Question 1

What is one of the questions asked when the Australian Bureau of Statistics conducts surveys to estimate the rate of unemployment?

Accepted Answer

A)  Is the person currently available to start work? 
B)  Has the person looked for work during the past year? 
C)  Does the person have any skills? 
D)  Has the person worked for 10 hours or more in the past week? 
A)  Is the person currently available to start work? 
B)  Has the person looked for work during the past year? 
C)  Does the person have any skills? 
D)  Has the person worked for 10 hours or more in the past week?

Question 2

If the CPI falls from 142 to 140 between two consecutive years,this implies that prices fell by 2% between those two years.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not an incentive for people to provide inaccurate employment information to the Australian Bureau of Statistics (ABS)?

Accepted Answer

A)  People are embarrassed about being in low paid jobs. 
B)  Some people are employed in illegal activities. 
C)  People want to avoid paying taxes on earnings. 
D)  People think they might lose unemployment benefits if they declare that they have been working. 
A)  People are embarrassed about being in low paid jobs. 
B)  Some people are employed in illegal activities. 
C)  People want to avoid paying taxes on earnings. 
D)  People think they might lose unemployment benefits if they declare that they have been working.

Question 4

Joe just told his boss that he thinks his boss is stupid.What type of unemployment is Joe likely to experience in the near future?

Accepted Answer

A)  Frictional 
B)  Cyclical 
C)  Permanent 
D)  Structural 
A)  Frictional 
B)  Cyclical 
C)  Permanent 
D)  Structural

Question 5

Which of the following causes 'hyperinflation'?

Accepted Answer

A)  A shortage of credit, similar to that which occurred during the 2007-2009 global financial crisis 
B)  A central bank policy of high interest rates 
C)  Government budget surpluses leading to an increase in government spending 
D)  Central bank activity which increases financial liquidity at a much greater rate than the growth rate of real GDP 
A)  A shortage of credit, similar to that which occurred during the 2007-2009 global financial crisis 
B)  A central bank policy of high interest rates 
C)  Government budget surpluses leading to an increase in government spending 
D)  Central bank activity which increases financial liquidity at a much greater rate than the growth rate of real GDP

Question 6

Which of the following statements is true?

Accepted Answer

A)  When unanticipated inflation occurs regularly, the degree of risk associated with investments in the economy decreases. 
B)  Inflation that is higher than expected benefits debtors and inflation that is lower than expected benefits creditors. 
C)  Inflation improves the balance of trade as exports appear relatively cheaper to overseas buyers and imports become relatively more expensive. 
D)  There are no costs or losses associated with inflation when it is fully anticipated. 
A)  When unanticipated inflation occurs regularly, the degree of risk associated with investments in the economy decreases. 
B)  Inflation that is higher than expected benefits debtors and inflation that is lower than expected benefits creditors. 
C)  Inflation improves the balance of trade as exports appear relatively cheaper to overseas buyers and imports become relatively more expensive. 
D)  There are no costs or losses associated with inflation when it is fully anticipated.

Question 7

Around 1 800 people who were unemployed last month start new jobs this month.As a result of this increase in the number of employed workers,which of the following occurred (ceteris paribus)?

Accepted Answer

A)  The labour force participation rate increased 
B)  The unemployment rate decreased 
C)  The labour force participation rate decreased 
D)  The unemployment rate increased 
A)  The labour force participation rate increased 
B)  The unemployment rate decreased 
C)  The labour force participation rate decreased 
D)  The unemployment rate increased

Question 8

Who,of the following options,does not suffer the costs of inflation?

Accepted Answer

A)  People on fixed incomes 
B)  People whose incomes rise more rapidly than inflation 
C)  Firms that have to devote more time and labour to raising prices 
D)  An investor that has to pay higher taxes because of the inflation 
A)  People on fixed incomes 
B)  People whose incomes rise more rapidly than inflation 
C)  Firms that have to devote more time and labour to raising prices 
D)  An investor that has to pay higher taxes because of the inflation

Question 9

Does inflation mean that consumers can no longer afford to buy as many goods and services due to the higher prices? Explain.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

No,inflation does not mean that consumer

Question 10

Which of the following is an example of a worker experiencing 'frictional unemployment'?

