1. Question : When the jobs available in a market don't fit the skills of those looking for work, the economy is experiencing
Student Answer: frictional unemployment.
2. Question : All but one of the following factors may contribute to slow growth of productivity in the United States:
Student Answer: low levels of capital investment.
a high percentage of inexperienced workers in the labor force.
lack of investment in research and development to develop better technology.
lack of demand for output.
poorly trained or illiterate workers.
3. Question : The value of net exports is a positive number in the national income accounts when
Student Answer: capital consumption exceeds net investment.
exports exceed imports.
imports exceed exports.
national income exceeds personal income.
net investment exceeds capital consumption.
4. Question : If aggregate demand increases and the aggregate supply curve is upward sloping and unchanged,
Student Answer: P rises and Y falls.
P rises and Y rises.
P falls and Y falls.
P falls and Y rises.
P falls and the effect on Y cannot be determined.
5. Question : Which of the following is a result of slow economic growth?
Student Answer: Increasing tax revenues
increasing levels of pollution
higher unemployment rates
6. Question : Economists use the phrase "business cycle" when discussing
Student Answer: movements in interest rates.
changes in economic productivity.
fluctuations in employment.
fluctuations in aggregate measures of economic output or income.
fluctuations in the money supply.
7. Question : If taxes increase and the AS curve is upward sloping, then
Student Answer: output falls and the price level falls.
output increases and the price level increases.
output falls and the price level increases.
output increases and the price level falls.
output may increase or decrease but the price level will increase.
8. Question : The curve that shows quantities of total real output that will be offered for sale at various price levels is called the
Student Answer: aggregate demand curve.
real gross domestic investment curve.
aggregate supply curve.
aggregate individual demand curve.
9. Question : The presence of discouraged workers may cause
Student Answer: the employment rate to be overstated,
the employment rate to be understated,
he unemployment rate to be overstated,
the unemployment rate to be understated.
GDP to be too large.
10. Question : Real GDP is the
Student Answer: amount of goods and services available to each individual per period of time.
change in the quantity of goods and services produced over two periods of time.
value of the goods and services worn out in the production process during one year.
value of production of final output in one year after adjusting for changes in price during the same period.
value of goods and services produced as of a particular point in time.