Question 1

The labor force equals the number of people

Accepted Answer

A) employed. 
B) unemployed. 
C) employed plus unemployed. 
D) in the working-age population. 
A) employed. 
B) unemployed. 
C) employed plus unemployed. 
D) in the working-age population.

Question 2

You lend $5,000 to a friend for one year at a nominal interest rate of 10%.Inflation during that year is 5%.As a result,you will receive ________ at the end of the year,but that money has a purchasing power of ________.

Accepted Answer

A) $5,050; $5,025 
B) $5,100; $5,050 
C) $5,500; $5,250 
D) $6,000; $5,500 
A) $5,050; $5,025 
B) $5,100; $5,050 
C) $5,500; $5,250 
D) $6,000; $5,500

Question 3

What are the three main types 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 4

Which of the following is an example of a worker experiencing cyclical unemployment?

Accepted Answer

A) a worker who changes jobs to move closer to her family 
B) an assembly line worker who loses his job because of automation 
C) a freightliner employee that got laid off because of the recession of 2007-2009 
D) a lifeguard who was hired during the summer season is laid off after summer is over 
A) a worker who changes jobs to move closer to her family 
B) an assembly line worker who loses his job because of automation 
C) a freightliner employee that got laid off because of the recession of 2007-2009 
D) a lifeguard who was hired during the summer season is laid off after summer is over

Question 5

The advice to "retrain" would be most appropriate for which of the following types of unemployment?

Accepted Answer

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

Question 6

Which of the following describes actual trends in the U.S.labor force participation rate?

Accepted Answer

A) The labor force participation rate of adult men has risen since 1950. 
B) The labor force participation rate of adult women has fallen since 1950. 
C) The labor force participation rate of adult men not in school,but too young to retire has risen since 1950. 
D) The labor force participation rate of adult women has risen since 1950. 
E) The labor force participation rate of all adults has fallen since 1950. 
A) The labor force participation rate of adult men has risen since 1950. 
B) The labor force participation rate of adult women has fallen since 1950. 
C) The labor force participation rate of adult men not in school,but too young to retire has risen since 1950. 
D) The labor force participation rate of adult women has risen since 1950. 
E) The labor force participation rate of all adults has fallen since 1950.

Question 7

Which of the following would most likely suffer the least from the costs of inflation?

Accepted Answer

A) persons on fixed incomes 
B) persons whose incomes rise more rapidly than inflation 
C) firms that have to devote more time and labor to raising prices 
D) an investor that has to pay higher taxes because of the inflation 
A) persons on fixed incomes 
B) persons whose incomes rise more rapidly than inflation 
C) firms that have to devote more time and labor to raising prices 
D) an investor that has to pay higher taxes because of the inflation

Question 8

An increase in unemployment insurance payments would,in effect,________ the amount of time spent searching for a job,which would increase ________ unemployment.

Accepted Answer

A) increase; cyclical 
B) increase; frictional 
C) decrease; cyclical 
D) decrease; frictional 
A) increase; cyclical 
B) increase; frictional 
C) decrease; cyclical 
D) decrease; frictional

Question 9

The equilibrium wage in a local labor market is $10 per hour.If a minimum wage of $15 per hour is imposed,which of the following will occur?

Accepted Answer

A) There will be an increase in unemployment. 
B) There will be an increase in the quantity of labor demanded by firms. 
C) There will be a decrease in the quantity of labor supplied by households. 
D) All of the above will occur. 
A) There will be an increase in unemployment. 
B) There will be an increase in the quantity of labor demanded by firms. 
C) There will be a decrease in the quantity of labor supplied by households. 
D) All of the above will occur.

Question 10

What are some reasons why the unemployment rate is typically lower in the United States as compared to Canada and some Western European countries?

Accepted Answer

Workers in Western Europe and Canada are

Question 11

If firms pay what are called "efficiency wages," they pay wages that

Accepted Answer

A) motivate workers to increase their productivity. 
B) are lower than average to ensure maximum profit. 
C) will eventually lower the unemployment rate. 
D) are mandated by the government. 
A) motivate workers to increase their productivity. 
B) are lower than average to ensure maximum profit. 
C) will eventually lower the unemployment rate. 
D) are mandated by the government.

Question 12

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

Accepted Answer

A) divided by 
B) times 
C) minus 
D) plus 
A) divided by 
B) times 
C) minus 
D) plus

Question 13

If you have trouble finding a job because of a slowdown in the overall economy,we would say that you are

Accepted Answer

A) frictionally unemployed. 
B) structurally unemployed. 
C) cyclically unemployed. 
D) seasonally unemployed. 
A) frictionally unemployed. 
B) structurally unemployed. 
C) cyclically unemployed. 
D) seasonally unemployed.

Question 14

If you want to earn a real interest rate of 3% on money you lend and you expect that inflation will be 2%,what nominal rate of interest will you charge?

Accepted Answer

A) 1% 
B) 5% 
C) 6% 
D) 9% 
A) 1% 
B) 5% 
C) 6% 
D) 9%

Question 15

What does the PPI measure?

