Question 1

Eliminating structural unemployment would be good for the economy.

Accepted Answer

A) True 
 B)False

Question 2

If nominal wages rise faster than the price level,then real wages have ________ and the purchasing power of income has ________.

Accepted Answer

A)  fallen; fallen 
B)  fallen; risen 
C)  risen; risen 
D)  risen; fallen 
A)  fallen; fallen 
B)  fallen; risen 
C)  risen; risen 
D)  risen; fallen

Question 3

The official unemployment rate may understate the true rate of unemployment because of

Accepted Answer

A)  increases in worker productivity over time. 
B)  discouraged workers who no longer actively look for work. 
C)  workers who have more than one job. 
D)  changes in the wage rates which may increase unemployment. 
A)  increases in worker productivity over time. 
B)  discouraged workers who no longer actively look for work. 
C)  workers who have more than one job. 
D)  changes in the wage rates which may increase unemployment.

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

Which of the following has a tendency to raise the unemployment rate?

Accepted Answer

A)  Implementing a minimum wage in an economy. 
B)  Firms deciding to pay efficiency wages in an economy. 
C)  The establishment of effective trade unions in an economy. 
D)  All of these options are correct. 
A)  Implementing a minimum wage in an economy. 
B)  Firms deciding to pay efficiency wages in an economy. 
C)  The establishment of effective trade unions in an economy. 
D)  All of these options are correct.

Question 6

What effect do unemployment benefits have on job search?

Accepted Answer

Unemployment benefits provide some incom

Question 7

If nominal wages rise slower than the price level,then real wages have ________ and the purchasing power of income has ________.

Accepted Answer

A)  fallen; fallen 
B)  fallen; risen 
C)  risen; risen 
D)  risen; fallen 
A)  fallen; fallen 
B)  fallen; risen 
C)  risen; risen 
D)  risen; fallen

Question 8

Discuss the likely impact of each of the following on the unemployment rate:
a. The length of time workers are eligible to receive unemployment benefit payments is reduced.
b. The government passes a law making trade unions illegal.
c. The minimum wage is raised by 50 per cent.
d. The government funds an Internet site where companies can post job openings at no charge.

Accepted Answer

a. The unemployment rate will likely dec

Question 9

In Australia between 1978 and 2013,the net number of

Accepted Answer

A)  part-time jobs and full-time jobs fell. 
B)  part-time jobs grew while full-time jobs fell. 
C)  full-time jobs grew while part-time jobs fell. 
D)  part-time jobs and full-time jobs grew. 
A)  part-time jobs and full-time jobs fell. 
B)  part-time jobs grew while full-time jobs fell. 
C)  full-time jobs grew while part-time jobs fell. 
D)  part-time jobs and full-time jobs grew.

Question 10

The economy is at full employment if the unemployment rate is equal to

Accepted Answer

A)  zero. 
B)  the natural rate of unemployment. 
C)  the amount of cyclical unemployment. 
D)  the sum of structural and cyclical unemployment. 
A)  zero. 
B)  the natural rate of unemployment. 
C)  the amount of cyclical unemployment. 
D)  the sum of structural and cyclical unemployment.

Question 11

Anticipated inflation increases the amount of taxation paid by firms and individuals.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is a correct description of inflation?

Accepted Answer

A)  Inflation refers to an increase in relative prices throughout the economy. 
B)  Inflation is the change in the price level from one year to another. 
C)  Inflation is a sustained increase in the price level. 
D)  Inflation is when there is a one-time jump in the price level. 
A)  Inflation refers to an increase in relative prices throughout the economy. 
B)  Inflation is the change in the price level from one year to another. 
C)  Inflation is a sustained increase in the price level. 
D)  Inflation is when there is a one-time jump in the price level.

Question 13

Which groups of people in Australia are more likely to experience higher levels of unemployment?

Accepted Answer

The groups of people in Australia who ar

Question 14

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

Accepted Answer

This is the level of unemploym

Question 15

Who might be disadvantaged by deregulation of the labour market?

Accepted Answer

Deregulation of the labour market can in

Question 16

Which of the following statements is false?

Accepted Answer

A)  Whether you gain or lose during a period of inflation depends on whether your income rises faster or slower than the prices of things you buy. 
B)  Inflation that is higher than expected benefits debtors, and inflation that is lower than expected benefits creditors. 
C)  When unanticipated inflation occurs regularly, the degree of risk associated with investments in the economy increases. 
D)  There are no costs or losses associated with inflation when it is fully anticipated. 
A)  Whether you gain or lose during a period of inflation depends on whether your income rises faster or slower than the prices of things you buy. 
B)  Inflation that is higher than expected benefits debtors, and inflation that is lower than expected benefits creditors. 
C)  When unanticipated inflation occurs regularly, the degree of risk associated with investments in the economy increases. 
D)  There are no costs or losses associated with inflation when it is fully anticipated.

Question 17

Deflation occurs when the price level becomes negative.

Accepted Answer

A) True 
 B)False

Question 18

Why are policy makers concerned about rising unemployment rates?

Accepted Answer

There are significant economic costs due

Question 19

Why are jobs continually being created and destroyed in the economy?

Accepted Answer

New jobs are created as technology progr

Question 20

Looking at the following table,what is the rate of growth of the average price level from 2011 to 2012?

Accepted Answer

A)  1.52 per cent 
B)  2.0 per cent 
C)  3.5 per cent 
D)  4.76 per cent 
A)  1.52 per cent 
B)  2.0 per cent 
C)  3.5 per cent 
D)  4.76 per cent

Eliminating structural unemployment would be good for the economy.

If nominal wages rise faster than the price level,then real wages have and the purchasing power of income has .

The official unemployment rate may understate the true rate of unemployment because of

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

Which of the following has a tendency to raise the unemployment rate?

What effect do unemployment benefits have on job search?

If nominal wages rise slower than the price level,then real wages have and the purchasing power of income has .

In Australia between 1978 and 2013,the net number of

The economy is at full employment if the unemployment rate is equal to

Anticipated inflation increases the amount of taxation paid by firms and individuals.

Which of the following is a correct description of inflation?

Which groups of people in Australia are more likely to experience higher levels of unemployment?

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

Who might be disadvantaged by deregulation of the labour market?

Which of the following statements is false?

Deflation occurs when the price level becomes negative.

Why are policy makers concerned about rising unemployment rates?

Why are jobs continually being created and destroyed in the economy?

Looking at the following table,what is the rate of growth of the average price level from 2011 to 2012?

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

Eliminating structural unemployment would be good for the economy.

If nominal wages rise faster than the price level,then real wages have ________ and the purchasing power of income has ________.

The official unemployment rate may understate the true rate of unemployment because of

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

Which of the following has a tendency to raise the unemployment rate?

What effect do unemployment benefits have on job search?

If nominal wages rise slower than the price level,then real wages have ________ and the purchasing power of income has ________.

In Australia between 1978 and 2013,the net number of

The economy is at full employment if the unemployment rate is equal to

Anticipated inflation increases the amount of taxation paid by firms and individuals.

Which of the following is a correct description of inflation?

Which groups of people in Australia are more likely to experience higher levels of unemployment?

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

Who might be disadvantaged by deregulation of the labour market?

Which of the following statements is false?

Deflation occurs when the price level becomes negative.

Why are policy makers concerned about rising unemployment rates?

Why are jobs continually being created and destroyed in the economy?

Looking at the following table,what is the rate of growth of the average price level from 2011 to 2012?

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

If nominal wages rise faster than the price level,then real wages have and the purchasing power of income has .

If nominal wages rise slower than the price level,then real wages have and the purchasing power of income has .