Accepted Answer

A)  A worker who quits his job at the post office to find more interesting work 
B)  A computer programmer who loses her job because it is outsourced to India 
C)  An employee who loses his job because the economy is suffering a recession 
D)  An airline pilot who loses her job because of lack of demand for air travel 
A)  A worker who quits his job at the post office to find more interesting work 
B)  A computer programmer who loses her job because it is outsourced to India 
C)  An employee who loses his job because the economy is suffering a recession 
D)  An airline pilot who loses her job because of lack of demand for air travel

Question 11

Refer to the following table. $$\begin{array} { | l | r | } 
\hline \text { Status } & \text { Person } \
\hline \text { Employed } & 11000 \
\hline \text { Unemployed } & 500 \
\hline \text { Population } & 22000 \
\hline
\end{array}$$ All of the following mathematical calculations are correct.The unemployment rate is approximately

Accepted Answer

A)  (500/11 000) × 100 = 4.55%. 
B)  (500/22 000) × 100 = 2.27%. 
C)  (500/10 400) × 100 = 4.81%. 
D)  (500/11 500) × 100 = 4.34%. 
A)  (500/11 000) × 100 = 4.55%. 
B)  (500/22 000) × 100 = 2.27%. 
C)  (500/10 400) × 100 = 4.81%. 
D)  (500/11 500) × 100 = 4.34%.

Question 12

When does 'inflation' occur?

Accepted Answer

A)  When the value of money is rising 
B)  When the value of real GDP decreases 
C)  When the value of real GDP increases 
D)  When the general price level is rising 
A)  When the value of money is rising 
B)  When the value of real GDP decreases 
C)  When the value of real GDP increases 
D)  When the general price level is rising

Question 13

The 'unemployment rate' is measured as the

Accepted Answer

A)  number of unemployed people divided by the number of employed people, multiplied by 100. 
B)  number of unemployed people divided by the labour force, multiplied by 100. 
C)  number of unemployed people divided by the total population, multiplied by 100. 
D)  labour force minus the number of unemployed, multiplied by 100. 
A)  number of unemployed people divided by the number of employed people, multiplied by 100. 
B)  number of unemployed people divided by the labour force, multiplied by 100. 
C)  number of unemployed people divided by the total population, multiplied by 100. 
D)  labour force minus the number of unemployed, multiplied by 100.

Question 14

Assume that between 2017 and 2018,the CPI of a country rose from 182 to 185.If household incomes rose by 3% during that period of time,then which of the following is true?

Accepted Answer

A)  The purchasing power of household income fell between 2017 and 2018. 
B)  The purchasing power of household income rose between 2017 and 2018. 
C)  The purchasing power of household income remained constant between 2017 and 2018. 
D)  The CPI cannot be used to determine how the purchasing power of household income changes over time. 
A)  The purchasing power of household income fell between 2017 and 2018. 
B)  The purchasing power of household income rose between 2017 and 2018. 
C)  The purchasing power of household income remained constant between 2017 and 2018. 
D)  The CPI cannot be used to determine how the purchasing power of household income changes over time.

Question 15

Which of the following is not an advantage of labour market deregulation?

Accepted Answer

A)  Improved work practices can lead to higher wages. 
B)  Wages can more readily respond to changes in the demand for and supply of labour. 
C)  Increased labour market flexibility may disadvantage low paid people. 
D)  It can encourage dispute resolution at the workplace level. 
A)  Improved work practices can lead to higher wages. 
B)  Wages can more readily respond to changes in the demand for and supply of labour. 
C)  Increased labour market flexibility may disadvantage low paid people. 
D)  It can encourage dispute resolution at the workplace level.

Question 16

What is the 'non-accelerating inflation rate of unemployment' (NAIRU)?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

This is the level of unemploym

Question 17

Which of the following can cause demand-pull inflation if the economy is currently in equilibrium at full-employment GDP?

Accepted Answer

A)  An increase in net exports 
B)  A reduction in government spending 
C)  An increase in the company income tax rate 
D)  A decrease in real wages 
A)  An increase in net exports 
B)  A reduction in government spending 
C)  An increase in the company income tax rate 
D)  A decrease in real wages

Question 18

People who lost their jobs as hand-drawn animators because of the popularity of computer-generated 3D animation are examples of people who are experiencing -.

