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WorksheetsAP Macroeconomics Unit 2 Review
Total questions: 44
Worksheet time: 23mins
Name
Class
Date
1.
Oil is this type of scarce resource.
a)
Human Capital
b)
Land/Natural
c)
Labor
d)
Physical Capital
2.
Workers agree to a 10% wage increase. Everything else remaining constant, this will cause the _______ curve to shift _____.
a)
demand; right
b)
demand; left
c)
supply; right
d)
supply; left
3.
There is an increase in supply. This will cause the equilibrium price to ______ & the equilibrium quantity to ______.
a)
decrease; increase
b)
decrease; decrease
c)
increase; increase
d)
increase; decrease
4.
If the supply and demand curves intersect at a price of $20 then any price above that would result in a(n):
a)
shortage.
b)
equilibrium.
c)
increase in demand.
d)
surplus.
5.
What type of GDP is calculated with the current year's prices?
a)
Nominal GDP
b)
Real GDP
c)
GDP per capita
d)
Base Year GDP
6.
Expectant parents buy supplies for the nursery. Would this be included in GDP?
a)
Yes - Consumer Spending
b)
Yes - Investment
c)
No - Intermediate goods
d)
No - Non-market activity
7.
A Chik-fil-A milkshake today costs $2.75. The Camden location sold 5,000,000 this year. In 1961, it cost $0.80 and they sold 2,000,000. How do I find the nominal GDP for Chik-fil-A milkshakes in 1961?
a)
2.75 x 5,000,000
b)
.80 x 2,000,000
c)
.80 x 5,000,000
d)
2.75 x 2,000,000
8.
Each individual on food stamps in Delaware can receive up to $194 a month. Is this included in government spending?
a)
Yes - Government spending
b)
Yes - Consumer Spending
c)
No - Intermediate Goods
d)
No - Tranfer Payment
9.
Mr. Johns is quitting his job as a teacher and moving to california. He is
a)
Cyclically unemployed
b)
Seasonally Unemployed
c)
Structurally Unemployed
d)
Frictionally Unemployed
10.
The unemployment rate does not account for which two types of people?
a)
discouraged workers (hidden unemployed) and those employed
b)
full time carers and those in school
c)
retirees and those in prison
d)
discouraged workers (hidden unemployed) and underemployed
11.
Who is most likely to be hurt by inflation?
a)
someone who borrowed money
b)
a retiree on a fixed income
c)
a business owner
d)
the U.S. government
12.
Which of the following would not affect the size of real GDP?
a)
Consumer purchase of a new car for personal use.
b)
Government purchase of a new car for the military
c)
Consumer purchase of a rare renaissance painting.
d)
Business purchase of a new car for a delivery vehicle.
13.
Which of the following people would be considered structurally unemployed?
a)
Unemployed auto assembly line factory worker during a recession.
b)
A high school student who mows lawns during the summer, but is out of work because it is winter
c)
An auto assembly line worker who quit her job to go back to school full-time to improve her job skills
d)
Unemployed auto assembly line factory worker who was replaced with a robot
14.
In a typical circular flow model describing the interaction of businesses and households, which of the following is/are true?
I. Households buy factors of production and goods
II. Firms buy factors of production and goods
III. Households buy factors of production
IV. Firms buy factors of production
V. Firms buy goods VI. Households buy goods
I. Households buy factors of production and goods
II. Firms buy factors of production and goods
III. Households buy factors of production
IV. Firms buy factors of production
V. Firms buy goods VI. Households buy goods
a)
I only
b)
II only
c)
III and IV only
d)
IV and VI only
15.
A graphical representation with unemployment on the horizontal axis and inflation on the vertical axis is known as:
a)
Okun’s law
b)
Stagflation
c)
Phillips curve
d)
Natural rate of unemployment and inflation
16.
Which of the following best illustrates the difference between GDP and GNP?
a)
GDP measures the output produced within the borders of a country, while GNP measures output produced by the citizens of a country
b)
GDP measures the output produced by the citizens of a country, while GNP measures output produced within the borders of a country.
c)
GDP measures output produced by the citizens within a country, while GNP measures output produced by noncitizens within a country
d)
GDP measures the goods and services consumed by the citizens of a country, while GNP measures output exported to other countries.
17.
Which of the following will most likely occur during the expansionary phase of the business cycle?
a)
Real GDP rises and unemployment falls.
b)
Real GDP rises and unemployment rises.
c)
Real GDP declines and inflation rises.
d)
Interest rates rise and the number of business failures rise.
18.
If the consumer price index (CPI) were 131 at year-end 1999 and 125 at year-end 1998, then inflation during 1999 was
a)
zero; prices were stable during 1999
b)
4.8 percent
c)
6.0 percen
d)
8.4 percent
19.
Frictional unemployment
a)
would be eliminated if the economy were operating at full employment levels of GDP.
b)
is zero when we have achieved the Natural rate of unemployment.
c)
is present even when labor markets are working well.
d)
is the result of worker skills not matching the jobs available
20.
The expenditure by all levels of government on goods and services
a)
Imports of goods and services
b)
Investment
c)
Consumer expenditure
d)
Government expenditure on goods and services
21.
