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Unformatted text preview: Exam#3 Sample Macro Questions 1. In the factor market, households (a) sell resources. (b) buy resources. (c) are neither buyers nor sellers of resources. (d) are both buyers and sellers of resources. 2. GDP does not include (a) business investment. (b) overseas production of U.S. subsidiaries. (c) net exports. (d) consumption expenditures. 3. Official unemployment rates may underestimate the true rate of unemployment because the official rate (a) includes those workers who only work part time. (b) may include some individuals who are not actually in the labor force. (c) does not include individuals receiving any type of unemployment compensation. (d) fails to include discouraged workers. 4. If the U.S. economy enters a recessionary phase, the (a) economy experiences full employment. (b) unemployment rate will increase. (c) entire population will be unemployed. (d) entire population will be partially unemployed. 5. The circular flow diagram shows (a) goods, services, and money payments flowing in the same direction. (b) goods and money payments flowing in one direction and services flowing in the opposite direction. (c) goods and services flowing in one direction and money payments in the other direction. (d) goods flowing in one direction and services and money payments flowing in the other direction. 6. GDP measures (a) the total value of labor used in the economy. (b) the total market value of final goods and services produced within a nation’s borders. (c) the total income received by residents of a nation. (d) the total worth of all goods consumed within the borders of a nation. 7. A price index shows (a) the current cost of a basket of goods. (b) the relative price of necessities. (c) the price of goods in the future. (d) the cost of today’s goods expressed in terms of the cost of goods in a base year. 8. A public good is: (a) a good or service for which it is relatively easy to exclude nonpaying customers from consumption. (b) a good or service which is consumed by both the paying and nonpaying customers. (c) any good or service which is produced by the government. (d) a good or service which is consumed by private individuals and financed by private contributions. 9. The sum of all planned expenditures for the entire economy at each possible price level is (a) aggregate supply. (b) effective demand. (c) aggregate demand. (d) actual expenditures by consumers. 10. Suppose the total value of all assets in the United States is $10 trillion. In 2006, the total value of all final services produced in the United States was $100 billion, the total value of all final goods produced in the United States was $300 billion, and the total value of all final goods and services produced by American firms in other countries was $100 billion. In this situation, gross domestic product for 2006 was (a)...
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- Fall '06
- Unemployment, Gdp, gross domestic product, Annual percentage change