Question 1

Use the following to answer questions:  
-(Figure: The Labor Market) Use Figure: The Labor Market. What is the size of the labor force at an efficiency wage of $16?

Accepted Answer

A)  80,000 
B)  100,000 
C)  110,000 
D)  200,000 
A)  80,000 
B)  100,000 
C)  110,000 
D)  200,000

Question 2

During deflation, the:

Accepted Answer

A)  general price level falls. 
B)  general price level increases. 
C)  interest rate rises. 
D)  general price level becomes negative. 
A)  general price level falls. 
B)  general price level increases. 
C)  interest rate rises. 
D)  general price level becomes negative.

Question 3

If the wage rate is $9 per hour and the price level is 2, then the real wage is:

Accepted Answer

A)  $18. 
B)  $11. 
C)  $7. 
D)  $4.50. 
A)  $18. 
B)  $11. 
C)  $7. 
D)  $4.50.

Question 4

If a country has a working-age population of 200 million, 135 million people with jobs, 10 million people who were looking for a job but have given up, and 5 million people who are unemployed and seeking employment, then the number of discouraged workers is _____ million.

Accepted Answer

A)  25 
B)  15 
C)  10 
D)  5 
A)  25 
B)  15 
C)  10 
D)  5

Question 5

In periods of inflation, lenders benefit because the money that they are repaid has more purchasing power than the money they loaned initially.

Accepted Answer

A) True 
 B)False

Question 6

Most economists agree that a binding minimum wage causes structural unemployment.

Accepted Answer

A) True 
 B)False

Question 7

Structural unemployment CANNOT be caused by:

Accepted Answer

A)  minimum wages. 
B)  labor unions. 
C)  efficiency wages. 
D)  fluctuations in the business cycle. 
A)  minimum wages. 
B)  labor unions. 
C)  efficiency wages. 
D)  fluctuations in the business cycle.

Question 8

Anna recently moved to Boston with her husband Joe, who has a new job as an economics professor at Harvard. Anna is an experienced surgeon who is interviewing with several hospitals in Boston. Anna is:

Accepted Answer

A)  frictionally unemployed. 
B)  structurally unemployed. 
C)  cyclically unemployed. 
D)  counted as employed since she is likely to receive a job offer soon. 
A)  frictionally unemployed. 
B)  structurally unemployed. 
C)  cyclically unemployed. 
D)  counted as employed since she is likely to receive a job offer soon.

Question 9

The rate of unemployment when the economy is at full employment is:

Accepted Answer

A)  zero. 
B)  the natural rate. 
C)  the structural rate. 
D)  less than the full employment rate of unemployment. 
A)  zero. 
B)  the natural rate. 
C)  the structural rate. 
D)  less than the full employment rate of unemployment.

Question 10

Use the following to answer questions:  
-(Figure: The Minimum Wage) Use Figure: The Minimum Wage. What is the quantity of labor supplied at a binding minimum wage of P3?

Accepted Answer

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

Question 11

Unemployment that occurs because it takes workers and employees time to find each other is _____ unemployment.

Accepted Answer

A)  cyclical 
B)  structural 
C)  frictional 
D)  discouraged 
A)  cyclical 
B)  structural 
C)  frictional 
D)  discouraged

Question 12

The natural rate of employment is achieved when:

Accepted Answer

A)  the actual rate of unemployment is zero. 
B)  it is above the actual rate of unemployment. 
C)  the quantity of labor supplied is equal to the quantity of labor demanded. 
D)  there is no cyclical unemployment. 
A)  the actual rate of unemployment is zero. 
B)  it is above the actual rate of unemployment. 
C)  the quantity of labor supplied is equal to the quantity of labor demanded. 
D)  there is no cyclical unemployment.

Question 13

Use the following to answer questions:  
-(Figure: The Minimum Wage) Use Figure: The Minimum Wage. By how much does the quantity of labor supplied rise 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 14

Use the following to answer questions:  
-(Table: The Consumer Price Index (CPI)) Use Table: The Consumer Price Index (CPI). The consumer price index in 2009 was 212.2. In 2010, it was 216.7. What was the rate of inflation from 2009 to 2010?

Accepted Answer

A)  12.2% 
B)  4.5% 
C)  2.1% 
D)  16.7% 
A)  12.2% 
B)  4.5% 
C)  2.1% 
D)  16.7%

Question 15

Discouraged workers is another term for the unemployed.

Accepted Answer

A) True 
 B)False

Question 16

Use the following to answer questions:  
-(Figure: The Minimum Wage) Use Figure: The Minimum Wage. Which point on the x-axis is a binding minimum wage?

Accepted Answer

A)  P1 
B)  P2 
C)  P3 
D)  zero 
A)  P1 
B)  P2 
C)  P3 
D)  zero

Question 17

The National Bureau of Economic Research announced that the U.S. economic recession that began in December of 2007 hit a trough in June of 2009. During that period, which type of unemployment increased for sure?

