Which choice shows the stages of the business cycle in the correct order?

peak, contraction, trough, expansion

Long-run economic growth in a country would be encouraged by which combination of events?

high investments, low interest rates, high savings rates

Why did industry not decline when men were drafted for WWII?

women entered the workforce to replace the men.

Which of the following describes what happens when the price level goes up and wages do not?

producers will want to supply more to the marketplace

Which of these if most likely a result of high unemployment rate in the U.S.?

more government expenditures for transfer payments.

One reason GDP might NOT be an accurate indicator of the health of a country's economy is that

GDP measures spending, but not always very productive.

Which of these individuals is classified as unemployed?

a recent college graduate looking for his first job

Why might students be affected adversely by inflation?

Students usually work for low wages.

One way governments try to bring their economies out of recession to reduce unemployment is by

spending revenues projects using private sector contractors.

The unemployment rate is usually calculated as the number of unemployed individuals

divided by the total number of people in a labor force.

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Economics - Unit 3 Part 1 - Macroeconomics - Goals, Unemployment, and Business Cycle

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Questions 23

Answers

1
Which choice shows the stages of the business cycle in the correct order?
peak, contraction, trough, expansion
expansion, peak, trough, contraction
trough, expansion, contraction, peak
contraction, expansion, trough, peak
2
Long-run economic growth in a country would be encouraged by which combination of events?
low investments, low interest rates, low savings rates
high investments, low interest rates, high savings rates
high investments, high interest rates, high savings rates
high investments, high interest rates, low savings rates
3
Why did industry not decline when men were drafted for WWII?
robotic technology replaced human labor
slave labor by captured enemy soldiers filled many gaps
women entered the workforce to replace the men.
war production was not as labor-intensive.
4
Which of these is an indicator of increased economic growth in a nation?
Increased aggregate demand
increased welfare applications
increased transfer payments by the government
increased job satisfaction
5
Which of the following describes what happens when the price level goes up and wages do not?
producers will want to supply more to the marketplace
overall profits will decrease
producers will want to supply less to the marketplace
profits will not be affected
6
Which of these is an economic indicator?
Consumer Price index
Job satisfaction Rate.
Presidential Approval rate
Equilibrium Price
7
Which of these if most likely a result of high unemployment rate in the U.S.?
more government expenditures for transfer payments.
increased production of capital goods
increase revenues
increase demand for consumer goods
8
Which category in the GDP formula represents expenditures on tools, machines, and buildings used to produce goods?
consumer sector
net exports
government sector
investment sector
9
The consumer price index compares
income levels
quantity of goods
price levels
quality of goods
10
What is the unemployment rate in 1975?
6.5%
8.5%
12%
4.7%
11
If the working age population is 250 million, 170 million are employed & 9 million unemployed, the unemployment rate is
6.8%
3.6%
7.0%
5.0%
12
What does the x-axis line represent on a business cycle graph?
spending
time
expansion
GDP
13
If inflation is 2 % and nominal GDP grew by 4 % then during the same period real GDP changes by how much?
6 %
- 2 %
4 %
2 %
14
The most important measure of the economy's overall economic performance
National income
Net National product or NNP
Gross National Product GNP
Gross Domestic Product or GDP
15
One reason GDP might NOT be an accurate indicator of the health of a country's economy is that
GDP is favorably weighted toward very populous nations.
GDP does not account for goods purchased from overseas.
GDP is affected by increases in factory production levels.
GDP measures spending, but not always very productive.
16
Which of the following provides a point of comparison for current prices?
price deflator
market basket
price index
base year
17
Which of these individuals is classified as unemployed?
laid-off factory worker who gave up looking for a new job
a computer programmer who retired early at age 47
barista who works 20 hours a week but wants to add hours
a recent college graduate looking for his first job
18
Who is harmed the MOST during periods of unexpected inflation?
1
1 and 3
1,2, and 3
2 and 4
19
Why might students be affected adversely by inflation?
Students usually work for low wages.
School lunch costs would rise sharply.
Many students would lose their jobs.
Teachers would lose their jobs.
20
With inflation, the purchasing power of money
is not affected
is nonexistent
goes down
goes up
21
One way governments try to bring their economies out of recession to reduce unemployment is by
limiting goods and services companies can produce.
raising the minimum wage and lowering employment ages.
enacting price controls and rationing rules.
spending revenues projects using private sector contractors.
22
Type: unemployment would increase if workers were replaced by an automated process?
Structural Unemployment
International unemployment
Cyclical Unemployment
Frictional Unemployment
23
The unemployment rate is usually calculated as the number of unemployed individuals
multiplied by the total number of people in a labor force.
divided by the total number of people in a labor force.
multiplied by the total number of people in a society.
divided by the total number of people in a society.

