Unit 4 Pre Quiz - Measuring and Managing the Economy

Gross domestic product is equal to the market value of all final goods and services:

• exchanged during a period.
• produced domestically during a period.
• produced by the citizens of a nation during a period.
• produced domestically during a period minus the depreciation of productive assets.

Which of the following expenditures would not be included in GDP?

• Purchase of a new lawnmower.
• Purchase of a silver cup previously sold new in 1950.
• Purchase of a ticket to the latest movie.
• All of these would be counted in GDP.

All final goods and services that make up GDP can be expressed in the form:

• GDP = C + I - G + (X + M).
• GDP = C + I + G + (X + M).
• GDP = C + I + G + (X - M).
• GDP = C + I + (X - M).

The period between the peak and the trough is the _____; the period between the trough and the peak is the _____.

• recession; expansion
• expansion; recession
• peak; trough
• trough; peak

The unemployment rate equals the number of persons:

• unemployed divided by the number employed.
• unemployed divided by the number in the labor force.
• unemployed divided by the population age 16 and over.
• not working divided by the population age 16 and over.

What usually happens to inflation during a recession?

• it stays the same
• it increases
• it decreases
• it is zero

A worker who was laid off due to a downturn in the business cycle would be considered

• frictionally unemployed.
• structurally unemployed.
• cyclically unemployed.
• seasonally unemployed.

Logan loses his job cooking pizza when a robot can do it faster and at a lower expense.  Which type of unemployment is he experiencing?

• Cyclical
• Structural
• Frictional
• Seasonal

A good way to measure standard of living is by calculating

• the economic growth rate
• the inflation rate
• the unemployment rate
• per capita GDP

This is a tax on a very specific item, such as gasoline or tires.

• progressive
• excise
• sin
• estate