Accepted Answer

A)  frictional 
B)  natural 
C)  cyclical 
D)  structural 
A)  frictional 
B)  natural 
C)  cyclical 
D)  structural

Question 18

Annie's credit union charges a fee for transferring funds from her money market account to her checking account. The rate of inflation has been 12% lately, so Annie has transferred funds from her money market account to her checking account more often than usual. This cost is an example of the _____ cost of high inflation.

Accepted Answer

A)  unit-of-account 
B)  menu 
C)  shoe-leather 
D)  redistributive 
A)  unit-of-account 
B)  menu 
C)  shoe-leather 
D)  redistributive

Question 19

Income divided by the price level is _____ income.

Accepted Answer

A)  personal 
B)  real 
C)  disposable 
D)  national 
A)  personal 
B)  real 
C)  disposable 
D)  national

Question 20

The Republic of Livonia has an adult population of 100 million; 60% of Livonia's population is employed, and 10% of the people are unemployed. The labor force participation rate in Livonia is _____%.

Accepted Answer

A)  70 
B)  60 
C)  7 
D)  10 
A)  70 
B)  60 
C)  7 
D)  10

Use the following to answer questions: -(Figure: The Labor Market) Use Figure: The Labor Market. What is the size of the labor force at an efficiency wage of $16?

During deflation, the:

If the wage rate is $9 per hour and the price level is 2, then the real wage is:

If a country has a working-age population of 200 million, 135 million people with jobs, 10 million people who were looking for a job but have given up, and 5 million people who are unemployed and seeking employment, then the number of discouraged workers is _____ million.

In periods of inflation, lenders benefit because the money that they are repaid has more purchasing power than the money they loaned initially.

Most economists agree that a binding minimum wage causes structural unemployment.

Structural unemployment CANNOT be caused by:

Anna recently moved to Boston with her husband Joe, who has a new job as an economics professor at Harvard. Anna is an experienced surgeon who is interviewing with several hospitals in Boston. Anna is:

The rate of unemployment when the economy is at full employment is:

Use the following to answer questions: -(Figure: The Minimum Wage) Use Figure: The Minimum Wage. What is the quantity of labor supplied at a binding minimum wage of P₃?

Unemployment that occurs because it takes workers and employees time to find each other is _____ unemployment.

The natural rate of employment is achieved when:

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

Use the following to answer questions: -(Table: The Consumer Price Index (CPI)) Use Table: The Consumer Price Index (CPI). The consumer price index in 2009 was 212.2. In 2010, it was 216.7. What was the rate of inflation from 2009 to 2010?

Discouraged workers is another term for the unemployed.

Use the following to answer questions: -(Figure: The Minimum Wage) Use Figure: The Minimum Wage. Which point on the x-axis is a binding minimum wage?

The National Bureau of Economic Research announced that the U.S. economic recession that began in December of 2007 hit a trough in June of 2009. During that period, which type of unemployment increased for sure?

Income divided by the price level is _____ income.

The Republic of Livonia has an adult population of 100 million; 60% of Livonia's population is employed, and 10% of the people are unemployed. The labor force participation rate in Livonia is _____%.

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

Use the following to answer questions: -(Figure: The Labor Market) Use Figure: The Labor Market. What is the size of the labor force at an efficiency wage of $16?

During deflation, the:

If the wage rate is $9 per hour and the price level is 2, then the real wage is:

If a country has a working-age population of 200 million, 135 million people with jobs, 10 million people who were looking for a job but have given up, and 5 million people who are unemployed and seeking employment, then the number of discouraged workers is _____ million.

In periods of inflation, lenders benefit because the money that they are repaid has more purchasing power than the money they loaned initially.

Most economists agree that a binding minimum wage causes structural unemployment.

Structural unemployment CANNOT be caused by:

Anna recently moved to Boston with her husband Joe, who has a new job as an economics professor at Harvard. Anna is an experienced surgeon who is interviewing with several hospitals in Boston. Anna is:

The rate of unemployment when the economy is at full employment is:

Use the following to answer questions: -(Figure: The Minimum Wage) Use Figure: The Minimum Wage. What is the quantity of labor supplied at a binding minimum wage of P3?

Unemployment that occurs because it takes workers and employees time to find each other is _____ unemployment.

The natural rate of employment is achieved when:

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

Use the following to answer questions: -(Table: The Consumer Price Index (CPI)) Use Table: The Consumer Price Index (CPI). The consumer price index in 2009 was 212.2. In 2010, it was 216.7. What was the rate of inflation from 2009 to 2010?

Discouraged workers is another term for the unemployed.

Use the following to answer questions: -(Figure: The Minimum Wage) Use Figure: The Minimum Wage. Which point on the x-axis is a binding minimum wage?

The National Bureau of Economic Research announced that the U.S. economic recession that began in December of 2007 hit a trough in June of 2009. During that period, which type of unemployment increased for sure?

Income divided by the price level is _____ income.

The Republic of Livonia has an adult population of 100 million; 60% of Livonia's population is employed, and 10% of the people are unemployed. The labor force participation rate in Livonia is _____%.

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. What is the quantity of labor supplied at a binding minimum wage of P₃?

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