Macroeconomics and Indicators Unit Exam

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 produced 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

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

• Employed

• Unemployed

• Underemployed

• Not in the Labor Force

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

• Consumption

• Business Investment

• Government Spending

• Net Exports

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)

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

• Yes

• No

Jack and Jill are both skilled at fetching water. Jack can fetch 5 pails per hour and Jill can fetch 8 pails per hour. Who has the absolute advantage in fetching pails of water?

• Jack

• Jill

• Neither

Joann has a masters 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

Which of the following terms refers to goods and services produced in the US and sold abroad?

• Exports

• Imports

• GDP

• Factors of Production

True or false: recessions usually last at least 6 months

• True

• False