GDP Unemployment and Inflation

Honda has an assembly plant for Civics in Ohio. The production of U.S.-made Civics is

• added to U.S. GDP. 

• added to Japan's GDP because Honda is a Japanese company. 

• not included in either the U.S. or Japanese GDP. 

• added to U.S. GDP only if the Civic is sold in the United States in the year it is produced. 

The Kia car maker just replaced James with a robot that can do the job 5 times as fast. James is now unemployed.

• Frictional Unemployment

• Cyclical Unemployment

• Technological Unemployment

• Seasonal Unemployment

A pair of shoes that costs $80 last month costs $100 this month. Which of the following BEST describes this economic condition?

• inflation

• recession

What is inflation?

• rise in all goods purchased

• decrease in prices

• when prices stagnate

• rise in general prices

This reflects those who are actively seeking employment.

• full employment

• unemployment rate

• labor force

• underemployed

Inflation is measured by...

• Consumer Price Index (CPI).

• Gross National Product (GNP).

• Gross Domestic Product (GDP).

• Securities & Exchange Commission (SEC).

A period of temporary economic decline during which trade and industrial activity are reduced.

• World Bank

• Recession

• Embargo

• Pandemic

Which of the following is included in the calculation of a country's GDP?

• A) The value of all final goods and services produced within the country

• B) The value of all goods and services produced by the country's citizens, regardless of location

• C) The value of all intermediate goods used in production

• D) The value of all goods and services imported into the country

What type of unemployment occurs when workers' skills do not match the jobs available?

• A) Frictional Unemployment

• B) Structural Unemployment

• C) Cyclical Unemployment

• D) Seasonal Unemployment

If the inflation rate is higher than the interest rate on savings, what happens to the purchasing power of the savings?

• A) It increases

• B) It decreases

• C) It remains the same

• D) It fluctuates unpredictably