1.

Spending on new capital goods, new homes, and the addition of unsold goods to company inventories is included in: NO consumption expenditures. YES investment. government purchases. net exports. service spending. Feedback For more information, see p. 124 of your textbook. 2. Suppose a jar of orange marmalade that is ultimately sold to a customer at The Corner Store is produced by the following production process: If the oranges were grown and the jam produced in the year 2005, but the marmalade was sold at The Corner Store in the year 2006, what is the contribution of these transactions to GDP in the year 2005? Name of Company Revenues Cost of Purchased Inputs Citrus Growers Inc. $0.75 $0.00 Florida Jam Company $2.00 $0.75 The Corner Store $2.50 $2.00 $0.00 NO $0.75 YES $2.00 $2.50 $2.75 Feedback For more information, see p. 122 of your textbook. 5. An economy produces only 500,000 tables valued at $100 each. Of these 100,000 are sold to consumers, 200,000 are sold to businesses, 100,000 are sold to the government, and 50,000 are sold abroad. No tables are imported. The unsold tables at the end of the year are held in inventory by the table manufacturers. What is value of GDP? $5 million $40 million NO $45 million YES $50 million $95 million Feedback For more information, see p. 126 of your textbook. 7. Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process: What is the value added of Fulton Family Farm? Name of Company Revenues Cost of Purchased Inputs Fulton Family Farm $0.50 $0.00 DeLux Popcorn Co. $2.50 $0.50 Friendly Groceries $4.00 $2.50 YES $0.50 NO $1.50

$2.00 $2.50 $7.00 Feedback For more information, see p. 121 of your textbook. 10. Based on the following information, what is the unemployment rate? Population 16 and older Participation Rate 80% Employed Workers 720,000 7.2% 8.0% YES 10.0% NO 28.0% 80.0% Feedback 1,000,000

For more information, see p. 139 of your textbook. 2. A decrease in the unemployment rate can be the result of either _____ or _____, holding the other factors constant. more unemployed workers; more people in the labor force more unemployed workers; fewer people in the labor force NO more employed workers; more people in the labor force YES fewer unemployed workers; more people in the labor force fewer unemployed workers; fewer people in the labor force Feedback For more information, see p. 138 of your textbook. 2. In a small town of 100 people there are 10 children under 16, 10 retired people, 60 people with full-time jobs, 3 people with part-time jobs, 3 full-time students over 16, and 4 full-time homemakers. The remaining people did not have jobs, but wanted them. All but one of these had actively looked for a job in the previous four weeks. What is the unemployment rate in this town? 10.0% 11.0% YES 12.5 % NO 14.3% 20.0% Feedback For more information, see p. 139 of your textbook. 3. 2006? Which of the following would be included in the calculation of GDP for of of of of a home built in 1991 and sold in 2006. 100 shares of Exxon stock purchased in 2006. a classic 1960 Thunderbird purchased in 2006. a new punch press built and purchased in 2006 to replace a

the price the price NO the price YES the price worn out machine. the price Feedback

of a used bicycle purchased at a garage sale in 2006.

For more information, see p. 122 of your textbook. 4. Leaving the labor force or finding a job are two ways that : a person can become a discouraged worker. a person can become an involuntary part-time worker. NO an unemployment spell can begin. YES an unemployment spell can end. unemployment duration can be extended. Feedback For more information, see p. 140 of your textbook. 9. Lower or no income received by the unemployed is an example of _______ cost borne by ________. a social; the unemployed themselves a social; society at large YES an economic; the unemployed themselves NO an economic; society at large a psychological; society at large Feedback For more information, see p. 140 of your textbook. 9. GDP can be measured as each of the following EXCEPT: the market value of production. total expenditure on final goods and services. incomes of capital and labor. YES total business revenues. NO the sum of value added. Feedback For more information, see p. 127 of your textbook. 10. Who of the following would be classified as unemployed? Brenda Smith, an 18 year old full-time college student. Mario Faubert, a NHL hockey player at home sick with the flu. YES Jack Little, a 21 year old new college graduate actively looking for his first job. Sarah Lopez, a public school teacher on vacation. NO Amanda Pie, a full-time homemaker. Feedback For more information, see p. 138 of your textbook.

Master your semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master your semester with Scribd & The New York Times

Cancel anytime.