Econ KSU final exam 01 practice
Which of the following is included in the calculation of GDP?
The purchase of tutoring services from a tutor who holds citizenship outside the country but resides within the country.
Most goods and services produced at home
and most goods and services produced illegally are excluded from GDP.
Jackie, a Canadian citizen, works only in the United States. The value of the output she produces is
included in U.S. GDP, but it is not included in U.S. GNP
The value of goods added to a firm's inventory in a certain year is treated as
investment, since GDP aims to measure the value of the economy's production that year.
Social Security payments are
excluded from GDP because they do not reflect the economy's production.
Unemployment compensation is
not part of GDP because it is a transfer payment.
Net exports equal formula
Y - C+I+G).
The percentage change in the price level from one period to another is called the
inflation rate.
If real GDP doubles and the GDP deflator doubles, then nominal GDP
quadruples.
country reported nominal GDP of $100 billion in 2010 and $75 billion in 2009. It also reported a GDP deflator of 125 in 2010 and 120 in 2009.
Between 2009 and 2010,
real output and the price level both rose
The consumer price index is used to
monitor changes in the cost of living over time.
When the consumer price index rises, the typical family
has to spend more dollars to maintain the same standard of living.
Which of the following is the correct formula for calculating the consumer price index?
[(price of basket of goods and services in current year/price of basket in base year)]x 100
the consumer price index was 96 in Year 1, 100 in Year 2, and 102 in Year 3, then the base year must be
Year 2
Suppose a basket of goods and services has been selected to calculate the CPI and Year 1 has been selected as the base year. In Year 1, the basket! cost was $50; in Year 2, the basket's cost was $52; and in Year 3, the basket's cost was $55. The value of the CPI in Year 3 was
110.0
The price index was 120 in Year 1 and 126 in Year 2. What was the inflation rate?
5.0 percent
The consumer price index tries to gauge how much incomes must rise to maintain
a constant standard of living.
Suppose the price of a quart of milk rises from $1.00 to $1.20 and the price of a T-shirt rises from $8.00 to $9.60. If the CPI rises from 150 to 195, then people likely will buy
more milk and more T-shirts.
Sue Holloway was an accountant in 1944 and earned $12,000 that year. Her son, Josh Holloway, is an accountant today and he earned $210,000 in
2017. Suppose the price index was 17.6 in 1944 and 218.4 in the current year.
70.9 percent
To be counted as "employed" in the U.S. labor force statistics, a person
does not have to be working for pay if they are working for a family business and does not have to be working full time.
The unemployment rate is computed as the number of unemployed
divided by the labor force, all times 100.
Matilda just graduated from college. In order to devote all her efforts to college, she didn't hold a job. She is going to tour around the country on her motorcycle for a month before she starts looking for work. Other things the same, the unemployment rate
and the labor-force participation rate are both unaffected.
In one year, you meet 52 people who are each unemployed for one week and eight people who are each unemployed for the whole year. What percentage of the unemployment spells you encountered ended within one week and therefore was short term, and what percentage of the unemployment you encountered in a given week was long term?
86.7% was short term; 88.9% was long term
Wanda quit her job because she was unhappy at work. Arnold was laid off from his landscaping job because his company was downsizing. Who is eligible for unemployment insurance benefits?
Arnold but not Wanda