Question 1

Typically, how is inflation measured?

Accepted Answer

A)  daily 
B)  weekly 
C)  monthly 
D)  quarterly 
E)  annually 
A)  daily 
B)  weekly 
C)  monthly 
D)  quarterly 
E)  annually

Question 2

Table 7.1
 $$\begin{array}{l}
\text { Table } 7.1\
\begin{array} { | c | c | c | c | c | c | } 
\hline { \text { Not in Labor Force } } &&{ \text { Unemployed } } && \ { \text { Employed } } \
\hline \text { Male } & \text { Female } & \text { Male } & \text { Female } & \text { Male } & \text { Female } \
\hline 10 \text { million } & 20 \text { million } & 2 \text { million } & 2 \text { million } & 30 \text { million } & 20 \text { million } \
\hline
\end{array}
\end{array}$$
-Refer to Table 7.1, which shows data for males and females over 16 years old in the island of Palma. How many adults are employed?

Accepted Answer

A)  2 million 
B)  4 million 
C)  17 million 
D)  22 million 
E)  50 million 
A)  2 million 
B)  4 million 
C)  17 million 
D)  22 million 
E)  50 million

Question 3

One of the most widely reported measures of inflation is the _____

Accepted Answer

A)  consumer price index. 
B)  producer price index. 
C)  GDP deflator. 
D)  Gini coefficient. 
E)  real interest rate. 
A)  consumer price index. 
B)  producer price index. 
C)  GDP deflator. 
D)  Gini coefficient. 
E)  real interest rate.

Question 4

If the economy is experiencing a sustained decrease in the price level, it is called _____

Accepted Answer

A)  deflation. 
B)  inflation. 
C)  hyperinflation. 
D)  disinflation. 
E)  growth. 
A)  deflation. 
B)  inflation. 
C)  hyperinflation. 
D)  disinflation. 
E)  growth.

Question 5

_____ unemployment is experienced by a customer service representative who is laid off from a job because new technology reduces the need for people to handle customer service inquiries.

Accepted Answer

A)  Seasonal 
B)  Cyclical 
C)  Voluntary 
D)  Structural 
E)  Frictional 
A)  Seasonal 
B)  Cyclical 
C)  Voluntary 
D)  Structural 
E)  Frictional

Question 6

A recent college graduate who is looking for her first job would be considered _____

Accepted Answer

A)  a discouraged worker. 
B)  underemployed. 
C)  overemployed. 
D)  unemployed. 
E)  not in the labor force. 
A)  a discouraged worker. 
B)  underemployed. 
C)  overemployed. 
D)  unemployed. 
E)  not in the labor force.

Question 7

Which type of unemployment is likely to increase the most during an economy's recession?

Accepted Answer

A)  frictional unemployment 
B)  seasonal unemployment 
C)  structural unemployment 
D)  cyclical unemployment 
E)  underemployment 
A)  frictional unemployment 
B)  seasonal unemployment 
C)  structural unemployment 
D)  cyclical unemployment 
E)  underemployment

Question 8

Cost-push inflation _____

Accepted Answer

A)  occurs when the aggregate demand curve shifts rightward. 
B)  occurs when the aggregate supply curve shifts rightward. 
C)  results in a decrease in the unemployment rate. 
D)  results in a movement along the aggregate demand curve. 
E)  is caused by the same factors that lead to demand-pull inflation. 
A)  occurs when the aggregate demand curve shifts rightward. 
B)  occurs when the aggregate supply curve shifts rightward. 
C)  results in a decrease in the unemployment rate. 
D)  results in a movement along the aggregate demand curve. 
E)  is caused by the same factors that lead to demand-pull inflation.

Question 9

During periods of volatile inflation, there is _____ about the price of one good relative to another.

Accepted Answer

A)  certainty 
B)  less uncertainty 
C)  greater uncertainty 
D)  important information 
E)  no information 
A)  certainty 
B)  less uncertainty 
C)  greater uncertainty 
D)  important information 
E)  no information

Question 10

Which of the following is true of the labor force participation rate?

