宏观经济题目练习

Economics 140, Winter 2015

Practice Questions for Midterm Examination I

 1)  Which  one  of  the  following  people  would  be  counted  as  unemployed  in  Canada?    

A. Simone  is  currently  working  but  expects  to  be  laid  off  by  the  end  of  the  month,  before  next  month' s  survey  can  be  completed.  

B. Ron  has  quit  looking  because  he  believes  that  there  is  no  work  available  for  him.  C. Rebekah  is  a  recent  graduate  looking  for  work.  

D. Ruth  is  a  14-year-old  student  and  has  been  looking  for  an  after-school  job  every  day  for  the  past  month.  

E. Sarah  has  been  looking  for  a  job  but  is  taking  a  month-long  break  from  the  job-seeking  effort  due  to  her  lack  of  skills.  

 2)  Counting  involuntary  part-time  workers  as  unemployed  would  A. raise  the  full  employment  rate.  

B. raise  the  measured  unemployment  rate.  C. not  change  the  actual  unemployment  rate.  

D. lower  the  measured  unemployment  rate.  E. raise  the  natural  unemployment  rate.  

3)  The  labour  force  participation  rate  is  A. the  percentage  of  the  labour  force  who  are  employed.  

B. the  percentage  of  the  working-age  population  who  are  unemployed  or  employed.  C. the  percentage  of  the  working-age  population  who  are  employed.  D. the  percentage  of  the  labour  force  who  are  unemployed  or  employed.  

E. none  of  the  above.    

 4)  In  a  recession,  typically  

A. unemployment  rises.  B. the  employment-to-population  ratio  decreases.  

C. the  employment-to-population  rate  rises.  D. the  labour  force  participation  rate  rises.  

E. both  A  and  B  are  correct.    

 5)  If  the  labor  force  participation  rate  is  rising  and  the  working-age  population  is  not  changing,  then  the  

A. size  of  the  labor  force  is  falling.  B. number  of  employed  people  must  be  increasing.  

C. number  of  unemployed  people  is  rising  and  the  size  of  the  labor  force  is  falling.  D. number  of  unemployed  people  is  falling  and  the  size  of  the  labor  force  is  rising.  

E. size  of  the  labor  force  is  rising.  

6)  In  a  country  with  a  working-age  population  of  30  million,  18  million  are  employed,  2  million  are  unemployed,  and  2  million  of  the  employed  are  working  part-time,  half  of  whom  wish  to  work  full-time.  If  1  million  of  those  unemployed  are  cyclically  unemployed,  what  is  the  natural  unemployment  rate?  

A. 6.7  percent  B. 11.1  percent  

C. 5  percent  D. 5.6  percent  

E. none  of  the  above    

 7)  If  the  economy  is  at  full  employment,  then  A. all  unemployment  arises  from  normal  frictions  and/or  structural  change.    

B. the  entire  labour  force  is  employed.    C. the  entire  population  is  employed.    

D. the  only  unemployment  is  frictional  unemployment  plus  discouraged  workers.    E. the  unemployment  rate  is  less  than  3  percent.    

8)  If  the  number  of  discouraged  workers  decreases  because  many  of  them  start  to  look  for  work,  everything  else  remaining  the  same,  then  the  

A. unemployment  rate  will  increase.  B. employment-to-population  ratio  will  decrease.  C. labour  force  participation  rate  will  increase.  

D. labour  force  participation  rate  will  decrease.  E. both  A  and  C.  

9)  If  the  economy  is  at  full  employment,  A. the  only  unemployment  is  frictional  unemployment  plus  discouraged  workers.  

B. the  entire  labor  force  is  employed.  C. all  unemployment  is  cyclical  and/or  structural.  

D. real  GDP  equals  potential  GDP.  E. the  entire  population  is  employed.  

 10)  The  reference  base  period  is  2002.  A  consumer  price  index  of  122  in  2009  means  that    A. prices  of  consumer  goods  have  gone  up  by  a  factor  of  12.2.    

B. the  market  basket  of  consumer  goods  that  cost  $122  in  2002  can  be  purchased  for  $100  in  2009.    C. prices  of  consumer  goods  have  more  than  doubled.    

