ECON 400 FINAL QUESTIONS AND ANSWERS
Suppose that the advanced estimate of real GDP for the 4th quarter suggests that GDP
during the 4th quarter grew faster than GDP during the 3rd quarter. on average, how
often will it turn out that according to the final revision of the data that real GDP during
the 4th quarter will still appear to have grown faster than it did during the 3rd quarter?
A) 75%
B) 97%
C) 50%
D) 25% - Answers - A) 75%
What component of GDP automatically corrects for the problem of "where value is
produced?"
A) Gross private domestic investment
B) Net exports
C) change in business inventories
D) personal consumption expenditures - Answers - B) Net exports
Which of the following is not a way of measuring GDP?
A) The accrual method or approach
B) The value added approach
C) The income approach
D) The output-expenditure approach - Answers - A) The accrual method or approach
Which of the following is the best definition of GDP for the United States?
A) The total market value of all goods and services produced in the United States during
one
year.
B) The total market value of all final goods and services produced by Americans (both
at home and abroad) during one year.
C) The total market value of all final goods and services produced in the United States
during
one year.
D) The total incomes earned by Americans during the year. - Answers - C) The total
market value of all final goods and services produced in the United States during
one year.
Which of the following criteria is concerned with whether output has declined enough for
a recession to have occurred?
A) Amplitude
B) Duration
C) Displacement
D) Diffusion - Answers - A) Amplitude
We use the term business cycle
,A) to describe the regular, predictable movements in output that occur in any economy.
B) to emphasize that recessions and recoveries are inevitable even though they do not
represent
cycles in a mathematical sense.
C) to describe how an economy grows over a long period of time.
D) in order to emphasize the fact that unemployed resources always exist. - Answers -
B) to emphasize that recessions and recoveries are inevitable even though they do not
represent
cycles in a mathematical sense.
Which of the following criteria is concerned with whether a recession has affected the
economy
as a whole?
A) Amplitude
B) Duration
C) Displacement
D) Diffusion - Answers - D) Diffusion
Which of the following statements about the mean duration of unemployment is true?
A) The mean duration of unemployment is always less than the median duration.
B) The mean duration of unemployment in late 2011 was about 40 weeks.
C) The mean duration of unemployment has never been above 35 weeks.
D) The mean duration of unemployment before the 2008-2009 recession was usually
less than
10 weeks. - Answers - B) The mean duration of unemployment in late 2011 was about
40 weeks.
When the data is gathered to calculate the unemployment rate, how long is a household
in the
survey?
A) Four months in a row, then is out of the sample for 8 months, and then it is in the
sample the
same four months the next year, then it is dropped from the sample.
B) Three months in a row, then is out of the sample for 9 months, and then it is in the
sample the same three months the next year, then it is dropped from the sample.
C) Four months in a row, and then it is dropped from the sample.
D) Four months in a row, and then it is dropped from the sample for four months, and
then it is
surveyed for another four more months before being dropped from the sample. -
Answers - A) Four months in a row, then is out of the sample for 8 months, and then it is
in the sample the
same four months the next year, then it is dropped from the sample.
When the data is gathered to calculate the unemployment rate for the month of August,
what
share of households surveyed in August would have also been surveyed in July?
,A) 25%
B) 50%
C) 75%
D) 0% - Answers - C) 75%
Suppose Sam is part of the survey used to calculate the unemployment rate in
September
2010. In response to the questions he is asked, he reports that he has applied for over
20 fulltime
jobs during the past four weeks; he also reports that currently he is not working for pay
and
has been spending almost all his time working on his Master's thesis, which he expects
to finish
in time to graduate in December. Is Sam unemployed?
A) Yes, he was clearly not working for pay.
B) No, because he was working for pay.
C) No, because he was not willing and able to work.
D) No, because he was not available for work. - Answers - D) No, because he was not
available for work.
Which of the following is unemployed?
A) Larry who earns $30 each week for mowing his other's lawn. It takes him about 75
minutes.
B) Louise who answers the phone and sets up appointment times for her husband who
is a self-employed appliance repairman.
C) Michael who, before he catches the bus to go to school, spends an average of 3
hours each
morning helping milk the cows at his parents' dairy. His parents tell him he is working for
room and board.
D) Jean normally works at an automobile assembly plant, but for the last three weeks
she has
been on temporary layoff that is expected to last another 2 weeks. - Answers - D) Jean
normally works at an automobile assembly plant, but for the last three weeks she has
been on temporary layoff that is expected to last another 2 weeks.
What is the name of the survey that collects the data used to calculate the
unemployment rate?