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 19

Unemployment in Australia is

Accepted Answer

A)  significantly higher among older people than younger people. 
B)  one of the main causes of poverty. 
C)  not the cause of an increase in poverty as unemployed people receive unemployment benefits from the government. 
D)  equally distributed across all age groups in society. 
A)  significantly higher among older people than younger people. 
B)  one of the main causes of poverty. 
C)  not the cause of an increase in poverty as unemployed people receive unemployment benefits from the government. 
D)  equally distributed across all age groups in society.

Question 20

The Australian economy destroys hundreds of thousands of jobs every year,even when the economy is experiencing strong growth.

Accepted Answer

A) True 
 B)False

What is one of the questions asked when the Australian Bureau of Statistics conducts surveys to estimate the rate of unemployment?

If the CPI falls from 142 to 140 between two consecutive years,this implies that prices fell by 2% between those two years.

Which of the following is not an incentive for people to provide inaccurate employment information to the Australian Bureau of Statistics (ABS)?

Joe just told his boss that he thinks his boss is stupid.What type of unemployment is Joe likely to experience in the near future?

Which of the following causes 'hyperinflation'?

Which of the following statements is true?

Around 1 800 people who were unemployed last month start new jobs this month.As a result of this increase in the number of employed workers,which of the following occurred (ceteris paribus)?

Who,of the following options,does not suffer the costs of inflation?

Does inflation mean that consumers can no longer afford to buy as many goods and services due to the higher prices? Explain. _ _

Which of the following is an example of a worker experiencing 'frictional unemployment'?

Refer to the following table. Status Person Employed 11000 Unemployed 500 Population 22000 All of the following mathematical calculations are correct.The unemployment rate is approximately

When does 'inflation' occur?

The 'unemployment rate' is measured as the

Assume that between 2017 and 2018,the CPI of a country rose from 182 to 185.If household incomes rose by 3% during that period of time,then which of the following is true?

Which of the following is not an advantage of labour market deregulation?

What is the 'non-accelerating inflation rate of unemployment' (NAIRU)? _ _

Which of the following can cause demand-pull inflation if the economy is currently in equilibrium at full-employment GDP?

People who lost their jobs as hand-drawn animators because of the popularity of computer-generated 3D animation are examples of people who are experiencing -.

Unemployment in Australia is

The Australian economy destroys hundreds of thousands of jobs every year,even when the economy is experiencing strong growth.

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

What is one of the questions asked when the Australian Bureau of Statistics conducts surveys to estimate the rate of unemployment?

If the CPI falls from 142 to 140 between two consecutive years,this implies that prices fell by 2% between those two years.

Which of the following is not an incentive for people to provide inaccurate employment information to the Australian Bureau of Statistics (ABS)?

Joe just told his boss that he thinks his boss is stupid.What type of unemployment is Joe likely to experience in the near future?

Which of the following causes 'hyperinflation'?

Which of the following statements is true?

Around 1 800 people who were unemployed last month start new jobs this month.As a result of this increase in the number of employed workers,which of the following occurred (ceteris paribus)?

Who,of the following options,does not suffer the costs of inflation?

Which of the following is an example of a worker experiencing 'frictional unemployment'?

Refer to the following table. Status Person Employed 11000 Unemployed 500 Population 22000 All of the following mathematical calculations are correct.The unemployment rate is approximately

When does 'inflation' occur?

The 'unemployment rate' is measured as the

Assume that between 2017 and 2018,the CPI of a country rose from 182 to 185.If household incomes rose by 3% during that period of time,then which of the following is true?

Which of the following is not an advantage of labour market deregulation?

What is the 'non-accelerating inflation rate of unemployment' (NAIRU)? _____________________________________________________________________________________________ _____________________________________________________________________________________________

Which of the following can cause demand-pull inflation if the economy is currently in equilibrium at full-employment GDP?

People who lost their jobs as hand-drawn animators because of the popularity of computer-generated 3D animation are examples of people who are experiencing -.

Unemployment in Australia is

The Australian economy destroys hundreds of thousands of jobs every year,even when the economy is experiencing strong growth.

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

What is the 'non-accelerating inflation rate of unemployment' (NAIRU)? _ _