Question 1

The labor supply curve is positively sloped because:

Accepted Answer

A)  more people are willing to work at low wages than at high wages. 
B)  more people are willing to work at high wages than at low wages. 
C)  employers are willing to hire more people at low wages. 
D)  employers are willing to hire more people at high wages. 
A)  more people are willing to work at low wages than at high wages. 
B)  more people are willing to work at high wages than at low wages. 
C)  employers are willing to hire more people at low wages. 
D)  employers are willing to hire more people at high wages. B

Question 2

To be counted as unemployed, one must:

Accepted Answer

A)  have had a job previously. 
B)  be out of work and be actively looking for a job during the past four weeks. 
C)  have had a job before and be actively looking for work. 
D)  be actively looking for a job and have at least a high-school diploma or its equivalent. 
A)  have had a job previously. 
B)  be out of work and be actively looking for a job during the past four weeks. 
C)  have had a job before and be actively looking for work. 
D)  be actively looking for a job and have at least a high-school diploma or its equivalent. B

Question 3

If a country has a working-age population of 200 million, 135 million people with jobs, and 15 million people unemployed and seeking employment, then its unemployment rate is:

Accepted Answer

A)  4%. 
B)  7.5%. 
C)  10%. 
D)  67.5%. 
A)  4%. 
B)  7.5%. 
C)  10%. 
D)  67.5%. C

Question 4

Choose the best answer. A person who has no job but is looking for one is:

Accepted Answer

A)  unemployed. 
B)  a discouraged worker. 
C)  part of the labor force. 
D)  unemployed and part of the labor force. 
A)  unemployed. 
B)  a discouraged worker. 
C)  part of the labor force. 
D)  unemployed and part of the labor force.

Question 5

Use the following to answer questions:  
-(Table: Employment Data) Use Table: Employment Data. The labor force is _____million.

Accepted Answer

A)  33 
B)  32 
C)  31 
D)  22 
A)  33 
B)  32 
C)  31 
D)  22

Question 6

Use the following to answer questions:  
-(Figure: The Minimum Wage) Use Figure: The Minimum Wage. By how much does the quantity of labor demanded fall when the government imposes a binding minimum wage of P3?

Accepted Answer

A)  Q4 - Q1 
B)  Q3 - Q2 
C)  Q2 - Q1 
D)  Q4 - Q2 
A)  Q4 - Q1 
B)  Q3 - Q2 
C)  Q2 - Q1 
D)  Q4 - Q2

Question 7

An example of the frictionally unemployed is a(n):

Accepted Answer

A)  autoworker who is temporarily laid off because of a decline in sales. 
B)  geologist who is permanently laid off from an oil company because of a technological advance. 
C)  worker at a fast-food restaurant who quits work and attends college. 
D)  real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California. 
A)  autoworker who is temporarily laid off because of a decline in sales. 
B)  geologist who is permanently laid off from an oil company because of a technological advance. 
C)  worker at a fast-food restaurant who quits work and attends college. 
D)  real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.

Question 8

Suppose that the nominal rate of interest is 7% and the inflation rate is 3%. The real rate of interest is _____%.

Accepted Answer

A)  3 
B)  4 
C)  10 
D)  7 
A)  3 
B)  4 
C)  10 
D)  7

Question 9

Unemployment rates are usually higher in Europe than they are in the United States because:

Accepted Answer

A)  the minimum wage is higher in the United States than it is in Europe. 
B)  U.S. economic policy is much more effective than is European economic policy. 
C)  there are more unskilled, uneducated workers in Europe than there are in the United States. 
D)  unemployment benefits are more generous in Europe than they are in the United States. 
A)  the minimum wage is higher in the United States than it is in Europe. 
B)  U.S. economic policy is much more effective than is European economic policy. 
C)  there are more unskilled, uneducated workers in Europe than there are in the United States. 
D)  unemployment benefits are more generous in Europe than they are in the United States.