Economics - Unit 3 Part 1 - Macroeconomics - Goals, Unemployment, and Business Cycle Flashcards | StudBud

Economics - Unit 3 Part 1 - Macroeconomics - Goals, Unemployment, and Business Cycle

23 termsStudBud Administration422 plays

n/a

Flashcards23 cardsFPractice quizPHost liveL

Questions 23

Answers

1
Which choice shows the stages of the business cycle in the correct order?
peak, contraction, trough, expansion
expansion, peak, trough, contraction
trough, expansion, contraction, peak
contraction, expansion, trough, peak
2
Long-run economic growth in a country would be encouraged by which combination of events?
low investments, low interest rates, low savings rates
high investments, low interest rates, high savings rates
high investments, high interest rates, high savings rates
high investments, high interest rates, low savings rates
3
Why did industry not decline when men were drafted for WWII?
robotic technology replaced human labor
slave labor by captured enemy soldiers filled many gaps
women entered the workforce to replace the men.
war production was not as labor-intensive.
4
Which of these is an indicator of increased economic growth in a nation?
Increased aggregate demand
increased welfare applications
increased transfer payments by the government
increased job satisfaction
5
Which of the following describes what happens when the price level goes up and wages do not?
producers will want to supply more to the marketplace
overall profits will decrease
producers will want to supply less to the marketplace
profits will not be affected
6
Which of these is an economic indicator?
Consumer Price index
Job satisfaction Rate.
Presidential Approval rate
Equilibrium Price
7
Which of these if most likely a result of high unemployment rate in the U.S.?
more government expenditures for transfer payments.
increased production of capital goods
increase revenues
increase demand for consumer goods
8
Which category in the GDP formula represents expenditures on tools, machines, and buildings used to produce goods?
consumer sector
net exports
government sector
investment sector
9
The consumer price index compares
income levels
quantity of goods
price levels
quality of goods
10
What is the unemployment rate in 1975?
6.5%
8.5%
12%
4.7%
11
If the working age population is 250 million, 170 million are employed & 9 million unemployed, the unemployment rate is
6.8%
3.6%
7.0%
5.0%
12
What does the x-axis line represent on a business cycle graph?
spending
time
expansion
GDP
13
If inflation is 2 % and nominal GDP grew by 4 % then during the same period real GDP changes by how much?
6 %
- 2 %
4 %
2 %
14
The most important measure of the economy's overall economic performance
National income
Net National product or NNP
Gross National Product GNP
Gross Domestic Product or GDP
15
One reason GDP might NOT be an accurate indicator of the health of a country's economy is that
GDP is favorably weighted toward very populous nations.
GDP does not account for goods purchased from overseas.
GDP is affected by increases in factory production levels.
GDP measures spending, but not always very productive.
16
Which of the following provides a point of comparison for current prices?
price deflator
market basket
price index
base year
17
Which of these individuals is classified as unemployed?
laid-off factory worker who gave up looking for a new job
a computer programmer who retired early at age 47
barista who works 20 hours a week but wants to add hours
a recent college graduate looking for his first job
18
Who is harmed the MOST during periods of unexpected inflation?
1
1 and 3
1,2, and 3
2 and 4
19
Why might students be affected adversely by inflation?
Students usually work for low wages.
School lunch costs would rise sharply.
Many students would lose their jobs.
Teachers would lose their jobs.
20
With inflation, the purchasing power of money
is not affected
is nonexistent
goes down
goes up
21
One way governments try to bring their economies out of recession to reduce unemployment is by
limiting goods and services companies can produce.
raising the minimum wage and lowering employment ages.
enacting price controls and rationing rules.
spending revenues projects using private sector contractors.
22
Type: unemployment would increase if workers were replaced by an automated process?
Structural Unemployment
International unemployment
Cyclical Unemployment
Frictional Unemployment
23
The unemployment rate is usually calculated as the number of unemployed individuals
multiplied by the total number of people in a labor force.
divided by the total number of people in a labor force.
multiplied by the total number of people in a society.
divided by the total number of people in a society.