Download ch 6- ch9 review

Econ 203
Review - 3
Ch.6 & Ch .9
 True or False questions :
1. Economic growth means a growth in real, per capita total output over time. T
2. The unemployment rate is the number of people officially unemployed divided by
a country’s population aged 16 or over. F
3. Unemployment means a loss of potential output. T
4. An increase in labor input does not necessarily increase output per capita. T
5. Frictional unemployment results from persons being temporarily between jobs. T
6. . Structural employment can arise because jobs that require particular skills
disappear. T
7. Structural unemployment is easily measured and stable over time. F
8. Cyclical unemployment may result from an insufficient level of demand for goods
and services. T
9. Investment alone does not guarantee economic growth. T
10.
The natural rate of unemployment roughly equals the sum of frictional and
cyclical unemployment when they are at a maximum. F
11.
When unemployment rises above the natural rate, it reflects the existence
of cyclical unemployment. T
12.
The natural rate of unemployment does not change over time. F
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13.
At the natural rate of unemployment, the economy is producing its potential
output. T
14.
Education is both a consequence of economic growth and a cause of
economic growth. T
15.
When the economy is experiencing cyclical unemployment, the
unemployment rate is less than the natural rate. F
16.
Economic growth refers to a steady increase in the production of goods
and services in an economic system .T
17.
College Students are officially counted as part of the labor force. T
18.
The rate of unemployment is calculate as the number of unemployed
workers divided by the number of employed workers. F
19.
Cyclical Unemployment is unemployment that happens at the same time
every year due to seasonality. F
20.
Frictional Unemployment: This is unemployment that occurs naturally and
in the long run. T
21.
Economic growth is defined as an expansion in the nation’s level of
consumption. F
22.
Technological advances, even without any change in the quantity or quality
of the labor resources used, tend to lead to economic growth. T
23. An automobile production line worker who is laid off as a result of robotics
being employed in the factory is an example of a structurally unemployed
worker. T
24.
The unemployment rate is the percentage of the civilian labor force that is
unemployed. T
25.
An increase in the rate of saving and investment permanently increases a
country's rate of growth. F
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26.
An economy's standard of living is rising when real GDP is increasing 10%
while population is increasing 5%.T
27.
Labor productivity is found by dividing output by the number of workers in
the labor force. F
28. Increases in resources, technological improvement, and efficiency
improvement are all potential sources of economic growth. T
29.
At a business cycle trough , cyclical unemployment is negative. F
30.
Full employment occurs when there is no Seasonal unemployment. F
31.
Full – time student not looking for work are counted as unemployment . F
32.
Discouraged worker are not counted in the unemployment rate . T
33.
The number of job losers’ risers during recessions. T
34.
At full employment , there is no unemployment . F
35.
Real GDP can never be grater than potential GDP . F
2. Multiple Choice questions :
1. Which of the following is NOT a type of unemployment?
a.
b.
c.
d.
e.
seasonal unemployment
structural unemployment
frictional unemployment
cyclical unemployment
traditional unemployment
2. Hala is a college student who is not working or looking for a job. She is :
a.
b.
c.
d.
unemployed and in the labor force.
unemployed, but not in the labor force.
in the labor force, but not unemployed.
neither in the labor force nor unemployed.
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e. in the labor force and employed as a full-time student.
3. The type of unemployment that fluctuates with the “ups and downs” of the
economy is called
a.
b.
c.
d.
the normal rate of unemployment.
deviant unemployment.
cyclical unemployment.
fluctuating unemployment.
e. structural unemployment.
4. If the discouraged workers were included in the labor force,
a.
b.
c.
d.
the unemployment rate would fall.
the labor force would decrease.
the unemployment rate would rise.
the employment rate would rise.
5. As the unemployment rate rises,
a.
b.
c.
d.
real GDP also rises.
nominal GDP rises.
the employment rate rises.
the employment rate falls .
6. The growth rate of potential GDP depends on
a.
b.
c.
d.
the rate of technical progress.
the growth rate of the capital stock.
the growth rate of the labor force.
all of the above.
