Unit 5 Economics Test Brooks

Front

Which types of unemployment will always exist in our economy?

Back

structural and frictional

Front

During which phase of the business cycle does the real GDP decline for at least six consecutive months, output declines and unemployment rises?

Back

contraction

Front

During which phase of the business cycle does unemployment and output reach their lowest? Options: contraction, trough, expansion, peak

Back

trough

Front

Workers experiencing ______________ unemployment typically have the skills that are in demand. They are between jobs, looking for a better, higher paying job or they have recently graduated from college and are looking for their first job.

Back

frictional

Front

Due to inflation, what happens to the value of the dollar?

Back

It declines.

Front

Which is the best measure to use when comparing the standard of living in different countries? Options: real GDP, real GDP per capita, nominal GDP, nominal GDP per capita

Back

real GDP per capita

Front

Which person is unemployed according to the government’s definition of unemployment? a woman who quits her job to spend time with her children, a 68 year old teacher who retires, a man who moves to a new city and begins to look for a job, a 15 year who has never had a job

Back

a man who moves to a new city and begins to look for a job

Front

Which of the following would be included when calculating GDP?
Options:
the sale of a used car,
the sale of Wal-Mart stock,
income earned working at Wal-Mart,
a transfer payment

Back

income earned working at Wal-Mart

Front

Which unemployment rate is within the range of the Natural Rate of Unemployment? Options: 2%, 4.5%, 7%, 7.5%

Back

4.5%

Front

Which of the following is included in the labor force? A student who is still in school but not working or looking for work. A person who spends the entire day taking care of his or her own young children at home. A person who voluntarily runs a charity. A part-time store clerk who is looking for another job.

Back

A part-time store clerk who is looking for another job.