Question 1

Looking at the following table,real average hourly earnings equals ________ in 2012.

Accepted Answer

A)  $9.52 
B)  $9.00 
C)  $10.00 
D)  $12.00 
A)  $9.52 
B)  $9.00 
C)  $10.00 
D)  $12.00

Question 2

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

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 3

For each of the following,indicate if the person would be classified as employed,unemployed,or not in the labour force: (i)a 65-year-old man who left his job and is now working as a volunteer for 10 hours a week; (ii)a university graduate who has not been able to find a position using her skills and is working as a wait-person for 30 hours a week; and (iii)a manufacturing worker who is out of a job and has given up searching for a job.

Accepted Answer

These individuals would be cla

Question 4

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 5

The PPI is the

Accepted Answer

A)  price parity index. 
B)  prime producer index. 
C)  producer price index. 
D)  production performance indicator. 
A)  price parity index. 
B)  prime producer index. 
C)  producer price index. 
D)  production performance indicator.

Question 6

Discouraged workers are

Accepted Answer

A)  not considered part of the unemployed because they are not actively seeking work. 
B)  considered part of the unemployed because they are not working. 
C)  considered part of the unemployed because they are still in the labour force. 
D)  not considered part of the unemployed because they are not qualified to work. 
A)  not considered part of the unemployed because they are not actively seeking work. 
B)  considered part of the unemployed because they are not working. 
C)  considered part of the unemployed because they are still in the labour force. 
D)  not considered part of the unemployed because they are not qualified to work.

Question 7

In Australia in early 2014,approximately how many people were in the labour force?

Accepted Answer

A)  6.3 million 
B)  12 million 
C)  18.3 million 
D)  11.4 million 
A)  6.3 million 
B)  12 million 
C)  18.3 million 
D)  11.4 million

Question 8

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 9

Explain the difference between the price level,inflation and the inflation rate.

Accepted Answer

The price level is a measure of the aver

Question 10

The problem with inflation is that as prices rise most consumers can no longer afford to buy as many goods and services.

Accepted Answer

A) True 
 B)False

Question 11

The labour force participation rates of men in Australia have gradually increased since 1978.

Accepted Answer

A) True 
 B)False

Question 12

Consider a simple economy that produces only three products: hot dogs,torches and golf balls.Use the information in the following table to calculate the inflation rate for 2014,as measured by the consumer price index.

Accepted Answer

Total expenditures for 2005 = (10 × $1.0

Question 13

The producer price index tracks the prices firms receive for goods and services at all stages of production.

Accepted Answer

A) True 
 B)False

Question 14

Refer to the following table.   All of the following mathematical calculations are correct.The unemployment rate is approximately

Accepted Answer

A)  (600/11 000) × 100 = 5.45 per cent. 
B)  (600/22 000) × 100 = 2.73 per cent. 
C)  (600/10 400) × 100 = 5.77 per cent. 
D)  (600/11 600) × 100 = 5.17 per cent. 
A)  (600/11 000) × 100 = 5.45 per cent. 
B)  (600/22 000) × 100 = 2.73 per cent. 
C)  (600/10 400) × 100 = 5.77 per cent. 
D)  (600/11 600) × 100 = 5.17 per cent.

Question 15

During times of deflation,borrowers of money can lose,as their debt burden increases.

Accepted Answer

A) True 
 B)False

Question 16

Discuss the trends in labour force participation in Australia over the past 30 years.

Accepted Answer

Overall,the labour force participation r

Question 17

A woman named Sheila,who retired,becomes bored and begins to look for a job.During the time she is searching for work,she would be classified as

Accepted Answer

A)  structurally unemployed. 
B)  cyclically unemployed. 
C)  frictionally unemployed. 
D)  not unemployed because she was not working before she started looking for a job. 
A)  structurally unemployed. 
B)  cyclically unemployed. 
C)  frictionally unemployed. 
D)  not unemployed because she was not working before she started looking for a job.

