Question 1

Frictional unemployment will typically be a short-term problem for someone between jobs.

Accepted Answer

A) True 
 B)False

Question 2

Economists generally assume that faster economic growth is negative for society.

Accepted Answer

A) True 
 B)False

Question 3

As inflation rates increase,borrowing and lending contracts tend to

Accepted Answer

A)  increase in size. 
B)  decrease in size. 
C)  decrease in length of time. 
D)  increase in length of time. 
A)  increase in size. 
B)  decrease in size. 
C)  decrease in length of time. 
D)  increase in length of time.

Question 4

The program of unemployment insurance in the United States was created during the

Accepted Answer

A)  Great Depression. 
B)  Reagan recession. 
C)  Kennedy administration. 
D)  Great Society. 
A)  Great Depression. 
B)  Reagan recession. 
C)  Kennedy administration. 
D)  Great Society.

Question 5

A principal benefit of inflation is that it makes economic decisions easier.

Accepted Answer

A) True 
 B)False

Question 6

Faster economic growth in the United States may lead to the serious macroeconomic problem of higher

Accepted Answer

A)  levels of unemployment. 
B)  federal budget deficits. 
C)  levels of inflation. 
D)  levels of poverty. 
A)  levels of unemployment. 
B)  federal budget deficits. 
C)  levels of inflation. 
D)  levels of poverty.

Question 7

If prices rise,then persons living on fixed incomes will

Accepted Answer

A)  see their real incomes falling. 
B)  see the purchasing power of their savings fall. 
C)  need to spend more to maintain their standard of living. 
D)  All of the above are t. 
A)  see their real incomes falling. 
B)  see the purchasing power of their savings fall. 
C)  need to spend more to maintain their standard of living. 
D)  All of the above are t.

Question 8

Structural unemployment arises when

Accepted Answer

A)  marginal productivity of labor becomes zero. 
B)  there is a cyclical change in the economy. 
C)  jobs are eliminated by changes in the economy. 
D)  people change their jobs. 
A)  marginal productivity of labor becomes zero. 
B)  there is a cyclical change in the economy. 
C)  jobs are eliminated by changes in the economy. 
D)  people change their jobs.

Question 9

The rate of interest written on a contract between a borrower and a lender is the

Accepted Answer

A)  nominal interest rate. 
B)  real interest rate. 
C)  implied interest rate. 
D)  expected interest rate. 
A)  nominal interest rate. 
B)  real interest rate. 
C)  implied interest rate. 
D)  expected interest rate.

Question 10

Does inflation always cause workers losses due to decreases in real wages? Why or why not?

Accepted Answer

During most inflationary periods,all pri

Question 11

Changes in relative prices usually lead to increases in real income because prices have changed.

Accepted Answer

A) True 
 B)False

Question 12

When the growth rates of actual and potential GDP diverge,they usually diverge because

Accepted Answer

A)  actual GDP growth equals potential GDP growth. 
B)  actual GDP growth falls below potential GDP growth. 
C)  potential GDP growth rates fall below actual GDP growth rates. 
D)  potential GDP growth rates fluctuate while actual GDP growth rates remain stable. 
A)  actual GDP growth equals potential GDP growth. 
B)  actual GDP growth falls below potential GDP growth. 
C)  potential GDP growth rates fall below actual GDP growth rates. 
D)  potential GDP growth rates fluctuate while actual GDP growth rates remain stable.

Question 13

Last year your job at the university cafeteria paid you $9 an hour and the price of a music download was $1.00.This year your cafeteria job pays $9.90 per hour and download costs $1.10.You are clearly

Accepted Answer

A)  worse off because of inflation. 
B)  worse off because the download is now relatively more expensive. 
C)  better off because your wage rate went up. 
D)  better off because the download now costs less work. 
A)  worse off because of inflation. 
B)  worse off because the download is now relatively more expensive. 
C)  better off because your wage rate went up. 
D)  better off because the download now costs less work.