7. Frictional unemployment exists when
a.
b.
c.
d.
there is a fall in aggregate demand,
workers are seasonally unemployed,
workers lack the skills necessary to be employed,
potential GDP exceeds real GDP.
8. The natural rate of unemployment is the rate of unemployment that exists when
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there is only
a. frictional and structural unemployment,
b. frictional and cyclical unemployment,
c. structural and cyclical unemployment,
d. frictional unemployment
9. in a country with a working- age population of 200 million , 130 million workers
are employed and 10million are unemployed . the labor force equals :
a. 200 million .
b. 140 million .
c. 130 million .
d. 10 million .
10.
in a country with a working- age population of 200 million , 130 million
workers are employed and 10million are unemployed .the unemployment rate is
a.
b.
c.
d.
5%.
7.1 %.
7.7 5.
65 %.
11.
in a country with a working- age population of 200 million , 130 million
workers are employed and 10million are unemployed . the labor force
participation rate is :
a.
b.
c.
d.
12 .
100 % .
65 5.
70 % .
5 %.
at the natural unemployment rate , there is no :
a. Frictional unemployment .
b. Structural unemployment .
c. Cyclical unemployment .
d. Unemployment
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13 . The unemployment rate is defined as:
a.
b.
the number of people not working.
the number of people in the civilian labor force not working.
c. the percent of people not working.
d. the percent of people in the civilian labor force not working.
14 . The number of persons employed plus the number of persons unemployed is:
a.
b.
c.
d.
.
the unemployment rate.
the labor force participation rate.
the civilian labor force.
the nonparticipants in the civilian labor force
15 . In order to be considered unemployed, a person must:
a. not be working.
b. not be working and be available to work.
c. not be working, be available to work, and actively search for employment
during the past four weeks.
d. actively search for employment during the past four weeks
16 . The three types of unemployment are:
a. frictional, structural, and Seasonal.
b. frictional, technical, and cyclical.
c. frictional, structural, and recessionary.
d. frictional, compositional, and cyclical
.
17. Which of the following best describes frictional unemployment?
a.
b.
c.
d.
It is a long-term period of unemployment.
It is a temporary period of unemployment.
It is caused by a lack of jobs.
Workers suffering from this type of unemployment may need retraining.
18 . Which of the following best describes structural unemployment?
a.
b.
c.
d.
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It is occurs during the expansionary phase of the business cycle.
It is a temporary period of unemployment.
It is caused by a lack of jobs.
Workers suffering from this type of unemployment may need retraining.
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19. Which of the following best describes cyclical unemployment?
a.
b.
c.
d.
It is occurs during the expansionary phase of the business cycle.
It is greatest at the peak of the business cycle.
It is caused by a lack of jobs.
Workers suffering from this type of unemployment may need retraining.
20. Unemployment caused by a mismatch between the skills of prospective workers
and the requirements of available jobs is known as:
a. technological unemployment.
b. cyclical unemployment.
c. frictional unemployment.
d.structural unemployment.
21 . Unemployment that occurs during the business cycle is known as:
a.
b.
c.
d.
22.
frictional unemployment.
structural unemployment.
cyclical unemployment.
Seasonal unemployment.
Full employment occurs when:
a.
b.
c.
d.
all the labor resources in the economy are employed.
the only types of unemployment are frictional and structural.
the only type of unemployment is frictional.
the only types of unemployment are structural and cyclical.
23.in Saudi Arabia Which of the following groups is likely to have the highest
unemployment rate?
a.
b.
c.
d.
teenagers.
males.
females.
College students .
24 . Noora has just graduated from college with a computer science degree. She is
temporarily experiencing unemployment while she searches for a job. She would
currently be:
a.
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cyclically unemployed.
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b.
c.
d.
25.
structurally unemployed.
frictionally unemployed.
technically unemployed.
Mansour was laid off her job because of cutbacks in production. At each place
he applies for a job, he finds numerous other applicants. He is most likely suffering
from:
a.
b.
c.
d.
structural unemployment.
cyclical unemployment.
frictional unemployment.
temporary unemployment.
Talal worked as an accountant for the past twenty years in an accounting firm.
