Question 1

Paying efficiency wages is a way for a company to cut costs and become more efficient and are therefore lower than market wages.

Accepted Answer

A) True 
 B)False

Question 2

During a deflationary period,the

Accepted Answer

A)  nominal interest rate is less than the real interest rate. 
B)  real interest rate is less than the nominal interest rate. 
C)  price level rises. 
D)  nominal interest rate does not change. 
A)  nominal interest rate is less than the real interest rate. 
B)  real interest rate is less than the nominal interest rate. 
C)  price level rises. 
D)  nominal interest rate does not change.

Question 3

Over the past 30 years,the labour force participation rates of women have fallen as they leave the labour force to have children,while the labour force participation rates of men have risen.

Accepted Answer

A) True 
 B)False

Question 4

Suppose an economy has only three goods and the typical family purchases the amounts given in the following table.If 2012 is the base year,then what is the CPI for 2017? $$\begin{array} { | c | c | c | c | c | c | } 
\hline \text { Product } & \begin{array} { c } 
\text { Quantity } \
\text { (2012) }
\end{array} & \begin{array} { c } 
\text { Price } \
\text { (2012) }
\end{array} & \begin{array} { c } 
\text { Expenditures } \
\mathbf { ( 2 0 1 2 ) }
\end{array} & \begin{array} { c } 
\text { Price } \
\text { (2017) }
\end{array} & \begin{array} { c } 
\text { Expenditures (on base } \
\text { year quantities) (2017) }
\end{array} \
\hline \text { Hair cuts } & 6 & \$ 50 & \$ 300 & \$ 80 & \$ 480 \
\hline \text { Backpacks } & 4 & \$ 25 & \$ 100 & \$ 30 & \$ 120 \
\hline \text { Tacos } & 100 & \$ 1.00 & \$ 100 & \$ 5.00 & \$ 500 \
\hline \text { Total } & & & \$ 500 & & \$ 1100 \
\hline
\end{array}$$

Accepted Answer

A)  220 
B)  208 
C)  40.08 
D)  100 
A)  220 
B)  208 
C)  40.08 
D)  100

Question 5

Suppose 200 000 people are employed,25 000 people are unemployed,and an additional 50 000 people are not in the labour force but are of working age.Calculate the labour force participation rate.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

The labour force participation rate is c

Question 6

For which of the following age groups was the unemployment rate in Australia the lowest in 2016?

Accepted Answer

A)  15-19 years 
B)  25-34 years 
C)  35-44 years 
D)  65 years and older 
A)  15-19 years 
B)  25-34 years 
C)  35-44 years 
D)  65 years and older

Question 7

Suppose that the data in the following table reflects the prices in the economy.What is the inflation rate in between 2017 and 2018? $$\begin{array} { | c | c | } 
\hline \text { Year } & \text { CPI } \
& ( \mathbf { 1 9 9 0 } = \mathbf { 1 0 0 } ) \
\hline 2017 & 175 \
\hline 2018 & 180 \
\hline
\end{array}$$

Accepted Answer

A)  5% 
B)  2.9% 
C)  4.6% 
D)  7.5% 
A)  5% 
B)  2.9% 
C)  4.6% 
D)  7.5%

Question 8

Suppose you obtain a fixed interest rate mortgage during a period of relatively high inflation.During the next 10 years,inflation falls.Are you a winner or a loser due to inflation? Explain why.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

You would be a loser under this scenario

Question 9

By offering training to workers whose firms sacked them because of competition from foreign firms,the federal government is attempting to reduce -.

Accepted Answer

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

Question 10

Which of the following is not a result of rising unemployment?

Accepted Answer

A)  A loss of tax revenue to the government 
B)  An increase in poverty 
C)  An increase in wages for those who remain in employment as there are fewer people employed 
D)  Lower incomes for people who become unemployed 
A)  A loss of tax revenue to the government 
B)  An increase in poverty 
C)  An increase in wages for those who remain in employment as there are fewer people employed 
D)  Lower incomes for people who become unemployed

Question 11

Inflation that is ________ than what is expected benefits ________ and hurts ________.

