Econ: GDP, unemployment, minimum wage, indicators

What does GDP stand for?

• Gross Domestic Profit

• Gross Domain Product

• Gross Domain Profit

• Gross Domestic Product

All of the following are “natural” types/causes of unemployment EXCEPT

• frictional

• unstructural

• seasonal

• cyclical

What should the “normal” or “acceptable” inflation rate be?

• 7-9%

• 1-2%

• 3-5%

• 2-4%

What does GDP measure?

• The strength of the economy

• The weaknesses of the economy

• The gross dumb possums who live under the deck

• the giant, demanding punk who won't stop picking on my little brother

All of the following could cause unemployment EXCEPT

• A change in seasons

• A decrease in taxes

• A mismatch between job requirements and worker skill

• People being temporarily between jobs

What should the “normal” or “acceptable” unemployment rate be?

• 1-10%

• 2-3%

• 3-5%

• 10-12%

What might someone say if they think minimum wage is a good thing?

• Minimum wage forces workers to leave the country when their jobs are “offshored.”

• Minimum wage allows low-income workers to make enough money to survive.

• Minimum wage leads employers to cut costs by firing many of their workers.

What might someone say if they think minimum wage is a bad thing?

• Minimum wage can lead to employers firing employees to cut costs.

• Minimum wage leads employers to hire more employees.

• Minimum wage helps poor workers make enough money to live a better life.

Which of the following does NOT lead to unemployment?

• Outsourcing

• A contraction in the business cycle

• offshoring

• Decreased resource costs

Which of the following best defines “unemployment”?

• When a person is not earning a wage.

• When a person is actively looking for a job, but is unable to find one.

• When a person is actively working, but not earning a wage or salary.

• When a person is earning a wage while working at a regular job.