Question 1

The unemployment rate is the number of unemployed divided by the working-age population.

Accepted Answer

A) True 
 B)False  False

Question 2

Which of the following describes the accuracy of the Consumer Price Index (CPI)?

Accepted Answer

A)  Changes in the CPI accurately reflect the true rate of inflation. 
B)  Changes in the CPI understate the true rate of inflation. 
C)  Changes in the CPI overstate the true rate of inflation. 
D)  Changes in the CPI are unrelated to the true rate of inflation. 
A)  Changes in the CPI accurately reflect the true rate of inflation. 
B)  Changes in the CPI understate the true rate of inflation. 
C)  Changes in the CPI overstate the true rate of inflation. 
D)  Changes in the CPI are unrelated to the true rate of inflation. C

Question 3

The Australian Bureau of Statistics counts as employed 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.

Accepted Answer

The unemployment rate would increase and the labour force participation rate would stay the same.The number of unemployed would rise,but the labour force would stay the same.The part-time workers who wanted to be full-time workers would simply go from being employed to unemployed.With no change in the labour force,the labour force participation rate would not change.

Question 4

The ________ is the total number of people aged 15 years and over,and the ________ is the number of people either employed or unemployed.

Accepted Answer

A)  labour force participation rate; labour force 
B)  working-age population; labour force 
C)  labour force; working-age population 
D)  working-age population; labour force participation rate 
A)  labour force participation rate; labour force 
B)  working-age population; labour force 
C)  labour force; working-age population 
D)  working-age population; labour force participation rate

Question 5

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 6

A woman who quit her job to search for a job that better utilises her skills represents an example of

Accepted Answer

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

Question 7

An example of a seasonally unemployed worker would be a

Accepted Answer

A)  software engineer who loses his job because of declining demand for the software he writes. 
B)  child care provider who quits her job to go back to university. 
C)  General Motors Holden employee who loses her job because the company is downsizing its workforce. 
D)  worker employed at a beachside resort who loses his job in winter. 
A)  software engineer who loses his job because of declining demand for the software he writes. 
B)  child care provider who quits her job to go back to university. 
C)  General Motors Holden employee who loses her job because the company is downsizing its workforce. 
D)  worker employed at a beachside resort who loses his job in winter.

Question 8

Using the following table,calculate real average hourly earnings for 2012,2013 and 2014.Calculate the rate of growth of real average hourly earnings from 2013 to 2014.

Accepted Answer

Real average hourly earnings in 2012 are

Question 9

Hyperinflation occurred in Germany after World War I,when its inflation rate rose to 3.25 million per cent.

Accepted Answer

A) True 
 B)False

Question 10

The labour force is the

Accepted Answer

A)  number of people employed minus the number of people unemployed. 
B)  number of people employed plus the number of people unemployed. 
C)  ratio of the number of people employed to the number of people unemployed. 
D)  ratio of the number of people employed to the working-age population. 
A)  number of people employed minus the number of people unemployed. 
B)  number of people employed plus the number of people unemployed. 
C)  ratio of the number of people employed to the number of people unemployed. 
D)  ratio of the number of people employed to the working-age population.

Question 11

If aggregate demand continues to increase when the economy reaches full employment,demand-pull inflation will begin to decelerate.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not a potential problem of deflation?

Accepted Answer

A)  Debt burdens may rise as prices fall. 
B)  Asset values will fall. 
C)  Unemployment rates may rise. 
D)  Expectations of future price falls may cause a rise in aggregate demand. 
A)  Debt burdens may rise as prices fall. 
B)  Asset values will fall. 
C)  Unemployment rates may rise. 
D)  Expectations of future price falls may cause a rise in aggregate demand.

Question 13

The labour force is the sum of

Accepted Answer

A)  employed workers and unemployed workers. 
B)  employed workers and individuals not looking for work. 
C)  employed workers and the working-age population. 
D)  unemployed workers and the working-age population. 
A)  employed workers and unemployed workers. 
B)  employed workers and individuals not looking for work. 
C)  employed workers and the working-age population. 
D)  unemployed workers and the working-age population.

Question 14

Which of the following is true about the Australian labour force participation rate?

Accepted Answer

A)  The labour force participation rate of adult men fell between 1978 and 2004. 
B)  The labour force participation rate of adult women fell between 1978 and 2004. 
C)  The labour force participation rate of adult men has increased from 1978 to 2010. 
D)  The labour force participation rate of adult women rose in the 1980s and fell again during the 1990s. 
A)  The labour force participation rate of adult men fell between 1978 and 2004. 
B)  The labour force participation rate of adult women fell between 1978 and 2004. 
C)  The labour force participation rate of adult men has increased from 1978 to 2010. 
D)  The labour force participation rate of adult women rose in the 1980s and fell again during the 1990s.