D. if  the  price  of  a  good  was  $100  in  2002,  its  price  in  2009  is  $122.    E. the  average  of  the  prices  paid  by  urban  consumers  for  a  fixed  market  basket  of  consumer  goods  and  services  was  22  percent  higher  in  2009  than  it  was  on  average  during  2002.    

 11)  If  the  CPI  was  180  at  the  end  of  2007,  and  216  at  the  end  of  2008,  the  inflation  rate  in  2008  was  

A. 216  percent.  B. 16.67  percent.  

C. 18  percent.  D. 36  percent.  

E. 20  percent.    

 12)  The  Consumer  Price  Index  measures  inflation  by  using  

A. all  goods  and  services  that  are  produced  using  a  base-year  basket.  B. only  consumption  goods  and  services  purchased  using  a  base-year  basket.  C. only  consumption  goods  and  services  purchased  using  a  current-year  basket.  

D. all  goods  and  services  that  are  produced  using  a  current-year  basket.  E. A  and  D.  

13)  The  technique  used  to  calculate  the  CPI  implicitly  assumes  that  consumers  buy    A. relatively  less  of  goods  with  relative  prices  that  are  decreasing.    

B. goods  and  services  whose  quality  improves  at  the  rate  of  growth  of  real  GDP.    C. relatively  more  of  goods  with  relative  prices  that  are  increasing.    

D. more  computers  and  CD  players  and  fewer  black-and-white  TVs.    E. the  same  relative  quantities  of  goods  as  in  a  base  year.      

 14)  All  of  the  following  are  possible  sources  of  bias  in  using  the  Consumer  Price  Index  to  measure  inflation  except  A. the  introduction  of  new  goods.    

B. commodity  substitution.    C. an  increase  in  the  cost  of  living  

D. an  improvement  in  the  quality  of  goods.    E. Both  C  and  D  are  exceptions.  

15)  In  calculating  GDP,  economists  use  the  value  of  final  goods  and  services  because  A. final  goods  can  be  exported  to  other  countries.  B. GDP  is  underestimated  if  intermediate  goods  are  used  instead.  

C. by  using  final  goods  and  services,  they  avoid  double  counting.    D. intermediate  goods  are  imported  from  other  countries.    

E. none  of  the  above.      

16)  SaskWidget  produces  plastic  parts.  At  the  beginning  of  the  year,  they  held  $24  million  worth  of  capital.  At  the  end  of  the  year,  they  held  $20  million  worth  of  capital.  One  can  conclude  that  

A. net  investment  increased  by  $4  million.    B. depreciation  equals  $4  million.    

C. gross  investment  increased  by  $4  million.    D. depreciation  exceeded  gross  investment  by  $4  million.  

E. gross  investment  decreased  by  $4  million.      

 17)  Which  of  the  following  would  not  be  included  in  GDP  for  2009?    

A. A  car  produced  in  2008  and  sold  in  2009.  B. The  value  of  all  cars  produced  in  2009.  C. A  car  produced  in  2009  and  sold  in  2010.  

D. A  car  produced  in  January  of  2009  and  sold  in  November  of  2009.  E. A  car  produced  in  2009  and  held  in  inventory  until  2010.  

18)  Which  one  of  the  following  would  not  be  counted  as  part  of  this  year' s  GDP?    A. The  purchase  of  a  new  personal  computer  that  was  produced  in  the  current  year.  

B. The  purchase  of  a  house  that  was  produced  in  the  current  year.  C. The  government  bond  you  buy  for  your  newborn  niece.  

D. The  lumber  you  purchase  when  building  bookshelves  for  your  room.  E. The  purchase  of  wheat  that  was  produced  in  the  current  year  by  a  Saskatchewan  farmer.    

 19)  How  much  would  the  production  of  a  kayak  add  to  GDP  if  the  shell  costs  $250,  the  paint  costs  $20,  the  finisher  costs  $35,  the  manufacturer  sold  it  to  the  dealer  for  $500,  and  the  dealer  sold  it  to  his  customer  for  $800?    

 A. $305.          

B. B.  $800.    C. C.  $1,605.    

D. D.  $500.                E. E.  $1,300.