1. Theunemployment rate may overestimate the true extent of unemploymentif: a. m
ID: 1250299 • Letter: 1
Question
1. Theunemployment rate may overestimate the true extent of unemploymentif:
a. manypart-time employees would like to work full-time, but are unable toget the
additionalwork.
b. manypeople become discouraged and cease looking for work.
c. peoplefalsely claim that they are actively seeking work in order toreceive unemployment
benefits.
d. manypeople who claim to be unemployed actually work in the undergroundeconomy.
e. eitherc. or d. occurs.
2. Themost significant real economic cost of high unemployment is:
a. themoney cost of unemployment insurance payments to theunemployed.
b. thelost tax revenue that might have been paid by persons if they hadworked.
c. themoney cost of retraining persons to obtain new jobs.
d. thedifference in income between a person's lost job and new job.
e. the potential goods and services that might have beenproduced but weren't.
3. Personswho do not hold a job and are not actively seeking work areconsidered:
a. out ofthe labor force.
b.unemployable, and not counted in official statistics.
c.underemployed.
d. unemployed.
4. Whichof the following statements is true?
a. Newentrants comprise 50 to 60 percent of the unemployed.
b. Thelabor force participation rate has declined from 67.1 to 59.2percent since 1950.
c. Theduration of unemployment tends to be greater when the unemploymentrate is low.
d. People are underemployed if their skills are greater than arenecessary for their jobs.
5. Finalgoods or services used to compute GDP refer to:
a. the sumof all wages paid to laborers.
b. thefactors of production used to produce output.
c. goodsand services purchased by the ultimate users.
d. thevalue of outstanding shares of stock of manufacturing firms.
e. the sumof all exports plus imports.
6.Intermediate products:
a.produced domestically are not directly reflected in a nation'sGDP.
b.produced domestically are reflected directly in a nation's GDP.
c. areimported retail products.
d. are goods that are purchased by the ultimate user.
7.Residential construction is generally included in which category ofGDP?
a.consumption
b.investment
c.government expenditures
d. net exports
Explanation / Answer
1.) e ( either c.or d. occurs) Think when will the overestimation happens ? plug in e and hopethat explains. 2.) e ( the potential goods and services that might have beenproduced but weren't.) Unproduced goods and services are the real economic cost of highunemployment. - the loss of work stoppage. 3.) a ( out of the labor force) The labor force is the number of people employed and unemployed.Unemployed must be the actively job seeking only. 4.) d ( people are underemployed if their skills are greater thanare necessary for their jobs) Definition of under-employed ----- Inadequately employed,especially employed at a low-paying job that requires less skill ortraining than one possesses. 5.) b ( the factors of production used to produce output) Explanation GDP does not include: 1. Goods or services which requireadditional processing before sold for final use (i.e., rawmaterials or intermediate goods). 2. Activities for which there is nomarket exchange (i.e., do-it-yourself productive activities). 3. Goods or services produced inforeign countries by U.S.-owned entities. 4. Adjustment for changing prices ofgoods and services over time. 6.) a ( produced domestically are not directly reflected in anation's GDP.) Intermediate products are Finished product traded usually amongproducersor suppliers,and not between them and the endusers. So, it is not included in GDP. 7.) b investment Construction is definitely not a consumption, or agovt.expenditure or an export. so it is an investment category. Hope this helps !
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.