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WorksheetsMeasuring Economic Performance Review
Total questions: 65
Worksheet time: 1hrs 5mins
The main economic variables that affect business cycles include all of the following except:
interest rates
external events
personal savings levels
business investment levels
Which of the following would NOT be included in the GDP?
investment spending by a business
consumer spending
government spending
paper/financial transactions
Which of the following is an example of an intermediate good?
the purchase of leather to make shoes
the purchase of a new radio for your car
the purchase of a new car
the purchase of a new lawnmower
The goal of the government and the American people is that GDP...
remains steady.
grows steadily.
shrinks.
fluctuates.
The single best measure of the overall performance of the American economy and our standard of living is...
GNP.
real GDP.
nominal GDP.
misery index.
Nominal GDP is the current dollar value of the nation's output with no adjustment for inflation.
True
False
CPI stands for which of the following?
Consumer Price Index
Consumer Paid Insurance
Consumer Product Insurance
Consumer Product Index
A construction worker cannot work because of winter snowstorm. He is...
cyclically unemployed.
structurally unemployed.
seasonally unemployed.
frictionally unemployed.
Frictional unemployment means that the worker's skills do not match the jobs available in the economy. Workers must retrain, and learn new skills.
True
False
Cyclical unemployment occurs when jobs gained and lost in connection with the business cycle (during recession/contraction jobs are lost, during expansion jobs are regained).
True
False
"Too many dollars chasing too few goods" describes
the need to print more money.
cost-push inflation.
demand-pull inflation.
deflation.
Stagflation is a combination of inflation and unemployment, and leads to cost-push inflation.
True
False
The immediate effect of inflation is the...
increased value of money.
greater spending by all income groups.
decline in the purchasing power of the dollar.
the ability to buy more stuff.
In the event of inflation, a retired school teacher with a fixed pension would not be hurt.
True
False
Gareth has lost his sales job because of a fall in demand due to rising unemployment. He is considered to be
structurally unemployed.
cyclically unemployed.
Sophia has lost her factory job producing music CDs because people are downloading from the internet rather than buying CDs. She is considered to be
structurally unemployed.
cyclically unemployed.
Inflation means
the economy is rising.
the price of a good has increased.
the general level of prices has increased.
the economy is performing well.
CPI stands for which of the following?
Consumer Price Index
Consumer Paid Insurance
Consumer Product Insurance
Consumer Product Index
The Consumer Price Index (CPI) is used to measure inflation.
True
False
Frictional unemployment means that the worker's skills do not match the jobs available in the economy. Workers must retrain, and learn new skills.
True
False
Cyclical unemployment occurs when jobs gained and lost in connection with the business cycle (during recession/contraction jobs are lost, during expansion jobs are regained).
True
False
The unemployment rate will drop if
A person is hired into a new job
Someone who was previously laid off is rehired
An unemployed person stops looking
ALL of these answers are CORRECT
Which of these people is officially unemployed
A secretary who took 6 months off for maternity leave
An aspiring actress who waits tables but would rather act
Maid who got fired and will start a new job in 2 weeks
A student who only works 4 hours a week in the library
An unemployment rate of 4% - 6%.
full employment
unemployment rate
labor force
underemployed
This reflects those who are actively seeking employment.
full employment
unemployment rate
labor force
underemployed
You will always have this because people will always want to change jobs.
frictional unemployment
seasonal unemployment
cyclical unemployment
structural unemployment
Prior to the pandemic, we had over 5,000 open jobs in Broome County but not the skilled people to fill them. This is an example of
frictional unemployment
seasonal unemployment
cyclical unemployment
structural unemployment
Santa's helpers in July would represent
frictional unemployment
seasonal unemployment
cyclical unemployment
structural unemployment
You have the least amount of control over this since it is based on the ups and downs of the business cycle.
frictional unemployment
seasonal unemployment
cyclical unemployment
structural unemployment
As an outdoor lifeguard, you don't have control over your end date, but you expect it and can plan for it.
frictional unemployment
seasonal unemployment
cyclical unemployment
structural unemployment
Unemployment caused by an imbalance between the skills of workers and the requirements of employers
Employed
Structural unemployment
Frictional unemployment
Voluntary unemployment
Cyclical unemployment
Short-term temporary unemployment caused by people being temporarily between jobs or entering the job market for the first time
Employed
Structural unemployment
Frictional unemployment
Voluntary unemployment
Cyclical unemployment
Unemployment caused by a downturn in economic activity
Employed
Structural unemployment
Frictional unemployment
Voluntary unemployment
Cyclical unemployment
An increase in income tax will cause what change?