Recently Talal was laid off as the firm fully computerized the operations. Talal is
experiencing:
26 .
a.
b.
c.
d.
structural unemployment.
cyclical unemployment.
frictional unemployment.
Seasonal unemployment.
27. The labor force consists of
a.
b.
c.
d.
e.
discouraged workers, employed workers, and those actively seeking work.
all persons over the age of 16 who are working or actively seeking work.
all persons over the age of 16 who are able to work.
all persons over the age of 16 who are working, plus those not working.
discouraged workers, part-time workers, and full-time workers.
28 . Discouraged workers
a.
b.
c.
d.
e.
are considered unemployed.
are considered as not in the labor force.
are considered as in the labor force.
are considered as both unemployed and in the labor force.
are considered as unemployed but not in the labor force.
29 . In Haial , the population includes 1,000 people over the age of 16; 800 are in the
labor force, and 600 are employed. The unemployment rate is
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a.
b.
c.
d.
33 percent.
25 percent.
20 percent.
75 percent.
30. . After looking for a job for more than eight months, Mosab became frustrated and
stopped looking. Economists view Mosab as
a.
b.
c.
d.
unemployed.
part of the labor force, but neither employed nor unemployed.
a discouraged worker.
cyclically unemployed.
31. . If the unemployment rate is 6 percent and the number of persons unemployed is 6
million, the number of people employed is equal to
a.
b.
c.
d.
100 million.
94 million.
106 million.
6 million.
32. . When an economy is operating at full employment,
a.
b.
c.
d.
the unemployment rate will equal zero.
frictional unemployment will equal zero.
cyclical unemployment will equal zero.
structural unemployment will equal zero.
33. . Economists typically measure economic growth by tracking
a.
b.
c.
d.
e.
the employment rate.
the unemployment rate.
the expansion index.
real GDP per capita.
nominal GDP.
34. . Technological advances can be
a. labor saving.
b. capital saving.
c. land (natural resource) saving.
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d. any of the above.
35. There is an increase in the economy's potential output when there is
a.
b.
c.
d.
36.
an increase in government spending,
a decrease in government spending,
an increase in the economy's capital,( physical and physical )
a decrease in nominal GDP
Which of the following proposals would increase labor productivity?
a.
b.
c.
d.
Improve the educational system,
Reduce job discrimination,
Retrain workers,
All of the above.
37.
Over the past year, suppose an economy’s hours of work have increased
by 1% and its labor productivity has increased by 3%. We could conclude that
this economy’s real GDP has increased by about:
a.
b.
c.
d.
.03%
2%
3%
4%
38. If total output is 1000 and labor productivity is 50 units of output per hour of
work, then:
a.
b.
c.
d.
productivity is growing by 20%
total worker hours = 20
total worker hours = 20,000
total output is growing by 20%
39.
There is an increase in output per capita when a 10% increase in the
population is associated with a
a.
b.
c.
d.
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10% increase in output,
20% increase in output,
10% increase in the capital stock,
5% increase in output.
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40. Which of the following proposals would increase labor productivity?
a. Improve the educational system,
b. Reduce job discrimination,
c. Retrain workers,
d. All of the above
41.Which of the following does not increase labor productivity ?
a. An increase in capital .
b. An increase in aggregate hours.
c. An investment in human capital.
d. A discovery of a new technology
42 . if real GDP in the current year is 630 million and if real GDP in the previous year
was 610 million, then the growth rate of real GDP is :
a.
b.
c.
d.
20%
2%
5%.
Non of the above .
43 . If Growth rate of real GDP per person is 6% and Growth rate of real GDP is 3.5
% , so Growth rate of population is :
a.
b.
c.
d.
2.5 % .
9.5 % .
5.5 % .
3.5 % .
44. if Growth rate of population is 2.5 % , and Growth rate of real GDP is 3.5 % ,so
Growth rate of real GDP per person is:
a.
b.
c.
d.
1% .
6%.
5.5 % .
Cannot be calculated
45. ) After graduating from college, Yunis, age 22, started working for his parent's real
estate business as an unpaid assistant. He works 25 hours a week helping manage
rental units . In the Current Population Survey, Yunis is considered
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a)
b)
c)
d)
part of the labor force and unemployed.
part of the labor force and employed.
not part of the labor force.
a discouraged worker.
