Question 1

Emma is a road construction worker.During the winter months, Emma finds it more difficult to get work.The unemployment Emma experiences in the winter is

Accepted Answer

A) structural. 
B) cyclical. 
C) seasonal. 
D) functional. 
E) involuntary part-time employment. 
A) structural. 
B) cyclical. 
C) seasonal. 
D) functional. 
E) involuntary part-time employment.

Question 2

Which of the following policies would reduce structural unemployment?

Accepted Answer

A) an increase in the minimum wage 
B) a job retraining program 
C) expanding employment insurance to cover more workers 
D) building an online job database that helps workers find jobs 
E) a government spending program designed to shorten recessions 
A) an increase in the minimum wage 
B) a job retraining program 
C) expanding employment insurance to cover more workers 
D) building an online job database that helps workers find jobs 
E) a government spending program designed to shorten recessions

Question 3

The unemployment rate in Canada is typically higher for teenagers relative to other workers in part because of the impacts of minimum wage laws.

Accepted Answer

A) True 
 B)False

Question 4

The nominal interest rate equals the real interest rate ________ the inflation rate.

Accepted Answer

A) times 
B) divided by 
C) plus 
D) minus 
E) to the power of 
A) times 
B) divided by 
C) plus 
D) minus 
E) to the power of

Question 5

Assume the average annual CPI values for 2016 and 2017 were 207.3 and 215.3, respectively.What was the percent increase in the CPI between these two years?

Accepted Answer

A) 0.96 
B) 1.04 
C) 3.86 
D) 8.0 
E) 9.16 
A) 0.96 
B) 1.04 
C) 3.86 
D) 8.0 
E) 9.16

Question 6

If inflation is unanticipated, no redistribution of income can occur.

Accepted Answer

A) True 
 B)False

Question 7

How would including members of the military in employment, labour force, and working-age population statistics affect the unemployment rate and the labour force participation rate?

Accepted Answer

A) Including members of the military would increase the unemployment rate and reduce the labour force participation rate. 
B) Including members of the military would reduce the unemployment rate and increase the labour force participation rate. 
C) Including the military would increase both the unemployment rate and the labour force participation rate. 
D) Including the military would reduce both the unemployment rate and the labour force participation rate. 
A) Including members of the military would increase the unemployment rate and reduce the labour force participation rate. 
B) Including members of the military would reduce the unemployment rate and increase the labour force participation rate. 
C) Including the military would increase both the unemployment rate and the labour force participation rate. 
D) Including the military would reduce both the unemployment rate and the labour force participation rate.

Question 8

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. 
E) The nominal interest rate will be lower the real interest rate. 
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. 
E) The nominal interest rate will be lower the real interest rate.

Question 9

Table 5.1   Consider the data above for a simple economy.
-Refer to Table 5.1.The labour force participation rate for this simple economy equals

Accepted Answer

A) (1,000/1,100)× 100 percent. 
B) (1,000/15,000)× 100 percent. 
C) (1,100/15,000)× 100 percent. 
D) (1,100/20,000)× 100 percent. 
E) (15,000/20,000)× 100 percent. 
A) (1,000/1,100)× 100 percent. 
B) (1,000/15,000)× 100 percent. 
C) (1,100/15,000)× 100 percent. 
D) (1,100/20,000)× 100 percent. 
E) (15,000/20,000)× 100 percent.

Question 10

The cost to firms of changing prices

Accepted Answer

A) is small even when there is rapid inflation. 
B) is called a menu cost. 
C) does not exist if inflation is perfectly anticipated. 
D) will make prices perfectly fixed. 
E) all of the above 
A) is small even when there is rapid inflation. 
B) is called a menu cost. 
C) does not exist if inflation is perfectly anticipated. 
D) will make prices perfectly fixed. 
E) all of the above

Question 11

Between 2014 and 2015, the CPI of a small nation rose from 182 to 185.If household incomes rose by 3% during that period of time, which of the following is true?

Accepted Answer

A) The purchasing power of household income rose between 2014 and 2015. 
B) The purchasing power of household income fell between 2014 and 2015. 
C) The purchasing power of household income remained constant between 2014 and 2015. 
D) The CPI cannot be used to determine how the purchasing power of household income changes over time. 
A) The purchasing power of household income rose between 2014 and 2015. 
B) The purchasing power of household income fell between 2014 and 2015. 
C) The purchasing power of household income remained constant between 2014 and 2015. 
D) The CPI cannot be used to determine how the purchasing power of household income changes over time.

Question 12

Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest.If the inflation rate was 4%, what was the real interest rate you paid?

Accepted Answer

A) 16 percent 
B) 12 percent 
C) 8 percent 
D) 6 percent 
E) 3 percent 
A) 16 percent 
B) 12 percent 
C) 8 percent 
D) 6 percent 
E) 3 percent

Question 13

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 14

Observing that Costco pays its employees much more than Walmart does leads economists to think

Accepted Answer

A) Costco is paying an efficiency wage in an effort to maximize profit. 
B) Costco employees have a powerful union. 
C) Costco's owners are not interested in maximizing profits. 
D) Walmart is consistently breaking Canada's labour laws. 
E) Costco's ownership must be more motivated by fairness than Walmart. 
A) Costco is paying an efficiency wage in an effort to maximize profit. 
B) Costco employees have a powerful union. 
C) Costco's owners are not interested in maximizing profits. 
D) Walmart is consistently breaking Canada's labour laws. 
E) Costco's ownership must be more motivated by fairness than Walmart.

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 labour 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

The real wage equals the nominal wage ________ the CPI, all times 100.

