Reference no: EM133338321

Questions

1. How does a circular flow model illustrate GDP?

A) The circular flow model is a visualization of the economic transactions across the economy

B) The circular flow model shows only the factor payments received by households

C) The circular flow model represents the balance of payments of the government

D) The circular flow model is a visualization of the economic transactions in foreign countries

E) The circular flow model represents the long-run equilibrium in an economy

2. The GDP is a measure of the ____ of a country but does not take into account the _____

A) productivity; cost of environmental pollution

B) standard of living; compensation given to employees

C) purchasing power; non-market transactions in a country

D) life expectancy; private consumption by households

E) government spending; contribution of household members in childcare

3. Assume that Jonothan was laid off by his company due to recession and stopped looking for work a few weeks later due to health reasons. Which of the following is true in this scenario?

A) Jonathan was initially cyclically unemployed, but he is later considered a marginally attached worker.

B) Jonathan was initially cyclically unemployed, but he is later considered a frictionally unemployed worker.

C) Jonathan was initially structurally unemployed, but he is later considered a marginally attached worker.

D) Jonathan was initially frictionally unemployed, but he is later considered a marginally attached worker.

E) Jonathan was initially frictionally unemployed, but he is later considered a cyclically attached worker.

4. Which of the following would explain an increase in the natural rate of unemployment?

A) Increasing education level of the population

B) Decreasing technical skills of employees

C) Increase in wages

D) Decreasing restrictions on production

E) Decrease in a recessionary gap