multiple choice ch 7

multiple choice ch 7 - Question 1 Which is a benefit of...

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Question 1 0 out of 1 points Which is a benefit of real economic growth to a society? Selected Answer: Everyone enjoys a greater nominal income. Correct Answer: The standard of living increases. Feedback: Economic growth allows our standard of living to rise, so we are more able to satisfy wants and scarcity is less of a problem (though it still exists -- it never goes away). Not everyone earns a higher income, however -- this depends on the job they have and skills they possess. See p. 125. Question 2 0 out of 1 points If the real output of an economy were to increase from $2000 billion to $2100 billion in 1 year, the rate of growth of real output during that year would be
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Selected Answer: 1% Correct Answer: 5% Feedback: The rate of growth is (new GDP - old GDP)/old GDP * 100 = ($2100 - $2000)/ $2000 * 100 = 0.05 * 100 = 5%. Question 3 1 out of 1 points Which is one of the four phases of a business cycle? Selected Answer: recession Correct Answer: recession
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Feedback: Correct. The phases of the business cycle are peak, recession, trough, and expansion. See p. 127. Question 4 0 out of 1 points Most economists believe that the immediate determinant of cyclical changes in the levels of domestic output and employment is Selected Answer: the price level Correct Answer: the level of total spending Feedback: Reread the section "Causation : A First Glance" on p. 128. Question 5 1 out of 1 points Production and employment would be least affected by a severe recession in which type of industry?
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Selected Answer: nondurable consumer goods Correct Answer: nondurable consumer goods Feedback: Correct. Nondurabl e goods need to be replaced often (e.g., food, clothing, etc.) so they are less impacted by recessions because people can't postpone their purchases. Durable or capital goods purchases, however, can be put off by repairing the item until the economy improves. See p. 128. Question 6 1 out of 1 points The unemployment rate in an economy is 8%. The total population of the economy is 250 million, and the size of the civilian labor force is 150 million. The number of employed workers in this economy is
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Selected Answer: 138 million Correct Answer: 138 million Feedback: Correct. If the unemploy ment rate is 8%, then the remaining 100 - 8 = 92% of the labor force is employed. Therefore, 0.92 * 150 million = 138 million are employed right now. The population is not used to calculate employme nt or unemploy ment rates because not everyone is eligible or able to work. See p. 129, particularly Figure 7.2. Question 7 1 out of 1 points The labor force includes those who are
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Selected Answer: employed Correct Answer: employed Feedback: Correct! Those less than 16 years old or in mental institutions are not able to work and therefore are not included in estimates of the labor force. Likewise,
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multiple choice ch 7 - Question 1 Which is a benefit of...

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