The expenditure by households on consumption goods and services.
a)
Business Cycle
b)
Exports of goods and services
c)
Consumption expenditure
d)
Government expenditure on goods and services
22.
The market value of all the final goods and services produced within a country in a given time period.
a)
Gross Domestic Product
b)
Net exports of goods and services
c)
Nominal GDP
d)
Real GDP
23.
The purchase of new capital goods (tools, instruments, machines, buildings) and additions to inventories
a)
Exports of goods and services
b)
Real GDP
c)
Investment
d)
Net exports of goods and services
24.
The value of the final goods and services produced in a given year expressed in terms of the prices in a reference base year.
a)
Real GDP
b)
Gross Domestic Product
c)
Business Cycle
d)
Nominal GDP
25.
The value of the final goods and services produced in a given year expressed in terms of the prices of the same year.
a)
Real GDP
b)
Nominal GDP
c)
Net exports of goods and services
d)
Gross Domestic Product
26.
Items that firms in the United States produce and sell to the rest of the world
a)
Imports of goods and services
b)
Investment
c)
Nominal GDP
d)
Exports of goods and services
27.
The value of exports of goods and services minus the value of imports of goods and services.
a)
Gross Domestic Product
b)
Net exports of goods and services
c)
Investment
d)
Nominal GDP
28.
Which of the following purchases is included in the calculation of gross domestic product?
a)
A used economics textbook from the bookstore
b)
1,000 shares of stock in a computer firm
c)
A car produced in a foreign country
d)
New harvesting equipment for the farm
29.
Which of the following would be counted as investment when calculating gross domestic product?
a)
The purchase of a used computer by an auto manufacturer
b)
The purchase of a share of IBM stock by an employee
c)
The construction of a new house
d)
The construction of roads by the government
30.
Of the following, which is the best example of structural unemployment?
a)
A computer programmer who quits her job to move to a warmer climate
b)
A construction worker who loses his job in the winter
c)
An auto worker who loses her job during a recession
d)
A steel worker who is replaced by a robot
31.
Which of the following is true about the natural rate of unemployment?
a)
It can vary over time.
b)
It is 2 percent orless of the civilian laborforce.
c)
It is equal to the structural unemployment rate.
d)
It allows for some frictional and cyclical unemployment.
32.
If you live on a fixed income, how will you be affected by inflation.
a)
You are hurt because your purchasing power has decreased.
b)
You are helped because your purchasing power has increased.
c)
You are helped because interest rates rise.
d)
You are hurt because interest rates rise.
33.
During a recession, which of the following is likely to occur?
a)
an increase in real wages
b)
an increase in production
c)
and increase in the GDP growth rate
d)
an increase in the unemployment rate
34.
What is the size of the Labor Force?
Unemployed (Looking for job) = 200
Retired = 5
Prison = 2
School (full time, not looking for job) = 10
Employed = 180
Unemployed (not looking for job) = 20
a)
180
b)
200
c)
220
d)
237
35.
A general rise in overall prices is called:
a)
Deflation
b)
Inflation
c)
Consumer Price Index
d)
Federal Reserve
36.
What occurred between June and July of 2016?
a)
Inflation
b)
Hyperinflation
c)
Deflation
d)
Cost-push Inflation
37.
What occurred between 2007 and 2008?
a)
Inflation
b)
Deflation
c)
Hyperinflation
d)
Consumer Price Index
38.
A Chik-fil-A milkshake today costs $2.75. The Camden location sold 5,000,000 this year. In 1961, it cost $0.80 and they sold 2,000,000. How do I find the nominal GDP for Chik-fil-A milkshakes in 1961?
a)
2.75 x 5,000,000
b)
.80 x 2,000,000
c)
.80 x 5,000,000
d)
2.75 x 2,000,000
39.
Each individual on food stamps in Delaware can receive up to $194 a month. Is this included in government spending?
a)
Yes - Government spending
b)
Yes - Consumer Spending
c)
No - Intermediate Goods
d)
No - Tranfer Payment
40.
Who is most likely to be hurt by inflation?
a)
someone who borrowed money
b)
a retiree on a fixed income
c)
a business owner
d)
the U.S. government
41.
Which of the following people would be considered structurally unemployed?
a)
Unemployed auto assembly line factory worker during a recession.
b)
A high school student who mows lawns during the summer, but is out of work because it is winter
c)
An auto assembly line worker who quit her job to go back to school full-time to improve her job skills
d)
Unemployed auto assembly line factory worker who was replaced with a robot
42.
Which of the following will most likely occur during the expansionary phase of the business cycle?
a)
Real GDP rises and unemployment falls.
b)
Real GDP rises and unemployment rises.
c)
Real GDP declines and inflation rises.
d)
Interest rates rise and the number of business failures rise.
43.
If the consumer price index (CPI) were 131 at year-end 1999 and 125 at year-end 1998, then inflation during 1999 was
a)
zero; prices were stable during 1999
b)
4.8 percent
c)
6.0 percen
d)
8.4 percent
44.
Which result occurs when federal government expenditures are greater than the federal government's total receipts?
a)
reduced net exports
b)
increased excise taxes
c)
a federal budget surplus
d)
a federal budget deficit
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