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 […]
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 […]
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
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
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 […]
An increase in the labor force participation rate A) means there are more discouraged workers. B) implies that the unemployment rate must fall. C) implies that the unemployment rate must rise. D) is consistent with either a rise or a fall in the unemployment rate. ANSWER D
Profits are part of the A) factor services. B) monetary value of output. C) final consumer goods. D) total income. ANSWER D
Per capita real GDP is a measure of A) productive activity. B) economic welfare. C) cost of living standards. D) cultural harmony. ANSWER A
Discouraged workers A) are considered part of the unemployed because they are not working. B) are not considered part of the unemployed because they quit their jobs voluntarily. C) are not considered part of the unemployed because they are not actively seeking work. D) are considered part of the unemployed because they are still in […]
The approach used in the U.S. to measure the economy’s aggregate performance is A) the total value of securities. B) national income accounting. C) to add up the value of intermediate goods. D) to add up the total value of financial transactions, transfer payments, and secondhand goods. E) all of the above. ANSWER B
