Which of the following people would be considered unemployed by the Bureau of Labor Statistics?
I. Mrs. X retires from her job and does not look for another job.
II. Mr. Y was laid off from his job as a welder, but expects to be rehired in 8 months.
A) I only
B) II only
C) Both I and II
D) Neither I nor II
Ques. 2The responsibility of paying for the Social Security benefits for currently retired individuals falls on
A) current and future workers.
B) the retired people themselves.
C) no one, since the government prints the money.
D) only working people over 50 years of age.
Ques. 3If goods X and Y are substitute goods, then an increase in the price of Y, other things being equal,
A) results in a decrease in the amounts of both X and Y consumed.
B) decreases the quantity demanded of Y, but has no effect on the amount of X consumed.
C) results in a decrease in the quantity of Y consumed, but increases the demand for X.
D) has no real effect on the quantity demanded of good Y, but increases the demand for X.
Ques. 4Using the above table, moving from alternative C to alternative B, what is the opportunity cost of one loaf of bread?
A) 1 pizza pie
B) 30 pizza pies
C) 2 pizza pies
D) 0.5 pizza pie
Ques. 5Which of the following variables is used to measure economic growth?
A) nominal GDP
B) nominal GDP per capita
C) real GDP
D) real GDP per capita
Ques. 6The classical economists argued that planned saving and planned investment will always be equal because of changes in
A) the level of real disposable income.
B) the interest rate.
C) the price level.
D) wages.
Ques. 7An outward shift of the production possibilities curve represents
A) economic contraction.
B) economic growth.
C) economic recession.
D) economic inflation.
Ques. 8When government revenues exceed government outlays in a particular year, this is called
A) a budget surplus.
B) a budget deficit.
C) the national debt.
D) fiscal policy.
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