Question 1

Involuntary unemployment occurs when wage rates are too low,i.e.,below competitive levels.

Accepted Answer

A) True 
 B)False

Question 2

A college graduate looking for her first job is considered

Accepted Answer

A) Frictionally unemployed 
B) Involuntarily unemployed 
C) Structurally unemployed 
D) Cyclically unemployed 
E) Seasonally unemployed 
A) Frictionally unemployed 
B) Involuntarily unemployed 
C) Structurally unemployed 
D) Cyclically unemployed 
E) Seasonally unemployed

Question 3

If the consumer price index is 100 in 2010 and is 120 in 2012,then the rate of inflation between 2010 and 2012 is

Accepted Answer

A) 10% 
B) 20% 
C) 15% 
D) 5% 
E) Unable to be calculated without further information 
A) 10% 
B) 20% 
C) 15% 
D) 5% 
E) Unable to be calculated without further information

Question 4

Which of the following individuals is considered part of the labor force?

Accepted Answer

A) An unemployed farmer 
B) A college graduate looking for his first job 
C) A retired teacher working as a sales clerk 
D) A department store Santa during December 
E) All of the above 
A) An unemployed farmer 
B) A college graduate looking for his first job 
C) A retired teacher working as a sales clerk 
D) A department store Santa during December 
E) All of the above

Question 5

Which of the following is most likely be hurt by inflation?

Accepted Answer

A) People on fixed incomes 
B) People whose wages rise faster than prices 
C) Landholders 
D) Borrowers 
E) None of the above 
A) People on fixed incomes 
B) People whose wages rise faster than prices 
C) Landholders 
D) Borrowers 
E) None of the above

Question 6

When a Phillips curve is drawn,it shows an inverse relationship between inflation and unemployment rates.

Accepted Answer

A) True 
 B)False

Question 7

Leakages in the circular flow consist of

Accepted Answer

A) Savings,taxes,and exports 
B) Savings,investment,and exports 
C) Government spending,investment,and exports 
D) Savings,taxes,and imports 
E) Investment,taxes,and imports 
A) Savings,taxes,and exports 
B) Savings,investment,and exports 
C) Government spending,investment,and exports 
D) Savings,taxes,and imports 
E) Investment,taxes,and imports

Question 8

Structural unemployment results from the economy experiencing a recession.

Accepted Answer

A) True 
 B)False

Question 9

When inflation redistributes income from one group in the economy to another,it is an example of which effect?

Accepted Answer

A) Equity 
B) Efficiency 
C) Output 
D) Input 
E) None of the above 
A) Equity 
B) Efficiency 
C) Output 
D) Input 
E) None of the above

Question 10

Unemployment affects both the current and future production of goods and services.

Accepted Answer

A) True 
 B)False

Question 11

The effects of inflation on resource allocation are the equity effects of inflation.

Accepted Answer

A) True 
 B)False

Question 12

An auto factory worker who is unemployed because a robot now has his job is a victim of

Accepted Answer

A) Structural unemployment 
B) Cyclical unemployment 
C) Underemployment 
D) Frictional unemployment 
E) Seasonal unemployment 
A) Structural unemployment 
B) Cyclical unemployment 
C) Underemployment 
D) Frictional unemployment 
E) Seasonal unemployment

Question 13

An equilibrium level of national income implies the economy is operating at full employment.

Accepted Answer

A) True 
 B)False

Question 14

In an economy like that of the US,due to a variety of institutional and social factors,wages tend to be

Accepted Answer

A) Very flexible 
B) Flexible during recessions 
C) Highly rigid 
D) Affected only by Congressional legislation 
E) Sticky 
A) Very flexible 
B) Flexible during recessions 
C) Highly rigid 
D) Affected only by Congressional legislation 
E) Sticky

Question 15

A certain amount of frictional and structural unemployment occurs even at full employment.

Accepted Answer

A) True 
 B)False

Question 16

The highest unemployment rate is found among

Accepted Answer

A) People between the ages of 16 and 19 
B) Females 
C) Ethnic groups 
D) The elderly 
E) Children 
A) People between the ages of 16 and 19 
B) Females 
C) Ethnic groups 
D) The elderly 
E) Children

Question 17

Economic policy makers in the 1960s held that governments could

Accepted Answer

A) Engage in expansionary and contractionary policies to manage the economy 
B) Spend their way out of business cycles 
C) Eliminate unemployment 
D) Choose how much to produce 
E) None of the above 
A) Engage in expansionary and contractionary policies to manage the economy 
B) Spend their way out of business cycles 
C) Eliminate unemployment 
D) Choose how much to produce 
E) None of the above

Question 18

The marginal propensity to consume plus the marginal propensity to save

Accepted Answer

A) Represents what happens as a result of income changes 
B) Must always sum to 1 
C) Must always sum to 0 
D) A and B 
E) None of the above 
A) Represents what happens as a result of income changes 
B) Must always sum to 1 
C) Must always sum to 0 
D) A and B 
E) None of the above

Question 19

The marginal propensity to consume is usually greater than onE.

