Econ test 2

  1. A ________ is a person who was employed in the civilian labor force and quit his or her job.
    job leaver
  2. The answer is: "a person employed in the civilian labor force who quits his or her job." The question is:
    Who is a job leaver?
  3. A _____ is a person who has never held a full-time job for two weeks or longer and is now in the civilian labor force looking for a job.
    New Entrant
  4. Which of the following statements is false?

    - A discouraged worker is not counted as an unemployed worker

    - The frictional unemployment rate is less than the natural unemployment rate

    - The natural unemployment rate is greater than the structural unemployment rate

    - first two choices

    - none of the above
    none of the above (all those statements are true)
  5. Of all the categories of unemployment, most unemployed persons fall into the category of being a
    job loser
  6. If there are 35 job losers, 13 job leavers, 14 reentrants, and 10 new entrants, then there are ________ frictionaly unemployed persons.
    There is not enough information to answer the question.
  7. The number of employed persons plus the number of unemployed persons equals the number of persons______
    in the civilian labor force
  8. If we subtract the number of people not in the labor force from teh civilian noninstitutional population, we get the number of people in the
    the civilian labor force
  9. _______ is an increase in the price level and is usually measured on an annual basis
    inflation
  10. If your nominal income rises faster than prices, it follows that
    your real income rises
  11. The CPI contains ________ goods and services than the GDP implicit price deflator.
    fewer
  12. The civilian noninstitutional population is equal to ___________ plus __________.
    persons not in the labor force;

    plus

    persons in the civilian labor force
  13. The labor force participation rate is equal to the
    civilian labor force divided by the civilian noninstitutional population
  14. What is the Breakdown of the U.S. Population and the Labor Force
  15. True of False

    The frictional unemployment rate minus the cyclical unemployment rate equals the natural unemployment rate.
    False
  16. True of False

    If the economy is operating at the natural unemployment rate, there is full employment
    True
  17. True of False

    The price level is the weighted average of the prices of goods and services in the economy
    True
  18. True or False

    If the unemployment rate is 8 percent and the natural unemployment rate is 5 percent, then the cyclical unemployment rate is 3 percent
    True
  19. True or False

    The CPI is calculated by the Bureau of Labor Statistics
    True
  20. The _______ __________ is equal to the cyclical unemployment rate plus the natural unemployment rate.
    unemployment rate
  21. The CPI is a ________ ____________
    Price Index
  22. Nominal income adjusted for price change is ________ _________
    real income
  23. As the optimal search time rises, the unemployment rate ____________
    natural unemployment
  24. The _________ _________ is a benchmark year.
    base year
  25. Gross Domestic Product (GDP) is
    the total market value of all final goods and services produced annually witin a contry's borders.
  26. What illustrates double counting?
    counting the value of intermediate goods and final goods
  27. What are examples of interdediate good?
    - mustard on a ham sandwhich sold at a restaurant

    - Tires on a new car
  28. Government purchases consist of the total dollar amount(s) spent by the
    federal, state, and local governments
  29. Leisure is
    a good that is not counted in GDP
  30. Which of the follwing is often the smallest figure

    - GDP
    - government purchases
    - net exports
    - investment
    - consumption
    net exports
  31. What is an example of a government transfer payment?
    A social security check
  32. Which of the following is not counted in GDP?

    - an illegal drug transaction
    - the production of telephones
    - the production of shoes
    - own-home housework
    an illegal drug transaction

    and

    own-home housework
  33. Consumption includes...
    Durable goods and services

    and

    nondurable goods
  34. Real GDP is equal to
    the som of current-year quantities multiplied by base-year prices
  35. National income equals
    the sum of resources or factors payments
  36. A recession is sometimes defined as ____ or more consecutive quarters of falling Real GDP
    two
  37. A business cycle has _____ phases
    five
  38. The bottom of the contraction is called a
    through
  39. GDP is a ______ variable
    flow
  40. _________ is the sum of fixed investment and inventory investment
    investment
Author
dfernandez003
ID
67010
Card Set
Econ test 2
Description
Economics Test 2
Updated