Question 1

Someone who is available for work but has not actively looked for work in the previous four weeks would be classified as

Accepted Answer

A)  employed. 
B)  unemployed. 
C)  not in the labor force. 
D)  not in the working-age population. 
A)  employed. 
B)  unemployed. 
C)  not in the labor force. 
D)  not in the working-age population.

Question 2

Which of the following would be the best measure of the cost of living?

Accepted Answer

A)  real GDP 
B)  real GDP per person 
C)  GDP deflator 
D)  consumer price index 
A)  real GDP 
B)  real GDP per person 
C)  GDP deflator 
D)  consumer price index

Question 3

Table 13-19
 $\begin{array}{|c|c|c|}
\hline \text { Year } & \begin{array}{c}
\text { Nominal Average Hourly } \
\text { Earnings }
\end{array} & \begin{array}{c}
\text { CPI } \
(\mathbf{1 9 8 2 - 1 9 8 4}=\mathbf{1 0 0})
\end{array} \
\hline 2016 & \$ 10 & 100 \
\hline 2017 & 10 & 105 \
\hline 2018 & 12 & 110 \
\hline
\end{array}$
-Refer to Table 13-19.Looking at the table above,what is the approximate rate of growth of real average hourly earnings from 2016 to 2017?

Accepted Answer

A)  15% 
B)  4.4% 
C)  -1.5% 
D)  -4.8% 
A)  15% 
B)  4.4% 
C)  -1.5% 
D)  -4.8%

Question 4

When the price of gasoline rises,some consumers begin riding their bikes more frequently or riding the bus instead of driving their cars.The fact that the CPI does not fully account for such changes in consumer behavior is called

Accepted Answer

A)  outlet bias. 
B)  increase in quality bias. 
C)  substitution bias. 
D)  discrimination bias. 
A)  outlet bias. 
B)  increase in quality bias. 
C)  substitution bias. 
D)  discrimination bias.

Question 5

Paying efficiency wages are a way for a company to cut costs and become more efficient,and are therefore lower than market wages.

Accepted Answer

A) True 
 B)False

Question 6

When prices are rising,which of the following will be true?

Accepted Answer

A)  The real interest rate will be lower than the nominal interest rate. 
B)  The real interest rate will be negative. 
C)  The real interest rate will be higher than the nominal interest rate. 
D)  The nominal interest rate will be negative. 
A)  The real interest rate will be lower than the nominal interest rate. 
B)  The real interest rate will be negative. 
C)  The real interest rate will be higher than the nominal interest rate. 
D)  The nominal interest rate will be negative.

Question 7

An example of a seasonally unemployed worker would be

Accepted Answer

A)  a software engineer who is laid off because of declining demand for the software he writes. 
B)  a day care provider who quits his job to go back to school. 
C)  a General Motors employee loses her job because the company is downsizing its work force. 
D)  a ski lift operator who loses his job when the snow melts in the spring. 
E)  a mother who quits her job to stay home with her children. 
A)  a software engineer who is laid off because of declining demand for the software he writes. 
B)  a day care provider who quits his job to go back to school. 
C)  a General Motors employee loses her job because the company is downsizing its work force. 
D)  a ski lift operator who loses his job when the snow melts in the spring. 
E)  a mother who quits her job to stay home with her children.

Question 8

Table 13-8
 $\begin{array}{|c|c|}
\hline \text { Year } & \text { CPI } \
\hline 2017 & 100 \
\hline 2018 & 120 \
\hline
\end{array}$
-Refer to Table 13-8.Suppose that the data in the table above reflect the price levels in the economy.What is the inflation rate in between 2017 and 2018?

