ECON EO 3

GDP is made of all the following except

• Consumption of new goods and services by households

• Investment in new capital by businesses

• Exports of new final goods and services

• Consumption of used goods and services by households

• Government expenditures on new goods and services

Gross Domestic Product measures

• the total amount of final goods and services made within a calendar year

• the dollar value of all final goods, services and structures produced within a country's borders during a calendar year

• the total number of goods and services that were sold within a country in a year

• the dollar value of all goods, services and structures purchased within a calendar year

• the total dollar value of all goods and services produced anywhere in the world by a country in a calendar year

Glenn's job at Werner Park as a scoreboard operator gets cut b/c a new automated digital scoreboard was installed. Glenn can't find a new job anywhere as a scoreboard operator b/c all stadiums are using new digital scoreboards. His skills are no longer in demand. What type of unemployment is this?

• Not counted towards unemployment

• Frictional

• Structural

• Cyclical

• Seasonal

Mark Zuckerberg decides to resign his job at Facebook and spend more time with his family. What type of unemployment would this be categorized as

• Not counted towards unemployment

• Frictional

• Structural

• Cyclical

• Seasonal

Last week a woman went to Marco's Quality Auto in Fremont, NE and bought a 2004 MINI Cooper. What part of GDP would this be categorized as?

• Consumption by households

• Investment in new capital

• Exports of goods and services

• Not counted towards GDP

• Government purchases

If unemployment is rising and GDP is negative or falling, what part of the economic cycle is the country most likely in?

• Expansion

• Recession

• Cyclical

• Structural

• Peak

A man if fired from his job working at 7-Eleven b/c of a dramatic drop off in sales due to a slowing economy. He is looking for a new job, but so far has not found one. This category of unemployment is called

• Not counted towards unemployment

• Structural

• Frictional

• Seasonal

• Cyclical

If the US were in a recession which of the following policies would the US Government be most likely enact as part of its fiscal policy?

• Increase taxes

• decrease government spending

• lower taxes

• increase government spending

• both c and d

Burt's Bees Lip Balm, an American made product, begins to sell a tremendous amount of lip balm to South Africa. Which part of US Gross Domestic Product would this be counted towards?

• Imports

• Consumption

• Exports

• Investment

• Government Expenditures

Joe graduates from college with a degree in education and is currently looking for a teaching job while working part time at Target. What category of unemployment would this be categorized as?

• Not counted towards unemployment

• Frictional

• Structural

• Cyclical

• Seasonal