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Quiz 1

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Question 1 (1.0 points)
Which of the following conditions has NOT occurred in Japan in the past decade?
  1. deflation
  2. a reduction in the rate of growth of output
  3. a reduction in stock prices
  4. none of the above
Question 2 (1.0 points)
Which of the following countries by 2002 were included in the same common currency area?
  1. United Kingdom and France
  2. Japan and China
  3. Mexico and the United States
  4. Spain and France
Question 3 (1.0 points)
Policy makers can become concerned if the unemployment rate is too low because:
  1. stock prices will fall.
  2. inflation might increase.
  3. an exchange rate crisis might occur.
  4. output will decrease.
Question 4 (1.0 points)
Economists have suggested that the relatively higher unemployment in Europe has been caused by which of the following?
  1. relatively high unemployment benefits
  2. inadequate macroeconomic policies
  3. increased labor costs
  4. relatively high level of worker protection
  5. all of the above
Question 5 (1.0 points)
Deflation represents:
  1. a reduction in output.
  2. a recession.
  3. an increase in the unemployment rate.
  4. a reduction in the aggregate price level.
Question 6 (1.0 points)
At what point could the Euro be used as currency?
  1. January 1, 1999
  2. January 1, 1998
  3. January 1, 2000
  4. January 1, 2002
Question 7 (1.0 points)
An expansion represents:
  1. an increase in stock prices.
  2. an increase in output.
  3. a reduction in the unemployment rate.
  4. a simultaneous increase in economic activity and reduction in inflation.
Question 8 (1.0 points)
Fluctuations refer to:
  1. movements in prices.
  2. changes in stock prices.
  3. alternating periods of expansions and recessions.
  4. deviations of stock prices from their fundamental values.
Question 9 (1.0 points)
A comparison of the growth rates for the periods 1974-1995 and 1996-2001 indicates that:
  1. the recent increase in growth rates is due to large increases in capital formation.
  2. the growth rates have decreased.
  3. the growth rates are basically the same.
  4. the growth rate has increased in the more recent period.
Question 10 (1.0 points)
A recession represents:
  1. a reduction in output.
  2. an increase in the unemployment rate.
  3. a reduction in stock prices.
  4. a simultaneous reduction in economic activity and increase in inflation.
Question 11 (1.0 points)
Which of the following does NOT represent real GDP?
  1. GDP in base year dollars
  2. GDP in constant dollars
  3. GDP in current dollars
  4. GDP in terms of goods
Question 12 (1.0 points)
In the United States, someone is classified as unemployed if he or she:
  1. does not have a job.
  2. does not have a job, or else has a job but is looking for a different one while continuing to work.
  3. does not have a job, and is collecting unemployment insurance.
  4. does not have a job, has recently looked for work, and is collecting unemployment insurance.
  5. none of the above
Question 13 (1.0 points)
Which of the following factors is NOT believed to affect output in the long run?
  1. monetary policy
  2. the size of the labor force
  3. the capital stock
  4. technology
Question 14 (1.0 points)
In the United States, labor income accounts for approximately what share of GDP?
  1. 50%
  2. 40%
  3. 65%
  4. 33%
Question 15 (1.0 points)
If nominal GDP rises from $10 trillion to $12 trillion, while the GDP deflator rises from 2.0 to 2.2, the percentage change in real GDP is:
  1. 9.1%.
  2. -10%.
  3. 20%.
  4. 10%.
  5. 1.1%.
Question 16 (1.0 points)
Suppose nominal GDP in 2003 increased by 6% (over its previous level in 2002). Given this information, we know with certainty that:
  1. the GDP deflator increased during 2003.
  2. both the GDP deflator and real GDP increased during 2003.
  3. real GDP increased during 2003.
  4. More information is needed to answer this question.
Question 17 (1.0 points)
The Phillips curve illustrates the relationship between:
  1. changes in the unemployment rate and GDP growth.
  2. changes in the inflation rate and the unemployment rate.
  3. the unemployment rate and GDP growth.
  4. changes in inflation and GDP growth.
Question 18 (1.0 points)
In the short run, fluctuations in economic activity are caused primarily by changes in:
  1. population.
  2. demand.
  3. supply.
  4. technology.
  5. none of the above
Question 19 (1.0 points)
A country using the United States system of unemployment statistics has 100 million people, of whom 50 million are working age. Of these 50 million, 20 million have jobs. Of the remainder: 10 million are actively searching for jobs; 10 million would like jobs but are not searching; and 10 million do not want jobs at all.
The labor force participation rate is ________.
  1. 0.6
  2. 0.8
  3. 0.3
  4. 0.4
  5. 0.2
Question 20 (1.0 points)
A country using the United States system of unemployment statistics has 100 million people, of whom 50 million are working age. Of these 50 million, 20 million have jobs. Of the remainder: 10 million are actively searching for jobs; 10 million would like jobs but are not searching; and 10 million do not want jobs at all.
The official unemployment rate is ________.
  1. 0.66
  2. 0.33
  3. 0.4
  4. 0.2
  5. 0.1
Question 21 (1.0 points)
Based on the notation presented in Chapter 2, which of the following expressions represents nominal GDP?
  1. P t Y t
  2. $Y t /P t
  3. Y t /P t
  4. Y t
Question 22 (1.0 points)
For the United States, the labor force is consists of which of the following?
  1. the employed, the officially unemployed, and discouraged workers
  2. the employed and the officially unemployed
  3. the entire population
  4. the employed
  5. none of the above
Question 23 (1.0 points)
During the late 1990s, Japan experienced reductions in the GDP deflator. Given this information, we know with certainty that:
  1. the overall price level in Japan decreased during these periods.
  2. real GDP did not change during these periods.
  3. real GDP fell during these periods.
  4. both real GDP and the overall price level decreased during these periods.
Question 24 (1.0 points)
A country using the United States system of unemployment statistics has 100 million people, of whom 50 million are working age. Of these 50 million, 20 million have jobs. Of the remainder: 10 million are actively searching for jobs; 10 million would like jobs but are not searching; and 10 million do not want jobs at all.
The labor force is:
  1. 10 million.
  2. 40 million.
  3. 30 million.
  4. 50 million.
  5. 20 million.
Question 25 (1.0 points)
GDP in current dollars is equivalent to which of the following?
  1. GDP in terms of goods
  2. GDP in 1992 dollars
  3. GDP in constant dollars
  4. real GDP
  5. none of the above
Copyright 2008, by the Contributing Authors. Cite/attribute Resource . admin. (2009, January 27). Quiz 1. Retrieved January 07, 2011, from Free Online Course Materials — USU OpenCourseWare Web site: http://ocw.usu.edu/economics/macroeconomics-for-managers/quiz1.htm. This work is licensed under a Creative Commons License Creative Commons License