Economic questions on GDP, unemployment and CPI

1. Gross Domestic Product equals the (Points: 1)
total output of all goods and services produced by resources located in the U.S.
market value of all goods and services produced by resources located in the U.S.
market value of all final goods and services produced by resources located in the U.S.
value added to the economy by intermediate goods and services minus original cost

2. Which of the following is not considered a component of investment when calculating GDP? (Points: 1)
new residential construction
construction of new factories
net increases in inventory
purchases of corporate stock

3. Which is true of leakages and injections in the circular flow? (Points: 1)
Leakages minus injections equal GDP.
Injections minus leakages equal GDP.
Leakages minus injections equal zero in equilibrium.
Domestic leakages must equal domestic injections.

4. Because of activity in the underground economy, (Points: 1)
GDP statistics understate the true volume of economic activity
GDP statistics overstate the true prices in the economy
consumers are not as well off as GDP statistics indicate
firms' profits are higher than GDP statistics indicate

5. The consumer price index measures changes in (Points: 1)
the prices of all goods and services
the prices of goods that are sold
the total cost of a specific market basket of consumer goods and services
the total costs of all goods and services

6. The unemployment rate is the (Points: 1)
percentage of people in the economy who do not hold jobs
percentage of the labor force that does not have a job
number of people in the economy who have given up looking for employment
number of people in the labor force without jobs

7. Which of the following people would be classified as unemployed? (Points: 1)
a person who wants a job as a fashion model but cannot find work in that field
someone who quits a part-time job to attend school full-time
someone who gives up looking for a job
a person who works at a job that underemploys his or her skills

8. Frictional unemployment refers to unemployment that results from (Points: 1)
a mismatch of skills
being in the wrong geographical location
taking the time to find the best job
seasonal decreases in demand for labor

9. If the aggregate demand curve shifts rightward, (Points: 1)
the price level increases and output decreases
the resulting increase in the price level is usually called cost-push inflation
the resulting increase in the price level is usually called demand-pull inflation
the price level increases only if there is also a leftward shift of the aggregate supply curve

10. The Consumer Price Index measures the cost of (Points: 1)
all goods and services produced in the U.S. economy
all goods produced in the U.S. economy
a fixed market basket of consumer goods and services produced in the U.S. economy
a fixed market basket of producer goods and services