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MULTIPLECHOICE.Choosetheonealternativethatbestcompletesthestatementoranswersthequestion. 1) Inordertobedefinedasunemployedapersonmust: A) nothaveajobandmusthavelookedforworkatsometime. B) nothaveajobandmustbeactivelylookingforwork. C) haveajobbutbelookingforadifferentjob. D) nothaveajob. E) workinglessthantheirdesiredamountoftime. 2) Anincreaseinacountryscapitalstockrelativetoitsworkforceisknownas: A) capitaldepletion. B) capitalgrowth. C) capitalaugmentation. D) capitaldeepening. E) capitalimprovement. 3) Whichofthefollowingisnotanexampleoftechnologicalprogress? A) thedevelopmentofcomputers B) thedevelopmentofnewprescriptiondrugs C) developingamethodtoproducecarsusinglesssteel D) anincreaseinthelaborsupplyastheresultofimmigration E) theinventionofno- ironshirts 4) Inasimpleeconomywithoutgovernmentorforeigntrade,anyincomenotconsumediscalled: A) depreciation. B) investment. C) netinvestment. D) saving. E) noneoftheabove 5) Technologicalprogressoccurswhentheeconomygetsmoreoutput: A) byusingmorelaborbutnotmorecapital. B) withoutanymorecapitalorlabor. C) byusingmorelaborandmorecapital. D) byusingmorecapitalperworker. E) byusingmorecapitalbutnotmoreworkers. 6) Economistscomparehowrichorpoordifferentnationsarebymeasuring: A) debttoGDPratios. B) debttodeficitratios. C) GDPperunitofcapital. D) GDP. E) GDPpercapita. 1)

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7) Structuralunemploymentoccurs: A) becauseofamismatchbetweenthejobsthatareavailableintheeconomyandtheskillsof workersseekingjobs. B) witheconomicfluctuations;itincreasesduringbadtimesanddecreasesduringgoodtimes. C) naturallyduringthenormalworkingsofaneconomy,aspeoplechangejobs,moveacrossthe country,etc. D) becausethegovernmentlabelssomepeoplewhoarentreallyinthelaborforceas unemployed. E) Noneoftheaboveiscorrect. 8) The________isthemostwidelyusedpriceindexbythegovernmentandtheprivatesectorto measurechangesinthecostofliving. A) producerpriceindex B) coreindex C) chain- typepriceindex D) consumerpriceindex E) GDPdeflator 9) Frictionalunemploymentoccurs: A) becausethegovernmentlabelssomepeoplewhoarentreallyinthelaborforceas unemployed. B) naturallyduringthenormalworkingsofaneconomy,aspeoplechangejobs,moveacrossthe country,etc. C) becauseofamismatchbetweenthejobsthatareavailableintheeconomyandtheskillsof workersseekingjobs. D) witheconomicfluctuations;itincreasesduringbadtimesanddecreasesduringgoodtimes. E) Noneoftheaboveiscorrect.

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Numberof Unitsofoutput workers 2 100 3 160 4 210 5 250 6 280 7 300 8 310 Table9.1:ProductionofTonystulips 10) RefertoTable9.1.Themarginalproductofthethirdunitoflaboris: A) 60. B) 160. C) 53.333. 11) Thelong- runlabordemandcurveis: A) mightbemoreorlesselasticthantheshortrunlabordemandcurve. B) perfectlyelastic(horizontal). C) lesselasticthantheshortrunlabordemandcurve. D) moreelasticthantheshortrunlabordemandcurve. 10) D) 30. 11)

12) Supposeaneconomyconsistsof300,000individuals16yearsandolder,160,000areemployed,and 18,000areunemployedbutactivelyseekingwork.Inthisexamplethelaborforceis: A) 140,000. B) 160,000. C) 178,000. D) 300,000. E) Cannotbedeterminedfromtheinformationgiven. 13) IfrealGDPwere100inyear1and105inyear2,thegrowthrateofrealGDPbetweentheseyears wouldbe: A) 5percent. B) 102.5percent. C) 2.5percent. D) 105percent. E) 100percent. 14) Whichofthefollowingis notincludedinGDP? A) collegetuition B) gamblingexpensesataLasVegascasino C) healthcareexpenses D) purchasesofillegaldrugs E) noneoftheabove 15) U.S.grossdomesticproductincludes: A) incomeofdomesticfirmsproducingintheU.S. B) incomeofforeignfirmsproducingintheU.S. C) incomeofU.S.firmsproducinginforeigncountries. D) bothAandB E) bothBandC 16) Whichofthefollowingisnotanexampleofaconsumptionexpenditure? A) televisionsets B) clothing C) restaurantmeals D) hair- stylingservice E) militaryairplanes 17) Governmenttransferpaymentsincludeallofthefollowing except: A) SocialSecuritypaymentstotheelderly. B) wagepaymentstopoliceofficers. C) directwelfarepaymentstolow - incomehouseholds. D) directpaymentsoninterestonthegovernmentdebt. E) Alloftheabovearetransferpayments. 18) Anintermediategoodis: A) agooddirectlyconsumedbyindividuals. B) countedaspartofGDP. C) agoodusedonlyintheproductionofotherproducts. D) BothAandCarecorrect. E) BothBandCarecorrect.

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19) Laborunionstrytoincreasewagesby: A) imposingworkrulesthatincreasetheamountoflaborrequiredtoperformaparticulartask. B) promotingproductsproducedbyunionworkers. C) organizingworkersandnegotiatingahigherwage. D) Alloftheabovearecorrect. 20) Ifwagesincreaseinaprofession,itisexpectedthatsomeworkers: A) willleavetheprofession. B) willtakeearlyretirement. C) willswitchfromotheroccupationstothisprofession. D) willdemandfewerfringebenefits. 21)

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AnswerKey Testname:FINALEXAMINATION_NEW

1) B 2) D 3) D 4) D 5) B 6) E 7) A 8) D 9) B 10) A 11) D 12) C 13) A 14) D 15) D 16) E 17) B 18) C 19) D 20) C 21) NoCorrectAnswerWasProvided.