46 .) If KeKe, age 32 worked 12 hours as a paid employee the week before the Current
Population Survey, KeKe is classified in the Current Population Survey as ________
when calculating the unemployment rate.
a)
b)
c)
d)
unemployed
employed
a discouraged worker
not in the labor force
3) In the Current Population Survey, a person is considered unemployed if the person
A)
B)
C)
D)
E)
is without a job.
is working anything less than 40 hours per week.
is working without pay.
does not have a job and is actively looking for a job.
is working less than 20 hours per week.
4) The working-age population consists of all the people in the population
A)
B)
C)
D)
E)
aged 16 and over.
aged 16 to 65.
aged 16 and over who are not in jail, hospital, or an institution or in the Armed Forces.
aged 21 and over who are not in jail, hospital, or an institution or in the Armed Forces.
who are employed plus the unemployed people.
5) The labor force consists of
A) the number of people who are employed.
B) the number of people who unemployed and who are actively seeking work.
C) the number of people in the working-age population who are employed or
unemployed.
D) all people in the population aged 16 and over who are not in jail, a hospital, or an institution
or in the U.S. Armed Forces.
E) the number of people who are employed minus the number of the people who are
unemployed.
6) If Jose is 22-years old, is available to work but does not have a job and made no
specific efforts to find a job for the previous month, Jose is classified in the Current
Population Survey as
A) unemployed.
B) employed.
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C) not in the working-age population.
D) not in the labor force.
E) in the labor force but not in the working-age population.
7) Assume the population is 300 million. If 200 million people are of working age, 125
million are employed, and 15 million are unemployed, what is the size of the labor
force?
A)
B)
C)
D)
E)
200 million
140 million
125 million
215 million
175 million
8) In calculating the unemployment rate, part-time workers over the age of 16 are
counted as
a)
b)
c)
d)
employed.
unemployed.
not in the labor force.
employed if they are part-time workers for noneconomic reasons and unemployed if they are
involuntary part-time workers.
e) not in the working-age population.
9) If a significant number of part-time workers successfully find full-time employment,
then
a)
b)
c)
d)
e)
the unemployment rate will fall.
the labor force participation rate will increase..
the unemployment rate will remain unchanged.
the unemployment rate will rise.
Both answers A and B are correct.
10) In the table above, the number of unemployed people is
a)
b)
c)
d)
e)
2,000.
1,000.
1,100.
11,000.
3,000.
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11) In the table above, the unemployment rate is
a)
b)
c)
d)
e)
12 percent.
10 percent.
8 percent.
6 percent.
11 percent.
12) Using the table above, the labor force participation rate is
a)
b)
c)
d)
e)
83.3 percent.
90.0 percent.
10.0 percent.
11.1 percent.
100 percent.
13) A marginally attached worker
i) does not have a job and has not looked for one in the last month.
ii) is available and willing to work.
iii) must work at least 1 hour per week.
a)
b)
c)
d)
e)
iii only.
ii only.
ii and iii.
i and ii.
i only.
14) Part-time workers are defined as people who are working
a)
b)
c)
d)
e)
less than 20 hours per week.
between 20 and 35 hours per week.
less than 35 hours per week.
more than 10 hours per week.
fewer hours than they would want.
15) Julie works part-time for economic reasons. She would be considered
a)
b)
c)
d)
e)
an involuntary part-time worker.
a discouraged worker.
a job seeker.
not in the labor force.
unemployed as calculated by the Bureau of Labor statistics.
16) Which of the following are sources of unemployment?
i. job losers.
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ii. job leavers.
iii. entrants and reentrants.
iv. discouraged workers.
a) i and ii
b) i and iii
c) ii and iii
d) i, ii, and iii
A) i, ii, iii, and iv
17) Job losers are people who
a)
b)
c)
d)
e)
voluntarily leave their jobs for other jobs.
are laid off either permanently or temporarily.
have just completed school and are entering the job market.
have their full-time hours cut to part-time hours.
leave the labor market because they believe they will be unable to find a job.
