1. Which of the following would be counted in US GDP
  2. The salary of an American professor teaching in England
  3. The value of a new US produced car purchased by a French citizen living in south Africa
  4. The value of a General Electric corporate bond bought a Japanese citizen.
  5. if we include intermediate goods in the calculation of GDP
  6. we would be underestimating GDP
  7. we would be accurately measuring GDP
  8. we would be overestimating GDP
  9. Suppose that in 2002 the total value of exports was $250 million, while imports were $225 million. The contribution of net exports to GDP was
  10. $250 million
  11. $25 million
  12. -$25 million
  13. Suppose GDP for 2003 was $1500, wages and salaries were $800 rent payments were $200. What must the value of profits have been
  14. $300
  15. $500
  16. $200
  17. Which of the following is not included in the Factor payments approach
  18. Wages
  19. Rent
  20. Consumption
  21. Interest
  22. When a mall Santa Claus loses his job at the end of the Christmas season, this is an example of
  23. Frictional unemployment
  24. Seasonal unemployment
  25. Structural unemployment
  26. Suppose the current overall unemployment rate is 7.5%. If structural unemployment is 1.5% frictional unemployment is 3%, and cyclical unemployment is 2%, what fraction of overall unemployment is due to seasonal factors?
  27. 1%
  28. 14%
  29. 5.5%
  30. 6%
  31. 4.5%
  32. if the economy is operating at unemployment rate above the full employment rate,
  33. actual output is above potential output
  34. actual output is below potential output
  35. structural unemployment has been eliminated
  36. Suppose and economy has 90000 employed 10000 unemployed persons, the unemployment rate is
  37. 90%
  38. 10%
  39. 5%
  40. What is the value of any index in the base period
  41. 100
  42. 1
  43. 110
  44. The consumer price index includes all of the following goods and services except
  45. Bond s of the us government
  46. French wine
  47. Used cars
  48. Toiletteries
  49. The CPI was 101.7 in 2001 and 101.5 in 2002, it can be concluded that
  50. 2001 was the base year
  51. All goods were less expensive in 2002 than in 2001
  52. All goods were less expensive in 2001 than in 2002
  53. The price level fell from 2001 to 2002
  54. In 2002 the nominal wage was was $13.33/hr and the CPI was 113.2. In 2003 thw nominal wage was $13.00/hr and the CPI was 110. Find the real wage for in 2003.
  55. $13.00
  56. $11.78
  57. $11.48
  58. $11.82
  59. A real variable is measured in terms of
  60. Purchasing power
  61. Current dollars
  62. After-tax dollars
  63. Soppose you borrow money ar 9% nominal rate and the inflation rate is 2%, what is the real interest rate on the loan.
  64. 11%
  65. 7%
  66. 2%
  67. Suppose you took a pay cut of 2% this year at your job. You expect price level to fall by 3% during this year. What would be the impact on your real wage/
  68. The real wage would rise by 1%
  69. The real wage would fall by 1%
  70. The real wage would be unchanged
  71. Which of the following will cause the rel interest rate to be negative
  72. When the nominal interest rate is larger than the inflation rate
  73. When the nominal interest rate is smaller than the inflation rate
  74. When the nominal interest rate equals the inflation rate
  75. Most economist agree that the size of bias in the CPI is atleast
  76. 0.1%
  77. 1%
  78. 0.5%