Assignment

1)______The owner of an oil well in Texas sells 1000 barrels of oil to a refinery in Mexico for $12,000 forrefining. This transaction
A) has no effect on Gross Domestic Product (GDP) because the refinery is in Mexico.

B) will increase Gross Domestic Product (GDP) by $12,000.

C) decreases Gross Domestic Product (GDP) because oil reserves have fallen by 1000 barrels.

D) has no effect on Gross Domestic Product (GDP) because this is the sale of an intermediate product.

2)________ Social Security payments are

A) not included in Gross Domestic Product (GDP).

B) included in Gross Domestic Product (GDP).

C) not included in Gross Domestic Product (GDP), but are included in Gross Domestic Income accounts.

D) not included in Gross Domestic Product (GDP), but are included in Net Domestic Product.

3)_________A car sold from a used car lot

A) would be counted in Gross Domestic Product (GDP).

B) would fall under net exports, and would then be counted in Gross Domestic Product (GDP).

C) would only be counted in Gross Domestic Product (GDP) if it was a foreign made car.

D) would not be counted in Gross Domestic Product (GDP).

4)________Which of the following is NOT included in the calculation ofGross Domestic Product (GDP)?

A) The purchase of a raincoat by Mr. Z

B) Mr. J's purchase of a share of General Motors stock

C) Mrs. T's use of a lawyer

D) All of these would be included

5)_______ Gross Domestic Product (GDP) is

A) the total market value of all goods produced within a nation's borders.

B) the total market value of all final goods and services produced by factors of production located within a nation's borders.

C) the total wholesale value of all final goods and services produced by factors of production owned by citizens of a nation.

D) the total market value of all services produced by factors of production located within a nation's borders.

6)___________Suppose that in 2013, the total value of all final services produced in a nation was $300 billion; thetotal value of all final goods produced in that nation was $400 billion; and the total value of all finalgoods and services produced by that nation's firms in other countries was $200 billion. Grossdomestic product was

A)$700 billion.B)$600 billion. C) $900 billion. D)$500 billion.

7)______ A country'slabor forceis equal to

A) the number of employed people.

B) the population between the ages of 16 and 65.

C) the total number of employed and unemployed people.

D) the total number of employed people, unemployed people, and discouraged workers.

8)_______ Individuals who have stopped looking for work because they are convinced that they will not find a job are considered

A) underemployed.

B) discouraged workers.

C) part of the labor force.

D) structurally unemployed.

9)_________ The U.S. Department of Labor classifies all individuals in the United States as

A) either overemployed or underemployed.

B) either employed, unemployed, or not in the labor force.

C) potential employees.

D) labor force participants.

10)_________The population is 1,200 million, the labor force is 150 million, and the number of unemployed is 15million. What is the unemployment rate?

A) 10 percent

B) 7.5 percent

C) 4.3 percent

D) 5 percent

11)________ Suppose the population of El Campo is 120,000. Of the population 16 years and older, 50,000 areemployed, 10,000 have never worked and are not looking for work, 5,000are not working and arelooking for work, and 15,000 are retired and not looking for work. The labor force equals

A) 65,000.

B) 50,000.

C) 55,000.

D) 80,000.

12)_______If Tim works at home taking careof the household,

A) he is part of the labor force.

B) he is not part of the labor force.

C) he is considered to be unemployed.

D) he is considered to be employed.

13)________ Assuming there are 150 million people employed in the United States and 5 million peopleunemployed, the unemployment rate would therefore approximately equal

A) 3.23 percent,

B) 2.22 percent.

C) 4.4 percent.

D) 10.1 percent.

14)_____ Inflation is best described as a situation in which

A) relative prices are changing.

B) the average of all prices are on a sustained rise over a period of time.

C) some prices are rising faster than others.

D) relative prices are changing, but the purchasing power of the dollar is unchanged.

15)______ Deflation refers to a situation in which

A) there is a recession and inflation.

B) prices are not changing.

C) the inflation rate decreases.

D) the average of all prices is falling.

16)_____ The value of your money income, in terms of buying goods and services, is referred to as yourmoney's

A)transaction cost

B)staying power.

C) purchasing power.

D) rigidity factor.

17)_____Which of the following price indexes is designed to measure changes in the prices of goods andservices purchased by a typical individual?

A) Producer Price Index

B) Index of Leading Economic Indicators

C) Gross Domestic Product (GDP) Deflator

D) Consumer Price Index

18)_______Assume that there was a 10 percent increase in the price of all goods in 2010; if the base year is2009, then the price index in 2010 will be

A) 1100.

B) 90.

C) 200.

D) 110.

19)______The GDP deflator is

A) the least used index because it is so costly to calculate.

B) an index used to calculate inflation at the wholesale level.

C) an index that utilizes a consumer's market basket of goods in calculating the inflation rate.

D) the most general indicator of inflation since it measures changes in the prices of all goods andservices in the economy.

20)________I get my news of the world from:

A) One of major television stations

B) Facebook

C) Wall Street Journal

C) Local newspaperD)TwitterE)Do not pay any attention to world news.