Question 1

Except for recessions, the duration of unemployment for the typical person in Australia lasts:

Accepted Answer

A) less than six months. 
B) over two years. 
C) between six and nine months. 
D) over one year. 
A) less than six months. 
B) over two years. 
C) between six and nine months. 
D) over one year.

Question 2

Why would a firm pay 'efficiency wages'?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

An efficiency wage is a wage that is hig

Question 3

Most economists agree that trade unions reduce the overall unemployment rate in the economy.

Accepted Answer

A) True 
 B)False

Question 4

A woman who quit her job to search for a job that better utilises her skills represents an example of:

Accepted Answer

A) structural unemployment. 
B) frictional unemployment. 
C) cyclical unemployment. 
D) seasonal unemployment. 
A) structural unemployment. 
B) frictional unemployment. 
C) cyclical unemployment. 
D) seasonal unemployment.

Question 5

What do economists call the short-term unemployment arising from the process of matching workers with jobs?

Accepted Answer

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

Question 6

The rate of unemployment in Australia is higher among 15-19-year-olds than 40-44 year-olds.

Accepted Answer

A) True 
 B)False

Question 7

Over the past 30 years, the labour force participation rates of women have fallen as they leave the labour force to have children, while the labour force participation rates of men have risen.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following has a tendency to raise the unemployment rate?

Accepted Answer

A) Implementing a minimum wage in an economy. 
B) Firms deciding to pay efficiency wages in an economy. 
C) The establishment of effective trade unions in an economy. 
D) All of these options are correct. 
A) Implementing a minimum wage in an economy. 
B) Firms deciding to pay efficiency wages in an economy. 
C) The establishment of effective trade unions in an economy. 
D) All of these options are correct.

Question 9

The 'unemployment rate' is the percentage of the:

Accepted Answer

A) labour force receiving unemployment benefits. 
B) population that is unemployed. 
C) working-age population that is unemployed. 
D) labour force that is unemployed. 
A) labour force receiving unemployment benefits. 
B) population that is unemployed. 
C) working-age population that is unemployed. 
D) labour force that is unemployed.

Question 10

An 'efficiency wage' is:

Accepted Answer

A) higher than the market wage and tends to increase productivity. 
B) lower than the market wage and tends to increase productivity. 
C) higher than the market wage and tends to decrease productivity. 
D) lower than the market wage and tends to decrease productivity. 
A) higher than the market wage and tends to increase productivity. 
B) lower than the market wage and tends to increase productivity. 
C) higher than the market wage and tends to decrease productivity. 
D) lower than the market wage and tends to decrease productivity.

Question 11

The labour force participation rates of men in Australia have gradually increased since 1978.

Accepted Answer

A) True 
 B)False

Question 12

In Australia in 2016, approximately how many people were in the labour force?

Accepted Answer

A) 6.3 million. 
B) 12 million. 
C) 18.3 million. 
D) 19.6 million. 
A) 6.3 million. 
B) 12 million. 
C) 18.3 million. 
D) 19.6 million.

Question 13

'Efficiency wages' cause unemployment because firms pay wages that are:

Accepted Answer

A) below the market wage, causing labour demand to be greater than labour supply. 
B) below the market wage, causing labour demand to be less than labour supply. 
C) above the market wage, causing labour demand to be greater than labour supply. 
D) above the market wage, causing labour demand to be less than labour supply. 
A) below the market wage, causing labour demand to be greater than labour supply. 
B) below the market wage, causing labour demand to be less than labour supply. 
C) above the market wage, causing labour demand to be greater than labour supply. 
D) above the market wage, causing labour demand to be less than labour supply.

Question 14

What effect do unemployment benefits have on job search?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

Unemployment benefits provide some incom

Question 15

The Australian economy destroys hundreds of thousands of jobs every year, even when the economy is experiencing strong growth.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is not a result of rising unemployment?

Accepted Answer

A) a loss of tax revenue to the government 
B) an increase in poverty 
C) an increase in wages for those who remain in employment as there are fewer people employed 
D) lower incomes for people who become unemployed 
A) a loss of tax revenue to the government 
B) an increase in poverty 
C) an increase in wages for those who remain in employment as there are fewer people employed 
D) lower incomes for people who become unemployed

Question 17

What makes up the natural rate of unemployment?