18) Job leavers are people who
a)
b)
c)
d)
.
are laid off.
leave a job voluntarily.
recently left school.
returned to the workplace after raising children.
19) Halla just graduated with a music degree and has been sending applications to
symphony orchestras Halla is a
a)
b)
c)
d)
job market reentrant.
job market entrant.
job leaver.
not unemployed because she just graduated.
.
20 ) Talal quit his job to care for his young daughter. Now that she has entered school,
Josh is looking for a job. Talal is a
a)
b)
c)
d)
e)
job leaver.
job loser.
discouraged worker.
job market reentrant.
not unemployed because he quit his previous job.
21) Frictional unemployment is the result of
a) an economic recession.
b) the economic decline of major industries.
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c) the normal process of jobs being created and destroyed.
d) people not getting along (having friction) with their employers.
e) changing weather throughout the year.
22) Hind has decided that the she does not like Iowa and has decided to quit her job as
a medical technician and move to Arizona. Hind 's unemployment as she searches for
a new job is best classified as
a)
b)
c)
d)
cyclical.
seasonal.
structural.
frictional.
23) Higher unemployment benefits create
a)
b)
c)
d)
incentives for longer job searches and higher frictional unemployment.
incentives for shorter job searches and higher structural unemployment.
higher seasonal unemployment as workers switch jobs.
a lower number of job leavers.
24) Structural unemployment includes people who become unemployed from
a)
b)
c)
d)
.
changes in the seasons.
normal changes in the labor force.
technological changes.
changes in the business cycle.
25) Naif has been unable to find a job because he lacks the necessary computer
skills. Naif is
a)
b)
c)
d)
e)
frictionally unemployed.
structurally unemployed.
seasonally unemployed.
cyclically unemployed.
skill-set unemployed.
26) Ahmed has just lost his job as a life guard at the beach when summer ended.
Ahmed is
a)
b)
c)
d)
e)
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naturally unemployed.
structurally unemployed.
seasonally unemployed.
cyclically unemployed.
search unemployed.
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27) Which type of unemployment is the consequence of downturns in the business
cycle?
a)
b)
c)
d)
e)
cyclical
seasonal
structural
frictional
natural
28) Full employment occurs when
a)
b)
c)
d)
e)
structural unemployment is zero.
cyclical unemployment is zero.
frictional unemployment is zero.
structural, seasonal, and frictional unemployment are zero.
the unemployment rate equals zero.
29) Natural unemployment equals the sum of
a)
b)
c)
d)
e)
cyclical and frictional unemployment.
cyclical, seasonal, and structural unemployment.
frictional, seasonal, and structural unemployment.
seasonal and cyclical unemployment.
cyclical, frictional, seasonal, and structural unemployment.
30) When cyclical unemployment is zero,
a)
b)
c)
d)
e)
frictional unemployment is zero.
cyclical and frictional unemployment are zero.
structural unemployment is zero.
the unemployment rate equals the natural unemployment rate.
the natural unemployment rate is zero.
31) If the unemployment rate is less than the natural unemployment rate, then
a)
b)
c)
d)
e)
there is no frictional unemployment.
cyclical unemployment is greater than zero.
real GDP is less than potential GDP.
real GDP is greater than potential GDP.
frictional unemployment is negative.
32) Potential GDP is the level of output produced when the unemployment rate is
a)
b)
c)
d)
e)
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equal to the natural unemployment rate.
greater than the natural unemployment rate.
less than the natural unemployment rate.
zero.
made up of only cyclical unemployment.
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33) Economic growth is defined as
a)
b)
c)
d)
e)
a decrease in the rate of inflation.
an increase in employment.
a sustained expansion of production possibilities.
an increase in the wage rate.
an increase in the nation's population.
34) Economic growth is a sustained expansion of production possibilities, as measured
by the increase in ________ over time.
a)
b)
c)
d)
e)
real GDP
population
inflation
the price level
employment
35) Economic growth is defined as equal to the increase in
a)
b)
c)
d)
e)
employment.
population.
real GDP.
the price level.
the inflation rate.
