 

studies   how computer automation has changed economics

 

Question 13

5 / 5 points
       

The Consumer Price Index (CPI. differs from a chain-weighted price index in that the CPI __________.

Question options:
  

requires   calculation of GDP, while the chain-weighted index does not

 

measures   the costs of a typical fixed basket of goods over time, while the   chain-weighted index does not

 

allows   for the goods consumed in an economy to change over time, while the   chain-weighted index does not

 

compares   the prices of all goods in one year to the prices of all goods in other years

 

Question 14

5 / 5 points
       

The index most widely used by the government and the private sector to measure changes in the cost of living is the __________.

Question options:
  

Producer   Price Index

 

Consumer   Price Index

 

the   GDP deflator

 

the   chain-weighted price index

 

Question 15

5 / 5 points
       

Suppose the stock of capital remains constant. By adding more labor, perhaps a second work shift, output __________.

Question options:
  

decreases

 

increases

 

remains   the same

 

becomes   more costly

 

Question 16

5 / 5 points
       

Suppose that nominal GDP in year 1 is 200 and nominal GDP in year 2 is 242. Assume that inflation is 10 percent per year. How fast did the economy grow between these two years?

Question options:
  

10   percent

 

12   percent

 

21   percent

 

42   percent

 

Question 17

5 / 5 points
       

The circular flow is used to make the point that __________.

Question options:
  

rising   prices never occur during times of unemployment

 

unemployment   only occurs during a recession

 

production   generates income

 

households   purchase factors of production from firms

 

Question 18

5 / 5 points
       

The unemployment rate is the number of unemployed people __________.

Question options:
  

divided   by the number of people who are working

 

divided   by the total working-age population

 

divided   by the sum of the number of people who are working and the number of people   who are looking for work

 

and   the number of people working fewer than their desired number of hours,   divided by the number of people who are working or looking for work

 

Question 19

5 / 5 points
       

The largest component of GDP is __________.

Question options:
  

government   spending

 

consumption   expenditures

 

private   investment expenditures

 
net   exports
 

Question 20

5 / 5 points
       

We measure gross domestic product by multiplying the quantities of goods by their prices because it allows us to __________.

Question options:
  

express   the values of products in a common unit of measurement

 

correct   for inflation

 

directly   compare the output of one economy to that of another

 

calculate   the total number of units of goods produced in an economy