Question 1

Which of the following best describes when the economy is experiencing inflation? When

Accepted Answer

A) The price of an essential good increases dramatically 
B) The prices of many goods go up 
C) There is a rise in the general level of prices 
D) All prices remain the same or increase; no prices fall 
E) The value of the dollar increases 
A) The price of an essential good increases dramatically 
B) The prices of many goods go up 
C) There is a rise in the general level of prices 
D) All prices remain the same or increase; no prices fall 
E) The value of the dollar increases

Question 2

Full employment means that everyone in the labor force has a joB.

Accepted Answer

A) True 
 B)False

Question 3

Suppose a family spends $20,000 on a basket of goods in 2011.Suppose the same basket costs $22,000 in 2012.Using 2011 as the base year,the price index for 2012 is

Accepted Answer

A) 105 
B) 102 
C) 111 
D) 110 
E) None of the above 
A) 105 
B) 102 
C) 111 
D) 110 
E) None of the above

Question 4

Cyclical unemployment occurs because workers have no marketable job skills.

Accepted Answer

A) True 
 B)False

Question 5

The consumer price index is a true cost-of-living index.

Accepted Answer

A) True 
 B)False

Question 6

When frictional unemployment exists,labor services are voluntarily unemployeD.

Accepted Answer

A) True 
 B)False

Question 7

A person is considered unemployed if the person is

Accepted Answer

A)  Seeking a job requiring greater qualifications than the person possesses and no one is willing to hire the person for such a job 
B)  Offered a job for which the person is qualified but prefers not to work 
C)  Qualified for a job, willing to work, but unable to find work for over 30 days 
D)  Out of school during Christmas vacation and cannot find work during that period 
E)  All of the above 
A)  Seeking a job requiring greater qualifications than the person possesses and no one is willing to hire the person for such a job 
B)  Offered a job for which the person is qualified but prefers not to work 
C)  Qualified for a job, willing to work, but unable to find work for over 30 days 
D)  Out of school during Christmas vacation and cannot find work during that period 
E)  All of the above

Question 8

During inflation,some prices may be rising and some may be falling.

Accepted Answer

A) True 
 B)False

Question 9

Since 1960,inflation rates were highest during the 1970s.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements is correct? Inflation

Accepted Answer

A) Benefits creditors at the expense of debtors 
B) Increases the purchasing power of the dollar 
C) Increases the real value of savings 
D) Arbitrarily "taxes" fixed income groups 
E) Increases real wages 
A) Benefits creditors at the expense of debtors 
B) Increases the purchasing power of the dollar 
C) Increases the real value of savings 
D) Arbitrarily "taxes" fixed income groups 
E) Increases real wages

Question 11

Frictional unemployment is involuntary.

Accepted Answer

A) True 
 B)False

Question 12

In the circular flow diagram,economic units are classified as

Accepted Answer

A) Imports and exports 
B) Households and producers 
C) Taxpayers and governments 
D) Subsidy receivers and taxpayers 
E) Producers and sellers 
A) Imports and exports 
B) Households and producers 
C) Taxpayers and governments 
D) Subsidy receivers and taxpayers 
E) Producers and sellers

Question 13

Expansionary and contractionary policies have not proved to be effective tools to control unemployment and inflation in the American economy.

Accepted Answer

A) True 
 B)False

Question 14

Demand-pull inflation ends once full employment is reacheD.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following people is considered unemployed?

Accepted Answer

A) A truck driver with a high school education who has been laid off his job and is now training to be a computer programmer 
B) An individual who is currently not working nor actively seeking employment 
C) A secretary who is currently not working and who seeks employment using secretarial skills 
D) All of the above 
E) None of the above 
A) A truck driver with a high school education who has been laid off his job and is now training to be a computer programmer 
B) An individual who is currently not working nor actively seeking employment 
C) A secretary who is currently not working and who seeks employment using secretarial skills 
D) All of the above 
E) None of the above

Question 16

Which of the following statements concerning the circular flow is FALSE?