Accepted Answer

A)  When workers become unemployed, the labor force participation rate declines. 
B)  When the unemployed become discouraged workers, the labor force participation rate declines. 
C)  When workers do not fully use their skills, the labor force participation rate decreases. 
D)  Since the 1950s, the labor force participation rate of women has decreased in the United States. 
E)  The trend toward earlier retirement has increased the labor force participation rate in the United States. 
A)  When workers become unemployed, the labor force participation rate declines. 
B)  When the unemployed become discouraged workers, the labor force participation rate declines. 
C)  When workers do not fully use their skills, the labor force participation rate decreases. 
D)  Since the 1950s, the labor force participation rate of women has decreased in the United States. 
E)  The trend toward earlier retirement has increased the labor force participation rate in the United States.

Question 11

Demand-pull inflation is worse than cost-push inflation because, in addition to higher prices, demand-pull inflation also reduces employment.

Accepted Answer

A) True 
 B)False

Question 12

Unemployed workers who meet certain qualifications can receive unemployment benefits for up to _____

Accepted Answer

A)  1 month. 
B)  3 months. 
C)  6 months. 
D)  1 year. 
E)  the time when they find employment. 
A)  1 month. 
B)  3 months. 
C)  6 months. 
D)  1 year. 
E)  the time when they find employment.

Question 13

Table 7.1
  
-Consider an economy with an adult population of 100, 50 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The labor force participation rate is _____.

Accepted Answer

A)  100 percent 
B)  60 percent 
C)  50 percent 
D)  40 percent 
E)  10 percent 
A)  100 percent 
B)  60 percent 
C)  50 percent 
D)  40 percent 
E)  10 percent

Question 14

If someone with a Ph.D. in philosophy finds work as a taxi driver, but continues to look for a college teaching position, he is counted as being employed.

Accepted Answer

A) True 
 B)False

Question 15

What is another measure of unemployment that counts as unemployed those marginally attached to the labor force?

Accepted Answer

A)  discouraged workers rate 
B)  part-time rate 
C)  U-6 
D)  M5 
E)  real unemployment rate 
A)  discouraged workers rate 
B)  part-time rate 
C)  U-6 
D)  M5 
E)  real unemployment rate

Question 16

Which of the following will most likely qualify for unemployment compensation benefits?

Accepted Answer

A)  a new college graduate who cannot find work despite a desperate job search 
B)  an unemployed coal miner who has been receiving benefits for the past six months 
C)  a former retail clerk who quit her job because the boss was too demanding 
D)  a spot welder who has just gotten his first "pink slip" in the mail after ten years of continuous employment 
E)  an accountant who was fired from his last position for drinking alcohol on the job 
A)  a new college graduate who cannot find work despite a desperate job search 
B)  an unemployed coal miner who has been receiving benefits for the past six months 
C)  a former retail clerk who quit her job because the boss was too demanding 
D)  a spot welder who has just gotten his first "pink slip" in the mail after ten years of continuous employment 
E)  an accountant who was fired from his last position for drinking alcohol on the job

Question 17

An increase in the supply of loanable funds, other things constant, will increase the interest rate.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following types of unemployment is the hardest to reduce?

Accepted Answer

A)  cyclical unemployment 
B)  structural unemployment 
C)  voluntary unemployment 
D)  frictional unemployment 
E)  seasonal unemployment 
A)  cyclical unemployment 
B)  structural unemployment 
C)  voluntary unemployment 
D)  frictional unemployment 
E)  seasonal unemployment

Question 19

Suppose the nominal wages of workers in an economy increase by 7 percent while the price level rises by 5 percent. Real wages _____

Accepted Answer

A)  would increase by about 2 percent. 
B)  would decrease by about 5 percent. 
C)  would increase by about 50 percent. 
D)  would increase by about 10 percent. 
E)  would decrease by about 25 percent. 
A)  would increase by about 2 percent. 
B)  would decrease by about 5 percent. 
C)  would increase by about 50 percent. 
D)  would increase by about 10 percent. 
E)  would decrease by about 25 percent.

Question 20

Who among the following would not be considered officially unemployed?

Accepted Answer

A)  Jones, who quit his job to look for a better job in another part of the country 
B)  Jason, who got fired from his job when the government cut spending 
C)  Bourne, who is looking for a job after being out of the labor force for five years 
D)  Sophie, who quit her job because she disliked it 
E)  Annie, who dropped out of the labor force after a year of job searching 
A)  Jones, who quit his job to look for a better job in another part of the country 
B)  Jason, who got fired from his job when the government cut spending 
C)  Bourne, who is looking for a job after being out of the labor force for five years 
D)  Sophie, who quit her job because she disliked it 
E)  Annie, who dropped out of the labor force after a year of job searching

Typically, how is inflation measured?

