Page 1 of 31
FSU HAMMOCK MACRO FINAL EXAM |
FREQUENTLY TESTED QUESTIONS WITH
CORRECT ANSWERS | BRAND NEW!
point A is
A. unattainable.
B. inefficient.
C. efficient.
D. preferable to point B. - ✔✔✔ Correct Answer > B
Which of the following would contribute toward this year's GDP?
,Page 2 of 31
A. You volunteer at a soup kitchen serving food to low-income
families and the homeless.
B. You spend an hour pulling weeds out of your lawn, which
makes it look much better and promotes healthier grass growth.
C. You buy some crank for $20 from Big Tony, who hangs out on
the corner north of the bus station. Yeah, crank. You know—
speed, crystal, ice, tweak. Methamphetamine. You dig?
D. None of the above contribute toward this year's GDP. - ✔✔✔
Correct Answer > D
Gross domestic product is
A. the market value of all goods and services exchanged within a
country during a time period.
B. the market value of all domestic assets, regardless of whether
they are owned by citizens or foreigners.
C. the compensation received during a period for labor services
plus interest, rents, and corporate profits.
D. the market value of final goods and services produced within a
country during a time period. - ✔✔✔ Correct Answer > D
U.S. Nominal GDP in 2014 was $17,419,000. U.S. Real GDP in 2014
was $16,150,000. GDP Deflator in 2014 was therefore
A. 107.8
B. 92.7
,Page 3 of 31
C. 100
D. 8% - ✔✔✔ Correct Answer > A
If the GDP deflator in 2011 was 130 compared to a value of 100
during the 2005 base year, this would indicate that
A. the inflation rate during 2011 was 30 percent
B. the general level of prices during 2011 was 30 percent higher
than during 2005.
C. the inflation rate during 2011 was 130 percent.
D. nominal GDP grew by 30 percent during 2011.
E. real GDP was 30 percent higher in 2011 than 2005. - ✔✔✔ Correct
Answer > B
Which of the following is a deficiency of the regular (or
traditional) consumer price index (CPI) as a measure of the cost
of living?
A. The CPI fails to make any adjustment for changes in the price
of housing.
B. The CPI only measures changes in the prices of food, clothing,
and energy.
C. The CPI fails to maintain the quantities of the typical bundle of
goods purchased by consumers constant over a lengthy time
frame.
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D. The CPI does not adjust regularly for the fact that consumers
will shift their spending away from goods that become more
expensive. - ✔✔✔ Correct Answer > D
Which of the following is not correct?
A. CPI overstates inflation because it does not account for
improvements in the quality of goods.
B. Real GDP overestimates our material well-being because it
does not account for inflation.
C. The unemployment rate understates the true labor market
conditions for workers because it does not account for
underemployed workers.
D. GDP alone is not a good measure of our material well-being
because it does not account for population (which is why we use
GDP per capita instead). - ✔✔✔ Correct Answer > B
When individuals are unemployed because they lack the
qualifications to fill available jobs, this is called
A. frictional unemployment.
B. natural unemployment.
C. cyclical unemployment.
D. structural unemployment. - ✔✔✔ Correct Answer > D
Discouraged workers are workers who...
FSU HAMMOCK MACRO FINAL EXAM |
FREQUENTLY TESTED QUESTIONS WITH
CORRECT ANSWERS | BRAND NEW!
point A is
A. unattainable.
B. inefficient.
C. efficient.
D. preferable to point B. - ✔✔✔ Correct Answer > B
Which of the following would contribute toward this year's GDP?
,Page 2 of 31
A. You volunteer at a soup kitchen serving food to low-income
families and the homeless.
B. You spend an hour pulling weeds out of your lawn, which
makes it look much better and promotes healthier grass growth.
C. You buy some crank for $20 from Big Tony, who hangs out on
the corner north of the bus station. Yeah, crank. You know—
speed, crystal, ice, tweak. Methamphetamine. You dig?
D. None of the above contribute toward this year's GDP. - ✔✔✔
Correct Answer > D
Gross domestic product is
A. the market value of all goods and services exchanged within a
country during a time period.
B. the market value of all domestic assets, regardless of whether
they are owned by citizens or foreigners.
C. the compensation received during a period for labor services
plus interest, rents, and corporate profits.
D. the market value of final goods and services produced within a
country during a time period. - ✔✔✔ Correct Answer > D
U.S. Nominal GDP in 2014 was $17,419,000. U.S. Real GDP in 2014
was $16,150,000. GDP Deflator in 2014 was therefore
A. 107.8
B. 92.7
,Page 3 of 31
C. 100
D. 8% - ✔✔✔ Correct Answer > A
If the GDP deflator in 2011 was 130 compared to a value of 100
during the 2005 base year, this would indicate that
A. the inflation rate during 2011 was 30 percent
B. the general level of prices during 2011 was 30 percent higher
than during 2005.
C. the inflation rate during 2011 was 130 percent.
D. nominal GDP grew by 30 percent during 2011.
E. real GDP was 30 percent higher in 2011 than 2005. - ✔✔✔ Correct
Answer > B
Which of the following is a deficiency of the regular (or
traditional) consumer price index (CPI) as a measure of the cost
of living?
A. The CPI fails to make any adjustment for changes in the price
of housing.
B. The CPI only measures changes in the prices of food, clothing,
and energy.
C. The CPI fails to maintain the quantities of the typical bundle of
goods purchased by consumers constant over a lengthy time
frame.
, Page 4 of 31
D. The CPI does not adjust regularly for the fact that consumers
will shift their spending away from goods that become more
expensive. - ✔✔✔ Correct Answer > D
Which of the following is not correct?
A. CPI overstates inflation because it does not account for
improvements in the quality of goods.
B. Real GDP overestimates our material well-being because it
does not account for inflation.
C. The unemployment rate understates the true labor market
conditions for workers because it does not account for
underemployed workers.
D. GDP alone is not a good measure of our material well-being
because it does not account for population (which is why we use
GDP per capita instead). - ✔✔✔ Correct Answer > B
When individuals are unemployed because they lack the
qualifications to fill available jobs, this is called
A. frictional unemployment.
B. natural unemployment.
C. cyclical unemployment.
D. structural unemployment. - ✔✔✔ Correct Answer > D
Discouraged workers are workers who...
