Principles of Economics D089 | QUESTIONS AND ANSWERS | 2025/2026
Questions in this set (231)
What is frictional unemployment? Between jobs, moving towards a better job. (Module 7)
What is structural unempoyment? Job eliminated, accumulated experience is no longer valued in the
labor market.
What is cyclical unemployment? Laid off due to a recession
How do you calculate the (# of unemployed/labor force) x 100
unemployment rate?
How do you calculate the (labor force / population) x 100
labor force participation rate?
Who is in the labor force? Those who are employed and those who are actively looking for work.
Another term for having no Full employment
cyclical unemployment.
How are the terms "full Both are used to describe the situation where there is zero cyclical
employment" and "natural unemployment.
rate of unemployment"
related?
Does full employment mean that No. There will always be frictional and structural unemployment.
there is no unemployment?
What do households do in the Households sell land, labor, capital and entrepreneurship in the factors
factors market? market.
Which groups provide inflows Financial market inflows are made up of private savings from
to the financial market? households and foreign lending from the rest of the
, world.
What is investment? business spending on physical capital (tools), new homes, and
inventories (products)
Which is the most volatile Investment spending
component of GDP?
Which component of GDP is the Consumption spending
largest?
How do you calculate GDP? GDP = C + I + G + (X-M)
How do you compare living Real GDP per Capita
standards between countries
or over time?
Questions in this set (231)
What is frictional unemployment? Between jobs, moving towards a better job. (Module 7)
What is structural unempoyment? Job eliminated, accumulated experience is no longer valued in the
labor market.
What is cyclical unemployment? Laid off due to a recession
How do you calculate the (# of unemployed/labor force) x 100
unemployment rate?
How do you calculate the (labor force / population) x 100
labor force participation rate?
Who is in the labor force? Those who are employed and those who are actively looking for work.
Another term for having no Full employment
cyclical unemployment.
How are the terms "full Both are used to describe the situation where there is zero cyclical
employment" and "natural unemployment.
rate of unemployment"
related?
Does full employment mean that No. There will always be frictional and structural unemployment.
there is no unemployment?
What do households do in the Households sell land, labor, capital and entrepreneurship in the factors
factors market? market.
Which groups provide inflows Financial market inflows are made up of private savings from
to the financial market? households and foreign lending from the rest of the
, world.
What is investment? business spending on physical capital (tools), new homes, and
inventories (products)
Which is the most volatile Investment spending
component of GDP?
Which component of GDP is the Consumption spending
largest?
How do you calculate GDP? GDP = C + I + G + (X-M)
How do you compare living Real GDP per Capita
standards between countries
or over time?