Table 7.1 Table 7.1 Not in Labor Force Unemployed \ Employed Male Female Male Female Male Female 10 million 20 million 2 million 2 million 30 million 20 million -Refer to Table 7.1, which shows data for males and females over 16 years old in the island of Palma. How many adults are employed?

One of the most widely reported measures of inflation is the _____

If the economy is experiencing a sustained decrease in the price level, it is called _____

_____ unemployment is experienced by a customer service representative who is laid off from a job because new technology reduces the need for people to handle customer service inquiries.

A recent college graduate who is looking for her first job would be considered _____

Which type of unemployment is likely to increase the most during an economy's recession?

Cost-push inflation _____

During periods of volatile inflation, there is _____ about the price of one good relative to another.

Which of the following is true of the labor force participation rate?

Demand-pull inflation is worse than cost-push inflation because, in addition to higher prices, demand-pull inflation also reduces employment.

Unemployed workers who meet certain qualifications can receive unemployment benefits for up to _____

Table 7.1 -Consider an economy with an adult population of 100, 50 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The labor force participation rate is _____.

If someone with a Ph.D. in philosophy finds work as a taxi driver, but continues to look for a college teaching position, he is counted as being employed.

What is another measure of unemployment that counts as unemployed those marginally attached to the labor force?

Which of the following will most likely qualify for unemployment compensation benefits?

An increase in the supply of loanable funds, other things constant, will increase the interest rate.

Which of the following types of unemployment is the hardest to reduce?

Suppose the nominal wages of workers in an economy increase by 7 percent while the price level rises by 5 percent. Real wages _____

Who among the following would not be considered officially unemployed?

The Art and Science of Economic Analysis.

Economic Tools and Economic Systems.

Economic Decision Makers.

Demand, Supply, and Markets.

Introduction to Macroeconomics.

Tracking the U. S. Economy.

Productivity and Growth.

Aggregate Demand.

Aggregate Supply.

Fiscal Policy.

Federal Budgets and Public Policy.

Money and the Financial System.

Banking and the Money Supply.

Monetary Theory and Policy.

Macro Policy Debate: Active or Passive?

International Trade.

International Finance.

Economic Development.

Filters

Exam 7: Unemployment and Inflation.

Typically, how is inflation measured?

Table 7.1 Table 7.1 Not in Labor Force Unemployed \ Employed Male Female Male Female Male Female 10 million 20 million 2 million 2 million 30 million 20 million -Refer to Table 7.1, which shows data for males and females over 16 years old in the island of Palma. How many adults are employed?

One of the most widely reported measures of inflation is the _____

If the economy is experiencing a sustained decrease in the price level, it is called _____

_____ unemployment is experienced by a customer service representative who is laid off from a job because new technology reduces the need for people to handle customer service inquiries.

A recent college graduate who is looking for her first job would be considered _____

Which type of unemployment is likely to increase the most during an economy's recession?

Cost-push inflation _____

During periods of volatile inflation, there is _____ about the price of one good relative to another.

Which of the following is true of the labor force participation rate?

Demand-pull inflation is worse than cost-push inflation because, in addition to higher prices, demand-pull inflation also reduces employment.

Unemployed workers who meet certain qualifications can receive unemployment benefits for up to _____

Table 7.1 -Consider an economy with an adult population of 100, 50 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The labor force participation rate is _____.

If someone with a Ph.D. in philosophy finds work as a taxi driver, but continues to look for a college teaching position, he is counted as being employed.

What is another measure of unemployment that counts as unemployed those marginally attached to the labor force?

Which of the following will most likely qualify for unemployment compensation benefits?

An increase in the supply of loanable funds, other things constant, will increase the interest rate.

Which of the following types of unemployment is the hardest to reduce?

Suppose the nominal wages of workers in an economy increase by 7 percent while the price level rises by 5 percent. Real wages _____

Who among the following would not be considered officially unemployed?

The Art and Science of Economic Analysis.

Economic Tools and Economic Systems.

Economic Decision Makers.

Demand, Supply, and Markets.

Introduction to Macroeconomics.

Tracking the U. S. Economy.

Productivity and Growth.

Aggregate Demand.

Aggregate Supply.

Fiscal Policy.

Federal Budgets and Public Policy.

Money and the Financial System.

Banking and the Money Supply.

Monetary Theory and Policy.

Macro Policy Debate: Active or Passive?

International Trade.

International Finance.

Economic Development.

Filters