Question 1

Figure 20-1
  
-Refer to Figure 20-1.Based on the graph of the labor market above,if a minimum wage of $8 per hour is imposed,which of the following will result?

Accepted Answer

A)  The quantity of labor demanded by firms will rise. 
B)  The quantity of labor demanded by firms will fall. 
C)  The unemployment rate will fall. 
D)  Both A and C will occur. 
A)  The quantity of labor demanded by firms will rise. 
B)  The quantity of labor demanded by firms will fall. 
C)  The unemployment rate will fall. 
D)  Both A and C will occur.

Question 2

Which of the following explains why many European countries have unemployment rates that are higher than in the United States?

Accepted Answer

A)  Technological change occurs at a faster rate in Europe, so structural unemployment is higher in Europe. 
B)  European countries offer higher unemployment benefits than the United States. 
C)  Firms in European countries offer employees higher wages and higher benefits than do firms in the United States. 
D)  The minimum wage in Europe is lower than it is in the United States. 
A)  Technological change occurs at a faster rate in Europe, so structural unemployment is higher in Europe. 
B)  European countries offer higher unemployment benefits than the United States. 
C)  Firms in European countries offer employees higher wages and higher benefits than do firms in the United States. 
D)  The minimum wage in Europe is lower than it is in the United States.

Question 3

What is the difference between the nominal interest rate and the real interest rate?

Accepted Answer

The nominal interest rate is t

Question 4

Sarah is a full-time student who is not looking for work.What kind of unemployment is Sarah experiencing?

Accepted Answer

A)  cyclical 
B)  structural 
C)  frictional 
D)  Sarah is not experiencing unemployment of any kind because she is not currently part of the labor force. 
A)  cyclical 
B)  structural 
C)  frictional 
D)  Sarah is not experiencing unemployment of any kind because she is not currently part of the labor force.

Question 5

The unemployment rate is higher with a minimum wage law than it would be without a minimum wage law.

Accepted Answer

A) True 
 B)False

Question 6

Inflation that is ________ than what is expected benefits ________ and hurts ________.

Accepted Answer

A)  less; lenders; borrowers 
B)  less; borrowers; lenders 
C)  greater; lenders; borrowers 
D)  greater; lenders; no one 
A)  less; lenders; borrowers 
B)  less; borrowers; lenders 
C)  greater; lenders; borrowers 
D)  greater; lenders; no one

Question 7

What are the three main kinds of unemployment?

Accepted Answer

A)  frictional, seasonal, and cyclical 
B)  temporary, permanent, and volunteer 
C)  cyclical, structural, and temporary 
D)  structural, frictional, and cyclical 
A)  frictional, seasonal, and cyclical 
B)  temporary, permanent, and volunteer 
C)  cyclical, structural, and temporary 
D)  structural, frictional, and cyclical

Question 8

Why might firms pay wages that are above the equilibrium wage in a market?

Accepted Answer

A)  to increase the productivity of their workers 
B)  to reduce the unemployment rate 
C)  to encourage workers to form labor unions 
D)  to reduce profit 
A)  to increase the productivity of their workers 
B)  to reduce the unemployment rate 
C)  to encourage workers to form labor unions 
D)  to reduce profit

Question 9

Which of the following causes the unemployment rate to understate the true extent of joblessness?

Accepted Answer

A)  Many full time workers really want to be part time workers. 
B)  Persons who collect unemployment benefits report themselves to be searching for a job. 
C)  Discouraged workers are not counted as unemployed. 
D)  A drug dealer reports herself as unemployed. 
E)  Discouraged workers are counted as unemployed. 
A)  Many full time workers really want to be part time workers. 
B)  Persons who collect unemployment benefits report themselves to be searching for a job. 
C)  Discouraged workers are not counted as unemployed. 
D)  A drug dealer reports herself as unemployed. 
E)  Discouraged workers are counted as unemployed.

Question 10

The full-employment rate of unemployment is zero.

Accepted Answer

A) True 
 B)False

Question 11

The unemployment rate is

Accepted Answer

A)  the percentage of the labor force that is employed. 
B)  the percentage of the number employed that is unemployed. 
C)  the percentage of the working-age population that is unemployed. 
D)  the percentage of the labor force that is unemployed. 
E)  the percentage of the working-age population that is employed. 
A)  the percentage of the labor force that is employed. 
B)  the percentage of the number employed that is unemployed. 
C)  the percentage of the working-age population that is unemployed. 
D)  the percentage of the labor force that is unemployed. 
E)  the percentage of the working-age population that is employed.

Question 12

Describe the three types of unemployment.

Accepted Answer

Frictional unemployment is short-term un

Question 13

The inflation rate measures the percentage increase in the price level from one year to the next.

Accepted Answer

A) True 
 B)False

Question 14

The CPI is also referred to as

Accepted Answer

A)  the GDP deflator. 
B)  the inflation-consumption index. 
C)  the cost-of-living index. 
D)  the producer price index. 
A)  the GDP deflator. 
B)  the inflation-consumption index. 
C)  the cost-of-living index. 
D)  the producer price index.

Question 15

If the number employed is 190 million,the number unemployed is 10 million,and the working-age population is 250 million,then the labor force participation rate is

Accepted Answer

A)  4%. 
B)  5.2%. 
C)  60%. 
D)  76%. 
E)  80%. 
A)  4%. 
B)  5.2%. 
C)  60%. 
D)  76%. 
E)  80%.

