AP Macro 2.2 + 2.3 Reading Quiz

Which economic indicator would NOT be the best measurement of economic well-being.

• GDP

  Gross Domestic Product

• HDI

  Human Development Index

• GPI

  Genuine Progress Indicator

• GNI per capita

  Gross National Income (per person)

Which is NOT a common criticism of GDP as an indicator of economic health?

• It includes economic activity that can actually be harmful to society.

• It doesn't include some economic activity that is actually helpful for society.

• It is over relied on to indicate a country's economic health.

• It is the total sum of all production in a country during a year.

Which answers best explain why the rate of unemployment is difficult to assess?

(SELECT 2 ANSWERS FOR FULL CREDIT.)

• The population is large and difficult to measure.

• It is not always clear who should be counted as unemployed.

• It is not always clear who should be counted as part of the labor force.

• There are 4 different kinds of unemployment.

Which statement is FALSE?

• "Full employment" includes an acceptable level of frictional and structural unemployment.

• "Full employment" means there is zero percent unemployment.

• "Full employment" accepts 3.5 - 4.5% unemployment as acceptable.

• "Full employment" is the ideal employment rate for an economy.

Which type of unemployment is most worrisome for macroeconomic policy makers?

• cyclical

  unemployment

• seasonal

  unemployment

• structural unemployment

• frictional unemployment