Question 1

The basic data source to track the number of unemployed comes from a calculation of applications for new unemployment benefits.

Accepted Answer

A) True 
 B)False

Question 2

The production function has ____ on the horizontal axis.

Accepted Answer

A)  real GDP 
B)  capital stock 
C)  technology 
D)  labor input 
A)  real GDP 
B)  capital stock 
C)  technology 
D)  labor input

Question 3

Workers are generally in a better position to protect themselves from inflation in comparison to retired persons because workers' incomes

Accepted Answer

A)  are more likely to be fixed. 
B)  are more likely to be variable. 
C)  always rise during inflation. 
D)  are guaranteed by the federal government. 
A)  are more likely to be fixed. 
B)  are more likely to be variable. 
C)  always rise during inflation. 
D)  are guaranteed by the federal government.

Question 4

An economy could produce above its potential GDP for a short period of time by

Accepted Answer

A)  reducing the size of the labor force. 
B)  increasing the price of final goods and services. 
C)  adding extra shifts of work,such as overtime or night shifts. 
D)  increasing the money supply. 
A)  reducing the size of the labor force. 
B)  increasing the price of final goods and services. 
C)  adding extra shifts of work,such as overtime or night shifts. 
D)  increasing the money supply.

Question 5

Prior to the Great Recession of 2007-2009,labor input in the U.S.was growing at nearly:

Accepted Answer

A)  1 percent per year 
B)  2 percent per year. 
C)  2.5 percent per year. 
D)  3 percent per year. 
A)  1 percent per year 
B)  2 percent per year. 
C)  2.5 percent per year. 
D)  3 percent per year.

Question 6

The most important determinant of the decisions to lend or borrow is the real rate of interest.

Accepted Answer

A) True 
 B)False

Question 7

According to the U.S.Bureau of Labor Statistics,the term "employed" includes all full time workers and part-time workers.

Accepted Answer

A) True 
 B)False

Question 8

If economic output is increased by increasing the number of people working in the economy,then

Accepted Answer

A)  both GDP per capita and labor productivity will increase. 
B)  both GDP per capita and labor productivity will decrease. 
C)  GDP per capita will increase. 
D)  Labor productivity will increase. 
A)  both GDP per capita and labor productivity will increase. 
B)  both GDP per capita and labor productivity will decrease. 
C)  GDP per capita will increase. 
D)  Labor productivity will increase.

Question 9

Which of the following groups would most likely be harmed by inflation?

Accepted Answer

A)  workers 
B)  borrowers 
C)  debtors 
D)  retirees 
A)  workers 
B)  borrowers 
C)  debtors 
D)  retirees

Question 10

The production function shows the volume of output that can be produced from given inputs.

Accepted Answer

A) True 
 B)False

Question 11

The principal benefit of unemployment insurance is that it

Accepted Answer

A)  reduces the occurrence of unemployment in the economy. 
B)  replaces income lost due to unemployment. 
C)  increases labor force participation. 
D)  helps reduce the period of unemployment. 
A)  reduces the occurrence of unemployment in the economy. 
B)  replaces income lost due to unemployment. 
C)  increases labor force participation. 
D)  helps reduce the period of unemployment.

Question 12

Low inflation rates and high inflation rates impose different costs on society.

Accepted Answer

A) True 
 B)False

Question 13

Increasing economic growth may be beneficial because

Accepted Answer

A)  mass poverty is a serious problem in the United States. 
B)  most Americans do not have the basic goods and services necessary for a decent life. 
C)  the price level falls only if the economy is growing. 
D)  most of the world is still below the poverty level of income. 
A)  mass poverty is a serious problem in the United States. 
B)  most Americans do not have the basic goods and services necessary for a decent life. 
C)  the price level falls only if the economy is growing. 
D)  most of the world is still below the poverty level of income.

Question 14

Distinguish between real rate of interest and nominal rate of interest.

Accepted Answer

The real rate of interest is the percent

Question 15

One of the social benefits of frictional unemployment is that

Accepted Answer

A)  workers get time off from work. 
B)  economic growth is limited. 
C)  workers move from less to more valuable firms. 
D)  wage rates decrease. 
A)  workers get time off from work. 
B)  economic growth is limited. 
C)  workers move from less to more valuable firms. 
D)  wage rates decrease.

Question 16

Real GDP is the product of the

Accepted Answer

A)  total hours of work times the labor force. 
B)  labor force times the output per hour. 
C)  nation's capital stock times the output per hour. 
D)  total hours of work times the output per hour. 
A)  total hours of work times the labor force. 
B)  labor force times the output per hour. 
C)  nation's capital stock times the output per hour. 
D)  total hours of work times the output per hour.

