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Econ2030 Test3 pg3

Econ2030 Test3 pg3 - 14 Which of the following is an...

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Unformatted text preview: 14. Which of the following is an example of structural unemployment? olfA. Hector looked for a job for ﬁve weeks after ﬁnishing college. He turned down several jobs that didn't use his skills, but now has a job requiring the expertise he gained 1n college. B. Marsha was laid off from her job with the airline because the recession has reduced the demand for airline travel. She expects to get her job back when the economy picks up. C. Alan, a software engineer, lost his job when the internet startup he worked for went bankrupt. He interviewed with ﬁve companies in the area before taking a job with another ﬁrm in the industry. D. Jim had a job as an engineer, but quit when his wife was transferred to another state. He looked for a month before ﬁnding a new job that he liked. ' Dora lost her j ob when the textile mill closed. She does not have skills to work in another industry and has een unemployed for over a year. 15. Suppose a country's real GDP is \$440 billion and its population is 100 million. Now suppose that both its price level and its population increase by 10 percent while real GDP remains unchanged. As a result of this evolution, the country's new level of per capita real GDP will be: ,, ; _ l®\$440° VAC 12 - .2» .z, a it 1; 16. Suppose that a bank expects inﬂation to be 4 percent and charges borrowers an interest rate of 7 percent accordingly. Now suppose that inﬂation is actually 4.5 percent. In this case, inﬂation: A. redistributes income from the bank' s borrowers to the bank. B. does not affect the distribution of mcome. @ redistributes Income from the bank to the bank's borrowers. 17. Use the following information to answer the question: There are three ﬁrms m an economy: A, B, and C. Firm A buys \$200 worth of goods from ﬁrm B and \$300 worth of goods from ﬁrm C to produce 450 units of output at \$2 per unit. Firm B buys \$250 worth of goods from ﬁrm A and \$150 worth of goods from ﬁrm C to produce 100 units of output at \$8 per unit. F 1rm C buys \$200 worth of goods from A and \$350 worth of goods from ﬁrm B to produce 300 units at \$3 per unit. Given this information, what 13 the economy' 3 GDP? “\$1150 my; 331,9] Q J“ . \$1250. 3 p \$g® k. )1 Cl" (:‘l 4» (3m :‘lli: 7‘ 18. Our standard of living is directly tied to economic growth because: A. everyone in society shares equally in the fruits of economic growth. B. the two terms are synonymous. C. in most cases economic growth brings an improvement in the average person's standard of living. @ the government can only improve people's standard of living if the economy is growing. E. a higher standard of living causes an increase in economic growth. l9.All of the following are costs of unemployment EXCEPT: A. lost income. B. lost self esteem. " C. lost job skills. D. feelings of loss of control over one's life. ost leisure time. ...
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