quiz 4 2 - Blackboard Learning System 12/10/08 4:56 PM Your...

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Unformatted text preview: Blackboard Learning System 12/10/08 4:56 PM Your location: Assessments › View All Submissions › View Attempt View Attempt 1 of 4 Title: Started: Submitted: Time spent: Lesson 4 Quiz (Required for course grade) October 21, 2008 2:05 PM December 10, 2008 4:55 PM 1203:50:36 Total score adjusted by 0.0 Maximum possible score: 100 Total score: 10/100 = 10% Done 1. GDP includes: Student Response A. final, but not intermediate, goods. B. intermediate, but not final, goods. C. neither intermediate nor final goods. D. both 0% intermediate and final goods. Score: Comments: 2. Value Correct Answer Feedback 0/10 If depreciation (consumption of fixed capital) exceeds domestic investment, we can conclude that: Student Value Response A. net investment is negative. http://webct.csmd.edu/webct/cobaltMainFrame.dowebct Page 1 of 7 Correct Answer Feedback Blackboard Learning System 12/10/08 4:56 PM B. nominal GDP is rising but real GDP is declining. C. the 0% economy is importing more than it exports. D. the economy is expanding. Score: Comments: 3. GDP data are criticized as being inaccurate measures of economic welfare because: Student Response A. of all of the above considerations. B. they do not take into account the adverse effects of economic activity on the environment. C. they do not take into account changes in the amount of leisure. D. they do not take into account changes in product quality. 0% Value Correct Answer Feedback 0/10 http://webct.csmd.edu/webct/cobaltMainFrame.dowebct Page 2 of 7 Blackboard Learning System 12/10/08 4:56 PM Score: Comments: 4. 0/10 Suppose nominal GDP in 1999 was $100 billion and in 2001 it was $260 billion. The general price index in 1999 was 100 and in 2001 it was 180. Between 1999 and 2001 the real GDP rose by: Student Value Response A. 160 percent. B. 12 percent. C. 37 percent. D. 44 percent. Score: Comments: 5. Part-time workers are counted as: Student Response A. fully employed and therefore the official unemployment rate may overstate the level of unemployment. B. unemployed 0% and therefore the official unemployment rate may overstate the level of unemployment. C. fully employed and therefore the official Value Correct Answer Feedback 0/10 0% Correct Answer Feedback http://webct.csmd.edu/webct/cobaltMainFrame.dowebct Page 3 of 7 Blackboard Learning System 12/10/08 4:56 PM unemployment rate may understate the level of unemployment. D. unemployed and therefore the official unemployment rate may understate the level of unemployment. Score: Comments: 6. Eckstein has lost her job in a Massachusetts textile plant because of import competition. She intends to take a short course in electronics and move to California where she anticipates that a new job will be available. We can say that Eckstein is faced with: Student Response Value Correct Answer Feedback 0/10 A. structural 100% unemployment. B. frictional unemployment. C. cyclical unemployment. D. secular unemployment. Score: Comments: 7. Answer the next question(s) on the basis of the following information for a specific year in a hypothetical economy for which Okun's law is applicable: Potential Real GDP = $200 billion Natural rate of unemployment = 6 percent Actual rate of unemployment = 12 percent The amount of output being forgone by the above economy is: Student Value Response Correct Answer Feedback 10/10 http://webct.csmd.edu/webct/cobaltMainFrame.dowebct Page 4 of 7 Blackboard Learning System 12/10/08 4:56 PM A. $18 billion. B. $15 billion. C. $24 billion. D. $12 billion. Score: Comments: 8. Recently a labor union argued that the standard of living of its members was falling. A critic of the union argued that this could not possibly be true because the union had been acquiring significant increases in the nominal incomes of its members through collective bargaining. Is the critic correct? Student Response A. Yes, because real income may fall if price increases are less proportionately than the increases in nominal income. B. No, because real income may fall if price increases are more proportionately than the increase in nominal income. C. Yes, because when you have a large nominal income your standard of living automatically increases. http://webct.csmd.edu/webct/cobaltMainFrame.dowebct Page 5 of 7 0/10 Value Correct Answer Feedback Blackboard Learning System 12/10/08 4:56 PM D. No, because real income may fall if price increases are less proportionately than the increases in nominal income. Score: Comments: 9. Real income can be determined by: Student Value Response A. dividing the annual rate of inflation into the number "70." B. deflating nominal income for inflation. C. dividing the price level by nominal income. D. inflating nominal income for inflation. Score: Comments: 10. Inflation is undesirable because it: Student Response Value Correct Answer Feedback 0/10 Correct Answer Feedback 0/10 http://webct.csmd.edu/webct/cobaltMainFrame.dowebct Page 6 of 7 Blackboard Learning System 12/10/08 4:56 PM A. arbitrarily redistributes real income and wealth. B. invariably leads to hyperinflation. C. usually is accompanied by declining real GDP. D. reduces everyone's standard of living. Score: Comments: 0/10 Done http://webct.csmd.edu/webct/cobaltMainFrame.dowebct Page 7 of 7 ...
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