Question

1) Compared to several decades ago, the U.S. economy now has _______________.

Select the two correct answers below.

Select all that apply:

a) near zero percent unemployment

b) better-educated workers

c) greater employment opportunities for individuals

d) workers with access to better technologies

2) Economists typically calculate a ___________ by taking the CPI and excluding volatile economic variables. In this way, economists have a better sense of the underlying trends in prices that affect the cost of living.

Select the correct answer below:

a) core index

b) core inflation index

c) price inflation index

d) none of the above

3) The definition of property includes physical property as well as the right to your _____________.

Select the two correct answers below.

Select all that apply:

a) training

b) independence

c) religion

d) experience

4) If the government adjusts minimum wage for inflation only infrequently, minimum wage workers are losing ___________ from their nominal wages,

Select the correct answer below:

a) nominal income

b) productivity

c) purchasing power

d) taxes

5) A(n) ________ is a business cycle contraction which results in a general slowdown in economic activity.

Select the correct answer below:

a) depression

b) recession

c) financial crisis

d) economic slump

Answer 1

1) US economy is now having better education and technology to use. This has resulted in greater productivity of workers. B and D

2) It is core inflation index which records inflation for goods and services but avoids food inflation and oil price inflation. B

4) Indexation of nominal income from inflation is necessary for prevention of purchasing power from falling in the event of rising inflation rate. When nominal income is not indexed, purchasing power may fall. C

5) Its recession because it slows the economic activity down and causes the economy to shrink. B