36) The growth rate of real GDP equals
a) [(employment in the current year - employment in previous year)/employment in previous year]
× 100.
b) [(real GDP in current year - real GDP in previous year) ÷ real GDP in previous year] ×
100.
c) [(real GDP in previous year - real GDP in current year) ÷ real GDP in previous year] × 100.
d) [(real GDP in current year - real GDP in previous year) ÷ real GDP in current year] × 100.
e) (real GDP in current year - real GDP in previous year) × 100.
37) If real GDP was $14 trillion last year and is $16 trillion this year, what is the growth
rate?
a)
b)
c)
d)
e)
12.5 percent
-12.5 percent
14 percent
$2 trillion
47 percent
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38) Using the data in the table above, the growth rate of real GDP for 2008 is equal to
a)
b)
c)
d)
9.09 percent.
7.00 percent.
5.00 percent.
4.76 percent.
.
39) Using the data in the table above, real GDP per person in 2007 is
a)
b)
c)
d)
$70,000.
$71,429.
$75,000.
$70 trillion.
.
40) Suppose India wants to measure how much the standard of living has changed
over the last decade. Which piece of data should India use?
a)
b)
c)
d)
e)
population.
real GDP per person.
real GDP.
wages.
inflation.
41) The growth rate of real GDP per person equals the
a)
b)
c)
d)
e)
population growth rate plus the growth rate of real GDP.
change in the economic growth rate divided by the change in the population growth rate.
the economic growth rate per person divided by the change in the population growth rate.
growth rate of real GDP minus the growth rate of the population.
population growth rate plus the growth rate of real GDP then divided by the initial level of real
GDP.
42) Assume the population growth rate is 2 percent and the real GDP growth rate is 5
percent. The change in standard of living, as measured by the growth rate in real GDP
per person, is
a) 7 percent.
b) 2.5 percent.
c) 5 percent.
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d) 3 percent.
.
43) If it took 20 years for real GDP to double, what was the growth rate of real GDP?
a)
b)
c)
d)
e)
4.5 percent
3.0 percent
3.5 percent
4 percent
5 percent
44) In a small western nation, labor productivity last year was $20 per hour and total
labor hours were 400 hours. Hence, real GDP
a)
b)
c)
d)
e)
was $80,000.
was $8,000.
was $20.
grew by 5%.
00$416,000 over 52 weeks.
45) Population growth directly brings growth in ________ because the quantity of labor
increases.
a)
b)
c)
d)
real GDP
labor productivity
real GDP per person
capital per hour of work
46) Labor productivity is defined as
a)
b)
c)
d)
total real GDP.
real GDP per person.
total output multiplied by total hours of labor.
real GDP per hour of labor.
47) An increase in labor productivity
a) increases the standard of living.
b) decreases the standard of living.
c) might be the result of an increase in the quantity of labor.
d) generally occurs when physical capital decreases because firms must then hire more
workers.
48) Real GDP is $700 billion, average hours worked per week is 42 and aggregate
hours 150 billion hours. What is the economy's labor productivity?
a) $1.80 per hour
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Econ 203
b) $3.75 per hour
c) $16.67 per hour
d) $46.67 per hour
49) Labor productivity growth depends on
i. saving and investment.
ii. increases in human capital.
iii. technological growth.
a)
b)
c)
d)
e)
i only
ii only
iii only
Both ii and iii
i, ii, and iii
50) A reason for an increase in labor productivity growth is
a)
b)
c)
d)
an increase in people's human capital.
a decrease in the capital stock so that firms must hire more workers.
growth in the supply of labor.
an increase in the population so that firms hire more workers.
51) Human capital refers to the
a)
b)
c)
d)
e)
accumulated skill and knowledge of human beings.
accumulated equipment used by human beings.
accumulation of money by human beings.
accumulation of money and equipment used by human beings.
52) Expansion of a nation's human capital can be achieved through
a)
b)
c)
d)
e)
education and job experience.
education and saving.
education and technology improvements.
education only.
nothing because human capital is determined by the skills people are born with.
53) Growth in physical capital depends most directly upon the
a)
b)
c)
d)
amount of saving and investment.
number of firms in the nation.
speed of population growth.
amount of government expenditures.
