Question 1

A trade deficit will occur in an economy

Accepted Answer

A) When spending exceeds income 
B) When the value of exports exceeds the value of imports 
C) When the value of exports is less than the value of imports 
D) When an economy is expanding 
E) When an economy is in recession 
A) When spending exceeds income 
B) When the value of exports exceeds the value of imports 
C) When the value of exports is less than the value of imports 
D) When an economy is expanding 
E) When an economy is in recession

Question 2

The AD-AS relationship is not affected by circular flow relationships.

Accepted Answer

A) True 
 B)False

Question 3

After the events of the 1970s,economists learned that

Accepted Answer

A) Attempts to trade off unemployment and inflation would only work for a short period of time 
B) Shocks to the aggregate supply could alter the relationships between unemployment and inflation 
C) The Phillips curve relationship was not stable 
D) The Phillips curve shifted over time 
E) All of the above 
A) Attempts to trade off unemployment and inflation would only work for a short period of time 
B) Shocks to the aggregate supply could alter the relationships between unemployment and inflation 
C) The Phillips curve relationship was not stable 
D) The Phillips curve shifted over time 
E) All of the above

Question 4

An increase in government purchases financed by an equal increase in tax collections will increase national incomE.

Accepted Answer

A) True 
 B)False

Question 5

An increase in the marginal propensity to consume will increase the size of the multiplier.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) A 15-year-old worker at a fast food restaurant 
B) A paid prison worker at the prison carpentry shop 
C) A college student attending school full-time 
D) A stay-at-home dad 
E) None of the above 
A) A 15-year-old worker at a fast food restaurant 
B) A paid prison worker at the prison carpentry shop 
C) A college student attending school full-time 
D) A stay-at-home dad 
E) None of the above

Question 7

Structural unemployment results from people changing jobs.

Accepted Answer

A) True 
 B)False

Question 8

A factory worker who loses a job because of a decrease in aggregate demand is

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 9

An increase in imports would expand the level of employment.

Accepted Answer

A) True 
 B)False

Question 10

Between 1960 and 2011,the unemployment rate has

Accepted Answer

A) Steadily increased 
B) Steadily fallen 
C) Been below 6% over the entire period 
D) Ranged from 1% to 12% 
E) None of the above 
A) Steadily increased 
B) Steadily fallen 
C) Been below 6% over the entire period 
D) Ranged from 1% to 12% 
E) None of the above

Question 11

The best description of the growth of the money supply since 1960 is that it has

Accepted Answer

A) Increased steadily 
B) Increased rapidly during the 1980's 
C) Decreased steadily 
D) Decreased rapidly during the 1960's 
E) Shown patterns of both fast and slow growth over the decades 
A) Increased steadily 
B) Increased rapidly during the 1980's 
C) Decreased steadily 
D) Decreased rapidly during the 1960's 
E) Shown patterns of both fast and slow growth over the decades

Question 12

When individuals want to work,but give up looking for a job because they feel there will never be one available,they are considered

Accepted Answer

A) Pessimistic 
B) Lazy 
C) Discouraged 
D) Part of the labor force 
E) Unemployed 
A) Pessimistic 
B) Lazy 
C) Discouraged 
D) Part of the labor force 
E) Unemployed

Question 13

Frictional unemployment is a long-run event for particular individuals.

Accepted Answer

A) True 
 B)False

Question 14

Inflation means that prices are too high.

Accepted Answer

A) True 
 B)False

Question 15

Economic growth or improved technology would be shown on an aggregate demand - aggregate supply diagram as an increase in AD,AS remaining constant.

Accepted Answer

A) True 
 B)False

Question 16

Shifts in the aggregate supply function can cause shifts in the Phillips curve.

Accepted Answer

A) True 
 B)False

Question 17

Unemployment below the full employment rate is a measure of

Accepted Answer

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

Question 18

The relationship shown by the Phillips curve,which implies a tradeoff between inflation and unemployment rates,is a long-run phenomenon.

Accepted Answer

A) True 
 B)False

Question 19

The lowest unemployment rate is found for those between the ages of 16 and 19.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following types of unemployment is considered long-term,hardcore unemployment?

Accepted Answer

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

A trade deficit will occur in an economy

The AD-AS relationship is not affected by circular flow relationships.

After the events of the 1970s,economists learned that

An increase in government purchases financed by an equal increase in tax collections will increase national incomE.

An increase in the marginal propensity to consume will increase the size of the multiplier.

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

Structural unemployment results from people changing jobs.

A factory worker who loses a job because of a decrease in aggregate demand is

An increase in imports would expand the level of employment.

Between 1960 and 2011,the unemployment rate has

The best description of the growth of the money supply since 1960 is that it has

When individuals want to work,but give up looking for a job because they feel there will never be one available,they are considered

Frictional unemployment is a long-run event for particular individuals.

Inflation means that prices are too high.

Economic growth or improved technology would be shown on an aggregate demand - aggregate supply diagram as an increase in AD,AS remaining constant.

Shifts in the aggregate supply function can cause shifts in the Phillips curve.

Unemployment below the full employment rate is a measure of

The relationship shown by the Phillips curve,which implies a tradeoff between inflation and unemployment rates,is a long-run phenomenon.

The lowest unemployment rate is found for those between the ages of 16 and 19.

Which of the following types of unemployment is considered long-term,hardcore unemployment?

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

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

A trade deficit will occur in an economy

The AD-AS relationship is not affected by circular flow relationships.

After the events of the 1970s,economists learned that

An increase in government purchases financed by an equal increase in tax collections will increase national incomE.

An increase in the marginal propensity to consume will increase the size of the multiplier.

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

Structural unemployment results from people changing jobs.

A factory worker who loses a job because of a decrease in aggregate demand is

An increase in imports would expand the level of employment.

Between 1960 and 2011,the unemployment rate has

The best description of the growth of the money supply since 1960 is that it has

When individuals want to work,but give up looking for a job because they feel there will never be one available,they are considered

Frictional unemployment is a long-run event for particular individuals.

Inflation means that prices are too high.

Economic growth or improved technology would be shown on an aggregate demand - aggregate supply diagram as an increase in AD,AS remaining constant.

Shifts in the aggregate supply function can cause shifts in the Phillips curve.

Unemployment below the full employment rate is a measure of

The relationship shown by the Phillips curve,which implies a tradeoff between inflation and unemployment rates,is a long-run phenomenon.

The lowest unemployment rate is found for those between the ages of 16 and 19.

Which of the following types of unemployment is considered long-term,hardcore unemployment?

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