Why must total income be identical to the dollar value of total output? What will be an ideal response? ANSWER Total income must be identical to the dollar value of total output because spending by one person is income for another. Further, the definition of profit is important. Profit is the amount left over […]
Date: September 2nd, 2020
One criticism of the unemployment rate is that it A) is a stock measure. B) does not include people who are not working and are not looking for work. C) does not include the number of discouraged workers as unemployed. D) counts a new entrant that is actively seeking work as unemployed. ANSWER C
Date: September 2nd, 2020
Economic growth can be defined as a percentage increase in A) per capita real GDP. B) nominal GDP. C) consumption by households. D) real GDP. ANSWER A
Date: September 2nd, 2020
Where does profit enter in the circular flow? Why? What will be an ideal response? ANSWER Profit is a payment made to entrepreneurs just as wages are a payment made to labor. Entrepreneurs must be rewarded for providing their services, and profit is the reward. Hence, profit is a cost of production.
Date: September 2nd, 2020
The unemployment rate will decrease when A) people get discouraged and quit looking for work. B) the age of the labor force increases. C) the average workweek falls from 40 to 39 hours. D) the duration of unemployment increases. ANSWER A
Date: September 2nd, 2020
Which of the following statements is NOT true about economic growth? A) Growth is measured as the overall level of real GDP. B) Growth generally means that overall the members of the nation are better off materially. C) When growth occurs the production possibilities curve shifts outward. D) Growth represents an increase in a nation’s […]
Date: September 2nd, 2020
The dollar value of total output in the United States A) equals the value of all physical goods sold in the United States. B) equals all the value of U.S. stocks on the world’s stock exchanges. C) equals the value of all resources that can be found in the United States. D) equals the market […]
Date: September 2nd, 2020
Which of the following nations has experienced the highest average annual rate of growth of per capita real GDP since 1990? A) Germany B) United States C) India D) China ANSWER D
Date: September 2nd, 2020
The measurement system used by the U.S. government to estimate national income is A) the sum of financial transactions, transfer payments and secondhand goods. B) the sum of consumption plus investment expenditures. C) national income accounting. D) the GDP deflator. ANSWER C
Date: September 2nd, 2020
Suppose that Country A and Country B each had the same per capita real Gross Domestic Product (GDP) of $10,000 in 2008. Country A’s per capital real Gross Domestic Product (GDP) had a growth rate of 3 percent per year and Country B’s per capital real Gross Domestic Product (GDP) had a growth rate of […]
Date: September 2nd, 2020