Accepted Answer

A) The circular flow of economic activity shows how the overall economy operates 
B) The circular flow emphasizes the independence of economic variables 
C) There are two circular flows involved in the economy 
D) The circular flow shows that real income is determined by physical goods and services produced in the economy 
E) None of the above 
A) The circular flow of economic activity shows how the overall economy operates 
B) The circular flow emphasizes the independence of economic variables 
C) There are two circular flows involved in the economy 
D) The circular flow shows that real income is determined by physical goods and services produced in the economy 
E) None of the above

Question 17

All unemployed workers are unemployed for the same reason.

Accepted Answer

A) True 
 B)False

Question 18

Frictional unemploymentrefers to persons who are unemployed because the economy is in a recession.

Accepted Answer

A) True 
 B)False

Question 19

Aggregate supply can be increased by

Accepted Answer

A) Reduced incentives to save 
B) Higher taxes 
C) Increases in government spending 
D) Policies to induce more saving 
E) None of the above 
A) Reduced incentives to save 
B) Higher taxes 
C) Increases in government spending 
D) Policies to induce more saving 
E) None of the above

Question 20

Which of the following factors in an economy contribute to "sticky" wages?

Accepted Answer

A) Flexible working conditions 
B) Competitive labor markets 
C) Collective bargaining agreements 
D) Highly mobile capital equipment 
E) Investment flexibility 
A) Flexible working conditions 
B) Competitive labor markets 
C) Collective bargaining agreements 
D) Highly mobile capital equipment 
E) Investment flexibility

Which of the following best describes when the economy is experiencing inflation? When

Full employment means that everyone in the labor force has a joB.

Suppose a family spends $20,000 on a basket of goods in 2011.Suppose the same basket costs $22,000 in 2012.Using 2011 as the base year,the price index for 2012 is

Cyclical unemployment occurs because workers have no marketable job skills.

The consumer price index is a true cost-of-living index.

When frictional unemployment exists,labor services are voluntarily unemployeD.

A person is considered unemployed if the person is

During inflation,some prices may be rising and some may be falling.

Since 1960,inflation rates were highest during the 1970s.

Which of the following statements is correct? Inflation

Frictional unemployment is involuntary.

In the circular flow diagram,economic units are classified as

Expansionary and contractionary policies have not proved to be effective tools to control unemployment and inflation in the American economy.

Demand-pull inflation ends once full employment is reacheD.

Which of the following people is considered unemployed?

Which of the following statements concerning the circular flow is FALSE?

All unemployed workers are unemployed for the same reason.

Frictional unemploymentrefers to persons who are unemployed because the economy is in a recession.

Aggregate supply can be increased by

Which of the following factors in an economy contribute to "sticky" wages?

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

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

Which of the following best describes when the economy is experiencing inflation? When

Full employment means that everyone in the labor force has a joB.

Suppose a family spends $20,000 on a basket of goods in 2011.Suppose the same basket costs $22,000 in 2012.Using 2011 as the base year,the price index for 2012 is

Cyclical unemployment occurs because workers have no marketable job skills.

The consumer price index is a true cost-of-living index.

When frictional unemployment exists,labor services are voluntarily unemployeD.

A person is considered unemployed if the person is

During inflation,some prices may be rising and some may be falling.

Since 1960,inflation rates were highest during the 1970s.

Which of the following statements is correct? Inflation

Frictional unemployment is involuntary.

In the circular flow diagram,economic units are classified as

Expansionary and contractionary policies have not proved to be effective tools to control unemployment and inflation in the American economy.

Demand-pull inflation ends once full employment is reacheD.

Which of the following people is considered unemployed?

Which of the following statements concerning the circular flow is FALSE?

All unemployed workers are unemployed for the same reason.

Frictional unemploymentrefers to persons who are unemployed because the economy is in a recession.

Aggregate supply can be increased by

Which of the following factors in an economy contribute to "sticky" wages?

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