Question 17

Workers in country A receive an increase in wages of 10 percent at the same time the inflation rate in country A is 8 percent.Workers in country B receive an increase in wages of 3 percent and the inflation rate in country B is 1 percent.In which country are workers better off?

Accepted Answer

A)  Country A because their real wages rise by 18 percent. 
B)  Country A because their real wages rise by 10 percent. 
C)  Country B because the inflation rate is lower. 
D)  Neither country because the increase in real wages is the same. 
A)  Country A because their real wages rise by 18 percent. 
B)  Country A because their real wages rise by 10 percent. 
C)  Country B because the inflation rate is lower. 
D)  Neither country because the increase in real wages is the same.

Question 18

One basic way to boost the nation's growth rate is to

Accepted Answer

A)  increase wages paid to labor. 
B)  slow the rate of technical progress. 
C)  reduce the population growth rate. 
D)  accumulate more capital 
A)  increase wages paid to labor. 
B)  slow the rate of technical progress. 
C)  reduce the population growth rate. 
D)  accumulate more capital

Question 19

In 2009,which of the following countries had the lowest average unemployment rates?

Accepted Answer

A)  Canada 
B)  France 
C)  Italy 
D)  Germany 
E)  United States 
A)  Canada 
B)  France 
C)  Italy 
D)  Germany 
E)  United States

Question 20

Given the labor force,either more capital or better technology will shift the production function downward.

Accepted Answer

A) True 
 B)False

The basic data source to track the number of unemployed comes from a calculation of applications for new unemployment benefits.

The production function has ____ on the horizontal axis.

Workers are generally in a better position to protect themselves from inflation in comparison to retired persons because workers' incomes

An economy could produce above its potential GDP for a short period of time by

Prior to the Great Recession of 2007-2009,labor input in the U.S.was growing at nearly:

The most important determinant of the decisions to lend or borrow is the real rate of interest.

According to the U.S.Bureau of Labor Statistics,the term "employed" includes all full time workers and part-time workers.

If economic output is increased by increasing the number of people working in the economy,then

Which of the following groups would most likely be harmed by inflation?

The production function shows the volume of output that can be produced from given inputs.

The principal benefit of unemployment insurance is that it

Low inflation rates and high inflation rates impose different costs on society.

Increasing economic growth may be beneficial because

Distinguish between real rate of interest and nominal rate of interest.

One of the social benefits of frictional unemployment is that

Real GDP is the product of the

Workers in country A receive an increase in wages of 10 percent at the same time the inflation rate in country A is 8 percent.Workers in country B receive an increase in wages of 3 percent and the inflation rate in country B is 1 percent.In which country are workers better off?

One basic way to boost the nation's growth rate is to

In 2009,which of the following countries had the lowest average unemployment rates?

Given the labor force,either more capital or better technology will shift the production function downward.

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand An Initial Look

An Introduction To Macroeconomics

Economic Growth Theory And Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Bringing In The Supply Side Unemployment and Inflation

Managing Aggregate Demand Fiscal Policy

Money and The Banking System

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

Filters

Exam 6: The Goals Of Macroeconomic Policy

The basic data source to track the number of unemployed comes from a calculation of applications for new unemployment benefits.

The production function has ____ on the horizontal axis.

Workers are generally in a better position to protect themselves from inflation in comparison to retired persons because workers' incomes

An economy could produce above its potential GDP for a short period of time by

Prior to the Great Recession of 2007-2009,labor input in the U.S.was growing at nearly:

The most important determinant of the decisions to lend or borrow is the real rate of interest.

According to the U.S.Bureau of Labor Statistics,the term "employed" includes all full time workers and part-time workers.

If economic output is increased by increasing the number of people working in the economy,then

Which of the following groups would most likely be harmed by inflation?

The production function shows the volume of output that can be produced from given inputs.

The principal benefit of unemployment insurance is that it

Low inflation rates and high inflation rates impose different costs on society.

Increasing economic growth may be beneficial because

Distinguish between real rate of interest and nominal rate of interest.

One of the social benefits of frictional unemployment is that

Real GDP is the product of the

Workers in country A receive an increase in wages of 10 percent at the same time the inflation rate in country A is 8 percent.Workers in country B receive an increase in wages of 3 percent and the inflation rate in country B is 1 percent.In which country are workers better off?

One basic way to boost the nation's growth rate is to

In 2009,which of the following countries had the lowest average unemployment rates?

Given the labor force,either more capital or better technology will shift the production function downward.

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand An Initial Look

An Introduction To Macroeconomics

Economic Growth Theory And Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Bringing In The Supply Side Unemployment and Inflation

Managing Aggregate Demand Fiscal Policy

Money and The Banking System

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

Filters