C. output per person
D. output per employed worker
Ans: D
AACSB: Reflective thinking
Blooms: Knowledge
Difficulty: Easy
LO: 1.1 What are the broad issues that macroeconomists study and the types of data they use and interpret?
Topic: The major macroeconomic issues
15. The country of Northland produced $1000 billion of output in one year. The population of Northland was 50 million, of whom 30 million were employed. What was average labour productivity in Northland?
A. $20
B. $33
C. $20 000
D. $33 333
Ans: D
AACSB: Knowledge application
Blooms: Application
Difficulty: Medium
LO: 1.1 What are the broad issues that macroeconomists study and the types of data they use and interpret?
Topic: The major macroeconomic issues
16. The value of output was $1000 billion in Northland and $2000 billion in Southland. The population of Northland was 50 million and the population of Southland was 120 million. There were 30 million employed workers in Northland and 75 million employed workers in Southland. Average labour productivity was higher in _________ and the standard of living was _______.
A. Northland; the same in both countries
B. Northland; higher in Northland
C. Southland; the same in both countries
D. Southland; higher in Southland
Ans: B
AACSB: Knowledge application
Blooms: Application
Difficulty: Hard
LO: 1.1 What are the broad issues that macroeconomists study and the types of data they use and interpret?
Topic: The major macroeconomic issues
17. Average consumption in an economy is best measured by _____, while average productivity in an economy is best measured by _____.
A. total output; output per worker
B. output per worker; total output
C. output per person; output per worker
D. output per worker; output per person
Ans: C
AACSB: Reflective thinking
Blooms: Knowledge
Difficulty: Easy
LO: 1.1 What are the broad issues that macroeconomists study and the types of data they use and interpret?
Topic: The major macroeconomic issues
18. In Econland, population and average labour productivity are constant. If a larger proportion of the population enters retirement, then total output will _____ and output per person will ______.
A. increase; increase
B. decrease; decrease
C. remain constant; remain constant
D. decrease; remain constant
Ans: B
AACSB: Reflective thinking
Blooms: Application
Difficulty: Medium
LO: 1.1 What are the broad issues that macroeconomists study and the types of data they use and interpret?
Topic: The major macroeconomic issues
19. If average labour productivity increases while population and the number of employed workers remain constant, then total output:
A. increases
B. decreases
C. remains constant
D. may increase or decrease
Ans: A
AACSB: Reflective thinking
Blooms: Application
Difficulty: Medium
LO: 1.1 What are the broad issues that macroeconomists study and the types of data they use and interpret?
Topic: The major macroeconomic issues
20. In Econland, total output is $6 billion, population equals 250 000 people, and, of these, 200 000 are employed workers. Output per person in Econland equals _______ and average labour productivity equals ______.
A. $30 000; $24 000
B. $24 000; $30 000
C. $30 000; $30 000
D. $24 000; $24 000
Ans: B
AACSB: Knowledge application
Blooms: Application
Difficulty: Medium
LO: 1.1 What are the broad issues that macroeconomists study and the types of data they use and interpret?
Topic: The major macroeconomic issues
21. If average labour productivity increases, then, the same number of employed workers will always produce:
A. more total output
B. more output per person
C. less total output
D. less output per person
Ans: A
AACSB: Reflective thinking
Blooms: Comprehension
Difficulty: Medium
LO: 1.1 What are the broad issues that macroeconomists study and the types of data they use and interpret?
Topic: The major macroeconomic issues
22. A particularly strong expansion is called:
A. output excess
B. boom
C. growth recession
D. bonanza
Ans: B
AACSB: Reflective thinking
Blooms: Knowledge
Difficulty: Easy
LO: 1.1 What are the broad issues that macroeconomists study and the types of data they use and interpret?
Topic: The major macroeconomic issues
23. When jobs are hard to find, profits are low, few wage increases are given, and many companies go out of business, the economy is in: