Econ 201 Macroeconomics Exam 3 Ch. 9, 11, 12

Front 1

National income can be defined as the _____ of producing the GDP.

Back 1

total factor cost

Front 2

The GDP excludes

Back 2

the production of many items for which no monetary transaction takes place.

(mom at home)

Front 3

The national income equals

Back 3

GDP minus capital consumption allowances minus indirect business taxes

Front 4

What dollar GDP is more appropriate for measuring changes in total output?

Back 4

constant dollar GDP

Front 5

The real or constant dollar per capita disposable income takes into account changes in

Back 5

both the price level and the size of the population

Front 6

Current forecasts of the GDP for future decades rely heavily on

Back 6

the population forecasts

*affecting labor-force

Front 7

The GDP is

Back 7

the current market value of final goods and services produced by the nation's economy over a period of time (one calendar year)

Front 8

National income is equivalent to total earnings in the form of

Back 8

wages, rent, interest, and profits

Front 9

Transfer payments are added to national income in the process of

Back 9

determining personal income

Front 10

Personal consumption expenditures

Back 10

account for the largest component of spending in the US

Front 11

National income accountants eliminate double counting of intermediate goods by

Back 11

using only the value of final goods

Front 12

A transfer payment is

Back 12

a payment of money in return for which no current goods or services are produced.

Front 13

The value of leisure is not taken into consideration in

Back 13

GDP accounting

Front 14

Constant dollar figures

Back 14

are more accurate than current dollar figures when using the GDP as a measure of the increases in our level of living

Front 15

Consumer purchases of goods and services

Back 15

is the largest category of spending in the calculation of the GDP

Front 16

Intermediate products

Back 16

are not included in the value of GDP

Front 17

Transfer payments are included in personal income because

Back 17

no current goods or services are produced

Front 18

Income taxes

Back 18

constitute the main difference between personal income and disposable personal income

Front 19

The US unemployment rate excludes

Back 19

unemployed workers who are not actively seeking work

Front 20

A sizable part of increases in the US labor force in the past few decades has been due to

Back 20

the influx of women

Front 21

Service-oriented jobs make up more than ______ of total employment in the US labor force.

Back 21

three-quarters

Front 22

The number and the percentage of US workers in labor unions have _____ in the past decade.

Back 22

decreased

Front 23

The total labor force

Back 23

includes all persons in the non institutional population who are either working or seeking work.

Front 24

Maximum employment was ___ defined in the Employment Act of 1946.

Back 24

not

Front 25

The Employment Act of 1946 makes the government responsible for

Back 25

maintaining maximum employment, production, and purchasing power.

Front 26

Structural unemployment is caused primarily by

Back 26

automation

Front 27

US workers tend to be

Back 27

geographically immobile

Front 28

Many economists believe that increases in the minimum wage tend to create a

Back 28

labor surplus

Front 29

A speeding up in the replacement of capital and durable consumer goods

Back 29

during a depression tends to start a recovery

Front 30

Members of the armed services are counted as a portion of the

Back 30

total labor force

Front 31

Increasing mechanization is causing a continually ____ demand for unskilled labor

Back 31

lower

Front 32

The measurement of a business cycle is obtained by adjusting the real GDP for

Back 32

seasonal variation, the trend, and random fluctuations

Front 33

Cost changes generally ____ behind price changes during the business cycle.

Back 33

lag

Front 34

A recession occurs whenever theres a

Back 34

decline in real GDP for two or ore successive quarters

Front 35

Involuntary inventory accumulation

Back 35

may occur during the contracting phase of the business cycle

Front 36

Inventory depletion in depression can lead to

Back 36

increased production in recovery

Front 37

The innovation theory is classified among

Back 37

the real or physical causes of the business cycle

Front 38

Profits and profit margins tend to ____ during the late recovery and early prosperity stages of the business cycle

Back 38

increase

Front 39

When the real GDP increases, unemployment usually

Back 39

decreases