Macroeconomics Test 2 UMUC

7 random
n1
1 / 1 point
Which of the following is most likely to contribute to economic growth as measured by GDP per capita?
a)
an increase in marginal tax rates
b)
increased capital formation
c) the imposition of tariffs and quotas on imported goods
d)
Question 2
rapid population growth
1 / 1 point
_____________________ is a term which refers to the widespread use of power-driven machinery and
the economic and social changes that resulted in the first half of the 1800s.
a)
Investment and inventions
b)
The Industrial Revolution
c)
d)
Question 3
GDP per capita
The living standard
1 / 1 point
In the long run, the most important source of increase in a nation's standard of living is a:
a)
high rate of labor force growth.
b)
zero rate of population growth
c)
high rate of economic growth.
d)
Question 4
high rate of consumption.
1 / 1 point
Which of the following is correct?
a)
b)
c)
An increase in the quantity of labor always leads to economic

growth.
Third World countries are rich in human capital.
Increased education adds to the stock of human capital, not unlike

building factories adds to the stock of physical capital.
d) A decrease in the productivity of labour leads to economic growth.

Question
5
1 / 1 point
____________ is a term which refers to the widespread use of power-driven machinery and the economic
and social changes that resulted in the first half of the 1800s.
a)
b)
Industrial Revolution
Technology
n8
Question 6
c)
Living standard
d)
Capital deepening
1 / 1 point
Which of the following factors contribute to economic growth?
a)
an increase in the standard of living
b)
a decrease in the productivity of labor
c)
an increase in the proportion of the population that is college

educated
d)
Question
7
an increase in the average wage rate paid to workers
1 / 1 point
Economists typically measure economic growth by tracking:
a)
real GDP per capita.
b)
averaged GDP growth
c)
the employment rate.
d)
the unemployment rate.
Chapter 7 Problems
1 / 1 point
Assuming a country's economy maintains an 8% rate of growth, young adults starting at age 20 would
see the average standard of living in their country more than double by the time they had reached age
__________.
a)
50
b)
30
c)
60
d)
40
Chapter 8 Random
n9
1 / 1 point
Women composed __________ of the paid workforce in 1900 and 50% of the paid workforce in 2010.
a)
Question 10
2%
b)
18%
c)
60%
d)
33%
1 / 1 point
Cyclical unemployment arises when:
a)
the agriculture sector completes the cycle of planting, cultivating,

and harvesting the nation's food supply.
b)
the business cycle enters an expansionary phase.
c)
business activity in the macroeconomy declines.
d)
Question
11
labor unions strike for higher wages.
1 / 1 point
Through good economic years and bad, many European economies had unemployment rates hovering
near _________ since the 1970s.
Question 12
a)
5%
b)
1%
c)
20%
d)
10%
1 / 1 point
Frictional unemployment is:
a) unemployment that is due to normal turnover in the labor market.
b) unemployment caused by automation in the workplace.
c) unemployment caused by lack of training and education.

d)
unemployment that is due to the friction of competing ideological
systems.
Question
13
1 / 1 point
The most significant real economic cost of high unemployment is:
a)
the potential goods and services that might have been produced
but weren't.
b)
the money cost of unemployment insurance payments to the

