ECN 211 ACTUAL TEST QUESTIONS WITH
COMPLETE ANSWER KEY
●● Y = C + I + G + NX
Answer: Y = economy's total expenditure
C = consumption in economy
I = imports in economy
G = government spending
NX = net exports
●● Net exports equal
Answer: exports minus imports
●● CPI is used to
Answer: monitor changes in the cost of living over time
●● Inflation rate
Answer: percentage change in the price level from the previous period
●● Indexation refers to
Answer: 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
Answer: be available for work
●● Labor-force participation rate tells us the fraction of the population
that
Answer: 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
Answer: frictional unemployment
●● The natural unemployment rate includes
Answer: both frictional and structural unemployment
●● Wages set above the equilibrium wage by
Answer: firms to increase productivity are called efficiency wages
●● Who in the adult population is counted as "employed" in U.S. labor
statistics?
Answer: people who are temporarily absent from their job and people
who work without pay in a family member's
COMPLETE ANSWER KEY
●● Y = C + I + G + NX
Answer: Y = economy's total expenditure
C = consumption in economy
I = imports in economy
G = government spending
NX = net exports
●● Net exports equal
Answer: exports minus imports
●● CPI is used to
Answer: monitor changes in the cost of living over time
●● Inflation rate
Answer: percentage change in the price level from the previous period
●● Indexation refers to
Answer: 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
Answer: be available for work
●● Labor-force participation rate tells us the fraction of the population
that
Answer: 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
Answer: frictional unemployment
●● The natural unemployment rate includes
Answer: both frictional and structural unemployment
●● Wages set above the equilibrium wage by
Answer: firms to increase productivity are called efficiency wages
●● Who in the adult population is counted as "employed" in U.S. labor
statistics?
Answer: people who are temporarily absent from their job and people
who work without pay in a family member's
