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What are the two critical measures of a nation’s economic health?

Question 1 (11 points)


What are the two critical measures of a nation’s economic health?

Question 1 options:

income and spending
sales and taxes
wages and salaries
production and income

Question 2 (11 points)


Depreciation is

Question 2 options:

what is left over from total new private investment after use for a year.
the total amount of private investment purchases, whether new or previously-existing.
the total amount of new private investment purchases.
the wear and tear on private investment.

Question 3 (11 points)


Social security payments are examples of

Question 3 options:

nondurable goods
durable goods
transfer payments

Question 4 (11 points)


Transfer payments are excluded from government purchases in GDP accounting because

Question 4 options:

they are difficult to measure.
they are a reward to individuals who have been productive their entire lives
they are already included as part of investment.
nothing is being produced in return for the payment.

Question 5 (11 points)


Economists define the labor force to include

Question 5 options:

only people who are working full time.
people who are working
people who are not working but are actively looking for a job, and people who are working.
all individuals of work age, regardless of whether they are working or looking for a job.

Question 6 (11 points)


Unemployment that naturally occurs during the normal workings of an economy as people change jobs and move across the country is called

Question 6 options:

natural unemployment.
frictional unemployment
structural unemployment
cyclical unemployment.

Question 7 (11 points)


The economy needs some unemployment to operate efficiently, because without it

Question 7 options:

firms will find it difficult to recruit workers, leading to increased wages and prices.
firms will find it difficult to recruit workers, leading to reduced wages and prices.
workers will find it difficult to find a job, leading to increased wages and prices.
workers will find it difficult to find a job, leading to reduced wages and prices.

Question 8 (11 points)


Economic expansions might lead to inflation because an expansion leads to

Question 8 options:

a decrease in the unemployment rate, which increases wages.
an increase in the unemployment rate, which increases wages.
a decrease in the unemployment rate, which decreases wages.
an increase in the unemployment rate, which decreases wages.

Question 9 (12 points)


The value of a dollar

Question 9 options:

is its purchasing power.
remains constant over time.
is its face value.
is set by the government.




Question 1 (10 points)


Technological progress occurs when the economy gets more output

Question 1 options:

without any more capital or labor.
by using more capital per worker.
by using more capital but not more workers.
by using more labor but not more capital.

Question 2 (10 points)


An increase in the capital stock will

Question 2 options:

shift the production function downward.
shift the production function upward.
flatten the production function.
steepen the production function.

Question 3 (10 points)


Increases in net investment generally result in

Question 3 options:

lower levels of capital stock and lower levels of depreciation
lower levels of capital stock and higher levels of depreciation.
higher levels of capital stock and higher levels of depreciation
higher levels of capital stock and lower levels of depreciation

Question 4 (10 points)


Nations that borrow from abroad to support current consumption

Question 4 options:

will always be better off in the future.
will always sacrifice future consumption.
sacrifice future consumption only if the investments are not profitable.
will always sacrifice current consumption.

Question 5 (10 points)


Trade deficits always lead to future decreases in consumption if the trade deficits

Question 5 options:

support current investment.
support current consumption.
support either current investment or current consumption.
require borrowing from abroad.

Question 6 (10 points)


To determine the change in the capital stock, the level of new investment must be adjusted for depreciation because some new investment

Question 6 options:

is not used immediately.
merely replaces existing, but worn out, capital.
replaces existing workers.
is more efficient than existing capital.

Question 7 (10 points)


According to classical economists

Question 7 options:

demand creates its own supply.
wages and prices are inflexible downward.
the market system ensures full employment.
Say’s law is invalid

Question 8 (10 points)


Other things being equal, a decrease in an economy’s exports will

Question 8 options:

increase domestic aggregate expenditures and the equilibrium level of output
decrease domestic aggregate expenditures and the equilibrium level of output
have no impact on domestic aggregate expenditures or output
change autonomous consumption

Question 9 (10 points)


Potential output will decrease if

Question 9 options:

there is an increase in the price level
there is a decrease in the price level
there is technological change that increases labor productivity
workers choose shorter work schedules in order to enjoy more leisure time

Question 10 (10 points)


A wage rate above what is necessary to attract a sufficient number of workers is known as a(n)

Question 10 options:

inefficient wage
market-clearing wage
efficiency wage
minimum wage



Question 1 (10 points)


Business cycles are

Question 1 options:

movements in stock prices.
the transfer of funds between firms
used to describe fluctuations in GDP.
a description of the time required to bring a new product to market.

