Econ Final Part 2

Unemployment that occurs because the economy is in a recession is ____________ unemployed

• Frictional

• Cyclical

• Seasonal

• Structural

unemployed because it takes time to find a job.

• cyclical

• seasonal

• frictional

• structural

What is the formula for unemplyment?

• Unemployed + employed

• a2+b2=c2

• Labour force/population x 100

• Unemployment/labour force x 100

Your job gets replaced by machine.

• cyclical

• frictional

• seasonal

• structural

What is one of a labor union’s primary goals?

• to make decisions about the workplace

• To gain better pay for workers

• To keep nonunion workers out of jobs

• To secure its workers’ jobs

Because every transaction has a buyer and seller,

• GDP is more closely associated with a nation’s income than it is with a nation’s expenditure.

• Every transaction contributes equally to an economy’s income and to its expenditure.

• The number of firms must be equal to the number of households in a simple circular- flow diagram

• Firms’ profits are necessarily zero in a simple circular-flow diagram.

According to the cost-push theory, what is responsible for inflation?

• Producers raise prices to meet increased costs.

• Demand for goods and services exceeds existing supply.

• Too much money is in circulation.

• Your mom

Why does income always equal expenditure?

• Because there is a circular flow between income and expenditure.

• Because every transaction has a buyer and a seller.

• Because your spending becomes someone else's income

• all are true

Nominal and Real GDP are different because

• Nominal adjusts for inflation

• Real GDP adjusts for inflation

• Neither adjust for inflation

• Both adjust for inflation

What is a major problem for businesses during a period of chronic inflation?

• Their input costs increase.

• Their money loses its value.

• They do not know when the inflation will stop.

• They have difficulty hiring help.