National Economy, Circular Flow, and Economic Statistics

I would really appreciate help with the following multiple choice questions.

1. Which is true of leakages and injections in the circular flow?
a. Leakages minus injections equal GDP.
b. Injections minus leakages equal GDP.
c. Leakages minus injections equal zero in equilibrium.
d. Domestic leakages must equal domestic injections.

2. The consumer price index measures changes in
a. the prices of all goods and services
b. the prices of goods that are sold
c. the total cost of a specific market basket of consumer goods
and services
d. the total costs of all goods and services

3. The unemployment rate is the
a. percentage of people in the economy who do not hold jobs
b. percentage of the labor force that does not have a job
c. number of people in the economy who have given up looking for
employment
d. number of people in the labor force without jobs

4. Which of the following people would be classified as unemployed?
a. a person who wants a job as a fashion model but cannot find
work in that field
b. someone who quits a part-time job to attend school full-time
c. someone who gives up looking for a job
d. a person who works at a job that underemploys his or her
skills

5. Frictional unemployment refers to unemployment that results from
a. a mismatch of skills
b. being in the wrong geographical location
c. taking the time to find the best job
d. seasonal decreases in demand for labor

6. If the aggregate demand curve shifts rightward,
a. the price level increases and output decreases
b. the resulting increase in the price level is usually called
cost-push inflation
c. the resulting increase in the price level is usually called
demand-pull inflation
d. the price level increases only if there is also a leftward
shift of the aggregate supply curve

7. The Consumer Price Index measures the cost of
a. all goods and services produced in the U.S. economy
b. all goods produced in the U.S. economy
c. a fixed market basket of consumer goods and services produced
in the U.S. economy
d. a fixed market basket of producer goods and services

Solution Summary

Multiple choice questions related to economic statistics are each briefly discussed in this solution.