Question 10

If the price level increases, real wages will:

Accepted Answer

A)  increase. 
B)  decrease. 
C)  remain constant. 
D)  fluctuate randomly. 
A)  increase. 
B)  decrease. 
C)  remain constant. 
D)  fluctuate randomly.

Question 11

Since the 1950s, the natural unemployment rate in the United States has:

Accepted Answer

A)  remained relatively constant. 
B)  increased steadily. 
C)  decreased steadily. 
D)  risen and fallen. 
A)  remained relatively constant. 
B)  increased steadily. 
C)  decreased steadily. 
D)  risen and fallen.

Question 12

A person who spends time looking for work is:

Accepted Answer

A)  engaged in job search. 
B)  usually counted as a marginally attached worker. 
C)  counted as out of the labor force. 
D)  usually counted as a discouraged worker. 
A)  engaged in job search. 
B)  usually counted as a marginally attached worker. 
C)  counted as out of the labor force. 
D)  usually counted as a discouraged worker.

Question 13

Use the following to answer questions:  
-(Table: Unemployment and Employment Data) Use Table: Unemployment and Employment Data. The unemployment rate for this economy is _____%.

Accepted Answer

A)  2.9 
B)  4.8 
C)  5 
D)  5.3 
A)  2.9 
B)  4.8 
C)  5 
D)  5.3

Question 14

As the average age of the labor force increased from the end of the 1970s to the end of the 1990s, the natural rate of unemployment:

Accepted Answer

A)  increased. 
B)  decreased. 
C)  was unaffected. 
D)  was unpredictable. 
A)  increased. 
B)  decreased. 
C)  was unaffected. 
D)  was unpredictable.

Question 15

Real interest rates can be positive, zero, or negative, but nominal interest rates can only be zero or positive.

Accepted Answer

A) True 
 B)False

Question 16

Unexpected inflation _____ lenders and _____ borrowers.

Accepted Answer

A)  benefits; hurts 
B)  hurts; benefits 
C)  does not affect; benefits 
D)  benefits; does not affect 
A)  benefits; hurts 
B)  hurts; benefits 
C)  does not affect; benefits 
D)  benefits; does not affect

Question 17

Use the following to answer questions:  
-(Table: Unemployment and Employment Data) Use Table: Unemployment and Employment Data. If marginally attached workers are included in the labor force and in the unemployment rate, the unemployment rate in this economy is _____%.

Accepted Answer

A)  8.4 
B)  7.8 
C)  5 
D)  3 
A)  8.4 
B)  7.8 
C)  5 
D)  3

Question 18

According to historical economic data for the United States from 1949 to 2016, the unemployment rate is MOST likely to rise:

Accepted Answer

A)  whenever the economy grows at a rate below 3.20%. 
B)  only when there is no economic growth. 
C)  only when there is positive economic growth. 
D)  whenever the economy grows at a rate between 4% and 4.8%. 
A)  whenever the economy grows at a rate below 3.20%. 
B)  only when there is no economic growth. 
C)  only when there is positive economic growth. 
D)  whenever the economy grows at a rate between 4% and 4.8%.

Question 19

The labor force is equal to the:

Accepted Answer

A)  sum of the number of those employed and unemployed. 
B)  population minus the number of employed. 
C)  sum of the number of those employed and the underemployed. 
D)  number of people working. 
A)  sum of the number of those employed and unemployed. 
B)  population minus the number of employed. 
C)  sum of the number of those employed and the underemployed. 
D)  number of people working.

Question 20

Unanticipated inflation:

Accepted Answer

A)  helps those on fixed incomes. 
B)  hurts borrowers and helps lenders. 
C)  helps borrowers and hurts lenders. 
D)  causes interest rates to decrease. 
A)  helps those on fixed incomes. 
B)  hurts borrowers and helps lenders. 
C)  helps borrowers and hurts lenders. 
D)  causes interest rates to decrease.

The labor supply curve is positively sloped because:

To be counted as unemployed, one must:

If a country has a working-age population of 200 million, 135 million people with jobs, and 15 million people unemployed and seeking employment, then its unemployment rate is:

Choose the best answer. A person who has no job but is looking for one is:

Use the following to answer questions: -(Table: Employment Data) Use Table: Employment Data. The labor force is _____million.

