2030_test3

2030_test3 - 1. (p. 130) If the rate of change of per...

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1. (p. 130) If the rate of change of per capita real output is greater than that of real GDP, it must be the case that : a. real GDP is increasing. b. real GDP is decreasing. c. total population is increasing. D . total population is decreasing. Feedback: Since per capita real output equals real GDP divided by the population, it can grow faster than real GDP only if total population is decreasing. Notice that real GDP can be decreasing in this case as long as population is decreasing faster. AACSB: Analytic AP: Yes BT: Comprehension Difficulty: Hard LO: 6-2 Skill: Comprehension Type: Word problem 2. (p. 142) Unlike most countries, the Philippines treats discouraged workers as part of its labor force. As a result: a. the labor force participation rate in the Philippines is higher and the unemployment rate is lower than they would be if discouraged workers were not included. b. the labor force participation rate in the Philippines is lower and the unemployment rate is higher than they would be if discouraged workers were not included. c. both the labor force participation rate and the unemployment rate in the Philippines are lower than they would be if discouraged workers were not included. D . both the labor force participation rate and the unemployment rate in the Philippines are higher than they would be if discouraged workers were not included. Feedback: Including discouraged workers in the labor force increases the labor force participation rate because a greater percentage of the population is now in the labor force. It also increases the unemployment rate, however, because discouraged workers do not have jobs. AACSB: Reflective Thinking AP: Yes BT: Analysis Difficulty: Hard LO: 6-4 Skill: Comprehension Type: Word problem 3. (p. 141) The unemployment rate would be lower if: A . members of the armed services were included in the labor force. b. discouraged workers were classified as unemployed. c. underemployed workers were considered unemployed. d. workers who are voluntarily unemployed were considered as part of the labor force. Feedback: Including these workers would reduce the unemployment rate because all members of the military work but are not currently considered as being in the labor force. AACSB: Reflective Thinking AP: Yes BT: Analysis Difficulty: Medium LO: 6-4 Skill: Comprehension Type: Word problem
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4. (p. 151) In Zimbabwe inflation rose from an annual rate of 32% in 1998 to 900% in 2006. Ignoring the many other problems that face the businesses of Zimbabwe, and considering only the effects of this unexpected inflation, which of the following is most harmed by the inflation? a. Businesses with large inventories. b. Businesses with large debts. c. Businesses with wages determined by long-term contracts.
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This note was uploaded on 10/12/2008 for the course ECON 2030 taught by Professor Bong during the Spring '07 term at LSU.

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2030_test3 - 1. (p. 130) If the rate of change of per...

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