Download Quiz 8 Multiple Choice Questions with Answer - General Economics | ECONOM 1051 and more Quizzes Managerial Economics in PDF only on Docsity! Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Gross domestic product is calculated by summing up the total quantity of goods and services produced in the economy during a period of time. B) the total quantity of goods and services in the economy. C) the total market value of final goods and services produced in the economy during a period of time. D) 2) _______ A) the bread that Subway purchases for its sandwiches B) the plastic bags that Subway purchases to wrap its sandwiches 3) An example of business fixed investment spending is 3) a purchase of a bond by General Electric Corporation. C) a purchase of a computer by an accounting firm. D) a sale of $200 million of used cars by a car dealership. 4) _______ A) net exports. B) D) government purchases. Table 19-8 Year Guns Produced Price of Guns Butter Produced Price of Butter 2002 80 $5 40 $4 2009 90 6 60 10 Consider the following data for Tyrovia, a country that produces only two products: guns and butter. 5) Refer to Table 19-8. Real GDP for Tyrovia for 2009 using 2002 as the base year equals $1,140. B) $880. D) $560. 6) Refer to Table 19-8. GDP deflator for Tyrovia in 2009 equals 165 B) 150 D) 100 Table 20-1 Total population 20,000 Working-age population 15,000 Employment 1,000 Unemployment 100 Consider the data above for a simple economy. 7) Refer to Table 20-1. The unemployment rate for this simple economy equals 9.09% B) 0.66% D) 100% 8) Refer to Table 20-1. The labor force participation rate for this simple economy equals 6.6% B) 10.1% D) 7.3% 9) Structural unemployment is the result of a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs. B) the ups and downs in inflation. C) the search process of matching workers with jobs. D) 10) ______ A) 118. C) 86. D) 11) ______ A) There was deflation between 1980 and 2006. B) The purchasing power of your salary remained constant between 1980 and 2006. 12) Suppose your grandfather earned a salary of $12,000 in 1964. If the CPI is 31 in 1964 and 207 in 2008, then the value of your grandfather's salary in 2008 dollars equals 12)
