Question

8. Which of the following is included in GDP in the current year? Bob repairs his fence himself instead of paying a laborer $400 to do the job a. b. Tim Buys $20,000 of Apple Stock. Rebecca breaks her leg skiing and pays a $8000 hospital bill. d. c. Lisa buys a used car for $7000 All of the above are included in GDP e. 9. If part of the labor force is unemployed, the foregone goods and services are a. lost forever re placed by an equal amount of imports placed by unemployment insurance lost until the unemployed find jobs. c. re d. If the CPI for year 2016 is 165 with year 2000 as the base year, how should you interpret this? a. 10. The price of a basket defined in 2000 is 165. The price of a newly defined basket in 2016 is 100 The price of a basket defined in 2016 is 100. The same basket costs 165 in 2000 The price of a basket defined in 2000 is 100. The price of a newly defined basket in 2016 is 165 The price of a basket defined in 2000 is 100. The same basket costs 165 in 2016 b. c. d. 11. In the table below, the unemployment rate is Category Number (millions) Discouraged workers Unemployed workers Employed workers Population 20 100 800 1,200 a. 11 percent. b. 10 percent. c. 6 percent d. 13 percent. e. 15 percent.

Answer 1

Ans. 8. b. Tim buys $20,000 of Apple stock

It is included in the value of output as a change in stock

Ans.9. a. lost forever

If the part of labor force unemployed, the foregone goods and services are lost forever because of productivity lost in the economy at that time period.

Ans. 10. d. The price of a basket defined in 2000 is 100. The same basket cost 165 in 2016

if a particular basket of goods cost X amount in the current period then it will check by what cost of the same basket in the base year.

Ans. 11. a. 11 percent

the unemployment rate= unemployed workers/labor force X 100

= unemployed workers/ ( unemployed workers+ employed workers) X 100

= 100/ ( 100+800) X 100

= 100/900 X 100

= 11.11 percent or 11 percent ( approximate)