54) An important condition required for economic growth is
a) a democratic government.
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Econ 203
b) a totalitarian government.
c) a libertarian government.
d) economic freedom.
55) Economic freedom provides the
a)
b)
c)
d)
e)
political system that encourages democracy.
social system that supports families.
production system that discourages property rights.
incentive system that encourages growth-producing activities.
necessary alternative to free markets.
56) Property rights
a)
b)
c)
d)
e)
don't include intellectual property.
don't include financial property.
don't include physical property.
include physical, financial, and intellectual property.
slow the economic growth by placing limits on who can use what.
57) One way to achieve faster growth in GDP per person is to increase the
a)
b)
c)
d)
number of women working in the home rather than in the workforce.
growth rate of the quantity of money.
growth rate of human capital.
growth rate of the population.
58) One possible way of achieving faster economic growth is to
a)
b)
c)
d)
e)
encourage saving.
protect the economy from international trade.
limit investment because investment adds nothing to production today.
eliminate property rights because they prevent people from using other people's ideas.
tax saving so that people spend more and businesses make more profit.
59) Which of the following is NOT a necessary precondition for economic growth?
a)
b)
c)
d)
e)
economic freedom
democracy
property rights
free markets
ALL of the above are necessary preconditions.
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Econ 203
Matching
Match the number of each term to its correct definition:
___1. At a business cycle trough , cyclical unemployment is
15. above potential GDP
___2. the value of the real GDP when all the economy’s factors of
production are employed .
10. employed
___3. total number of labor hours available .
22. Labor productivity
___4. At a business cycle peak , cyclical unemployment
21.Seasonal Unemployment
___5. the protection of private property – the factors of production
and goods that people own.
16. Labor force participation
___6. labor force x average hours per worker .
rate.
___7. is present when people are able to make personal choices,
their private property is protected by the rule of law, and
they are free to buy and sell in markets.
10. employed
___8. Real GDP equals potential GDP when the economy is at
11. Real GDP
___9. Real GDP- Potential GDP
25. An entrant
1. positive.
___10. A person who has spent most of the previous week working
at a paid job.
28. Full-time workers.
___11. Aggregate hours x Labor productivity
2. Potential GDP
___12. the sum of the employed and the unemployed.
24. A recall
___13. the rate of change of real GDP expressed as a percentage
per year.
14. Labor force participation
___14. Labor force divided by Working-age population x 100
rate
___15. When Unemployment rate is below the natural
unemployment rate , the real GDP is
3. The Quantity of labor
___16. the percentage of the working-age population who are
members of the labor force.
___17. A person who is on temporary layoff, is looking for a job, or
is waiting for the start date of a new job.
Hanan AL Jashaam
13. Economic growth rate
18. Natural unemployment
rate
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Econ 203
___18. the unemployment rate when the economy is at full
employment.
___19. is the fluctuating unemployment over the business cycle.
23. A withdrawal
4. negative.
___20. a person who does not have a job, is available and willing to 27. a Job loser
work, has not made specific efforts to find a job within the
20. A marginally attached
previous four weeks , but has looked for work sometime in
the recent past.
worker.
___21. It arises because of seasonal weather 'patterns..
___22. Real GD divided by Aggregate hours
___23. someone who has been unemployed and has decided to
stop looking for a job.
30.Structural Unemployment
17. unemployed
29.Frictional Unemployment
___24. is someone who has been temporarily laid off and has
started work again.
12. the labor force
___25. someone who has just left school and is looking for a job .
6. The Quantity of labor
___26. someone who quits a job.
8. full employment
___27. someone who is laid off from a job either permanently or
temporarily.
26. A job leaver
___28. people who usually work 35 hours or more a week.
7. Economic freedom.
___29. unemployment that arises from normal labor turnover-from
people entering and leaving the labor force.
___30. the unemployment that arises when changes in technology
or international competition change the skills needed to
perform jobs or change the locations of jobs.
Hanan AL Jashaam
5. Property rights .
9. Output gap of Potential
GDP
19.Cyclical Unemployment
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