Question 18

Cyclical unemployment is defined as unemployment that

Accepted Answer

A)  is due to changes in the structure of an economy. 
B)  is due to an economic contraction or recession. 
C)  occurs when people are searching for their first job. 
D)  occurs when people become discouraged and stop looking for work. 
A)  is due to changes in the structure of an economy. 
B)  is due to an economic contraction or recession. 
C)  occurs when people are searching for their first job. 
D)  occurs when people become discouraged and stop looking for work.

Question 19

Demand-pull inflation is characterised by

Accepted Answer

A)  high levels of aggregate demand, which then pull prices down to lower levels. 
B)  the short-run aggregate supply curve shifting to the right. 
C)  rising prices and rising employment in the short run. 
D)  the short-run aggregate supply curve shifting to the left. 
A)  high levels of aggregate demand, which then pull prices down to lower levels. 
B)  the short-run aggregate supply curve shifting to the right. 
C)  rising prices and rising employment in the short run. 
D)  the short-run aggregate supply curve shifting to the left.

Question 20

Which of the following is not generally a cost posed by inflation?

Accepted Answer

A)  Inflation reduces the affordability of goods and services for the average consumer. 
B)  Consumers and firms lose purchasing power to the extent that money loses value. 
C)  Firms must pay for changing prices on products and printing new catalogues. 
D)  Banks can lose if they under-predict inflation and charge an interest rate that does not completely compensate for inflation. 
A)  Inflation reduces the affordability of goods and services for the average consumer. 
B)  Consumers and firms lose purchasing power to the extent that money loses value. 
C)  Firms must pay for changing prices on products and printing new catalogues. 
D)  Banks can lose if they under-predict inflation and charge an interest rate that does not completely compensate for inflation.

Looking at the following table,real average hourly earnings equals ________ in 2012.

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

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

The PPI is the

Discouraged workers are

In Australia in early 2014,approximately how many people were in the labour force?

Which of the following causes 'hyperinflation'?

Explain the difference between the price level,inflation and the inflation rate.

The problem with inflation is that as prices rise most consumers can no longer afford to buy as many goods and services.

The labour force participation rates of men in Australia have gradually increased since 1978.

Consider a simple economy that produces only three products: hot dogs,torches and golf balls.Use the information in the following table to calculate the inflation rate for 2014,as measured by the consumer price index.

The producer price index tracks the prices firms receive for goods and services at all stages of production.

Refer to the following table. All of the following mathematical calculations are correct.The unemployment rate is approximately

During times of deflation,borrowers of money can lose,as their debt burden increases.

Discuss the trends in labour force participation in Australia over the past 30 years.

A woman named Sheila,who retired,becomes bored and begins to look for a job.During the time she is searching for work,she would be classified as

Cyclical unemployment is defined as unemployment that

Demand-pull inflation is characterised by

Which of the following is not generally a cost posed by inflation?

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

Looking at the following table,real average hourly earnings equals ________ in 2012.

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

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

The PPI is the

Discouraged workers are

In Australia in early 2014,approximately how many people were in the labour force?

Which of the following causes 'hyperinflation'?

Explain the difference between the price level,inflation and the inflation rate.

The problem with inflation is that as prices rise most consumers can no longer afford to buy as many goods and services.

The labour force participation rates of men in Australia have gradually increased since 1978.

Consider a simple economy that produces only three products: hot dogs,torches and golf balls.Use the information in the following table to calculate the inflation rate for 2014,as measured by the consumer price index.

The producer price index tracks the prices firms receive for goods and services at all stages of production.

Refer to the following table. All of the following mathematical calculations are correct.The unemployment rate is approximately

During times of deflation,borrowers of money can lose,as their debt burden increases.

Discuss the trends in labour force participation in Australia over the past 30 years.

A woman named Sheila,who retired,becomes bored and begins to look for a job.During the time she is searching for work,she would be classified as

Cyclical unemployment is defined as unemployment that

Demand-pull inflation is characterised by

Which of the following is not generally a cost posed by inflation?

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