Economic Indicators Quiz

This is when a person becomes unemployed because they do not have the skills they need to find a job:

• frictional
• seasonal
• structural
• cyclical

This is unemployment caused by the business cycle:

• structural
• cyclical
• frictional
• seasonal

GDP is the total value of goods and services

• produced all over the world
• produced in one month
• produced within a nation's borders
• produced by a singl company

The components of GDP include all of the following EXCEPT:

• consumption
• investment
• government spending
• bank transfers

This is unemployment because people are between jobs or who are looking for their first job:

• frictional
• structural
• seasonal
• cyclical

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 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.

Inflation is defined as an increase in:

• real wages of workers.
• real GDP.
• the average price level.
• all consumer products.

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.

When inflation is high the _______________of the dollar decreases

• cost value
• purchasing power
• importance
• validity