Accepted Answer

A) divided by 
B) times 
C) minus 
D) plus 
E) to the power of 
A) divided by 
B) times 
C) minus 
D) plus 
E) to the power of

Question 17

Fill in the missing values in the table of data collected in the fictitious Labour Force Survey below. Show your work.

Accepted Answer

@#IMG-DLM& Labour force participation rate = @#IMG-DLM& × 10

Question 18

Table 5.18  
-Refer to Table 5.18.Looking at the table above, the real average hourly wage in 2015 was

Accepted Answer

A) $19.13 in 2002 dollars. 
B) $19.89 in 2002 dollars. 
C) $26.30 in 2002 dollars. 
D) $314.80 in 2002 dollars. 
E) $423.93 in 2002 dollars. 
A) $19.13 in 2002 dollars. 
B) $19.89 in 2002 dollars. 
C) $26.30 in 2002 dollars. 
D) $314.80 in 2002 dollars. 
E) $423.93 in 2002 dollars.

Question 19

The federal government legalized marijuana in 2017. Before this change Statistics Canada would have considered people who made their living growing and selling marijuana for recreational use to be

Accepted Answer

A) not in the labour force. 
B) unemployment. 
C) employed part time. 
D) employed full time. 
E) not legally entitled to work in Canada. 
A) not in the labour force. 
B) unemployment. 
C) employed part time. 
D) employed full time. 
E) not legally entitled to work in Canada.

Question 20

The economy has gone into a recession.You have majored in computer science and, because of the recession, have difficulty in finding a job.Should you go back to school and get a second major?

Accepted Answer

A) Yes, the recession will ensure that I will never find a job as a programmer. 
B) Yes, the recession will lower income in my field permanently. 
C) No, the recession will most likely be short-lived and I can get a job after it is over. 
D) No, the recession will have no impact on my ability to get a job or my future income. 
E) Yes, the recession will likely reduce the demand for computer science majors permanently. 
A) Yes, the recession will ensure that I will never find a job as a programmer. 
B) Yes, the recession will lower income in my field permanently. 
C) No, the recession will most likely be short-lived and I can get a job after it is over. 
D) No, the recession will have no impact on my ability to get a job or my future income. 
E) Yes, the recession will likely reduce the demand for computer science majors permanently.

Emma is a road construction worker.During the winter months, Emma finds it more difficult to get work.The unemployment Emma experiences in the winter is

Which of the following policies would reduce structural unemployment?

The unemployment rate in Canada is typically higher for teenagers relative to other workers in part because of the impacts of minimum wage laws.

The nominal interest rate equals the real interest rate ________ the inflation rate.

Assume the average annual CPI values for 2016 and 2017 were 207.3 and 215.3, respectively.What was the percent increase in the CPI between these two years?

If inflation is unanticipated, no redistribution of income can occur.

How would including members of the military in employment, labour force, and working-age population statistics affect the unemployment rate and the labour force participation rate?

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

Table 5.1 Consider the data above for a simple economy. -Refer to Table 5.1.The labour force participation rate for this simple economy equals

The cost to firms of changing prices

Between 2014 and 2015, the CPI of a small nation rose from 182 to 185.If household incomes rose by 3% during that period of time, which of the following is true?

Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest.If the inflation rate was 4%, what was the real interest rate you paid?

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

Observing that Costco pays its employees much more than Walmart does leads economists to think

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

The real wage equals the nominal wage ________ the CPI, all times 100.

Fill in the missing values in the table of data collected in the fictitious Labour Force Survey below. Show your work.

Table 5.18 -Refer to Table 5.18.Looking at the table above, the real average hourly wage in 2015 was

The federal government legalized marijuana in 2017. Before this change Statistics Canada would have considered people who made their living growing and selling marijuana for recreational use to be

The economy has gone into a recession.You have majored in computer science and, because of the recession, have difficulty in finding a job.Should you go back to school and get a second major?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Supply and Demand

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 Bank of Canada

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Bank of Canada Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 5: Unemployment and Inflation

Emma is a road construction worker.During the winter months, Emma finds it more difficult to get work.The unemployment Emma experiences in the winter is

Which of the following policies would reduce structural unemployment?

The unemployment rate in Canada is typically higher for teenagers relative to other workers in part because of the impacts of minimum wage laws.

The nominal interest rate equals the real interest rate ________ the inflation rate.

Assume the average annual CPI values for 2016 and 2017 were 207.3 and 215.3, respectively.What was the percent increase in the CPI between these two years?

If inflation is unanticipated, no redistribution of income can occur.

How would including members of the military in employment, labour force, and working-age population statistics affect the unemployment rate and the labour force participation rate?

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

Table 5.1 Consider the data above for a simple economy. -Refer to Table 5.1.The labour force participation rate for this simple economy equals

The cost to firms of changing prices

Between 2014 and 2015, the CPI of a small nation rose from 182 to 185.If household incomes rose by 3% during that period of time, which of the following is true?

Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest.If the inflation rate was 4%, what was the real interest rate you paid?

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

Observing that Costco pays its employees much more than Walmart does leads economists to think

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

The real wage equals the nominal wage ________ the CPI, all times 100.

Fill in the missing values in the table of data collected in the fictitious Labour Force Survey below. Show your work.

Table 5.18 -Refer to Table 5.18.Looking at the table above, the real average hourly wage in 2015 was

The federal government legalized marijuana in 2017. Before this change Statistics Canada would have considered people who made their living growing and selling marijuana for recreational use to be

The economy has gone into a recession.You have majored in computer science and, because of the recession, have difficulty in finding a job.Should you go back to school and get a second major?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Supply and Demand

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 Bank of Canada

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Bank of Canada Policy

Macroeconomics in an Open Economy

The International Financial System

Filters