Question 1

The government's chief forecasting gauge for business cycles is the chained real GDP indicators.

Accepted Answer

A) True 
 B)False

Question 2

The presence of discouraged workers may cause:

Accepted Answer

A)  the employment rate to be overstated. 
B)  the employment rate to be understated. 
C)  the unemployment rate to be overstated. 
D)  the unemployment rate to be understated. 
E)  GDP to be too large. 
A)  the employment rate to be overstated. 
B)  the employment rate to be understated. 
C)  the unemployment rate to be overstated. 
D)  the unemployment rate to be understated. 
E)  GDP to be too large.

Question 3

Which type of unemployment is most closely connected with the saying "you can't teach an old dog new tricks"?

Accepted Answer

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

Question 4

One problem with the unemployment rate is that:

Accepted Answer

A)  discouraged workers are included in the calculation. 
B)  the data includes part-time workers as fully employed. 
C)  underemployment is measured in the calculation. 
D)  all of the above are problems. 
A)  discouraged workers are included in the calculation. 
B)  the data includes part-time workers as fully employed. 
C)  underemployment is measured in the calculation. 
D)  all of the above are problems.

Question 5

Unemployment that is of a short duration to allow time to find a new job is:

Accepted Answer

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

Question 6

Full employment is the situation in which the economy operates at an unemployment rate equal to the sum of:

Accepted Answer

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

Question 7

People who are not currently employed,but say they want a job,are counted as unemployed only if they:

Accepted Answer

A)  have previously held a job. 
B)  are actively seeking employment. 
C)  are willing to accept a reasonable offer. 
D)  are between 16 and 65 years of age. 
E)  are willing to accept any offer of employment. 
A)  have previously held a job. 
B)  are actively seeking employment. 
C)  are willing to accept a reasonable offer. 
D)  are between 16 and 65 years of age. 
E)  are willing to accept any offer of employment.

Question 8

A person who has given up searching for work is called:

Accepted Answer

A)  frictionally unemployed. 
B)  structurally unemployed. 
C)  a discouraged worker. 
D)  unemployed. 
A)  frictionally unemployed. 
B)  structurally unemployed. 
C)  a discouraged worker. 
D)  unemployed.

Question 9

Which of the following statements is true?

Accepted Answer

A)  The four phases of the business cycle, in order, are: peak, recovery, trough, recession. 
B)  When unemployment is rising then real GDP is rising. 
C)  The economic problem typically associated with a recovery is rising unemployment. 
D)  Full employment exists in an economy when the unemployment rate equals the sum of frictional, and structural unemployment rates. 
A)  The four phases of the business cycle, in order, are: peak, recovery, trough, recession. 
B)  When unemployment is rising then real GDP is rising. 
C)  The economic problem typically associated with a recovery is rising unemployment. 
D)  Full employment exists in an economy when the unemployment rate equals the sum of frictional, and structural unemployment rates.

Question 10

The term "recovery" refers to the maximum point of the business cycle.

Accepted Answer

A) True 
 B)False

Question 11

The combination of frictional and structural unemployment is the:

Accepted Answer

A)  cyclical rate of unemployment. 
B)  transitional rate of unemployment. 
C)  civilian rate of unemployment. 
D)  natural rate of unemployment. 
A)  cyclical rate of unemployment. 
B)  transitional rate of unemployment. 
C)  civilian rate of unemployment. 
D)  natural rate of unemployment.

Question 12

Full employment is the rate of employment that results when:

Accepted Answer

A)  all the labor resources of the economy are employed full time. 
B)  cyclical unemployment has reached its maximum. 
C)  everybody who wants a job can find one. 
D)  only frictional and structural unemployment are present. 
A)  all the labor resources of the economy are employed full time. 
B)  cyclical unemployment has reached its maximum. 
C)  everybody who wants a job can find one. 
D)  only frictional and structural unemployment are present.

Question 13

A business cycle is the:

Accepted Answer

A)  period of time in which expansion and contraction of economic activity are equal. 
B)  period of time in which there are three phases: peak, depression, and recovery. 
C)  recurring growth and decline in real GDP. 
D)  period of time in which a business is established and ceases operations. 
A)  period of time in which expansion and contraction of economic activity are equal. 
B)  period of time in which there are three phases: peak, depression, and recovery. 
C)  recurring growth and decline in real GDP. 
D)  period of time in which a business is established and ceases operations.

Question 14

A decrease in aggregate demand and the subsequent cutbacks in production lead to:

Accepted Answer

A)  frictional unemployment. 
B)  cyclical unemployment. 
C)  cost-push unemployment. 
D)  structural unemployment. 
E)  transitory unemployment. 
A)  frictional unemployment. 
B)  cyclical unemployment. 
C)  cost-push unemployment. 
D)  structural unemployment. 
E)  transitory unemployment.

Exam 12: Business Cycles and Unemployment

The government's chief forecasting gauge for business cycles is the chained real GDP indicators.

The presence of discouraged workers may cause:

Which type of unemployment is most closely connected with the saying "you can't teach an old dog new tricks"?

One problem with the unemployment rate is that:

Unemployment that is of a short duration to allow time to find a new job is:

Full employment is the situation in which the economy operates at an unemployment rate equal to the sum of:

People who are not currently employed,but say they want a job,are counted as unemployed only if they:

A person who has given up searching for work is called:

Which of the following statements is true?

The term "recovery" refers to the maximum point of the business cycle.

The combination of frictional and structural unemployment is the:

Full employment is the rate of employment that results when:

A business cycle is the:

A decrease in aggregate demand and the subsequent cutbacks in production lead to:

Introducing the Economic Way of Thinking

A: Appendix: Applying Graphs to Economics

Production Possibilities,Opportunity Cost,and Economic Growth

Part 1: Market Demand and Supply

Part 2: Market Demand and Supply

Markets in Action

Price Elasticity of Demand

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets and Income Distribution

Gross Domestic Product

Inflation

Aggregate Demand and Supply

A: Appendix: The Self-Correcting Aggregate Demand and Supply Model

Fiscal Policy

The Public Sector

Federal Deficits,Surpluses,and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

A: Appendix: Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Filters