| Lesson 3 |
| Question 1 | 5 / 5 points |
The fraction of the working-age population that is in the labor force is called the __________.
Question options:
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| employment rate | ||
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| unemployment rate | ||
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| labor force participation rate | ||
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| nonresponse rate | ||
| Question 2 | 5 / 5 points | ||
Economists say that the economy is at "full employment" when the __________.
Question options:
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| structural unemployment rate is zero | ||
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| total unemployment rate is zero | ||
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| frictional unemployment rate is zero | ||
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| cyclical unemployment rate is zero | ||
| Question 3 | 5 / 5 points | ||
The value of a dollar __________.
Question options:
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| is its purchasing power | ||
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| remains constant over time | ||
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| is its face value | ||
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| is set by the government | ||
| Question 4 | 5 / 5 points | ||
What does the Consumer Price Index (CPI. measure?
Question options:
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| prices of durable goods | ||
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| prices of non-durable goods | ||
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| the cost of living over time | ||
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| 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:
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| income and spending | ||
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| sales and taxes | ||
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| wages and raises | ||
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| 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:
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| gross domestic product | ||
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| net national product | ||
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| consumer price index | ||
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| net exports | ||
| Question 7 | 5 / 5 points | ||
Economists define the unemployed as individuals who are __________.
Question options:
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| not currently working | ||
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| not currently working but are actively looking for work | ||
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| working but looking for a different job | ||
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| working less than their desired amount of time | ||
| Question 8 | 5 / 5 points | ||
Which of the following would be a macroeconomic question?
Question options:
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| How have the retirement benefits in the auto industry changed over time? | ||
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| How has inflation increased over time? | ||
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| How has the price of gold increased over time? | ||
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| 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:
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| unemployed and in the labor force | ||
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| unemployed and not in the labor force | ||
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| not in the labor force | ||
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| 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:
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| the purchasing power of your real wages would be more than you anticipated | ||
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| your employer would have gained at your expense | ||
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| your real wage will increase, but your nominal wage will decrease | ||
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| 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:
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| people attending colleges | ||
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| people requiring retraining | ||
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| employment | ||
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| welfare benefits | ||
| Question 12 | 5 / 5 points | ||
Macroeconomics __________.
Question options:
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| studies the behavior of individual consumers, firms, and markets | ||
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| studies the behavior of the economy as a whole | ||
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| involves the interaction between different countries in specific markets | ||
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| 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:
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| requires calculation of GDP, while the chain-weighted index does not | ||
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| measures the costs of a typical fixed basket of goods over time, while the chain-weighted index does not | ||
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| allows for the goods consumed in an economy to change over time, while the chain-weighted index does not | ||
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| 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:
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| Producer Price Index | ||
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| Consumer Price Index | ||
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| the GDP deflator | ||
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| 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:
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| decreases | ||
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| increases | ||
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| remains the same | ||
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| 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:
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| 10 percent | ||
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| 12 percent | ||
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| 21 percent | ||
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| 42 percent | ||
| Question 17 | 5 / 5 points | ||
The circular flow is used to make the point that __________.
Question options:
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| rising prices never occur during times of unemployment | ||
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| unemployment only occurs during a recession | ||
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| production generates income | ||
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| households purchase factors of production from firms | ||
| Question 18 | 5 / 5 points | ||
The unemployment rate is the number of unemployed people __________.
Question options:
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| divided by the number of people who are working | ||
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| divided by the total working-age population | ||
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| divided by the sum of the number of people who are working and the number of people who are looking for work | ||
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| 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:
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| government spending | ||
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| consumption expenditures | ||
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| private investment expenditures | ||
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| 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:
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| express the values of products in a common unit of measurement |
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| correct for inflation |
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| directly compare the output of one economy to that of another |
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| calculate the total number of units of goods produced in an economy |
