Question 1

What type of unemployment would result if an entire industry is eliminated because of new technology?

Accepted Answer

A) Cyclical unemployment. 
B) Frictional unemployment. 
C) Structural unemployment. 
D) Unemployment would not necessarily change. 
A) Cyclical unemployment. 
B) Frictional unemployment. 
C) Structural unemployment. 
D) Unemployment would not necessarily change.

Question 2

A given basket of goods cost $600 in 2015;$800 in 2016;and $875 in 2017.Construct a price index for all three years,using 2016 as the base year.

Accepted Answer

For 2015: (600/800)*

Question 3

Which of the following are included in the consumer price index?

Accepted Answer

A) Capital goods. 
B) Government spending. 
C) Imports. 
D) Exports. 
A) Capital goods. 
B) Government spending. 
C) Imports. 
D) Exports.

Question 4

How are the participation rate and the unemployment rate measured?

Accepted Answer

The answer of How are the participation rate and the...

Question 5

The following are selected statistics for a given year in a hypothetical economy:
  
-Refer to the information above to answer this question.What is the amount of the GDP gap?

Accepted Answer

A) $20 billion. 
B) $475 billion. 
C) $435 billion. 
D) $25 billion. 
E) $525 billion. 
A) $20 billion. 
B) $475 billion. 
C) $435 billion. 
D) $25 billion. 
E) $525 billion.

Question 6

All of the following except one explain why there might be job vacancies even when unemployment exists.Which is the exception?

Accepted Answer

A) Because the unemployed do not possess the necessary skills. 
B) Because the unemployed do not possess the necessary experience. 
C) Because the unemployed are unwilling to work. 
D) Because the jobs and the unemployed might not be in the same area. 
A) Because the unemployed do not possess the necessary skills. 
B) Because the unemployed do not possess the necessary experience. 
C) Because the unemployed are unwilling to work. 
D) Because the jobs and the unemployed might not be in the same area.

Question 7

-Refer to the information above to answer this question.What is the value of the GDP deflator in 2015?

Accepted Answer

A) 0 
B) 100.0 
C) 104.8 
D) 108.0 
E) Cannot be determined from the information 
A) 0 
B) 100.0 
C) 104.8 
D) 108.0 
E) Cannot be determined from the information

Question 8

What is a discouraged worker?

Accepted Answer

A) An individual who wants to work but is no longer seeking employment because of the conviction that no opportunities exist. 
B) An individual who may or may not be employed. 
C) An individual who is included in the unemployment statistics. 
D) An individual who is not part of the working age population. 
E) An individual who is employed but is seeking a different situation. 
A) An individual who wants to work but is no longer seeking employment because of the conviction that no opportunities exist. 
B) An individual who may or may not be employed. 
C) An individual who is included in the unemployment statistics. 
D) An individual who is not part of the working age population. 
E) An individual who is employed but is seeking a different situation.

Question 9

Suppose that the representative consumer in Country ABC buys 4 units of each consumer good and the prices of each good are:
   a)What is the cost of a typical basket of consumer goods for 2015,2016,and 2017?
b)Convert the cost of each bundle into a CPI using 2015 as the base year.
c)What is the inflation rate for 2016 and 2017?

Accepted Answer

a)
 @#IMG-DLM& b)
 @#IMG-DLM& c)The infl

Question 10

How do economists measure the cost of unemployment?

Accepted Answer

A) By the amount by which actual GDP exceeds potential GDP. 
B) By the amount by which potential GDP exceeds actual GDP. 
C) By the difference between real GDP and nominal GDP. 
D) By the difference between GDP and real GNP. 
E) By the total costs of unemployment benefits and welfare payments that have to be paid out. 
A) By the amount by which actual GDP exceeds potential GDP. 
B) By the amount by which potential GDP exceeds actual GDP. 
C) By the difference between real GDP and nominal GDP. 
D) By the difference between GDP and real GNP. 
E) By the total costs of unemployment benefits and welfare payments that have to be paid out.

Question 11

-Refer to the above information to answer this question.By how much have prices risen over the whole of this period?

