PRINCIPLES OF MACROECONOMICS
COMPREHENSIVE EXAMINATION TEST
2026 FULL QUESTIONS AND CORRECT
ANSWERS
◉Net exports is exports minus. Answer: inputs.
◉Some argue that the official unemployment rate understands the
true extent of unemployment because it does not count which of the
following as unemployed?. Answer: -Discouraged workers
-Involuntary part-time workers
◉Which method of calculation GDP adds up consumption,
investment, government purchases, and net exports?. Answer: The
expenditure method
◉Real GDP___________ __________ __________ the total effect of economic
growth by including decreases in environmental quality associated
with rapid growth.. Answer: does not capture
◉C + I + G + NX =. Answer: GDP
,◉Which of the following factors are NOT included in the calculation
of GDP?. Answer: -Poverty rates
-Crime rates
-Volunteer Services
◉The underground economy contains BOTH __________ and __________
activities, such as landscapers, babysitters, and organized crime..
Answer: -legal
-illegal
◉For the purposes of GDP accounting, government purchases
include. Answer: -Spending on highway construction.
-The purchase of new military equipment.
◉Which of the following workers would be classified as
unemployed?. Answer: Someone who hasn't worked in over a year,
but had a job interview three weeks ago.
◉The payments made to the owners of physical capital and
intangible capital is known as. Answer: capital income.
◉Which of the following would be considered government transfer
payment?. Answer: -Social security benefits
, -Veteran's benefits
-Unemployment insurance benefits
◉__________ __________ includes construction of new homes and new
apartments.. Answer: Residential investment
◉The fact that many unpaid services, such as volunteer firefighters,
are not included in GDP measures indicates that. Answer: their
market values are difficult to assess.
◉The labor force participation rate is the. Answer: % of the
working-age population in the labor force.
◉If there are 500,000 working-age people in the population,
230,000 employed people and 20,000 unemployed people, then the
labor force participation rate is. Answer: 50%
◉The exploitation of finite __________ __________ tends to be overlooked
in GDP.. Answer: natural resources
◉GDP is an imperfect measure of well-being since. Answer: -it only
measures production, not the distribution of the wealth.
-It does not capture the effects of income inequality.
COMPREHENSIVE EXAMINATION TEST
2026 FULL QUESTIONS AND CORRECT
ANSWERS
◉Net exports is exports minus. Answer: inputs.
◉Some argue that the official unemployment rate understands the
true extent of unemployment because it does not count which of the
following as unemployed?. Answer: -Discouraged workers
-Involuntary part-time workers
◉Which method of calculation GDP adds up consumption,
investment, government purchases, and net exports?. Answer: The
expenditure method
◉Real GDP___________ __________ __________ the total effect of economic
growth by including decreases in environmental quality associated
with rapid growth.. Answer: does not capture
◉C + I + G + NX =. Answer: GDP
,◉Which of the following factors are NOT included in the calculation
of GDP?. Answer: -Poverty rates
-Crime rates
-Volunteer Services
◉The underground economy contains BOTH __________ and __________
activities, such as landscapers, babysitters, and organized crime..
Answer: -legal
-illegal
◉For the purposes of GDP accounting, government purchases
include. Answer: -Spending on highway construction.
-The purchase of new military equipment.
◉Which of the following workers would be classified as
unemployed?. Answer: Someone who hasn't worked in over a year,
but had a job interview three weeks ago.
◉The payments made to the owners of physical capital and
intangible capital is known as. Answer: capital income.
◉Which of the following would be considered government transfer
payment?. Answer: -Social security benefits
, -Veteran's benefits
-Unemployment insurance benefits
◉__________ __________ includes construction of new homes and new
apartments.. Answer: Residential investment
◉The fact that many unpaid services, such as volunteer firefighters,
are not included in GDP measures indicates that. Answer: their
market values are difficult to assess.
◉The labor force participation rate is the. Answer: % of the
working-age population in the labor force.
◉If there are 500,000 working-age people in the population,
230,000 employed people and 20,000 unemployed people, then the
labor force participation rate is. Answer: 50%
◉The exploitation of finite __________ __________ tends to be overlooked
in GDP.. Answer: natural resources
◉GDP is an imperfect measure of well-being since. Answer: -it only
measures production, not the distribution of the wealth.
-It does not capture the effects of income inequality.
