WorksheetsAP Macro Unit 2
Total questions: 17
Worksheet time: 13mins
Name
Class
Date
1.
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
2.
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
3.
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
4.
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
5.
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
6.
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
7.
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
8.
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.
9.
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
10.
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
11.
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
12.
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
13.
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.
14.
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.
15.
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
16.
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
17.
An increase in the international value of the dollar (appreciation) would most likely benefit who the most?
a)
domestic producers who export
b)
citizens traveling or living abroad from the United States
c)
German citizens vacation in the U.S.
d)
Canadian citizen looking to buy property in the U.S.
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