Macroeconomics Unit Test (Standard 4)

GDP measures:

• How happy people are

• The total value of all final goods and services produced in a country

• The total amount of money in banks

• The number of people working

Which of the following is included in GDP?

• Buying used goods

• Transfer payments

• A haircut

• Stock purchases

Which component of GDP includes household spending?

• I

• G

• NX

• C

Net exports (NX) equals:

• Imports – Exports

• Exports – Imports

• Consumption – Investment

• GDP – CPI

GDP per capita is calculated by:

• GDP ÷ population

• GDP × population

• Population ÷ GDP

• GDP – population

Which best describes standard of living?

• Average income only

• Total production only

• Overall quality of life

• Government spending

A major limitation of GDP per capita is that it:

• Measures inflation

• Includes imports

• Does not show income inequality

• Is too difficult to calculate

The unemployment rate measures the percentage of:

• The total population not working

• The labor force without jobs but looking for work

• All teenagers without jobs

• Retired workers

Someone who is between jobs is experiencing:

• Frictional unemployment

• Cyclical unemployment

• Structural unemployment

• Seasonal unemployment

Cyclical unemployment is caused by:

• Technology changes

• Education level

• People quitting jobs

• Recessions