Accepted Answer

A) the average change in the prices paid for all goods produced in the economy over a given year 
B) the average of the prices received by producers of goods and services at all stages of the production process 
C) the level of production of goods and services generated in the economy in a given year 
D) the difference between the prices consumers pay for goods and services and the prices producers pay for goods and services 
A) the average change in the prices paid for all goods produced in the economy over a given year 
B) the average of the prices received by producers of goods and services at all stages of the production process 
C) the level of production of goods and services generated in the economy in a given year 
D) the difference between the prices consumers pay for goods and services and the prices producers pay for goods and services

Question 16

Table 9-15
  
-Refer to Table 9-15.Looking at the table above,real average hourly earnings in 2016 were

Accepted Answer

A) $9. 
B) $9.52. 
C) $10. 
D) $12.63. 
A) $9. 
B) $9.52. 
C) $10. 
D) $12.63.

Question 17

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 18

The percent increase in the CPI from one year to the next is a measure of the

Accepted Answer

A) GDP deflator. 
B) unemployment rate. 
C) real interest rate. 
D) inflation rate. 
A) GDP deflator. 
B) unemployment rate. 
C) real interest rate. 
D) inflation rate.

Question 19

If the price level rose in three consecutive years from 100 to 120 to 140,then the annual inflation rate over those years would

Accepted Answer

A) increase. 
B) remain the same. 
C) decrease. 
D) equal 20%. 
A) increase. 
B) remain the same. 
C) decrease. 
D) equal 20%.

Question 20

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

Accepted Answer

A) implementing a minimum wage above the market wage in an economy 
B) reducing unemployment insurance in an economy 
C) offering wages at the market-clearing rate 
D) reducing labor union membership in an economy 
A) implementing a minimum wage above the market wage in an economy 
B) reducing unemployment insurance in an economy 
C) offering wages at the market-clearing rate 
D) reducing labor union membership in an economy

The labor force equals the number of people

You lend $5,000 to a friend for one year at a nominal interest rate of 10%.Inflation during that year is 5%.As a result,you will receive at the end of the year,but that money has a purchasing power of .

What are the three main types of unemployment?

Which of the following is an example of a worker experiencing cyclical unemployment?

The advice to "retrain" would be most appropriate for which of the following types of unemployment?

Which of the following describes actual trends in the U.S.labor force participation rate?

Which of the following would most likely suffer the least from the costs of inflation?

An increase in unemployment insurance payments would,in effect, the amount of time spent searching for a job,which would increase unemployment.

The equilibrium wage in a local labor market is $10 per hour.If a minimum wage of $15 per hour is imposed,which of the following will occur?

What are some reasons why the unemployment rate is typically lower in the United States as compared to Canada and some Western European countries?

If firms pay what are called "efficiency wages," they pay wages that

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

If you have trouble finding a job because of a slowdown in the overall economy,we would say that you are

If you want to earn a real interest rate of 3% on money you lend and you expect that inflation will be 2%,what nominal rate of interest will you charge?

What does the PPI measure?

Table 9-15 -Refer to Table 9-15.Looking at the table above,real average hourly earnings in 2016 were

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

The percent increase in the CPI from one year to the next is a measure of the

If the price level rose in three consecutive years from 100 to 120 to 140,then the annual inflation rate over those years would

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

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

The labor force equals the number of people

You lend $5,000 to a friend for one year at a nominal interest rate of 10%.Inflation during that year is 5%.As a result,you will receive ________ at the end of the year,but that money has a purchasing power of ________.

What are the three main types of unemployment?

Which of the following is an example of a worker experiencing cyclical unemployment?

The advice to "retrain" would be most appropriate for which of the following types of unemployment?

Which of the following describes actual trends in the U.S.labor force participation rate?

Which of the following would most likely suffer the least from the costs of inflation?

An increase in unemployment insurance payments would,in effect,________ the amount of time spent searching for a job,which would increase ________ unemployment.

The equilibrium wage in a local labor market is $10 per hour.If a minimum wage of $15 per hour is imposed,which of the following will occur?

What are some reasons why the unemployment rate is typically lower in the United States as compared to Canada and some Western European countries?

If firms pay what are called "efficiency wages," they pay wages that

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

If you have trouble finding a job because of a slowdown in the overall economy,we would say that you are

If you want to earn a real interest rate of 3% on money you lend and you expect that inflation will be 2%,what nominal rate of interest will you charge?

What does the PPI measure?

Table 9-15 -Refer to Table 9-15.Looking at the table above,real average hourly earnings in 2016 were

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

The percent increase in the CPI from one year to the next is a measure of the

If the price level rose in three consecutive years from 100 to 120 to 140,then the annual inflation rate over those years would

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

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

You lend $5,000 to a friend for one year at a nominal interest rate of 10%.Inflation during that year is 5%.As a result,you will receive at the end of the year,but that money has a purchasing power of .

An increase in unemployment insurance payments would,in effect, the amount of time spent searching for a job,which would increase unemployment.