March 25
LOMA 308 Exam Complete Questions and Correct Detailed
Answers (Verified Answers)
Transfer payments
Ans: A payment made by a govt for which no goods or services are given in return
Intermediation
Ans: The transfer of funds from savers to borrowers through the services of a
financial intermediary
Product (output) markets
Ans: A market in which businesses supply finished goods and service to households,
other businesses and governments
Labor markets
Ans: A market in which households offer their labor to businesses and governments
in exchange for wages or other compensation
Financial (capital) market
Ans: A market in which money is transferred from savers to borrowers
Medium of exchange
pg. 1
, March 25
Ans: A standardized method of making and receiving payments for goods and
services
Unit of account
Ans: The monetary unit in which value is expressed
Real GDP
Ans: Gross domestic product that has been adjusted for changes in price levels
Per capita GDP
Ans: Gross domestic product divided by country's population
Final goods
Ans: A good that is consumed rather than a good used to produce another product
Genuine progress index index
Ans: A measure of a country's progress and wellbeing determined by incorporating
environmental and social factors that aren't measured by the country's gross
domestic product (GDP)
Natural rate of unemployment
pg. 2
, March 25
Ans: The level of unemployment caused by people leaving the workforce because
their skills are no longer needed or they are looking for other jobs and not by a
recession or other drop in economic activity. In the US, it is believed to be ~5%
Expansion
Ans: The phase in the business cycle in which unemployment is low and real GDP
rises for two or more consecutive quarters
Contraction
Ans: The phase in the business cycle in which unemployment begins to rise and real
GDP decreases from an earlier quarter
Recession
Ans: A significant decline in economic activity spread across the economy and
lasting more than a few months. Unemployment is generally high and real GDP
usually falls for two or more quarters
Depression
Ans: A severe and prolonged downturn in economic activity characterized by
substantial increases in unemployment and significant decreases in real GDP and
available credit
Seasonal variation
pg. 3
LOMA 308 Exam Complete Questions and Correct Detailed
Answers (Verified Answers)
Transfer payments
Ans: A payment made by a govt for which no goods or services are given in return
Intermediation
Ans: The transfer of funds from savers to borrowers through the services of a
financial intermediary
Product (output) markets
Ans: A market in which businesses supply finished goods and service to households,
other businesses and governments
Labor markets
Ans: A market in which households offer their labor to businesses and governments
in exchange for wages or other compensation
Financial (capital) market
Ans: A market in which money is transferred from savers to borrowers
Medium of exchange
pg. 1
, March 25
Ans: A standardized method of making and receiving payments for goods and
services
Unit of account
Ans: The monetary unit in which value is expressed
Real GDP
Ans: Gross domestic product that has been adjusted for changes in price levels
Per capita GDP
Ans: Gross domestic product divided by country's population
Final goods
Ans: A good that is consumed rather than a good used to produce another product
Genuine progress index index
Ans: A measure of a country's progress and wellbeing determined by incorporating
environmental and social factors that aren't measured by the country's gross
domestic product (GDP)
Natural rate of unemployment
pg. 2
, March 25
Ans: The level of unemployment caused by people leaving the workforce because
their skills are no longer needed or they are looking for other jobs and not by a
recession or other drop in economic activity. In the US, it is believed to be ~5%
Expansion
Ans: The phase in the business cycle in which unemployment is low and real GDP
rises for two or more consecutive quarters
Contraction
Ans: The phase in the business cycle in which unemployment begins to rise and real
GDP decreases from an earlier quarter
Recession
Ans: A significant decline in economic activity spread across the economy and
lasting more than a few months. Unemployment is generally high and real GDP
usually falls for two or more quarters
Depression
Ans: A severe and prolonged downturn in economic activity characterized by
substantial increases in unemployment and significant decreases in real GDP and
available credit
Seasonal variation
pg. 3
