Daytona State College - PB ECO2013 unit2quiz Question1)What does the X represent in the following formula, used to calculate GDP? GDP = C + I + G + (X – M)   Question 1 options: _a)  government spending               _b)  net exports               _c)  exports               _d)  imports                         Question 2     The two approaches used by government in estimating GDP are:   Question 2 options: _a)  income and earnings

_a) 

government spending

_b) 

net exports

_c) 

exports

_d) 

imports

_a) 

income and earnings.

_b) 

expenditure and income.

_c) 

survey and nonsurvey.

_d) 

statistical and nonstatistical.

_a) 

spending; income

_b) 

income; spending

_c) 

output; spending

_d) 

spending; output

_a) 

the ability to track business cycles.

_b) 

a comprehensive measure of domestic inflation.

_c) 

a comprehensive measure of domestic unemployment.

_d) 

the ability to account for nonmarket activities, such as car maintenance.

_a) 

gross private domestic investment.

_b) 

government spending.

_c) 

consumption expenditure.

_d) 

net exports.

_a) 

jobless recoveries.

_b) 

the Internet boom.

_c) 

the Great Depression.

_d) 

the Industrial Revolution.

_a) 

Every cycle is unique.

_b) 

The intensity tends to be constant from recession to recession, but the duration differs.

_c) 

Each recession causes the same amount of unemployment.

_d) 

They all have the same approximate length.

_a) 

total business spending.

_b) 

net investment in durables.

_c) 

gross private domestic investment.

_d) 

net business spending.

_a) 

durable goods plus nondurable goods plus services.

_b) 

imports minus exports.

_c) 

food plus housing plus business plus government spending.

_d) 

personal consumption plus gross private investment plus government spending plus net exports.

_a) 

identical to the consumption life cycle.

_b) 

the periodic fluctuation of economic activity.

_c) 

the engine of economic growth.

_d) 

a period lasting about 50 years.

_a) 

circular flow diagram.

_b) 

product-resource diagram.

_c) 

economic agents graph.

_d) 

economic interactivity diagram.

_a) 

the U.S. Treasury Department

_b) 

the Council of Economic Advisers

_c) 

the Federal Reserve Board of Governors

_d) 

the National Bureau of Economic Research

_a) 

personal computed expenditure.

_b) 

personal calculated expenditure.

_c) 

personal consumption expenditure.

_d) 

total spending.

_a) 

production by foreign citizens working in the United States.

_b) 

undervaluing the output.

_c) 

disintermediation.

_d) 

double counting.

_a) 

tax records.

_b) 

data on applications for unemployment compensation.

_c) 

the Current Population Survey.

_d) 

data reported to it by firms when employees leave.

_a) 

is an unemployment rate of zero.

_b) 

consists of frictional and cyclical unemployment.

_c) 

occurs if cyclical unemployment is zero.

_d) 

consists of structural and cyclical unemployment.

_a) 

800

_b) 

800,000

_c) 

80,000

_d) 

8,000

_a) 

are on family leave.

_b) 

have become discouraged and are no longer actively seeking work.

_c) 

are working at a job that does not fully utilize their skills.

_d) 

do not have a job but are available for work and have been actively seeking work.

_a) 

cyclical

_b) 

structural

_c) 

frictional

_d) 

seasonal

_a) 

unemployed.

_b) 

a discouraged worker.

_c) 

not in the labor force.

_d) 

employed.

_a) 

tax differences between states

_b) 

clustering of industries in certain geographic areas

_c) 

cultural differences

_d) 

differences in preferences for living in a certain geographic area

_a) 

disinflates

_b) 

accurately states

_c) 

understates

_d) 

overstates

_a) 

correct. Adjusting for price changes, his salary is more than his dad's salary.

_b) 

mistaken. Adjusting for quantity changes, his salary is less than his dad's salary.

_c) 

mistaken. Adjusting for price changes, his salary is less than his dad's salary.

_d) 

correct. Adjusting for quantity changes, his salary is more than his dad's salary.

_a) 

investment goods.

_b) 

government goods and services.

_c) 

consumer goods.

_d) 

imports.

_a) 

going on interviews

_b) 

using social media to reach out to employers

_c) 

submitting applications via the Internet

_d) 

reading help wanted ads

_a) 

workers on contracts without escalator clauses

_b) 

homeowners with fixed-rate mortgages

_c) 

creditors or lenders

_d) 

elderly people living on a fixed income

_a) 

exist, but people are not willing to take them, so it makes no sense to bring the two together.

_b) 

exist, and people are willing to take them, but it takes some time to bring the two together.

_c) 

exist and people are willing to take them, but the applicants do not have the necessary skill set.

_d) 

do not exist, although people are willing to work, so it makes no sense to try to bring the two together.

_a) 

slowed down economic growth.

_b) 

harmed standards of living.

_c) 

caused severe credit crunches.

_d) 

All of the answers are correct.

_a) 

keeping the purchasing power of the currency stable.

_b) 

tax rate stability.

_c) 

facilitating transactions.

_d) 

permitting credit institutions to arise.

_a) 

moving resources from production to pension benefits

_b) 

raising the capital-to-labor ratio

_c) 

increasing the quality of labor

_d) 

making investments in technological improvements

_a) 

bankruptcy laws encourage lending.

_b) 

the legal system can help the government with tax collection.

_c) 

legal protection of ideas and technologies gives people who innovate the ability to protect their work.

_d) 

strong laws demonstrate commitment by legislators to economic growth.

_a) 

arithmetically; geometrically

_b) 

geometrically; arithmetically

_c) 

irresponsibly; economically

_d) 

meagerly; substantially

_a) 

Census Bureau's measure of public capital.

_b) 

Index of Economic Freedom.

_c) 

System of Integrated Environmental and Economic Accounting.

_d) 

Index of Sustainable Economic Welfare.

_a) 

capital fell.

_b) 

nominal prices rose.

_c) 

real wages rose.

_d) 

fewer public goods were available.

_a) 

stay the same.

_b) 

fall.

_c) 

rise, fall, or stay the same.

_d) 

rise.

_a) 

the Bureau of Economic Analysis.

_b) 

the National Bureau of Economic Research.

_c) 

the Federal Reserve.

_d) 

the Congressional Budget Office.

_a) 

increases in the number of immigrants

_b) 

increases in human capital

_c) 

technological progress

_d) 

increases in government spending for the infrastructure

_a) 

70 times the growth rate.

_b) 

70 divided by the growth rate.

_c) 

the growth rate divided by 70.

_d) 

70.

_a) 

shows the most desired production method for a given level of output.

_b) 

shows the output that is produced using different combinations of technology combined with existing inputs.

_c) 

shows the output that is most highly valued by consumers.

_d) 

shows the output that is produced using different combinations of inputs combined with existing technology.

_a) 

typically better when provided by private companies.

_b) 

a country's public capital.

_c) 

not important in a market-based economy.

_d) 

unimportant for economic growth because the government provides it.