Question 14

The growth of the labor force and the growth of labor productivity help determine the rate of GDP growth.

Accepted Answer

A) True 
 B)False

Question 15

If actual inflation is less than the expected rate of inflation,then probably

Accepted Answer

A)  the borrower gains at the expense of the lender. 
B)  neither the borrower nor the lender gains. 
C)  the lender gains at the expense of the borrower. 
D)  the purchasing power of the borrower is increased. 
A)  the borrower gains at the expense of the lender. 
B)  neither the borrower nor the lender gains. 
C)  the lender gains at the expense of the borrower. 
D)  the purchasing power of the borrower is increased.

Question 16

One of the determinants of real GDP is output per hour of labor.This statistic is called labor

Accepted Answer

A)  force growth. 
B)  productivity. 
C)  force participation. 
D)  force input. 
A)  force growth. 
B)  productivity. 
C)  force participation. 
D)  force input.

Question 17

Labor productivity measures output per hour of work.

Accepted Answer

A) True 
 B)False

Question 18

An increase in the capital stock has the same effect on the production function as an increase in

Accepted Answer

A)  labor. 
B)  output. 
C)  GDP. 
D)  technology. 
A)  labor. 
B)  output. 
C)  GDP. 
D)  technology.

Question 19

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 20

In the contemporary United States,the labor force has been 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.

Frictional unemployment will typically be a short-term problem for someone between jobs.

Economists generally assume that faster economic growth is negative for society.

As inflation rates increase,borrowing and lending contracts tend to

The program of unemployment insurance in the United States was created during the

A principal benefit of inflation is that it makes economic decisions easier.

Faster economic growth in the United States may lead to the serious macroeconomic problem of higher

If prices rise,then persons living on fixed incomes will

Structural unemployment arises when

The rate of interest written on a contract between a borrower and a lender is the

Does inflation always cause workers losses due to decreases in real wages? Why or why not?

Changes in relative prices usually lead to increases in real income because prices have changed.

When the growth rates of actual and potential GDP diverge,they usually diverge because

Last year your job at the university cafeteria paid you $9 an hour and the price of a music download was $1.00.This year your cafeteria job pays $9.90 per hour and download costs $1.10.You are clearly

The growth of the labor force and the growth of labor productivity help determine the rate of GDP growth.

If actual inflation is less than the expected rate of inflation,then probably

One of the determinants of real GDP is output per hour of labor.This statistic is called labor

Labor productivity measures output per hour of work.

An increase in the capital stock has the same effect on the production function as an increase in

The production function has ____ on the horizontal axis.

In the contemporary United States,the labor force has been growing at nearly

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

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Exam 6: The Goals of Macroeconomic Policy

Frictional unemployment will typically be a short-term problem for someone between jobs.

Economists generally assume that faster economic growth is negative for society.

As inflation rates increase,borrowing and lending contracts tend to

The program of unemployment insurance in the United States was created during the

A principal benefit of inflation is that it makes economic decisions easier.

Faster economic growth in the United States may lead to the serious macroeconomic problem of higher

If prices rise,then persons living on fixed incomes will

Structural unemployment arises when

The rate of interest written on a contract between a borrower and a lender is the

Does inflation always cause workers losses due to decreases in real wages? Why or why not?

Changes in relative prices usually lead to increases in real income because prices have changed.

When the growth rates of actual and potential GDP diverge,they usually diverge because

Last year your job at the university cafeteria paid you $9 an hour and the price of a music download was $1.00.This year your cafeteria job pays $9.90 per hour and download costs $1.10.You are clearly

The growth of the labor force and the growth of labor productivity help determine the rate of GDP growth.

If actual inflation is less than the expected rate of inflation,then probably

One of the determinants of real GDP is output per hour of labor.This statistic is called labor

Labor productivity measures output per hour of work.

An increase in the capital stock has the same effect on the production function as an increase in

The production function has ____ on the horizontal axis.

In the contemporary United States,the labor force has been growing at nearly

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