Choose the Correct Option for the Following GDP Theory Flashcards

The United Nation's Human Development Report (2006) ranked Norway first in its Human Development Index with GDP per person equal to $38,454. The United States, with GDP per person of $39,676, is ranked eighth. Which of the following could explain this ranking? A) The United States has a lower unemployment rate than does Norway. B) Norway has a lower GDP than the United States. C) Other factors, like life expectancy and education are higher in Norway. D) The United States has a higher population growth rate

All of the following are included in gross private domestic investment expenditure EXCEPT a A) business's purchase of another company's stock. B) a retail store's purchase of shoes to add to its inventory. C) household's purchase of a new house. D) business's purchase of a fleet of cars.

Real GDP measures the A) value of total production linked to prices of a single year. B) total profits earned by all businesses valued using prices from a single year. C) general upward drift in prices. D) changes in the prices of output measured in dollars.

Person A Now that the kids are in school for a full day, this person is looking for work and has interviewed for three jobs during the past two weeks. Person B This person has been laid off from a job but expects to be called back as soon as the economy improves. Person C This person has just graduated from college and will start a new job in three weeks. In the meantime this person will tour the great American beaches. Person D This person was laid off last year when new equipment was installed at the plant, reducing the number of workers needed. Shortly after being laid off, this person looked for a new job, was unable to find one and then stopped looking, even though this person still wants a job and is available for work. 4) The above table shows answers given by people interviewed in a government survey of households. Which individuals are considered unemployed using the official U-3 unemployment rate? A) C and D B) A, C, and D C) A, B, and C D) B, C, and D

A recession causes a decrease in the demand for housing, resulting in substantial layoffs in the construction industry. The people laid off are considered A) frictionally unemployment. B) structurally unemployment. C) seasonally unemployment. D) cyclically unemployment.

The data show that Germany's employment-to-population ratio is ________ in 2007. A) 80 percent B) 92 percent C) 71 percent D) 47.5 percent

Using the definition of unemployment, which of the following individuals would be unemployed? A) Because of the increased level of automobile imports, an employee of General Motors is laid off but expects to be called back to work soon. B) Because of a reduction in the military budget, your next door neighbor loses her job in a plant where nuclear warheads are made and must look for a new job. C) A full-time student quits school, enters the labor market for the first time, and searches for employment. D) All of these individuals are unemployed.

A person quits her job in order to spend time looking for a better-paying job. This type of unemployment is an example of A) seasonal unemployment. B) structural unemployment. C) frictional unemployment. D) cyclical unemployment.

If the number of people unemployed is 100, the number of people employed is 1000, and the working-age population is 1400, then the unemployment rate is A) 7.1 percent. B) 10 percent. C) 9.1 percent. D) 6.6 percent.

Component Number of people (millions) Under 16 50 Working full-time 90 Working part-time 30 Retired 40 Unemployed 5 10) Using the data in the above table, the unemployment rate is A) 4.0 percent. B) 28.0 percent. C) 4.16 percent. D) 5.55 percent

The labor force participation rate is percentage of the ________ who are in the labor force. A) working-age population B) people over age 16 C) people under age 65 D) population

If the number of people unemployed is 100, the number of people employed is 1000, and the working-age population is 1400, then the employment-to-population ratio is A) 78.6 percent. B) 66.6 percent. C) 71.4 percent. D) 75 percent.

When the automobile replaced horse-drawn carriages as the principal means of transportation, firms producing horse-drawn carriages went bankrupt and permanently laid off all their workers, thereby increasing A) frictional and cyclical unemployment. B) cyclical unemployment. C) frictional unemployment. D) structural unemployment.

In the above figure, the letters A, B, and C represent which positions in the business cycle? A) expansion, peak, and recession, respectively B) peak, recession, and expansion, respectively C) peak, expansion, and recession, respectively D) recession, expansion, and peak, respectively

Moving along the aggregate production function, all of the following are held constant EXCEPT A) technology B) human capital C) labor D) capital