Question 16

In 1986,an Apple IIe computer with 65 kilobytes of memory cost around $1,500.Today,a $1,500 iMac computer (also made by Apple)comes with 8 gigabytes of memory.This illustrates the potential for what kind of bias in CPI calculations?

Accepted Answer

A)  new product bias 
B)  increase in quality bias 
C)  substitution bias 
D)  outlet bias 
A)  new product bias 
B)  increase in quality bias 
C)  substitution bias 
D)  outlet bias

Question 17

With the exception of during recessions,workers in Canada are eligible for unemployment benefits for about twice as long a period of time as workers in the United States.As a result,

Accepted Answer

A)  the average duration of unemployment is longer in the United States than in Canada. 
B)  the unemployment rate in Canada is usually higher than in the United States. 
C)  the opportunity cost of job search in Canada is lower than in the United States. 
D)  frictional unemployment is higher, on average, in the United States than in Canada. 
A)  the average duration of unemployment is longer in the United States than in Canada. 
B)  the unemployment rate in Canada is usually higher than in the United States. 
C)  the opportunity cost of job search in Canada is lower than in the United States. 
D)  frictional unemployment is higher, on average, in the United States than in Canada.

Question 18

Table 20-4
  
-Refer to Table 20-4.Suppose an economy has only three goods and the typical family purchases the amounts given in the table above.If 2006 is the base year,then what is the CPI for 2011?

Accepted Answer

A)  14.3 
B)  87.5 
C)  114.3 
D)  160 
A)  14.3 
B)  87.5 
C)  114.3 
D)  160

Question 19

The short-term unemployment arising from the process of matching workers with jobs is called

Accepted Answer

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

Question 20

Table 20-10
  
-Refer to Table 20-10.Looking at the table above,what is the rate of growth of the average price level from 2009 to 2010?

Accepted Answer

A)  1% 
B)  2% 
C)  3% 
D)  4% 
E)  5% 
A)  1% 
B)  2% 
C)  3% 
D)  4% 
E)  5%

Figure 20-1 -Refer to Figure 20-1.Based on the graph of the labor market above,if a minimum wage of $8 per hour is imposed,which of the following will result?

Which of the following explains why many European countries have unemployment rates that are higher than in the United States?

What is the difference between the nominal interest rate and the real interest rate?

Sarah is a full-time student who is not looking for work.What kind of unemployment is Sarah experiencing?

The unemployment rate is higher with a minimum wage law than it would be without a minimum wage law.

Inflation that is than what is expected benefits and hurts .

What are the three main kinds of unemployment?

Why might firms pay wages that are above the equilibrium wage in a market?

Which of the following causes the unemployment rate to understate the true extent of joblessness?

The full-employment rate of unemployment is zero.

The unemployment rate is

Describe the three types of unemployment.

The inflation rate measures the percentage increase in the price level from one year to the next.

The CPI is also referred to as

If the number employed is 190 million,the number unemployed is 10 million,and the working-age population is 250 million,then the labor force participation rate is

In 1986,an Apple IIe computer with 65 kilobytes of memory cost around $1,500.Today,a $1,500 iMac computer (also made by Apple)comes with 8 gigabytes of memory.This illustrates the potential for what kind of bias in CPI calculations?

With the exception of during recessions,workers in Canada are eligible for unemployment benefits for about twice as long a period of time as workers in the United States.As a result,

Table 20-4 -Refer to Table 20-4.Suppose an economy has only three goods and the typical family purchases the amounts given in the table above.If 2006 is the base year,then what is the CPI for 2011?

The short-term unemployment arising from the process of matching workers with jobs is called

Table 20-10 -Refer to Table 20-10.Looking at the table above,what is the rate of growth of the average price level from 2009 to 2010?

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 9: Unemployment and Inflation

Figure 20-1 -Refer to Figure 20-1.Based on the graph of the labor market above,if a minimum wage of $8 per hour is imposed,which of the following will result?

Which of the following explains why many European countries have unemployment rates that are higher than in the United States?

What is the difference between the nominal interest rate and the real interest rate?

Sarah is a full-time student who is not looking for work.What kind of unemployment is Sarah experiencing?

The unemployment rate is higher with a minimum wage law than it would be without a minimum wage law.

Inflation that is ________ than what is expected benefits ________ and hurts ________.

What are the three main kinds of unemployment?

Why might firms pay wages that are above the equilibrium wage in a market?

Which of the following causes the unemployment rate to understate the true extent of joblessness?

The full-employment rate of unemployment is zero.

The unemployment rate is

Describe the three types of unemployment.

The inflation rate measures the percentage increase in the price level from one year to the next.

The CPI is also referred to as

If the number employed is 190 million,the number unemployed is 10 million,and the working-age population is 250 million,then the labor force participation rate is

In 1986,an Apple IIe computer with 65 kilobytes of memory cost around $1,500.Today,a $1,500 iMac computer (also made by Apple)comes with 8 gigabytes of memory.This illustrates the potential for what kind of bias in CPI calculations?

With the exception of during recessions,workers in Canada are eligible for unemployment benefits for about twice as long a period of time as workers in the United States.As a result,

Table 20-4 -Refer to Table 20-4.Suppose an economy has only three goods and the typical family purchases the amounts given in the table above.If 2006 is the base year,then what is the CPI for 2011?

The short-term unemployment arising from the process of matching workers with jobs is called

Table 20-10 -Refer to Table 20-10.Looking at the table above,what is the rate of growth of the average price level from 2009 to 2010?

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Inflation that is than what is expected benefits and hurts .