unemployed.
c) the money cost of retraining persons to obtain new jobs.
d)
Question
14
the lost tax revenue that might have been paid by persons if they
had worked.
1 / 1 point
The rise in unemployment that occurs because of a recession is known as cyclical unemployment,
because it is closely tied to the ______________.
a)
business cycle
b)
supply curve
c)
d)
Chapter 8 Problems
natural rate of unemployment
labor supply
n 15
1 / 1 point
Craigburg has a working age population of 20 million. Of those, 11 million are employed and 1 million are
unemployed. The unemployment rate is ________ and the participation rate is __________.
Question 16
a)
5%; 55%.
b)
8.3%; 55%.
c)
8.3%; 60%.
d)
5%; 60%.
1 / 1 point
In November 2010 the labor force in Siouxtown, was 14,800. There were 14,483 persons
employed. The local unemployment rate:
Question 17
a)
was 7.1%.
b)
was 1.2%.
c)
was 2.1%.
d)
was 5.6%.
1 / 1 point
If the number of employed persons in a country equals 24 million, the number of unemployed persons
equals 8 million, and the number of persons over age 16 in the population equals 40 million, the
unemployment rate equals:
a)
20%.
b)
32%.
c)
25%.
d)
8%.
Chapter 9 random
n 18
1 / 1 point
Which of the following is the name used to describe the price index that consists of intermediate goods
and finished goods?
Question 19
a)
Producer Price Index
b)
Employment Cost Index
c)
Consumer Price Index
d)
Processing Price Index
1 / 1 point
A payment is said to be ________________ if it is automatically adjusted for inflation.
a)
maintained
b)
matched
c)
indexed
d)
Question 20
cross referenced
1 / 1 point
The situation where the buying power of money in terms of goods and services increases is called:
a)
b)
Question 21
deflation.
hyperinflation.
c)
inflation.
d)
stationary pricing.
0 / 1 point
The ____________________ is based on the prices of merchandise that are exported or imported.
a)
b)
International Product Index
c)
International Price Index
d)
Question 22
Producer Price Index
Foreign Price Index
1 / 1 point
Inflation can be calculated in terms of how the overall cost of ___________________ changes over time.
Question 23
a)
all goods and services
b)
the basket of goods
c)
all services
d)
all goods
1 / 1 point
The __________________ is the nominal interest rate minus the rate of inflation.
a)
real interest rate
b)
real GDP
c)
d)
annualized interest rate
nominally adjusted
Chapter 9 Problems
n 24
1 / 1 point
Nancy's union has negotiated a three-year wage contract that provides for a 2.4% increase indexed to
inflation. The rates of inflation are forecast to be 1.62%, 1.93% and 2.21% respectively. How will Nancy's
wage increase be expressed in the new contract?
a)
COLA plus 2.4%
b)
COLA plus 1.6%
Question 25
c)
COLA plus 2.2%
d)
COLA plus 1.9%
1 / 1 point
An analyst needs to adjust the nominal GDP for the years 2000 and 2010 into real terms to conclude his
comparison analysis. The nominal GDP in 2000 was $672 billion and $1,690 billion for 2010; the real
interest rate was 6.79% in 2000 and 3.71% in 2010; the 2000 deflator was 24 and 51 in 2010. What is the
real gain?
a)
70.61%
b)
38.58%
c)
18.34%
d)
151.48%

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7 random

an increase in marginal tax rates

increased capital formation

c) the imposition of tariffs and quotas on imported goods

rapid population growth

Investment and inventions

The Industrial Revolution

GDP per capita

The living standard

high rate of labor force growth.

zero rate of population growth

high rate of economic growth.

high rate of consumption.

Which of the following is correct?

An increase in the quantity of labor always leads to economic

Third World countries are rich in human capital.

Increased education adds to the stock of human capital, not unlike

d) A decrease in the productivity of labour leads to economic growth.

Which of the following factors contribute to economic growth?

an increase in the standard of living

a decrease in the productivity of labor

an increase in the proportion of the population that is college

an increase in the average wage rate paid to workers

Economists typically measure economic growth by tracking:

real GDP per capita.

averaged GDP growth

the employment rate.

the unemployment rate.

Cyclical unemployment arises when:

the agriculture sector completes the cycle of planting, cultivating,

the business cycle enters an expansionary phase.

business activity in the macroeconomy declines.

labor unions strike for higher wages.

Frictional unemployment is:

a) unemployment that is due to normal turnover in the labor market.

b) unemployment caused by automation in the workplace.

c) unemployment caused by lack of training and education.

The most significant real economic cost of high unemployment is:

the money cost of unemployment insurance payments to the

c) the money cost of retraining persons to obtain new jobs.

natural rate of unemployment

Producer Price Index

Employment Cost Index

Consumer Price Index

Processing Price Index

A payment is said to be ________________ if it is automatically adjusted for inflation.

International Product Index

International Price Index

Producer Price Index

Foreign Price Index

all goods and services

the basket of goods

real interest rate

annualized interest rate

COLA plus 2.4%

COLA plus 1.6%

COLA plus 2.2%

COLA plus 1.9%

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