ECO 212 Nelson Exam1 Questions and
Answers
Law of demand - Answer-when price rises quantity demanded falls
Demand curve - Answer-a graph of the relationship between the price of a good and the quantity
demanded.
Causes of the decline in the U.S. men's labor-force participation rate over the past several decade -
Answer-1. Young men now stay in school longer than their fathers and grandfathers did.
2. Older men now retire earlier and live longer.
3. More fathers now stay at home to raise their children.
In the national income accounts, depreciation is called - Answer-consumption of fixed capital
Which of the following is an example of an efficiency wage? - Answer-An above-equilibrium wage
offered by a firm to attract a more talented pool of job applicants
, Michel a U.S. citizen, travels to Jamaica and buys a newly manufactured motorcycle made there. His
purchase is included in - Answer-Jamaica's GDP, but it is not included in U.S. GDP.
Which of the following is an explanation for the existence of frictional unemployment? - Answer-Job
search
Labor unions - Answer-are similar to cartels.
GDP and GNP are identical when - Answer-all domestic production is by domestically owned producers
and no foreign production is carried out by domestic producers.
Esmeralda is taking a three month leave from work to travel across Europe. The Bureau of Labor
Statistics counts Esmeralda as - Answer-Employed and in the labor force.
Suppose that the adult population in the country of Atlantis is 140 million. If 90 million people are
employed and 10 million are unemployed, then - Answer-million are not in the labor force.
A newspaper article informs you that most businesses increased production in the last quarter but also
sold from their inventories during the last quarter. Based on this information GDP likely - Answer-
increased.
U.S. GDP and U.S. GNP are related as follows: - Answer-???
Countries with low GDP per person tend to have - Answer-higher rates of infant mortality.
Sandy has graduated from college and is devoting her time to searching for a job. She has seen plenty of
openings but has not yet been offered one that best suits her tastes and skills. Sandy is - Answer-
frictionally unemployed. Frictional unemployment can exist even in the long run.
Answers
Law of demand - Answer-when price rises quantity demanded falls
Demand curve - Answer-a graph of the relationship between the price of a good and the quantity
demanded.
Causes of the decline in the U.S. men's labor-force participation rate over the past several decade -
Answer-1. Young men now stay in school longer than their fathers and grandfathers did.
2. Older men now retire earlier and live longer.
3. More fathers now stay at home to raise their children.
In the national income accounts, depreciation is called - Answer-consumption of fixed capital
Which of the following is an example of an efficiency wage? - Answer-An above-equilibrium wage
offered by a firm to attract a more talented pool of job applicants
, Michel a U.S. citizen, travels to Jamaica and buys a newly manufactured motorcycle made there. His
purchase is included in - Answer-Jamaica's GDP, but it is not included in U.S. GDP.
Which of the following is an explanation for the existence of frictional unemployment? - Answer-Job
search
Labor unions - Answer-are similar to cartels.
GDP and GNP are identical when - Answer-all domestic production is by domestically owned producers
and no foreign production is carried out by domestic producers.
Esmeralda is taking a three month leave from work to travel across Europe. The Bureau of Labor
Statistics counts Esmeralda as - Answer-Employed and in the labor force.
Suppose that the adult population in the country of Atlantis is 140 million. If 90 million people are
employed and 10 million are unemployed, then - Answer-million are not in the labor force.
A newspaper article informs you that most businesses increased production in the last quarter but also
sold from their inventories during the last quarter. Based on this information GDP likely - Answer-
increased.
U.S. GDP and U.S. GNP are related as follows: - Answer-???
Countries with low GDP per person tend to have - Answer-higher rates of infant mortality.
Sandy has graduated from college and is devoting her time to searching for a job. She has seen plenty of
openings but has not yet been offered one that best suits her tastes and skills. Sandy is - Answer-
frictionally unemployed. Frictional unemployment can exist even in the long run.