A) Current Population Survey
B) Survey of Business Establishments
C) The Current Employment Survey
D) The Income and Employment Survey - Answers - A) Current Population Survey
When the data is gathered to calculate the unemployment rate for the month of August
2012, what share of households surveyed in August 2012 would have also been
surveyed in August 2011?
A) 25%
, B) 50%
C) 75%
D) 0% - Answers - B) 50%
When the data is gathered to calculate the unemployment rate for the month of August,
what share of households surveyed in August would have also been surveyed in July?
A) 25%
B) 50%
C) 75%
D) 0% - Answers - C) 75%
Which of the following statements about the mean duration of unemployment is true?
A) The mean duration of unemployment is always less than the median duration.
B) The mean duration of unemployment in late 2011 was about 40 weeks.
C) The mean duration of unemployment has never been above 35 weeks.
D) The mean duration of unemployment before the 2008-2009 recession was usually
less
than 10 weeks. - Answers - B) The mean duration of unemployment in late 2011 was
about 40 weeks.
What is the definition of U6?
A) It is the unemployment rate obtained by adding to the number of unemployed those
people who are marginally attached to the labor force excluding discouraged workers.
B) It is the unemployment rate obtained by adding to the number of unemployed those
people who are marginally attached to the labor force including discouraged workers).
C) It is the unemployment rate obtained by adding to the number of unemployed those
people who are working part-time for economic reasons.
D) It is the unemployment rate obtained by adding to the number of unemployed those
people who are marginally attached to the labor force including discouraged workers
plus all workers who are classified as working part-time for economic reasons. -
Answers - D) It is the unemployment rate obtained by adding to the number of
unemployed those people who are marginally attached to the labor force including
discouraged workers plus all workers who are classified as working part-time for
economic reasons.
Suppose Sam is part of the survey used to calculate the unemployment rate in
September 2010. In response to the questions he is asked, he reports that he has
applied for over 20 full-time jobs during the past four weeks; he also reports that
currently he is not working
for pay and has been spending almost all his time working on his Master's thesis, which
he expects to finish in time to graduate in December. Is Sam unemployed?
A) Yes, he was clearly not working for pay.
B) No, because he was working for pay.
C) No, because he was not willing and able to work.
D) No, because he was not available for work. - Answers - D) No, because he was not
available for work.
Suppose that the advanced estimate of real GDP for the 4th quarter suggests that GDP
during the 4th quarter grew faster than GDP during the 3rd quarter. on average, how
often will it turn out that according to the final revision of the data that real GDP during
the 4th quarter will still appear to have grown faster than it did during the 3rd quarter?
A) 75%
B) 97%
C) 50%
D) 25% - Answers - A) 75%
What component of GDP automatically corrects for the problem of "where value is
produced?"
A) Gross private domestic investment
B) Net exports
C) change in business inventories
D) personal consumption expenditures - Answers - B) Net exports
Which of the following is not a way of measuring GDP?
A) The accrual method or approach
B) The value added approach
C) The income approach
D) The output-expenditure approach - Answers - A) The accrual method or approach
Which of the following is the best definition of GDP for the United States?
A) The total market value of all goods and services produced in the United States during
one
year.
B) The total market value of all final goods and services produced by Americans (both
at home and abroad) during one year.
C) The total market value of all final goods and services produced in the United States
during
one year.
D) The total incomes earned by Americans during the year. - Answers - C) The total
market value of all final goods and services produced in the United States during
one year.
Which of the following criteria is concerned with whether output has declined enough for
a recession to have occurred?
A) Amplitude
B) Duration
C) Displacement
D) Diffusion - Answers - A) Amplitude
We use the term business cycle
,A) to describe the regular, predictable movements in output that occur in any economy.
B) to emphasize that recessions and recoveries are inevitable even though they do not
represent
cycles in a mathematical sense.
C) to describe how an economy grows over a long period of time.
D) in order to emphasize the fact that unemployed resources always exist. - Answers -
B) to emphasize that recessions and recoveries are inevitable even though they do not
represent
cycles in a mathematical sense.
Which of the following criteria is concerned with whether a recession has affected the
economy
as a whole?
A) Amplitude
B) Duration
C) Displacement
D) Diffusion - Answers - D) Diffusion
Which of the following statements about the mean duration of unemployment is true?
A) The mean duration of unemployment is always less than the median duration.
B) The mean duration of unemployment in late 2011 was about 40 weeks.
C) The mean duration of unemployment has never been above 35 weeks.