Accepted Answer

A)  2% 
B)  5% 
C)  10% 
D)  12% 
E)  20% 
A)  2% 
B)  5% 
C)  10% 
D)  12% 
E)  20%

Question 9

Mike has been unemployed for over a year.He hasn't looked for a job in the last three months,but he's just started looking for work again.Because Mike started looking for a new job

Accepted Answer

A)  the unemployment rate increased. 
B)  the labor force participation rate decreased. 
C)  the unemployment rate decreased. 
D)  the working-age population increased. 
A)  the unemployment rate increased. 
B)  the labor force participation rate decreased. 
C)  the unemployment rate decreased. 
D)  the working-age population increased.

Question 10

Efficiency wages cause unemployment because

Accepted Answer

A)  firms pay wages that are below the market wage, causing the quantity of labor demanded to be greater than the quantity of labor supplied. 
B)  firms pay wages that are below the market wage, causing the quantity of labor demanded to be less than the quantity of labor supplied. 
C)  firms pay wages that are above the market wage, causing the quantity of labor demanded to be greater than the quantity of labor supplied. 
D)  firms pay wages that are above the market wage, causing the quantity of labor demanded to be less than the quantity of labor supplied. 
A)  firms pay wages that are below the market wage, causing the quantity of labor demanded to be greater than the quantity of labor supplied. 
B)  firms pay wages that are below the market wage, causing the quantity of labor demanded to be less than the quantity of labor supplied. 
C)  firms pay wages that are above the market wage, causing the quantity of labor demanded to be greater than the quantity of labor supplied. 
D)  firms pay wages that are above the market wage, causing the quantity of labor demanded to be less than the quantity of labor supplied.

Someone who is available for work but has not actively looked for work in the previous four weeks would be classified as

Which of the following would be the best measure of the cost of living?

Table 13-19 Year Nominal Average Hourly Earnings CPI (=) 2016 \ 10 100 2017 10 105 2018 12 110 -Refer to Table 13-19.Looking at the table above,what is the approximate rate of growth of real average hourly earnings from 2016 to 2017?

When the price of gasoline rises,some consumers begin riding their bikes more frequently or riding the bus instead of driving their cars.The fact that the CPI does not fully account for such changes in consumer behavior is called

Paying efficiency wages are a way for a company to cut costs and become more efficient,and are therefore lower than market wages.

When prices are rising,which of the following will be true?

An example of a seasonally unemployed worker would be

Table 13-8 Year CPI 2017 100 2018 120 -Refer to Table 13-8.Suppose that the data in the table above reflect the price levels in the economy.What is the inflation rate in between 2017 and 2018?

Mike has been unemployed for over a year.He hasn't looked for a job in the last three months,but he's just started looking for work again.Because Mike started looking for a new job

Efficiency wages cause unemployment because

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, The Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology,Production,and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Economic Growth, The Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, International Trade, and Exchange Rates

Filters

Exam 13: Unemployment and Inflation

Someone who is available for work but has not actively looked for work in the previous four weeks would be classified as

Which of the following would be the best measure of the cost of living?

Table 13-19 Year Nominal Average Hourly Earnings CPI (=) 2016 \ 10 100 2017 10 105 2018 12 110 -Refer to Table 13-19.Looking at the table above,what is the approximate rate of growth of real average hourly earnings from 2016 to 2017?

When the price of gasoline rises,some consumers begin riding their bikes more frequently or riding the bus instead of driving their cars.The fact that the CPI does not fully account for such changes in consumer behavior is called

Paying efficiency wages are a way for a company to cut costs and become more efficient,and are therefore lower than market wages.

When prices are rising,which of the following will be true?

An example of a seasonally unemployed worker would be

Table 13-8 Year CPI 2017 100 2018 120 -Refer to Table 13-8.Suppose that the data in the table above reflect the price levels in the economy.What is the inflation rate in between 2017 and 2018?

Mike has been unemployed for over a year.He hasn't looked for a job in the last three months,but he's just started looking for work again.Because Mike started looking for a new job

Efficiency wages cause unemployment because

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, The Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology,Production,and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Economic Growth, The Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, International Trade, and Exchange Rates

Filters