Accepted Answer

A) 4.5%. 
B) 10.0%. 
C) 20.0%. 
D) 32.0%. 
A) 4.5%. 
B) 10.0%. 
C) 20.0%. 
D) 32.0%.

Question 12

Which of the following is included in the natural rate of unemployment?

Accepted Answer

A) Frictional unemployment only. 
B) Frictional and structural unemployment. 
C) Frictional,structural and cyclical unemployment. 
D) It can be eliminated. 
A) Frictional unemployment only. 
B) Frictional and structural unemployment. 
C) Frictional,structural and cyclical unemployment. 
D) It can be eliminated.

Question 13

The information in the following table is for the economy of Tibor:
   a)What is the unemployment rate?
b)What is the participation rate?
c)How much inflation has occurred since the base year?

Accepted Answer

The answer of The information in the following table is...

Question 14

What is the accepted natural rate of unemployment for all economies?

Accepted Answer

A) 0%. 
B) Less than 2%. 
C) Less than 5%. 
D) 5% to 7%. 
E) There is no accepted rate. 
A) 0%. 
B) Less than 2%. 
C) Less than 5%. 
D) 5% to 7%. 
E) There is no accepted rate.

Question 15

What is the output effect of inflation?

Accepted Answer

A) It involves the effect of uncertain inflation rates on the level of investment spending. 
B) It is probably as much as 10 - 20% of GDP per year. 
C) It is reduced as the level of growth rises. 
D) It would be higher if the risks of investing were higher. 
A) It involves the effect of uncertain inflation rates on the level of investment spending. 
B) It is probably as much as 10 - 20% of GDP per year. 
C) It is reduced as the level of growth rises. 
D) It would be higher if the risks of investing were higher.

Question 16

Distinguish between demand-pull and cost-push inflation.

Accepted Answer

Demand-pull inflation occurs when there

Question 17

How is unemployment defined?

Accepted Answer

A) The number of persons between the ages of 15 and 65 who worked less than 8 hours in the previous week. 
B) The number of persons over the age of 15 who worked less than 8 hours in the previous week. 
C) The number of persons over the age of 15 who worked at least 1 hour in the previous week. 
D) The number of persons between the age of 15 and 65 who worked more than 1 hour in the previous week. 
E) The number of persons 15 years of age and older who are not in gainful employment but who are actively seeking employment. 
A) The number of persons between the ages of 15 and 65 who worked less than 8 hours in the previous week. 
B) The number of persons over the age of 15 who worked less than 8 hours in the previous week. 
C) The number of persons over the age of 15 who worked at least 1 hour in the previous week. 
D) The number of persons between the age of 15 and 65 who worked more than 1 hour in the previous week. 
E) The number of persons 15 years of age and older who are not in gainful employment but who are actively seeking employment.

Question 18

Which of the following would most likely decrease the rate of frictional unemployment?

Accepted Answer

A) A simultaneous increase in the number of retirements and new job seekers entering the labour force. 
B) A decrease in employment insurance benefits. 
C) An increase in average job search time. 
D) An economic expansion. 
A) A simultaneous increase in the number of retirements and new job seekers entering the labour force. 
B) A decrease in employment insurance benefits. 
C) An increase in average job search time. 
D) An economic expansion.

Question 19

What does the GDP gap measure?

Accepted Answer

A) The difference between GNP and GDP. 
B) The difference between potential GDP and actual GDP. 
C) The difference between nominal GDP and real GDP. 
D) The difference between this year's GDP and last year's GDP. 
E) The difference between this year's potential GDP and last year's potential GDP. 
A) The difference between GNP and GDP. 
B) The difference between potential GDP and actual GDP. 
C) The difference between nominal GDP and real GDP. 
D) The difference between this year's GDP and last year's GDP. 
E) The difference between this year's potential GDP and last year's potential GDP.

Question 20

Suppose that in a particular economy there are 2 million part-time workers,10 million full-time workers,and 4 million unemployed.What is the effect on the unemployment rate of 2 million of the part-timers become full-time workers?