Accepted Answer

A) frictional, cyclical and structural unemployment 
B) frictional and structural unemployment 
C) cyclical and structural unemployment 
D) frictional and cyclical unemployment 
A) frictional, cyclical and structural unemployment 
B) frictional and structural unemployment 
C) cyclical and structural unemployment 
D) frictional and cyclical unemployment

Question 18

The 'labour force' is the sum of:

Accepted Answer

A) employed workers and unemployed workers. 
B) employed workers and individuals not looking for work. 
C) employed workers and the working-age population. 
D) unemployed workers and the working-age population. 
A) employed workers and unemployed workers. 
B) employed workers and individuals not looking for work. 
C) employed workers and the working-age population. 
D) unemployed workers and the working-age population.

Question 19

How is a 'retired person' classified?

Accepted Answer

A) as unemployed 
B) as under-employed 
C) as not in the labour force 
D) as part-time employed 
A) as unemployed 
B) as under-employed 
C) as not in the labour force 
D) as part-time employed

Question 20

The unemployment rate is the number of unemployed divided by the working-age population.

Accepted Answer

A) True 
 B)False

Except for recessions, the duration of unemployment for the typical person in Australia lasts:

Why would a firm pay 'efficiency wages'? _ _

Most economists agree that trade unions reduce the overall unemployment rate in the economy.

A woman who quit her job to search for a job that better utilises her skills represents an example of:

What do economists call the short-term unemployment arising from the process of matching workers with jobs?

The rate of unemployment in Australia is higher among 15-19-year-olds than 40-44 year-olds.

Over the past 30 years, the labour force participation rates of women have fallen as they leave the labour force to have children, while the labour force participation rates of men have risen.

Which of the following has a tendency to raise the unemployment rate?

The 'unemployment rate' is the percentage of the:

An 'efficiency wage' is:

The labour force participation rates of men in Australia have gradually increased since 1978.

In Australia in 2016, approximately how many people were in the labour force?

'Efficiency wages' cause unemployment because firms pay wages that are:

What effect do unemployment benefits have on job search? _ _

The Australian economy destroys hundreds of thousands of jobs every year, even when the economy is experiencing strong growth.

Which of the following is not a result of rising unemployment?

What makes up the natural rate of unemployment?

The 'labour force' is the sum of:

How is a 'retired person' classified?

The unemployment rate is the number of unemployed divided by the working-age population.

Economics: Foundations and Models

Choices and Trade Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Gdp: Measuring Total Production, Income and Economic Growth

Economic Growth, the Financial System and Business Cycles

Long-Run Economic Growth: Sources and Policies

Inflation

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 7: Unemployment

Except for recessions, the duration of unemployment for the typical person in Australia lasts:

Why would a firm pay 'efficiency wages'? _____________________________________________________________________________________________ _____________________________________________________________________________________________

Most economists agree that trade unions reduce the overall unemployment rate in the economy.

A woman who quit her job to search for a job that better utilises her skills represents an example of:

What do economists call the short-term unemployment arising from the process of matching workers with jobs?

The rate of unemployment in Australia is higher among 15-19-year-olds than 40-44 year-olds.

Over the past 30 years, the labour force participation rates of women have fallen as they leave the labour force to have children, while the labour force participation rates of men have risen.

Which of the following has a tendency to raise the unemployment rate?

The 'unemployment rate' is the percentage of the:

An 'efficiency wage' is:

The labour force participation rates of men in Australia have gradually increased since 1978.

In Australia in 2016, approximately how many people were in the labour force?

'Efficiency wages' cause unemployment because firms pay wages that are:

What effect do unemployment benefits have on job search? _____________________________________________________________________________________________ _____________________________________________________________________________________________

The Australian economy destroys hundreds of thousands of jobs every year, even when the economy is experiencing strong growth.

Which of the following is not a result of rising unemployment?

What makes up the natural rate of unemployment?

The 'labour force' is the sum of:

How is a 'retired person' classified?

The unemployment rate is the number of unemployed divided by the working-age population.

Economics: Foundations and Models

Choices and Trade Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Gdp: Measuring Total Production, Income and Economic Growth

Economic Growth, the Financial System and Business Cycles

Long-Run Economic Growth: Sources and Policies

Inflation

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Why would a firm pay 'efficiency wages'? _ _

What effect do unemployment benefits have on job search? _ _