Question 1

How are 'discouraged workers' classified by the Australian Bureau of Statistics (ABS)?

Accepted Answer

A)  Not in the labour force 
B)  Unemployed 
C)  Part of the labour force 
D)  Employed 
A)  Not in the labour force 
B)  Unemployed 
C)  Part of the labour force 
D)  Employed

Question 2

The Australian Bureau of Statistics counts as 'employed' those people who work part-time but would prefer to work full-time.Suppose the people who had part-time jobs,but wanted full-time jobs,were counted as 'unemployed'.Explain how the unemployment rate and the labour force participation rate would change.
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_____________________________________________________________________________________________

Accepted Answer

The unemployment rate would increase and

Question 3

'Frictional unemployment' would increase when

Accepted Answer

A)  there is a fall in aggregate demand. 
B)  workers are replaced by machines and the workers do not have the skills necessary to perform new jobs. 
C)  discouraged workers leave the labour force. 
D)  the number of individuals who quit their job to find another job increases. 
A)  there is a fall in aggregate demand. 
B)  workers are replaced by machines and the workers do not have the skills necessary to perform new jobs. 
C)  discouraged workers leave the labour force. 
D)  the number of individuals who quit their job to find another job increases.

Question 4

If a part-time worker becomes a full-time worker,the

Accepted Answer

A)  official unemployment rate will fall. 
B)  official unemployment rate will not change. 
C)  economy will move closer toward full employment. 
D)  economy will move closer toward the natural rate of unemployment. 
A)  official unemployment rate will fall. 
B)  official unemployment rate will not change. 
C)  economy will move closer toward full employment. 
D)  economy will move closer toward the natural rate of unemployment.

Question 5

When the economy is at 'full employment',everyone who wants a job has a job.

Accepted Answer

A) True 
 B)False

Question 6

If the anticipated rate of inflation is 3% but the subsequent actual rate of inflation is 5%,the likely outcome will be that the purchasing power of money will

Accepted Answer

A)  fall and lenders will benefit. 
B)  increase and borrowers will benefit. 
C)  fall and borrowers will benefit. 
D)  increase and lenders will benefit. 
A)  fall and lenders will benefit. 
B)  increase and borrowers will benefit. 
C)  fall and borrowers will benefit. 
D)  increase and lenders will benefit.

Question 7

Refer to the following table. $$\begin{array} { | l | r | } 
\hline \text { Status } & \text { Persons } \
\hline \text { Employed } & 8000 \
\hline \text { Unemployed } & 600 \
\hline \text { Not in the labour } & \
\text { force } & 4000 \
\hline
\end{array}$$ All of the following mathematical calculations are correct.The unemployment rate is approximately

Accepted Answer

A)  (600/8 000) × 100 = 7.25%. 
B)  (600/7 500) × 100 = 8.00%. 
C)  (600/8 600) × 100 = 7.05%. 
D)  (600/4 000) × 100 = 15.00%. 
A)  (600/8 000) × 100 = 7.25%. 
B)  (600/7 500) × 100 = 8.00%. 
C)  (600/8 600) × 100 = 7.05%. 
D)  (600/4 000) × 100 = 15.00%.

Question 8

What does the producer price index (PPI)measure?

Accepted Answer

A)  The average change in the prices paid for all goods produced in the economy over a given year 
B)  The average of the prices received by producers of goods and services at all stages of the production process 
C)  The level of production of goods and services generated in the economy in a given year 
D)  The difference between the prices consumers pay for goods and services and the prices producers pay for goods and services 
A)  The average change in the prices paid for all goods produced in the economy over a given year 
B)  The average of the prices received by producers of goods and services at all stages of the production process 
C)  The level of production of goods and services generated in the economy in a given year 
D)  The difference between the prices consumers pay for goods and services and the prices producers pay for goods and services

Question 9

Explain how lowering inflation acts like a tax cut for investors and illustrate this using an example.
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_____________________________________________________________________________________________

Accepted Answer

When inflation increases,so does the nom

Question 10

The stated interest rate on a loan is the

Accepted Answer

A)  real interest rate. 
B)  nominal interest rate. 
C)  actual inflation rate. 
D)  expected inflation rate. 
A)  real interest rate. 
B)  nominal interest rate. 
C)  actual inflation rate. 
D)  expected inflation rate.

Question 11

Many economists argue that 'frictional unemployment'

Accepted Answer

A)  no longer exists due to shortages of labour. 
B)  cannot and probably should not be eliminated. 
C)  should be eliminated. 
D)  prevents the economy from reaching its full-employment output level. 
A)  no longer exists due to shortages of labour. 
B)  cannot and probably should not be eliminated. 
C)  should be eliminated. 
D)  prevents the economy from reaching its full-employment output level.

Question 12

'Efficiency wages' cause unemployment because firms pay wages that are

Accepted Answer

A)  below the market wage, causing labour demand to be greater than labour supply. 
B)  below the market wage, causing labour demand to be less than labour supply. 
C)  above the market wage, causing labour demand to be greater than labour supply. 
D)  above the market wage, causing labour demand to be less than labour supply. 
A)  below the market wage, causing labour demand to be greater than labour supply. 
B)  below the market wage, causing labour demand to be less than labour supply. 
C)  above the market wage, causing labour demand to be greater than labour supply. 
D)  above the market wage, causing labour demand to be less than labour supply.

