ECO 285 – Macroeconomics
Dr. D. Foster – Spring 2015
T/F Quiz Component for Homework #3
1. The largest component of GDP is government spending.
2. Non-market outputs are sometimes included in GDP, for example the value of goods and
services provided by non-profit organizations free of charge.
3. The value of real GDP rose at a 2.6% annual rate in the 4 th quarter of 2014, although that is
based on incomplete data.
4. According to some measures of GDP, India ranks in the top 5 countries.
5. As mentioned in the essay by Doug French, it was Murray Rothbard who created a system of
national accounts that we use today to measure our economic health and well-being.
6. As noted on the Mises Wiki, when banks decide to offer free checking, it counts as zero value in
the measured GDP.
7. From the chart showing “Real Gross Domestic Private Product, 2000-2012,” we can see that the
top three years over this span were 2012, 2011 and 2007.
8. As pointed out by Batemarco, because government output is generally not sold on the market,
we cannot really accurately measure its value.
9. Beachy and Zorn argue that we should be quite suspicious of GDP data by noting that the huge
oil spill in the Gulf of Mexico may well translate into a higher GDP for the U.S.
10. The National Welfare Index (NWI) seeks to generate a better measure of our welfare than does
GDP by subtracting out both environmental damage and the value of voluntary work.
11. Mark Skousen notes that his alternative measure of economic production – Gross Output – is
now quite similar to a new measure coming out of the Bureau of Economic Analysis called Gross
Domestic Expenditures.
12. The monthly unemployment data is compiled by the Board of Labor Standards.
13. Garrett is 16 years old, and he has no job from which he receives any pay or profit. However,
Garrett does help with the regular chores around his parents’ farm and spends about 20 hours each
week doing so. Garrett is counted as employed.
14. Unemployment that is temporary and due to ups and downs in the business cycle is referred to
as structural unemployment.
15. According to the chart, the unemployment rate is at its lowest point in the last two years.
16. As shown by the table (Summary table A), as of December 2014 most people that were
unemployed were so for 15 to 26 weeks.
17. The civilian labor force rate was around 66% from 2004 to 2009.
18. To more accurately capture the problem of unemployment, the BLS actually calculates ten
different measures, from U-1 to U-10.
19. Man, was there a lot of reading this week, but at least it was interesting.
20. Stossel argues that our current health care system is flawed in that it is very much like buying
automobile insurance to cover the cost of gasoline and oil changes.
Name:
ECO 285 - Macroeconomics
Homework #3
Please use the following to record your answers and submit it with your homework:
Quiz #3
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Stossel chapter 4 summary:
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Stossel chapter 5 summary:
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Stossel reaction essay:
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