ECN 211 EXAM 2 ASU LATEST ACTUAL EXAM 200 QUESTIONS
AND CORRECT DETAILED ANSWERS
GDP is - ANSWER: value of all final goods and services produced within a country in a
given period of time.
Y = C + I + G + NX - ANSWER: Y = economy's total expenditure
C = consumption in economy
I = imports in economy
G = government spending
NX = net exports
Net exports equal - ANSWER: exports minus imports
CPI is used to - ANSWER: monitor changes in the cost of living over time
Inflation rate - ANSWER: percentage change in the price level from the previous
period
Indexation refers to - ANSWER: using a law or contract to automatically correct a
dollar amount for the effects of inflation
For the Bureau of Labor Statistics to place someone in the "unemployed" category,
that person must - ANSWER: be available for work
Labor-force participation rate tells us the fraction of the population that - ANSWER:
has chosen to participate in the labor market
People who are unemployed because they are in search of a job that suits their skills
are included within - ANSWER: frictional unemployment
The natural unemployment rate includes - ANSWER: both frictional and structural
unemployment
Wages set above the equilibrium wage by - ANSWER: firms to increase productivity
are called efficiency wages
Who in the adult population is counted as "employed" in U.S. labor statistics? -
ANSWER: people who are temporarily absent from their job and people who work
without pay in a family member's
busines
Measure productivity by - ANSWER: Divide the quantity of output by the number of
hours worked
AND CORRECT DETAILED ANSWERS
GDP is - ANSWER: value of all final goods and services produced within a country in a
given period of time.
Y = C + I + G + NX - ANSWER: Y = economy's total expenditure
C = consumption in economy
I = imports in economy
G = government spending
NX = net exports
Net exports equal - ANSWER: exports minus imports
CPI is used to - ANSWER: monitor changes in the cost of living over time
Inflation rate - ANSWER: percentage change in the price level from the previous
period
Indexation refers to - ANSWER: using a law or contract to automatically correct a
dollar amount for the effects of inflation
For the Bureau of Labor Statistics to place someone in the "unemployed" category,
that person must - ANSWER: be available for work
Labor-force participation rate tells us the fraction of the population that - ANSWER:
has chosen to participate in the labor market
People who are unemployed because they are in search of a job that suits their skills
are included within - ANSWER: frictional unemployment
The natural unemployment rate includes - ANSWER: both frictional and structural
unemployment
Wages set above the equilibrium wage by - ANSWER: firms to increase productivity
are called efficiency wages
Who in the adult population is counted as "employed" in U.S. labor statistics? -
ANSWER: people who are temporarily absent from their job and people who work
without pay in a family member's
busines
Measure productivity by - ANSWER: Divide the quantity of output by the number of
hours worked