Increase in AD
Decrease in AD
Increased AS
Decrease in AS
An increase in business confidence will cause what change?
Increase in AD
Decrease in AD
Increased AS
Decrease in AS
An increase in worker productivity?
Increase in AD
Decrease in AD
Increased AS
Decrease in AS
An increase in oil prices will cause what change?
Increase in AD
Decrease in AD
Increased AS
Decrease in AS
An increase in worker productivity?
Increase in AD
Decrease in AD
Increased AS
Decrease in AS
An increase in the min wage causes involuntary unemployment to
Increase
Decrease
Stay the same
Why does an increase in the min wage cause the quantity demanded for labour to fall?
Producers don't require as many workers
Producers are less willing and able to employ as many workers as their costs of production has increases
Less people are willing to work
Less people are able to work
What is the unemployment????
decisions to work based on each individuals' valuation of their own work
proportion of younger workers in the labor force
the situation of actively looking for employment but not being currently employed.
person who is simultaneously an income earner,
What is the formula of unemployment rate???
=(labor force/unemployed)*100%
=(GDP*labor force)/100%
=(unemployed/labor force)*100%
none of them
Which is not the type of unemployment?
frictional
functional
cyclical
structural
How many general types of unemployement in economy?
Inflation is most likely to occur during which phase of the business cycle
Expansion
Contraction
Inflation can best be defined as...
A general increase in prices.
An increase in prices of key items purchased by consumers.
The increase in the value of fiat money
The printing of too much paper money.
This type of inflation occurs when an increase in the in production costs are passed on to the consumer.
Supply Inflation
Cost Push Inflation
Imported Inflation
Demand Pull Inflation
This type of inflation occurs when the demand for products is greater that the supply of products.
Cost push inflation
Demand pull inflation
Divisional inflation
Structural inflation
Who does Inflation hurt?
People with a fixed income
Savers
Money Lenders at fixed interest rates
All of the above
Who among the following would be considered as unemployed?
A college student of legal age to work but who is still in school full time.
An entrepreneur in the process of starting a new business.
A secretary who was laid-off from work & is looking at job ads
A housewife taking care of three children.
The phase of a business cycle in which unemployment at the lowest level is a ________________.
expansion
contraction / recession.
_______ occurs when people are in between jobs, entering and reentering the labour force.
Cyclical unemployment
Technological unemployment
Frictional unemployment
Seasonal unemployment
When individuals lose jobs due to a decline in the economy during an economic recession.
Structural Unemployment
Cyclical Unemployment
Frictional Unemployment
Seasonal Unemployment
Individuals are unemployed due to a lack in skills that modern industries need.
Cyclical Unemployment
Frictional Unemployment
Structural Unemployment
Seasonal Unemployment
When individuals lose jobs due to a decline in the economy during an economic recession.
Structural Unemployment
Cyclical Unemployment
Frictional Unemployment
Seasonal Unemployment
Farm helpers are unemployed when the cropping season is over.
frictional
cyclical
structural
seasonal
_______ occurs when people are in between jobs, entering and reentering the labour force.
Cyclical unemployment
Technological unemployment
Frictional unemployment
Seasonal unemployment
In which type of unemployment workers find it hard to obtain new jobs without retraining, gaining additional education, or relocating??
cyclical
frictional
structural
all of them
Changes in technology often eliminate one type of job. This represent what type of unemployment?
Seasonal
Cyclical
Frictional
Structural
Jack is a full-time unpaid homemaker not currently searching for other work. Jill is a full-time student who is not looking for a job. Who does the BLS count in the labor force?
only Jack
only Jill
both Jack and Jill
neither Jack nor Jill
Who would not be included in the labor force?
Sally, who is on temporary layoff
Sue, who has retired and is not looking for work
Kylie, who does not have a job, but has applied for several in the last week
None of the above is included in the labor force.
What is povertry itself?
When you don't have money
When your basic needs aren't met
When your begging in th streets
When you don't have a job