Accepted Answer

A) True 
 B)False

Question 20

Federal income taxes are levied on the basis of nominally stated tax brackets, and there is a nominal upward adjustment in salaries and wages during inflation. Therefore, what is true of federal tax collections during inflation? They will

Accepted Answer

A)  Decrease in both real and nominal terms 
B)  Increase in both real and nominal terms 
C)  Increase in real terms 
D)  Increase in nominal terms 
E)  Stay the same 
A)  Decrease in both real and nominal terms 
B)  Increase in both real and nominal terms 
C)  Increase in real terms 
D)  Increase in nominal terms 
E)  Stay the same

Involuntary unemployment occurs when wage rates are too low,i.e.,below competitive levels.

A college graduate looking for her first job is considered

If the consumer price index is 100 in 2010 and is 120 in 2012,then the rate of inflation between 2010 and 2012 is

Which of the following individuals is considered part of the labor force?

Which of the following is most likely be hurt by inflation?

When a Phillips curve is drawn,it shows an inverse relationship between inflation and unemployment rates.

Leakages in the circular flow consist of

Structural unemployment results from the economy experiencing a recession.

When inflation redistributes income from one group in the economy to another,it is an example of which effect?

Unemployment affects both the current and future production of goods and services.

The effects of inflation on resource allocation are the equity effects of inflation.

An auto factory worker who is unemployed because a robot now has his job is a victim of

An equilibrium level of national income implies the economy is operating at full employment.

In an economy like that of the US,due to a variety of institutional and social factors,wages tend to be

A certain amount of frictional and structural unemployment occurs even at full employment.

The highest unemployment rate is found among

Economic policy makers in the 1960s held that governments could

The marginal propensity to consume plus the marginal propensity to save

The marginal propensity to consume is usually greater than onE.

Federal income taxes are levied on the basis of nominally stated tax brackets, and there is a nominal upward adjustment in salaries and wages during inflation. Therefore, what is true of federal tax collections during inflation? They will

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Economics of Crime and Its Prevention: How Much Is Too Much

The Economics of Education: Crisis and Reform

Poverty Problems and Discrimination: Why Are so Many Still so Poor

The Economics of Monopoly Power: Can Markets Be Controlled

The Economics of Professional Sports: What Is the Real Score

Competition in the Global Market-Place: Should We Protect Ourselves From International Trade

Economic Growth: Why Is the Economic Road so Bumpy

Money,Banking and the Financial System: Old Problems With New Twists

Government Spending,Taxation,and the National Debt: Who Wins and Who Loses

Social Security and Medicare: How Secure Is Our Safety Net for the Elderly

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Exam 13: Unemployment and Inflation: Can We Find a Balance

Involuntary unemployment occurs when wage rates are too low,i.e.,below competitive levels.

A college graduate looking for her first job is considered

If the consumer price index is 100 in 2010 and is 120 in 2012,then the rate of inflation between 2010 and 2012 is

Which of the following individuals is considered part of the labor force?

Which of the following is most likely be hurt by inflation?

When a Phillips curve is drawn,it shows an inverse relationship between inflation and unemployment rates.

Leakages in the circular flow consist of

Structural unemployment results from the economy experiencing a recession.

When inflation redistributes income from one group in the economy to another,it is an example of which effect?

Unemployment affects both the current and future production of goods and services.

The effects of inflation on resource allocation are the equity effects of inflation.

An auto factory worker who is unemployed because a robot now has his job is a victim of

An equilibrium level of national income implies the economy is operating at full employment.

In an economy like that of the US,due to a variety of institutional and social factors,wages tend to be

A certain amount of frictional and structural unemployment occurs even at full employment.

The highest unemployment rate is found among

Economic policy makers in the 1960s held that governments could

The marginal propensity to consume plus the marginal propensity to save

The marginal propensity to consume is usually greater than onE.

Federal income taxes are levied on the basis of nominally stated tax brackets, and there is a nominal upward adjustment in salaries and wages during inflation. Therefore, what is true of federal tax collections during inflation? They will

Alleviating Human Misery: The Role of Economic Reasoning

Economic Systems, Resource Allocation, and Social Well-Being: Lessons From Chinas Transition

Government Control of Prices in Mixed Systems: Who Are the Winners and Losers

Pollution Problems: Must We Foul Our Own Nests

Economics of Crime and Its Prevention: How Much Is Too Much

The Economics of Education: Crisis and Reform

Poverty Problems and Discrimination: Why Are so Many Still so Poor

The Economics of Monopoly Power: Can Markets Be Controlled

The Economics of Professional Sports: What Is the Real Score

Competition in the Global Market-Place: Should We Protect Ourselves From International Trade

Economic Growth: Why Is the Economic Road so Bumpy

Money,Banking and the Financial System: Old Problems With New Twists

Government Spending,Taxation,and the National Debt: Who Wins and Who Loses

Social Security and Medicare: How Secure Is Our Safety Net for the Elderly

Filters