Question 13

'Cost-push inflation' can be caused by

Accepted Answer

A)  a high growth rate in real wages. 
B)  an increase in aggregate demand, which pushes prices higher. 
C)  an increase in aggregate supply, which pushes prices higher. 
D)  growth in aggregate demand not keeping up with the growth in aggregate supply. 
A)  a high growth rate in real wages. 
B)  an increase in aggregate demand, which pushes prices higher. 
C)  an increase in aggregate supply, which pushes prices higher. 
D)  growth in aggregate demand not keeping up with the growth in aggregate supply.

Question 14

Outline the 'costs of unemployment'.
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_____________________________________________________________________________________________

Accepted Answer

The economic costs of unemployment inclu

Question 15

People who have borrowed money from banks at a fixed rate of interest will most likely

Accepted Answer

A)  experience losses if the inflation rate is higher than anticipated. 
B)  benefit if the inflation rate is lower than anticipated. 
C)  experience a rise in their real interest rate. 
D)  benefit if the inflation rate is higher than anticipated. 
A)  experience losses if the inflation rate is higher than anticipated. 
B)  benefit if the inflation rate is lower than anticipated. 
C)  experience a rise in their real interest rate. 
D)  benefit if the inflation rate is higher than anticipated.

Question 16

Inflation redistributes income to a greater extent when the inflation is 'unanticipated'.

Accepted Answer

A) True 
 B)False

Question 17

The unemployment rate is calculated by adding up the number of people receiving unemployment benefit payments from the government.

Accepted Answer

A) True 
 B)False

Question 18

In Australia in 2016,the proportion of unemployed people who were 'long-term unemployed' as measured by the Australian Bureau of Statistics (ABS)was approximately -.

Accepted Answer

A)  5.7% 
B)  7.6% 
C)  22% 
D)  24% 
A)  5.7% 
B)  7.6% 
C)  22% 
D)  24%

Question 19

Why might firms pay wages that are above the 'equilibrium wage' in a market?

Accepted Answer

A)  To increase the productivity of their workers 
B)  To reduce the unemployment rate 
C)  To encourage workers to form trade unions 
D)  To reduce profit 
A)  To increase the productivity of their workers 
B)  To reduce the unemployment rate 
C)  To encourage workers to form trade unions 
D)  To reduce profit

Question 20

When would 'structural unemployment' increase?

Accepted Answer

A)  When the economy enters a recession 
B)  When the number of individuals who quit their job to find another increases 
C)  When discouraged workers drop out of the work force 
D)  When workers are replaced by machines and the workers do not have the skills to perform new jobs 
A)  When the economy enters a recession 
B)  When the number of individuals who quit their job to find another increases 
C)  When discouraged workers drop out of the work force 
D)  When workers are replaced by machines and the workers do not have the skills to perform new jobs

How are 'discouraged workers' classified by the Australian Bureau of Statistics (ABS)?

'Frictional unemployment' would increase when

If a part-time worker becomes a full-time worker,the

When the economy is at 'full employment',everyone who wants a job has a job.

If the anticipated rate of inflation is 3% but the subsequent actual rate of inflation is 5%,the likely outcome will be that the purchasing power of money will

Refer to the following table. Status Persons Employed 8000 Unemployed 600 Not in the labour force 4000 All of the following mathematical calculations are correct.The unemployment rate is approximately

What does the producer price index (PPI)measure?

Explain how lowering inflation acts like a tax cut for investors and illustrate this using an example. _ _

The stated interest rate on a loan is the

Many economists argue that 'frictional unemployment'

'Efficiency wages' cause unemployment because firms pay wages that are

'Cost-push inflation' can be caused by

Outline the 'costs of unemployment'. _ _

People who have borrowed money from banks at a fixed rate of interest will most likely

Inflation redistributes income to a greater extent when the inflation is 'unanticipated'.

The unemployment rate is calculated by adding up the number of people receiving unemployment benefit payments from the government.

In Australia in 2016,the proportion of unemployed people who were 'long-term unemployed' as measured by the Australian Bureau of Statistics (ABS)was approximately -.

Why might firms pay wages that are above the 'equilibrium wage' in a market?

When would 'structural unemployment' increase?

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

How are 'discouraged workers' classified by the Australian Bureau of Statistics (ABS)?

'Frictional unemployment' would increase when

If a part-time worker becomes a full-time worker,the

When the economy is at 'full employment',everyone who wants a job has a job.

If the anticipated rate of inflation is 3% but the subsequent actual rate of inflation is 5%,the likely outcome will be that the purchasing power of money will

Refer to the following table. Status Persons Employed 8000 Unemployed 600 Not in the labour force 4000 All of the following mathematical calculations are correct.The unemployment rate is approximately

What does the producer price index (PPI)measure?

Explain how lowering inflation acts like a tax cut for investors and illustrate this using an example. _____________________________________________________________________________________________ _____________________________________________________________________________________________

The stated interest rate on a loan is the

Many economists argue that 'frictional unemployment'

'Efficiency wages' cause unemployment because firms pay wages that are

'Cost-push inflation' can be caused by

Outline the 'costs of unemployment'. _____________________________________________________________________________________________ _____________________________________________________________________________________________

People who have borrowed money from banks at a fixed rate of interest will most likely

Inflation redistributes income to a greater extent when the inflation is 'unanticipated'.

The unemployment rate is calculated by adding up the number of people receiving unemployment benefit payments from the government.

In Australia in 2016,the proportion of unemployed people who were 'long-term unemployed' as measured by the Australian Bureau of Statistics (ABS)was approximately -.

Why might firms pay wages that are above the 'equilibrium wage' in a market?

When would 'structural unemployment' increase?

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

Explain how lowering inflation acts like a tax cut for investors and illustrate this using an example. _ _

Outline the 'costs of unemployment'. _ _