Question 1

A useful measure of the size of the workforce,that is,the number of individuals who are willing and able to work,is

Accepted Answer

A) The current population survey 
B) The unemployment rate 
C) The rate of job growth 
D) The labor force participation rate 
E) There are no useful measures of this information,due to the difficulties of gathering the sample 
A) The current population survey 
B) The unemployment rate 
C) The rate of job growth 
D) The labor force participation rate 
E) There are no useful measures of this information,due to the difficulties of gathering the sample

Question 2

Inflation may affect the distribution of income in the economy and may increase national output.

Accepted Answer

A) True 
 B)False

Question 3

Frictional unemployment could be reduced by decreasing the minimum wagE.

Accepted Answer

A) True 
 B)False

Question 4

Unemployment rates since 2007 have increased due to rising structural unemployment.

Accepted Answer

A) True 
 B)False

Question 5

People who are in the process of changing jobs are classified in the category of

Accepted Answer

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

Question 6

Investment spending is sensitive to

Accepted Answer

A) Interest rates 
B) Expectations by producers about the return on investment 
C) The confidence of investors 
D) All of the above 
E) None of the above 
A) Interest rates 
B) Expectations by producers about the return on investment 
C) The confidence of investors 
D) All of the above 
E) None of the above

Question 7

The Phillips curve depicts the relationship between

Accepted Answer

A) Output and inflation 
B) Savings and investment 
C) Unemployment and inflation 
D) Imports and exports 
E) None of the above 
A) Output and inflation 
B) Savings and investment 
C) Unemployment and inflation 
D) Imports and exports 
E) None of the above

Question 8

People who are unemployed due to a downturn in economic activity are classified in the category of

Accepted Answer

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

Question 9

The Phillips curve is another name for a production possibilities curve.

Accepted Answer

A) True 
 B)False

Question 10

The unemployment rate

Accepted Answer

A) For blacks is roughly twice the rate for whites 
B) For women is lower than that of men 
C) For teenagers is below the rate for the labor force as a whole 
D) Is equal for males and females,blacks and whites,and young and old workers 
E) Is none of the above 
A) For blacks is roughly twice the rate for whites 
B) For women is lower than that of men 
C) For teenagers is below the rate for the labor force as a whole 
D) Is equal for males and females,blacks and whites,and young and old workers 
E) Is none of the above

Question 11

An increase in the federal budget deficit will increase unemployment.

Accepted Answer

A) True 
 B)False

Question 12

The oil embargo during the early 1970s showed how stable the relationship is between unemployment and inflation rates.

Accepted Answer

A) True 
 B)False

Question 13

When General Motors lays workers off because of a decrease in aggregate demand,it causes

Accepted Answer

A) Cyclical unemployment 
B) Frictional unemployment 
C) Seasonal unemployment 
D) Structural unemployment 
E) None of the above 
A) Cyclical unemployment 
B) Frictional unemployment 
C) Seasonal unemployment 
D) Structural unemployment 
E) None of the above

Question 14

A price index shows the absolute changes in price that occur over time in a list of different products and services.

Accepted Answer

A) True 
 B)False

Question 15

Inflation may have a stimulating effect on production and employment.

Accepted Answer

A) True 
 B)False

Question 16

Frictional unemployment can be reduced by education and training.

Accepted Answer

A) True 
 B)False

Question 17

The psychological law of consumption tells us the marginal propensity to consume will be

Accepted Answer

A) Less than 0 
B) Greater than 0 but less than 1 
C) Equal to 1 
D) Greater than 1 but less than 10 
E) Greater than 10 
A) Less than 0 
B) Greater than 0 but less than 1 
C) Equal to 1 
D) Greater than 1 but less than 10 
E) Greater than 10

Question 18

If inflation stimulates production and employment,the economy experiences which of the following effects of inflation?

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 19

Inflation is not equitable because it arbitrarily changes the pattern of income distribution.

Accepted Answer

A) True 
 B)False

Question 20

To expand the level of economic activity,it is necessary that

Accepted Answer

A) Total leakages exceed total injections 
B) Government expenditures exceed tax collections 
C) Total injections exceed total leakages 
D) Imports exceed exports 
E) (c)and (d)above 
A) Total leakages exceed total injections 
B) Government expenditures exceed tax collections 
C) Total injections exceed total leakages 
D) Imports exceed exports 
E) (c)and (d)above

A useful measure of the size of the workforce,that is,the number of individuals who are willing and able to work,is

Inflation may affect the distribution of income in the economy and may increase national output.

Frictional unemployment could be reduced by decreasing the minimum wagE.

Unemployment rates since 2007 have increased due to rising structural unemployment.

People who are in the process of changing jobs are classified in the category of

Investment spending is sensitive to

The Phillips curve depicts the relationship between

People who are unemployed due to a downturn in economic activity are classified in the category of

The Phillips curve is another name for a production possibilities curve.

The unemployment rate

An increase in the federal budget deficit will increase unemployment.

The oil embargo during the early 1970s showed how stable the relationship is between unemployment and inflation rates.

When General Motors lays workers off because of a decrease in aggregate demand,it causes

A price index shows the absolute changes in price that occur over time in a list of different products and services.

Inflation may have a stimulating effect on production and employment.

Frictional unemployment can be reduced by education and training.

The psychological law of consumption tells us the marginal propensity to consume will be

If inflation stimulates production and employment,the economy experiences which of the following effects of inflation?

Inflation is not equitable because it arbitrarily changes the pattern of income distribution.

To expand the level of economic activity,it is necessary that

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

A useful measure of the size of the workforce,that is,the number of individuals who are willing and able to work,is

Inflation may affect the distribution of income in the economy and may increase national output.

Frictional unemployment could be reduced by decreasing the minimum wagE.

Unemployment rates since 2007 have increased due to rising structural unemployment.

People who are in the process of changing jobs are classified in the category of

Investment spending is sensitive to

The Phillips curve depicts the relationship between

People who are unemployed due to a downturn in economic activity are classified in the category of

The Phillips curve is another name for a production possibilities curve.

The unemployment rate

An increase in the federal budget deficit will increase unemployment.

The oil embargo during the early 1970s showed how stable the relationship is between unemployment and inflation rates.

When General Motors lays workers off because of a decrease in aggregate demand,it causes

A price index shows the absolute changes in price that occur over time in a list of different products and services.

Inflation may have a stimulating effect on production and employment.

Frictional unemployment can be reduced by education and training.

The psychological law of consumption tells us the marginal propensity to consume will be

If inflation stimulates production and employment,the economy experiences which of the following effects of inflation?

Inflation is not equitable because it arbitrarily changes the pattern of income distribution.

To expand the level of economic activity,it is necessary that

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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