D) The mean duration of unemployment before the 2008-2009 recession was usually
less than
10 weeks. - Answers - B) The mean duration of unemployment in late 2011 was about
40 weeks.
When the data is gathered to calculate the unemployment rate, how long is a household
in the
survey?
A) Four months in a row, then is out of the sample for 8 months, and then it is in the
sample the
same four months the next year, then it is dropped from the sample.
B) Three months in a row, then is out of the sample for 9 months, and then it is in the
sample the same three months the next year, then it is dropped from the sample.
C) Four months in a row, and then it is dropped from the sample.
D) Four months in a row, and then it is dropped from the sample for four months, and
then it is
surveyed for another four more months before being dropped from the sample. -
Answers - A) Four months in a row, then is out of the sample for 8 months, and then it is
in the sample the
same four months the next year, then it is dropped from the sample.
When the data is gathered to calculate the unemployment rate for the month of August,
what
share of households surveyed in August would have also been surveyed in July?
,A) 25%
B) 50%
C) 75%
D) 0% - Answers - C) 75%
Suppose Sam is part of the survey used to calculate the unemployment rate in
September
2010. In response to the questions he is asked, he reports that he has applied for over
20 fulltime
jobs during the past four weeks; he also reports that currently he is not working for pay
and
has been spending almost all his time working on his Master's thesis, which he expects
to finish
in time to graduate in December. Is Sam unemployed?
A) Yes, he was clearly not working for pay.
B) No, because he was working for pay.
C) No, because he was not willing and able to work.
D) No, because he was not available for work. - Answers - D) No, because he was not
available for work.
Which of the following is unemployed?
A) Larry who earns $30 each week for mowing his other's lawn. It takes him about 75
minutes.
B) Louise who answers the phone and sets up appointment times for her husband who
is a self-employed appliance repairman.
C) Michael who, before he catches the bus to go to school, spends an average of 3
hours each
morning helping milk the cows at his parents' dairy. His parents tell him he is working for
room and board.
D) Jean normally works at an automobile assembly plant, but for the last three weeks
she has
been on temporary layoff that is expected to last another 2 weeks. - Answers - D) Jean
normally works at an automobile assembly plant, but for the last three weeks she has
been on temporary layoff that is expected to last another 2 weeks.
What is the name of the survey that collects the data used to calculate the
unemployment rate?
A) Current Population Survey
B) Survey of Business Establishments
C) The Current Employment Survey
D) The Income and Employment Survey - Answers - A) Current Population Survey
When the data is gathered to calculate the unemployment rate for the month of August
2012, what share of households surveyed in August 2012 would have also been
surveyed in August 2011?
A) 25%
, B) 50%
C) 75%
D) 0% - Answers - B) 50%
When the data is gathered to calculate the unemployment rate for the month of August,
what share of households surveyed in August would have also been surveyed in July?
A) 25%
B) 50%
C) 75%
D) 0% - Answers - C) 75%
Which of the following statements about the mean duration of unemployment is true?
A) The mean duration of unemployment is always less than the median duration.
B) The mean duration of unemployment in late 2011 was about 40 weeks.
C) The mean duration of unemployment has never been above 35 weeks.
D) The mean duration of unemployment before the 2008-2009 recession was usually
less
than 10 weeks. - Answers - B) The mean duration of unemployment in late 2011 was
about 40 weeks.
What is the definition of U6?
A) It is the unemployment rate obtained by adding to the number of unemployed those
people who are marginally attached to the labor force excluding discouraged workers.
B) It is the unemployment rate obtained by adding to the number of unemployed those
people who are marginally attached to the labor force including discouraged workers).
C) It is the unemployment rate obtained by adding to the number of unemployed those
people who are working part-time for economic reasons.
D) It is the unemployment rate obtained by adding to the number of unemployed those
people who are marginally attached to the labor force including discouraged workers
plus all workers who are classified as working part-time for economic reasons. -
Answers - D) It is the unemployment rate obtained by adding to the number of
unemployed those people who are marginally attached to the labor force including
discouraged workers plus all workers who are classified as working part-time for
economic reasons.
Suppose Sam is part of the survey used to calculate the unemployment rate in
September 2010. In response to the questions he is asked, he reports that he has
applied for over 20 full-time jobs during the past four weeks; he also reports that
currently he is not working
for pay and has been spending almost all his time working on his Master's thesis, which
he expects to finish in time to graduate in December. Is Sam unemployed?
A) Yes, he was clearly not working for pay.
B) No, because he was working for pay.
C) No, because he was not willing and able to work.
D) No, because he was not available for work. - Answers - D) No, because he was not
available for work.
