What does a rise in per capita GDP indicate?
A. increased productivity
B. better trade deals
C. more bank loans
D. increased population
The correct answer is A. increased productivity.
A rise in per capita GDP indicates an increase in the average income and output per person in a country. This typically happens when there is an increase in productivity, meaning that the economy is producing more goods and services per unit of labor and resources. It does not necessarily indicate better trade deals, more bank loans, or increased population.
Mr. Lee received a raise at a job this year, but he finds that he has less money to spend each month even though his spending habits are the same. What is the most likely reason for this situation?
A. The supply of goods and services has risen.
B. Unemployment has dropped across the country.
C. Mr. Lee is not tracking his finances.
D. Inflation was greater than Mr. Lee's raise.
The most likely reason for Mr. Lee's situation is D. Inflation was greater than Mr. Lee's raise.
Inflation refers to the general increase in prices of goods and services over time. If inflation outpaces an individual's raise or increase in income, it means that the purchasing power of their money has decreased. Even if Mr. Lee received a raise, if the prices of the goods and services he regularly purchases have increased more, then he would have less money to spend each month. This can result in a decrease in the real income or the amount of goods and services an individual can afford to buy, even if their nominal income has increased.
Which of these are factors in determining whether a person is counted in the unemployment rate? Select the two correct answers.
A.whether the person is actively looking for a job
B.whether the person has been employed for five or more years
C. whether the person has the skills needed to find a job
D. whether the person is willing and able to work
E. whether the person is over 21 years of age
The two correct factors in determining whether a person is counted in the unemployment rate are:
A. Whether the person is actively looking for a job - This refers to individuals who are actively seeking employment and are available to start working if they find a job opportunity.
D. Whether the person is willing and able to work - Unemployment rate measures individuals who are willing to work and are available for work but are unable to find suitable employment.
New technology has made most of the jobs workers do at a particular factory obsolete, and they are laid off. Which type of unemployment are they experiencing?
A. structural
B. casual
C. frictional
D. cyclical
The correct answer is A. structural unemployment.
Structural unemployment occurs when technological advancements or changes in the structure of an industry render certain jobs obsolete. In this case, the new technology has made most of the jobs at the factory obsolete, leading to the layoff of workers. Structural unemployment reflects a mismatch between the skills and qualifications of workers and the demand in the labor market, often resulting in long-term unemployment.
Which type of investment are stocks?
A. lending
B. ownership
C. cash equivalent
D. interest
The correct answer is B. ownership.
Stocks represent ownership in a company. When individuals buy shares of stock, they become partial owners of that company. This ownership entitles them to certain rights, such as voting on corporate matters and receiving dividends. Stocks are considered an ownership investment, as opposed to lending, which would involve bonds or loans, or cash equivalents which are short-term, highly liquid investments. Stocks do not typically earn interest like fixed-income investments.