Unit 5 GDP, Unemployment, Business Cycle Practice Questions
Quiz by Derrick Allen
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19 questions
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- Q1During the business cycle, an economic expansion occursat the peak of the business cycleat the trough of a business cyclein between the trough and peakin between the peak and trough45s
- Q2Leading indicators areused to predict future economic conditionsused to roughly approximate future economic conditionsgood at predicting expansions and recessionsused to gauge current economic conditions45s
- Q3Which of the following would be included as a member of the labor force?a full time college studenta recent high school graduate looking for a first joba retired school teacher collecting social security benefitsa homemaker contributing 15 hours per week as a volunteer worker in a hospital45s
- Q4Which one of the following persons would NOT be considered unemployed?a retiree actively looking for part-time work to supplement Social Security incomea construction worker who has given up looking for work after 18 months without a joba college student actively searching for a summer jobAn auto worker vacationing in FL during the layoff period, before the production of new models begins next month. He doesn't know for sure whether he will be called back to work when this happens, and looked for a new job last week.45s
- Q5Unemployment caused by a recession is callednatural unemploymentcyclical unemploymentstructural unemploymentfrictional unemployment45s
- Q6Frictional unemployment often occurs whenpeople are discriminated againstthe economy enters a recessionpeople lose a job because their skills are no longer neededpeople first enter the labor force45s
- Q7Workers at a steel plant are laid off because the economy is weak and the demand for products requiring steel has fallen. What type of unemployment best describes the workers' situation?structural unemploymentfull employmentfrictional unemploymentcyclical unemployment45s
- Q8Which of the following are consequences of unemployment?a decline in output and incomea rising aggregate output and incomean increase in the money supply which increases inflationa rising price level, which reduces the purchasing power of consumers45s
- Q9The price index used to calculate most cost-of-living adjustments (COLA) is theproducer price indexconsumer price indexNDP deflatorGDP deflator45s
- Q10Inflationary expectations are important because widespread changes in inflationary expectations affectrelative pricesthe distribution of incomeunexpected inflationactual inflation45s
- Q11Unexpected inflation willhurt borrowers and lenders equallyhurt lendershurt borrowershave no effect on either borrowers or lenders45s
- Q12Which of the following people would be considered unemployed?a full time college studenta recent high school graduate looking for a first joba retired school teaching collecting social security benefitsa homemaker contributing 15 hours per week as a volunteer worker in a hospital45s
- Q13Workers at a car-manufacturing plant in Flint, Michigan are laid off because the economy is weak and GM cars aren't selling well. GM isn't sure when the plant will reopen. What type of unemployment describes the workers' situation?cyclical unemploymentfull employmentstructural unemploymentfrictional unemployment45s
- Q14How do economists calculate GDP for one year using the expenditure approach?Add together all the amounts spent on final goods and services.Subtract the amounts received as income from the goods and services.Add the amounts spent on goods and services to the incomes received.Add up all the incomes received.45s
- Q15Which of the following is a nondurable good?washing machinegasolinebicycleair conditioner45s