ECN 211 ASU 2026 TEST QUESTIONS AND
ANSWERS SURE A+
✔✔Net exports equal - ✔✔exports minus imports
✔✔CPI is used to - ✔✔monitor changes in the cost of living over time
✔✔Inflation rate - ✔✔percentage change in the price level from the previous period
✔✔Indexation refers to - ✔✔using a law or contract to automatically correct a dollar
amount for the effects of inflation
✔✔For the Bureau of Labor Statistics to place someone in the "unemployed" category,
that person must - ✔✔be available for work
✔✔Labor-force participation rate tells us the fraction of the population that - ✔✔has
chosen to participate in the labor market
✔✔People who are unemployed because they are in search of a job that suits their
skills are included within - ✔✔frictional unemployment
✔✔The natural unemployment rate includes - ✔✔both frictional and structural
unemployment
, ✔✔Wages set above the equilibrium wage by - ✔✔firms to increase productivity are
called efficiency wages
✔✔Who in the adult population is counted as "employed" in U.S. labor statistics? -
✔✔people who are temporarily absent from their job and people who work without pay
in a family member's
busines
✔✔Measure productivity by - ✔✔Divide the quantity of output by the number of hours
worked
✔✔Industrial machinery is an example of - ✔✔-factor of production that in the past was
an output from the production process
-physical capital.
-something that influences productivity
✔✔Cyclical unemployment is closely associated with - ✔✔short-run ups and downs of
the economy
✔✔Calculate GDP - ✔✔GDP=C+I+G+(X-Im)
✔✔Real vs. Nominal GDP - ✔✔real values are adjusted for inflation, while nominal
values are not. As a result, nominal GDP will often appear higher than real GDP
✔✔Intermediate vs. Final Goods - ✔✔intermediate goods-goods used in the production
of final goods
final goods- final goods are the goods which are ready for sale in the market
✔✔Expenditure Approach - ✔✔The national income accounting method that measures
GDP by adding all the spending for final goods during a period of time
-One way to measures GDP
-GDP = C + I + G + (X - M)
✔✔Problems with GDP - ✔✔-Nonmarket Transactions
-Distribution, Kind, and Quality of Products
-Neglect of Leisure Time
-The Underground Economy
-Economic Bads
✔✔Unemployement - ✔✔
✔✔Actual vs. Potential GDP - ✔✔
ANSWERS SURE A+
✔✔Net exports equal - ✔✔exports minus imports
✔✔CPI is used to - ✔✔monitor changes in the cost of living over time
✔✔Inflation rate - ✔✔percentage change in the price level from the previous period
✔✔Indexation refers to - ✔✔using a law or contract to automatically correct a dollar
amount for the effects of inflation
✔✔For the Bureau of Labor Statistics to place someone in the "unemployed" category,
that person must - ✔✔be available for work
✔✔Labor-force participation rate tells us the fraction of the population that - ✔✔has
chosen to participate in the labor market
✔✔People who are unemployed because they are in search of a job that suits their
skills are included within - ✔✔frictional unemployment
✔✔The natural unemployment rate includes - ✔✔both frictional and structural
unemployment
, ✔✔Wages set above the equilibrium wage by - ✔✔firms to increase productivity are
called efficiency wages
✔✔Who in the adult population is counted as "employed" in U.S. labor statistics? -
✔✔people who are temporarily absent from their job and people who work without pay
in a family member's
busines
✔✔Measure productivity by - ✔✔Divide the quantity of output by the number of hours
worked
✔✔Industrial machinery is an example of - ✔✔-factor of production that in the past was
an output from the production process
-physical capital.
-something that influences productivity
✔✔Cyclical unemployment is closely associated with - ✔✔short-run ups and downs of
the economy
✔✔Calculate GDP - ✔✔GDP=C+I+G+(X-Im)
✔✔Real vs. Nominal GDP - ✔✔real values are adjusted for inflation, while nominal
values are not. As a result, nominal GDP will often appear higher than real GDP
✔✔Intermediate vs. Final Goods - ✔✔intermediate goods-goods used in the production
of final goods
final goods- final goods are the goods which are ready for sale in the market
✔✔Expenditure Approach - ✔✔The national income accounting method that measures
GDP by adding all the spending for final goods during a period of time
-One way to measures GDP
-GDP = C + I + G + (X - M)
✔✔Problems with GDP - ✔✔-Nonmarket Transactions
-Distribution, Kind, and Quality of Products
-Neglect of Leisure Time
-The Underground Economy
-Economic Bads
✔✔Unemployement - ✔✔
✔✔Actual vs. Potential GDP - ✔✔