Question 2 (10 points)


Contractionary policies are policies designed to

Question 2 options:

increase the level of real GDP.
reduce the level of real GDP
increase government spending
increase the federal deficit

Question 3 (10 points)


Tax cuts aimed at businesses can stimulate

Question 3 options:

social spending.
private consumption
investment spending.
net exports.

Question 4 (10 points)


Recession refers to a period when the economy

Question 4 options:

declines for at least two consecutive quarters.
suffers due to political instability.
grows rapidly.
experiences a rise in living standards.

Question 5 (10 points)


A government deficit occurs when government expenditures are greater than the revenue collected in a given year. A government deficit can be defended against a balanced budget policy because:

Question 5 options:

private investment decreases
it has no immediate effect on the economy.
the government can stimulate the economy when income is unusually low.
the public does not voice concern about the national debt

Question 6 (10 points)


In the long run

Question 6 options:

price and output levels are mutually dependent.
the level of output depends on the price level.
the level of output is independent of the price level.
the price level depends on the level of output.

Question 7 (10 points)


What are the tools of fiscal policy that governments can use to stabilize an economy?

Question 7 options:

government spending and technology improvements
government spending and taxation
taxation and controlling imports
taxation and controlling exports

Question 8 (10 points)


An increased federal budget deficit resulting from a recession can actually help stabilize an economy through transfer payments because an increased budget deficit will ________ transfer payments and thereby ________ the income of some households.

Question 8 options:

increase; increase
increase; decrease
decrease; increase
decrease; decrease

Question 9 (10 points)


Using expansionary policies to combat a recession would

Question 9 options:

increase a budget deficit
increase a budget surplus
decrease discretionary spending
increase federal revenue

Question 10 (10 points)


During a recession, tax revenues ________ while government transfer payments ________, thereby mitigating part of the adverse effects of a recession and stabilizing the economy.

Question 10 options:

fall; increase
fall; decrease
rise; increase
rise; decrease








Question 1 (5 points)


People spend a considerable part of their working day _________ with others. One of the findings of the early work activity studies (Burns, 1954, 1957; Horn and Lupton, 1965), echoed more recently by Oshagbemi (1988), is that managers and others consistently underestimate the amount of time they spend …

Question 1 options:

hiding from
talking about

Question 2 (5 points)


_________ is a core competence. People who cannot _______ cannot relate. Nichols and Stevens (1957) estimate that 45 per cent of all communication time is spent __________ compared with 30 per cent speaking, 16 per cent reading and 9 per cent writing. Despite the fact that people spend so much time __________, few ever receive any formal training on how to __________ effectively.

Question 2 options:

listening, listening

Question 3 (5 points)


__________ __________is the kind of listening people engage in for pleasure. It might occur when listening to poetry or children playing. It involves the listener seeking out signals or messages that she wants to hear.

Question 3 options:

Corrobative listening
Demonstrative listening
Appreciative listening
Explanative listening

Question 4 (5 points)


Being aware of one’s own _________ _______ can help a person listen more effectively.

Question 4 options:

personal filters
great ideas
careful observations
sound beliefs

Question 5 (5 points)


The _______ __________ offers a set of pointers to the kinds of behaviour that communicate a sense of presence to the speaker. These need not always be adhered to strictly. They are not rules, rather they are reminders of the importance of non-verbal behaviour. The listener?s body is a vehicle for communication and she should constantly be aware of all the cues and messages she is sending.

Question 5 options:

next chapter
holy books
SOLER mnemonic
summer memories

Question 6 (5 points)


_____________ _____________ can also be used to regulate the communicative flow between people. The importance of a person?s regulatory skills is reflected by the evaluative statements we often make about others, such as, “talking to him is like talking to a brick wall”, “you can’t get a word in edgeways” or, “she keeps butting in”.

Question 6 options:

Non-verbal behaviours
Meditative insights
Relaxed approaches
Open awareness

Question 7 (5 points)


One of the most common definitions of the ____________ is “a conversation with a purpose” (Bingham, Moore and Bruce 1942). This is a wide ranging, umbrella-like definition, which encompasses many kinds of purposeful conversations ranging from disciplinary interviews to counselling sessions, and possibly even including negotiations.