Accepted Answer

A)  less; lenders; borrowers 
B)  less; borrowers; lenders 
C)  greater; lenders; borrowers 
D)  greater; lenders; no-one 
A)  less; lenders; borrowers 
B)  less; borrowers; lenders 
C)  greater; lenders; borrowers 
D)  greater; lenders; no-one

Question 12

Which of the following groups of educational attainment in Australia has the highest level of long-term unemployment?

Accepted Answer

A)  Those whose highest education level is completion of Year 10 schooling 
B)  Those whose highest education level is completion of Year 12 schooling 
C)  Those whose highest education level is completion of a TAFE certificate 
D)  Those whose highest education level is completion of a university degree 
A)  Those whose highest education level is completion of Year 10 schooling 
B)  Those whose highest education level is completion of Year 12 schooling 
C)  Those whose highest education level is completion of a TAFE certificate 
D)  Those whose highest education level is completion of a university degree

Question 13

Assume that the base period for CPI calculations is 1980.In Australia in 2016,around 30% of people accessed the Internet through a broadband connection that did not exist in the 1980s.This potential for bias in the CPI is referred to as ________ bias and results in ________.

Accepted Answer

A)  outlet; the CPI underestimating the true change in the cost of living 
B)  new product; the CPI overestimating the true change in the cost of living 
C)  outlet; the CPI overestimating the true change in the cost of living 
D)  net product; the CPI underestimating the true change in the cost of living 
A)  outlet; the CPI underestimating the true change in the cost of living 
B)  new product; the CPI overestimating the true change in the cost of living 
C)  outlet; the CPI overestimating the true change in the cost of living 
D)  net product; the CPI underestimating the true change in the cost of living

Question 14

How is the unemployment rate calculated?

Accepted Answer

A)  By dividing the number of unemployed people by the number of working individuals, and multiplying by 100. 
B)  By dividing the number of unemployed people by the sum of the number of working people plus unemployed people, and multiplying by 100. 
C)  By dividing the number of unemployed people by the number in the working-age population, and multiplying by 100. 
D)  By dividing the number of unemployed people by the number of people in the labour force, and dividing by 100. 
A)  By dividing the number of unemployed people by the number of working individuals, and multiplying by 100. 
B)  By dividing the number of unemployed people by the sum of the number of working people plus unemployed people, and multiplying by 100. 
C)  By dividing the number of unemployed people by the number in the working-age population, and multiplying by 100. 
D)  By dividing the number of unemployed people by the number of people in the labour force, and dividing by 100.

Question 15

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

Accepted Answer

A)  Implementing a minimum wage in an economy 
B)  Firms deciding to pay efficiency wages in an economy 
C)  The establishment of effective trade unions in an economy 
D)  All of these options are correct 
A)  Implementing a minimum wage in an economy 
B)  Firms deciding to pay efficiency wages in an economy 
C)  The establishment of effective trade unions in an economy 
D)  All of these options are correct

Question 16

The demand for new motor vehicles falls due to high oil prices and a move by people toward a greater use of public transport.As a result,motor vehicle manufacturers sack some workers.This would be an example of -.

Accepted Answer

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

Question 17

The GDP deflator includes the price changes of all newly produced goods and services,while the 'consumer price index' only includes the price changes of some newly produced goods and services.

Accepted Answer

A) True 
 B)False

Question 18

How is 'long-term unemployment' defined?

Accepted Answer

A)  As those in the labour force who have been unemployed continuously for 6 months or more 
B)  As those in the labour force who have been unemployed continuously for 2 years or more 
C)  As those in the labour force who have been unemployed continuously for 12 months or more 
D)  As people who are no longer in the workforce as they are discouraged workers 
A)  As those in the labour force who have been unemployed continuously for 6 months or more 
B)  As those in the labour force who have been unemployed continuously for 2 years or more 
C)  As those in the labour force who have been unemployed continuously for 12 months or more 
D)  As people who are no longer in the workforce as they are discouraged workers

Question 19

What is the 'natural rate of unemployment' and what types of unemployment constitute the 'natural rate of unemployment'?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

The natural rate of unemployment is thou

Question 20

Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called -.

Accepted Answer

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

Paying efficiency wages is a way for a company to cut costs and become more efficient and are therefore lower than market wages.

During a deflationary period,the

Over the past 30 years,the labour force participation rates of women have fallen as they leave the labour force to have children,while the labour force participation rates of men have risen.