Use the following to answer questions: -(Figure: The Minimum Wage) Use Figure: The Minimum Wage. By how much does the quantity of labor demanded fall when the government imposes a binding minimum wage of P₃?

An example of the frictionally unemployed is a(n):

Suppose that the nominal rate of interest is 7% and the inflation rate is 3%. The real rate of interest is _____%.

Unemployment rates are usually higher in Europe than they are in the United States because:

If the price level increases, real wages will:

Since the 1950s, the natural unemployment rate in the United States has:

A person who spends time looking for work is:

Use the following to answer questions: -(Table: Unemployment and Employment Data) Use Table: Unemployment and Employment Data. The unemployment rate for this economy is _____%.

As the average age of the labor force increased from the end of the 1970s to the end of the 1990s, the natural rate of unemployment:

Real interest rates can be positive, zero, or negative, but nominal interest rates can only be zero or positive.

Unexpected inflation _ lenders and _ borrowers.

Use the following to answer questions: -(Table: Unemployment and Employment Data) Use Table: Unemployment and Employment Data. If marginally attached workers are included in the labor force and in the unemployment rate, the unemployment rate in this economy is _____%.

According to historical economic data for the United States from 1949 to 2016, the unemployment rate is MOST likely to rise:

The labor force is equal to the:

Unanticipated inflation:

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Price Controls and Quotas: Meddling With Markets

International Trade

Macroeconomics: the Big Picture

GDP and the CPI: Tracking the Macroeconomy

Long-Run Economic Growth

Savings, Investment Spending, and the Financial Syst

Income and Expenditure

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Filters

Exam 8: Unemployment and Inflation

The labor supply curve is positively sloped because:

To be counted as unemployed, one must:

If a country has a working-age population of 200 million, 135 million people with jobs, and 15 million people unemployed and seeking employment, then its unemployment rate is:

Choose the best answer. A person who has no job but is looking for one is:

Use the following to answer questions: -(Table: Employment Data) Use Table: Employment Data. The labor force is _____million.

Use the following to answer questions: -(Figure: The Minimum Wage) Use Figure: The Minimum Wage. By how much does the quantity of labor demanded fall when the government imposes a binding minimum wage of P3?

An example of the frictionally unemployed is a(n):

Suppose that the nominal rate of interest is 7% and the inflation rate is 3%. The real rate of interest is _____%.

Unemployment rates are usually higher in Europe than they are in the United States because:

If the price level increases, real wages will:

Since the 1950s, the natural unemployment rate in the United States has:

A person who spends time looking for work is:

Use the following to answer questions: -(Table: Unemployment and Employment Data) Use Table: Unemployment and Employment Data. The unemployment rate for this economy is _____%.

As the average age of the labor force increased from the end of the 1970s to the end of the 1990s, the natural rate of unemployment:

Real interest rates can be positive, zero, or negative, but nominal interest rates can only be zero or positive.

Unexpected inflation _____ lenders and _____ borrowers.

Use the following to answer questions: -(Table: Unemployment and Employment Data) Use Table: Unemployment and Employment Data. If marginally attached workers are included in the labor force and in the unemployment rate, the unemployment rate in this economy is _____%.

According to historical economic data for the United States from 1949 to 2016, the unemployment rate is MOST likely to rise:

The labor force is equal to the:

Unanticipated inflation:

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Price Controls and Quotas: Meddling With Markets

International Trade

Macroeconomics: the Big Picture

GDP and the CPI: Tracking the Macroeconomy

Long-Run Economic Growth

Savings, Investment Spending, and the Financial Syst

Income and Expenditure

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Filters

Use the following to answer questions: -(Figure: The Minimum Wage) Use Figure: The Minimum Wage. By how much does the quantity of labor demanded fall when the government imposes a binding minimum wage of P₃?

Unexpected inflation _ lenders and _ borrowers.