Question 15

Frictional unemployment can be defined as unemployment that

Accepted Answer

A)  arises due to changes in technology in the economy. 
B)  occurs as the result of a recession. 
C)  occurs when people are re-entering the labour force. 
D)  occurs when people have not had a job for 12 months or more. 
A)  arises due to changes in technology in the economy. 
B)  occurs as the result of a recession. 
C)  occurs when people are re-entering the labour force. 
D)  occurs when people have not had a job for 12 months or more.

Question 16

In 2014,the unemployment rate in Australia was highest for people in the age group

Accepted Answer

A)  15-19 years. 
B)  20-24 years. 
C)  55-59 years. 
D)  60-64 years. 
A)  15-19 years. 
B)  20-24 years. 
C)  55-59 years. 
D)  60-64 years.

Question 17

Suppose 180 000 people are employed,20 000 people are unemployed,the working-age population is
250 000 and 50 000 people are out of the labour force.Calculate the unemployment rate.

Accepted Answer

The unemployment rate is calculated as:

Question 18

Explain the three main types of unemployment and outline the types of policies that can be used to reduce each type.

Accepted Answer

There are three main types of unemployme

Question 19

Looking at the following table,real wages ________ from 2011 to 2012 and real wages ________ from 2012 to 2013.

Accepted Answer

A)  rose; rose 
B)  rose; fell 
C)  fell; rose 
D)  fell; fell 
A)  rose; rose 
B)  rose; fell 
C)  fell; rose 
D)  fell; fell

Question 20

What is hyperinflation?

Accepted Answer

Hyperinflation refers to extremely rapid

The unemployment rate is the number of unemployed divided by the working-age population.

Which of the following describes the accuracy of the Consumer Price Index (CPI)?

The Australian Bureau of Statistics counts as employed 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.

The is the total number of people aged 15 years and over,and the is the number of people either employed or unemployed.

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

A woman who quit her job to search for a job that better utilises her skills represents an example of

An example of a seasonally unemployed worker would be a

Using the following table,calculate real average hourly earnings for 2012,2013 and 2014.Calculate the rate of growth of real average hourly earnings from 2013 to 2014.

Hyperinflation occurred in Germany after World War I,when its inflation rate rose to 3.25 million per cent.

The labour force is the

If aggregate demand continues to increase when the economy reaches full employment,demand-pull inflation will begin to decelerate.

Which of the following is not a potential problem of deflation?

The labour force is the sum of

Which of the following is true about the Australian labour force participation rate?

Frictional unemployment can be defined as unemployment that

In 2014,the unemployment rate in Australia was highest for people in the age group

Suppose 180 000 people are employed,20 000 people are unemployed,the working-age population is 250 000 and 50 000 people are out of the labour force.Calculate the unemployment rate.

Explain the three main types of unemployment and outline the types of policies that can be used to reduce each type.

Looking at the following table,real wages from 2011 to 2012 and real wages from 2012 to 2013.

What is hyperinflation?

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Healthcare

Firms,the Stock Market,and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Economic Growth, the Financial System and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

Exam 13: Unemployment and Inflation

The unemployment rate is the number of unemployed divided by the working-age population.

Which of the following describes the accuracy of the Consumer Price Index (CPI)?

The Australian Bureau of Statistics counts as employed 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.

The ________ is the total number of people aged 15 years and over,and the ________ is the number of people either employed or unemployed.

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

A woman who quit her job to search for a job that better utilises her skills represents an example of

An example of a seasonally unemployed worker would be a

Using the following table,calculate real average hourly earnings for 2012,2013 and 2014.Calculate the rate of growth of real average hourly earnings from 2013 to 2014.

Hyperinflation occurred in Germany after World War I,when its inflation rate rose to 3.25 million per cent.

The labour force is the

If aggregate demand continues to increase when the economy reaches full employment,demand-pull inflation will begin to decelerate.

Which of the following is not a potential problem of deflation?

The labour force is the sum of

Which of the following is true about the Australian labour force participation rate?

Frictional unemployment can be defined as unemployment that

In 2014,the unemployment rate in Australia was highest for people in the age group

Suppose 180 000 people are employed,20 000 people are unemployed,the working-age population is 250 000 and 50 000 people are out of the labour force.Calculate the unemployment rate.

Explain the three main types of unemployment and outline the types of policies that can be used to reduce each type.

Looking at the following table,real wages ________ from 2011 to 2012 and real wages ________ from 2012 to 2013.

What is hyperinflation?

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Healthcare

Firms,the Stock Market,and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Economic Growth, the Financial System and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

The is the total number of people aged 15 years and over,and the is the number of people either employed or unemployed.

Looking at the following table,real wages from 2011 to 2012 and real wages from 2012 to 2013.