Suppose 200 000 people are employed,25 000 people are unemployed,and an additional 50 000 people are not in the labour force but are of working age.Calculate the labour force participation rate. _ _

For which of the following age groups was the unemployment rate in Australia the lowest in 2016?

Suppose that the data in the following table reflects the prices in the economy.What is the inflation rate in between 2017 and 2018? Year CPI (=) 2017 175 2018 180

Suppose you obtain a fixed interest rate mortgage during a period of relatively high inflation.During the next 10 years,inflation falls.Are you a winner or a loser due to inflation? Explain why. _ _

By offering training to workers whose firms sacked them because of competition from foreign firms,the federal government is attempting to reduce -.

Which of the following is not a result of rising unemployment?

Inflation that is than what is expected benefits and hurts .

Which of the following groups of educational attainment in Australia has the highest level of long-term unemployment?

Assume that the base period for CPI calculations is 1980.In Australia in 2016,around 30% of people accessed the Internet through a broadband connection that did not exist in the 1980s.This potential for bias in the CPI is referred to as bias and results in .

How is the unemployment rate calculated?

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

The demand for new motor vehicles falls due to high oil prices and a move by people toward a greater use of public transport.As a result,motor vehicle manufacturers sack some workers.This would be an example of -.

The GDP deflator includes the price changes of all newly produced goods and services,while the 'consumer price index' only includes the price changes of some newly produced goods and services.

How is 'long-term unemployment' defined?

What is the 'natural rate of unemployment' and what types of unemployment constitute the 'natural rate of unemployment'? _ _

Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called -.

Economics: Foundations and Models

Choices and Trade-Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency,government Price Setting and Taxes

Technology,production and Costs

Firms in Perfectly Competitive Markets

Monopoly Markets

Monopolistic Competition and Oligopoly

The Markets for Labour and Other Factors of Production

Government Intervention in the Market

Social Policy and Inequality

Gdp: Measuring Total Production, income and Economic Growth

Aggregate Demand and Aggregate Supply Analysis

Money,banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Comparative Advantage and the Gains From International Trade

Macroeconomics in an Open Economy

Filters

Exam 14: Unemployment and Inflation

Paying efficiency wages is a way for a company to cut costs and become more efficient and are therefore lower than market wages.

During a deflationary period,the

Over the past 30 years,the labour force participation rates of women have fallen as they leave the labour force to have children,while the labour force participation rates of men have risen.

For which of the following age groups was the unemployment rate in Australia the lowest in 2016?

Suppose that the data in the following table reflects the prices in the economy.What is the inflation rate in between 2017 and 2018? Year CPI (=) 2017 175 2018 180

By offering training to workers whose firms sacked them because of competition from foreign firms,the federal government is attempting to reduce -.

Which of the following is not a result of rising unemployment?

Inflation that is ________ than what is expected benefits ________ and hurts ________.

Which of the following groups of educational attainment in Australia has the highest level of long-term unemployment?

Assume that the base period for CPI calculations is 1980.In Australia in 2016,around 30% of people accessed the Internet through a broadband connection that did not exist in the 1980s.This potential for bias in the CPI is referred to as ________ bias and results in ________.

How is the unemployment rate calculated?

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

The demand for new motor vehicles falls due to high oil prices and a move by people toward a greater use of public transport.As a result,motor vehicle manufacturers sack some workers.This would be an example of -.

The GDP deflator includes the price changes of all newly produced goods and services,while the 'consumer price index' only includes the price changes of some newly produced goods and services.

How is 'long-term unemployment' defined?

Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called -.

Economics: Foundations and Models

Choices and Trade-Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency,government Price Setting and Taxes

Technology,production and Costs

Firms in Perfectly Competitive Markets

Monopoly Markets

Monopolistic Competition and Oligopoly

The Markets for Labour and Other Factors of Production

Government Intervention in the Market

Social Policy and Inequality

Gdp: Measuring Total Production, income and Economic Growth

Aggregate Demand and Aggregate Supply Analysis

Money,banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Comparative Advantage and the Gains From International Trade

Macroeconomics in an Open Economy

Filters

Inflation that is than what is expected benefits and hurts .

Assume that the base period for CPI calculations is 1980.In Australia in 2016,around 30% of people accessed the Internet through a broadband connection that did not exist in the 1980s.This potential for bias in the CPI is referred to as bias and results in .