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ECO202 Exam – Correctly Answered Questions
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ECO202 Exam – Correctly Answered Questions
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ECO202 Exam – Correctly Answered QuestionsGross domestic product in the economy is measured by the Right Ans -
market value of all final goods and services produced in the economy
Best measure of the standard of the living Right Ans - real GDP per capita
Recessions cause the unemployment rate to ____ and the inflation rate to
typically ____. Right Ans - rise, fall
cyclical unemployment is the result of Right Ans - a slowdown in the
economy
Unemployment arising from a persistent mismatch between the skills and
characteristics of workers and the requirements of jobs is called (73%)
Right Ans - Structural unemployment
Nominal GDP is GDP in a given year Right Ans - valued in the prices of that
year
The percent increase in the CPI from one year to the next is a measure of the
Right Ans - inflation rate
If an economy is growing at a rate of 2% per year, approximately how long
will it take the economy to double in size Right Ans - 35 years (rule of 70)
The quantity of goods and services that can be produced by one worker or by
one hour of work is referred to as Right Ans - Labor productivity
The unemployment rate equals the number of unemployed divided by the ____,
all times 100. Right Ans - Labor force
If nominal GDP rises we can say that Right Ans - production has risen or
prices have risen or both have risen
Measures GDP in an economy Right Ans - GDP=G+C+NX+I
, A full-time student who is not working is categorized as Right Ans - Not in
the labor force
Discouraged workers are Right Ans - Workers who have stopped looking
for work because they believe there are no jobs for them
Frictional unemployment is the result of Right Ans - the search process of
matching workers with jobs
A good measure of the standard of living Right Ans - Real GDP per capita
When the economy is at its natural rate of unemployment, what is true
Right Ans - the unemployment rate will be greater than 0%
Causes the unemployment rate as measured by the Bureau of Labor Statistics
to OVERstate the true extent of unemployment? Right Ans - Unemployed
persons falsely report themselves to be actively looking for a job to remain
eligible for unemployment insurance payments
The real wage equals the nominal wage ____ the CPI, all times 100 Right Ans
- Divided by
Labor productivity will increase if the _____ increases and _____. Right Ans -
quantity of capital, technology improves
When the labor market is at full employment (47%) Right Ans - there is no
CYCLICAL unemployment in the economy
Accuracy of the CPI Right Ans - changes in the CPI OVERstate the true value
of inflation
If nominal GDP is $5 trillion and real GDP is $4 trillion, the GDP deflator is
Right Ans - 125
An example of an intermediate good would be (57%) Right Ans - the rims
on a new car
inflation is measure Right Ans - as the percentage change in the CPI
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