Accepted Answer

A) It would decrease. 
B) It would increase. 
C) It would remain unchanged. 
D) The size of the labour force will increase. 
E) There will be no immediate change,but in the long run it will decrease. 
A) It would decrease. 
B) It would increase. 
C) It would remain unchanged. 
D) The size of the labour force will increase. 
E) There will be no immediate change,but in the long run it will decrease.

What type of unemployment would result if an entire industry is eliminated because of new technology?

A given basket of goods cost $600 in 2015;$800 in 2016;and $875 in 2017.Construct a price index for all three years,using 2016 as the base year.

Which of the following are included in the consumer price index?

How are the participation rate and the unemployment rate measured?

The following are selected statistics for a given year in a hypothetical economy: -Refer to the information above to answer this question.What is the amount of the GDP gap?

All of the following except one explain why there might be job vacancies even when unemployment exists.Which is the exception?

-Refer to the information above to answer this question.What is the value of the GDP deflator in 2015?

What is a discouraged worker?

How do economists measure the cost of unemployment?

-Refer to the above information to answer this question.By how much have prices risen over the whole of this period?

Which of the following is included in the natural rate of unemployment?

The information in the following table is for the economy of Tibor: a)What is the unemployment rate? b)What is the participation rate? c)How much inflation has occurred since the base year?

What is the accepted natural rate of unemployment for all economies?

What is the output effect of inflation?

Distinguish between demand-pull and cost-push inflation.

How is unemployment defined?

Which of the following would most likely decrease the rate of frictional unemployment?

What does the GDP gap measure?

Suppose that in a particular economy there are 2 million part-time workers,10 million full-time workers,and 4 million unemployed.What is the effect on the unemployment rate of 2 million of the part-timers become full-time workers?

The Economic Problem

Demand and Supply: an Introduction

Measuring the Economy 1: GDP and Economic Growth

Aggregate Demand and Supply

Aggregate Expenditures

Fiscal Policy

Money and Banking

The Money Market and Monetary Policy

International Trade

Exchange Rates and the Balance of Payments

Macroeconomic Policy Revisited

A Walk Through the Twentieth Century and Beyond

Filters

Exam 4: Measuring the Economy 2: Unemployment and Inflation

What type of unemployment would result if an entire industry is eliminated because of new technology?

A given basket of goods cost $600 in 2015;$800 in 2016;and $875 in 2017.Construct a price index for all three years,using 2016 as the base year.

Which of the following are included in the consumer price index?

How are the participation rate and the unemployment rate measured?

The following are selected statistics for a given year in a hypothetical economy: -Refer to the information above to answer this question.What is the amount of the GDP gap?

All of the following except one explain why there might be job vacancies even when unemployment exists.Which is the exception?

-Refer to the information above to answer this question.What is the value of the GDP deflator in 2015?

What is a discouraged worker?

How do economists measure the cost of unemployment?

-Refer to the above information to answer this question.By how much have prices risen over the whole of this period?

Which of the following is included in the natural rate of unemployment?

The information in the following table is for the economy of Tibor: a)What is the unemployment rate? b)What is the participation rate? c)How much inflation has occurred since the base year?

What is the accepted natural rate of unemployment for all economies?

What is the output effect of inflation?

Distinguish between demand-pull and cost-push inflation.

How is unemployment defined?

Which of the following would most likely decrease the rate of frictional unemployment?

What does the GDP gap measure?

Suppose that in a particular economy there are 2 million part-time workers,10 million full-time workers,and 4 million unemployed.What is the effect on the unemployment rate of 2 million of the part-timers become full-time workers?

The Economic Problem

Demand and Supply: an Introduction

Measuring the Economy 1: GDP and Economic Growth

Aggregate Demand and Supply

Aggregate Expenditures

Fiscal Policy

Money and Banking

The Money Market and Monetary Policy

International Trade

Exchange Rates and the Balance of Payments

Macroeconomic Policy Revisited

A Walk Through the Twentieth Century and Beyond

Filters