". VdoTips: Economic Practice Test 2



Economic Practice Test 2

6. Using the numbers in question 5, the Real GDP for 2002 is:
A. $400
B. $500
C. $800
D. $900 e. $1,300

7. Which of the following statements is/are true?
A. Business Investment Spending occurs when individuals buy stock in the stock market
B. Productivity is the United States grew very slowly between 1973 and 1996
C. Because of discouraged workers, the official unemployment rate is too high
D. “Full employment” occurs when there is no frictional unemployment

8. Immediately after a trough, we would expect to have a/an
A. peak
B. recession
C. recovery
D. another trough

9. Last week, Martha spent one day cleaning a house. For this, she was paid $50. The rest of the week, she spent looking for a jo
B. Martha would be classified as
A. employed
B. unemployed
C. not in the labor force

10. John lost his accounting job when Montgomery Wards closed its stores in San Diego. He looked for a similar job for ten months before finding an accounting job at Sears. During the month John was unemployed, he was
A. frictionally unemployed
B. seasonally unemployed
C. cyclically unemployed
D. structurally unemployed