Suppose Xenia has a GDP of $30,000,000 and a population of 500,000 with a labor force of 400,000. Further suppose that 50,000 people are not working, of which 40,000 are actively seeking employment and 10,000 have given up. Further suppose that the frictional rate of unemployment is 2% and the structural rate of UE is equal to 1%. Please use this info to answer the next six questions. 19. The UE rate in Xenia is 20. The cyclical rate of unemployment is 21. The number of people who are structurally unemployed is 22. The economic cost of UE is 23. Adding the market value of all goods and services produced in an economy in a year would result in: A. The calculation of GDP for that year B. The calculation of NDP for that year C. An amount less than GDP for that year D. An amount greater than GDP for that year 24. Which of the following is the best example of investment as defined by economists? A. A small business owner purchases new machinery for their business B. A small business owner purchase U.S. government savings bonds C. An individual purchases stock on the New York Stock Exchange D. An individual deposits money into a long-term retirement account

Suppose Xenia has a GDP of $30,000,000 and a population of 500,000 with a labor force of 400,000. Further suppose that 50,000 people are not working, of which 40,000 are actively seeking employment and 10,000 have given up. Further suppose that the frictional rate of unemployment is 2% and the structural rate of UE is equal to 1%. Please use this info to answer the next six questions. 19. The UE rate in Xenia is 20. The cyclical rate of unemployment is 21. The number of people who are structurally unemployed is 22. The economic cost of UE is 23. Adding the market value of all goods and services produced in an economy in a year would result in: A. The calculation of GDP for that year B. The calculation of NDP for that year C. An amount less than GDP for that year D. An amount greater than GDP for that year 24. Which of the following is the best example of investment as defined by economists? A. A small business owner purchases new machinery for their business B. A small business owner purchase U.S. government savings bonds C. An individual purchases stock on the New York Stock Exchange D. An individual deposits money into a long-term retirement account

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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