Question 7 options:


Question 8 (5 points)


Psychological factors, such as attitudes, motives and expectations, can also be important sources of __________. The motivation of the interviewer and respondent to engage in the interview might be different. For example, in an appraisal interview the interviewer might be motivated to help the appraisee develop and realize his full potential, and, therefore, might regard seeking accurate information about the appraisee’s strengths and weaknesses as an important objective of the interview.

Question 8 options:


Question 9 (5 points)


__________ and motivation can be closely linked. What happens in the early stage of the interview can have important implications for the interviewee?s motivation, which in turn will influence the quantity and quality of information that will be available to the interviewer. Where motivation is low, the respondent may disrupt the interview, may refuse to answer any questions or may give false answers deliberately, thus defeating the interviewer?s purpose.

Question 9 options:


Question 10 (5 points)


The way in which the interviewer formulates her questions can have an enormous impact on the quantity and quality of information the respondent will disclose. Three aspects of question formulation will be considered here: (_______________), the extent to which the question signals an expected or preferred response (___________), and the degree of freedom given to the respondent to answer (________________).

Question 10 options:

(choice of words),(leading questions), (open versus closed questions).
(choice of methods),(fake questions), (creative questions).
(insightfullness),(creative questions), (taxonomic questions).
(choice of ideas),(follow-up questions), (inventive versus known questions).

Question 11 (5 points)


Introductions that use _________ ____________, pose intriguing problems, include controversial statements or simply offer a concise statement of the purpose of the problem in terms that will appeal to the audience, increase the likelihood that the audience will be motivated to attend to the presenter’s message.

Question 11 options:

sarcastic sayings
rhetorical questions
Factual statements
mystic notions

Question 12 (5 points)


_______ ____ serve three main purposes. They introduce variety and capture people’s attention and interest. They can also aid understanding and assist with recall.

Question 12 options:

Good jokes
Moving anecdotes
Emotional appeals
Visual aids

Question 13 (5 points)


_____________ _____________ theory states that when individuals are subjected to events that are uncontrollable (that is, when the probability of an outcome is the same, irrespective of how they respond) they will develop expectations of non-contingency between response and outcome.

Question 13 options:

Assertive trust
Contingency aspect
Control Expectation
Learned helplessness

Question 14 (5 points)


_______ is a key skill that builds upon the basic skills discussed elsewhere in this book. It involves letting clients know that they have been understood from within their frame of reference, that the helper can see the world as they see it while remaining separate from it.

Question 14 options:


Question 15 (5 points)


Unless the client thinks about his problem in __________, operational terms it can be difficult to develop an effective problem management strategy.

Question 15 options:

psychological terms
a selfless way

Question 16 (5 points)


The _________ ________ is a model developed by Joseph Luft and Harry Ingham, two American psychologists, which can be used to illustrate the process of giving feedback.

Question 16 options:

Feedback Loop
Mendali Grid
Psychological Contract
Johari window

Question 17 (5 points)


Helpful feedback is ( _____________). In many circumstances people seek feedback. However, although they want to know, they may be fearful of finding out.

Question 17 options:

(solicited rather than imposed)
(mysterious and causes questioning)
(given so as not to be noticed)
(sandwiched between criticism)

Question 18 (5 points)


The __________ approach fits well with Egan?s integrative approach to problem management. When the client has identified and clarified the problem in concrete terms and determined what a more desirable state of affairs would look like he can specify, again in concrete terms, one goal or a related set of realistic goals. This provides the framework within which he can undertake a __________ analysis. The client can be encouraged to list all the restraining forces that are keeping him from his goal and all the driving forces that are helping him reach his goal. At this stage he should be encouraged to list as many as possible and to make no attempt to list them in order of importance.

Question 18 options:

Blak-Mouton grid
Egan Checklist
Goal-Setting grid

Question 19 (5 points)


__________ is a key skill that builds upon the basic skills discussed elsewhere in this book. It involves letting clients know that they have been understood from within their frame of reference, that the helper can see the world as they see it while remaining separate from it.

Question 19 options:


Question 20 (5 points)


Blake and Mouton argue that _____ can help clients change their behaviour in a number of ways.

Question 20 options:


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