Unit 3: Macroeconomics Test Review

What is GDP?

• GDP is the sum of the prices of all final goods and services produced by one country.

• GDP is the sum of the prices of all final goods and services within one country.

• GDP is the sum of the prices of all intermediate and final goods and services within one country.

• GDP allows economists to measure inflation.

Which of the following would be included in calculating GDP?

• Intermediate goods

• Stocks

• Social Security checks

• Unsold goods produced by a business

Jose just purchased new tires for his ten-year-old car. Is this purchase counted towards GDP?

• Yes.

• No.

Which of the following accounts for the biggest portion of GDP in the United States?

• Consumption

• Business Investment

• Government Spending

• Net Exports

Which of the following helps economists better understand a nation’s standard of living?

• Net Exports

• GDP per capita

• Business Investment

• Nominal GDP

What is the unemployment rate?

• The total population of a country divided by people who are employed (times 100).

• The number of people over 16 actively looking for work divided by the number of people in the labor force (times 100).

• The number of jobless people actively looking for work divided by the number of people in the labor force (times 100).

• The total population of a country divided by people who are unemployed (times 100).

Which of the following people would count towards the labor force?

• Peter is a homemaker with 4 children.

• Kiley is retired and now volunteers her time to the local library.

• Lawrence is 15 and can’t wait to get his first job.

• Aaron works a few hours a week bartending.

Which of the following people would count as unemployed?

• Robin was laid off by the local tv station, but she was she’s had 4 interviews as a news broadcaster for Channel 5 News.

• Ted used to be an architect but now he teaches at a university.

• Barney works for a big corporation in a big city.

• Marshall just graduated law school and now he’s working for a major corporation.

Raul serves in the military as a marine. How would he be categorized by the BLS?

• Employed

• Unemployed

• Underemployed

• Not in the Labor Force

Joann has a master’s degree in education. She currently works at a local fabric store. How would she be categorized by the BLS?

• Unemployed

• Underemployed

• Not in the Labor Force