Question 1 A recession occurs when there is a six consecutive month fall in Question 1 options:
A) real GDP.
B) nominal GDP.
C) the trade balance.
D) the price level.
Question 2 Since 1929, real GDP in the United States has grown at an average annual rate of about Question 2 options:
A) 0.5 percent.
B) 1 percent.
C) 3 percent.
D) 7.5 percent.
Question 3 Suppose that after reading a two-year low, the index of leading economic indicators rises for several months. Which of the following economic events will likely follow? Question 3 options:
A) A recession.
B) Severe inflation.
C) Increased production.
D) Reduced investment.
Question 4 Which of the following people would be officially counted as unemployed? Question 4 options:
A) A person who works only 5 hours per week for pay.
B) A full-time college student who chooses not to have a paying job.
C) A family member who works 20 hours per week in the family business without pay.
D) A jobless high-school graduate who is actively looking for work.
Question 5 Assume a country's population (age 16 and over) is 1 million people. What is the unemployment rate if there are 750,000 people in the labor force, 60,000 of whom are unemployed? Question 5 options:
A) 6%.
B) 8%.
C) 12.5%
D) 16.7%
Question 6 If a sizable number of workers were switched from full-time to half time employment, then the official unemployment rate would Question 6 options:
A) rise.
B) fall.
C) remain unchanged.
D) react unpredictably.
Question 7 Which of the following people would be classified as structurally unemployed? Question 7 options:
A) Computer programmers who lost their jobs because of a recession.
B) Construction workers who are on temporary layoff.
C) Discouraged workers who have given up looking for work.
D) Textile workers who lost their jobs because of new foreign competition.
Question 8 The economy is fully employed when there is no :
A) seasonal unemployment.
B) frictional unemployment.
C) structrual unemployment.
D) cyclical unemployment.
Question 9 The GDP gap measures the nation's monetary losses of real goods and services from :
A) operating at less than full employment.
B) discouraged workers who have stopped searching for employment. C) murders, suicides, and other sociological impacts of sustained unemployment.
D) seasonal and frictional unemployment.
Question 10 In the United States, the unemployment rate for blacks is :
A) roughly the same as the unemployment rate for whites.
B) about 1â2 percentage points higher than the unemployment rate for whites.
C) more than twice the unemployment rate for whites.
D) between 3 and 4 times the unemployment rate for whites.
