Question 1

Most economists agree that trade unions reduce the overall unemployment rate in the economy.

Accepted Answer

A) True 
 B)False

Question 2

If consumers purchase fewer of those products that increase most in price and more of those products that decrease in price as compared to the CPI basket,then changes in the CPI

Accepted Answer

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

Question 3

When the Australian Bureau of Statistics conducts surveys to estimate the rate of unemployment,one of the survey questions asked is?

Accepted Answer

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

Question 4

Inflation that is ________ than what is expected benefits ________ and hurts ________.

Accepted Answer

A)  less; lenders; borrowers 
B)  less; borrowers; lenders 
C)  greater; lenders; borrowers 
D)  greater; lenders; no-one 
A)  less; lenders; borrowers 
B)  less; borrowers; lenders 
C)  greater; lenders; borrowers 
D)  greater; lenders; no-one

Question 5

The broadest measure of the price level which includes all final goods and services is the

Accepted Answer

A)  producer price index. 
B)  consumer price index. 
C)  GDP deflator. 
D)  wholesale price index. 
A)  producer price index. 
B)  consumer price index. 
C)  GDP deflator. 
D)  wholesale price index.

Question 6

Hyperinflation is caused by a country's central bank when it reduces liquidity,thereby creating a shortage of money,leading to inflation.

Accepted Answer

A) True 
 B)False

Question 7

The demand for new motor vehicles falls when the economy enters a downturn and,as a result,motor vehicle manufacturers sack some workers.This would be an example of

Accepted Answer

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

Question 8

Which of the following is an economic cost of rising unemployment rates?

Accepted Answer

A)  Loss of GDP. 
B)  An inward shift in the production possibility frontier. 
C)  A fall in the amount of unemployment benefits paid by the government. 
D)  An increase in income levels, as people who lose their jobs move onto the unemployment benefits. 
A)  Loss of GDP. 
B)  An inward shift in the production possibility frontier. 
C)  A fall in the amount of unemployment benefits paid by the government. 
D)  An increase in income levels, as people who lose their jobs move onto the unemployment benefits.

Question 9

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

Question 10

In Australia in early 2014,approximately how many people were not in the labour force but were of working age?

Accepted Answer

A)  6.6 million 
B)  12 million 
C)  0.6 million 
D)  11.4 million 
A)  6.6 million 
B)  12 million 
C)  0.6 million 
D)  11.4 million

Question 11

What does the producer price index (PPI)measure?

Accepted Answer

A)  The average change in the prices paid for all goods produced in the economy over a given year. 
B)  The average of the prices received by producers of goods and services at all stages of the production process. 
C)  The level of production of goods and services generated in the economy in a given year. 
D)  The difference between the prices consumers pay for goods and services and the prices producers pay for goods and services. 
A)  The average change in the prices paid for all goods produced in the economy over a given year. 
B)  The average of the prices received by producers of goods and services at all stages of the production process. 
C)  The level of production of goods and services generated in the economy in a given year. 
D)  The difference between the prices consumers pay for goods and services and the prices producers pay for goods and services.

Question 12

The unemployment resulting from workers laid off due to an economic contraction or a recession would be classified as

Accepted Answer

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

Question 13

An increase in real wages shifts the aggregate supply curve to the left,always resulting in cost-push inflation.

Accepted Answer

A) True 
 B)False

Question 14

What effect does the payment of government unemployment benefits have on the unemployment rate?

Accepted Answer

The payment of government unemployment b

Question 15

The demand for new motor vehicles falls due to high oil prices and a move by people toward a greater use of public transport.As a result,motor vehicle manufacturers sack some workers.This would be an example of

Accepted Answer

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

Question 16

Deflation occurs when there is a

Accepted Answer

A)  sustained increase in the price level. 
B)  one-time increase in the price level. 
C)  sustained decline in the price level. 
D)  one-time decrease in the price level. 
A)  sustained increase in the price level. 
B)  one-time increase in the price level. 
C)  sustained decline in the price level. 
D)  one-time decrease in the price level.

Question 17

Assume that between 2012 and 2013,the CPI of a country rose from 182 to 185.If household incomes rose by 3 per cent during that period of time,then which of the following is true?

Accepted Answer

A)  The purchasing power of household income rose between 2012 and 2013. 
B)  The purchasing power of household income fell between 2012 and 2013. 
C)  The purchasing power of household income remained constant between 2012 and 2013. 
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 rose between 2012 and 2013. 
B)  The purchasing power of household income fell between 2012 and 2013. 
C)  The purchasing power of household income remained constant between 2012 and 2013. 
D)  The CPI cannot be used to determine how the purchasing power of household income changes over time.

Question 18

Frictional unemployment would increase when

Accepted Answer

A)  there is a fall in aggregate demand. 
B)  workers are replaced by machines and the workers do not have the skills necessary to perform new jobs. 
C)  discouraged workers leave the labour force. 
D)  the number of individuals who quit their job to find another increases. 
A)  there is a fall in aggregate demand. 
B)  workers are replaced by machines and the workers do not have the skills necessary to perform new jobs. 
C)  discouraged workers leave the labour force. 
D)  the number of individuals who quit their job to find another increases.

Question 19

If the CPI rises from 206.7 to 212.7 between two consecutive years,by how much has the cost of living changed between these two years?

Accepted Answer

A)  The cost of living has increased by 6 per cent. 
B)  The cost of living has increased by 2.9 per cent. 
C)  The cost of living has increased by 12.7 per cent. 
D)  The cost of living has decreased by 6 per cent. 
A)  The cost of living has increased by 6 per cent. 
B)  The cost of living has increased by 2.9 per cent. 
C)  The cost of living has increased by 12.7 per cent. 
D)  The cost of living has decreased by 6 per cent.

Question 20

Unemployment benefits reduce the opportunity cost of job search.

Accepted Answer

A) True 
 B)False

Most economists agree that trade unions reduce the overall unemployment rate in the economy.

If consumers purchase fewer of those products that increase most in price and more of those products that decrease in price as compared to the CPI basket,then changes in the CPI

When the Australian Bureau of Statistics conducts surveys to estimate the rate of unemployment,one of the survey questions asked is?

Inflation that is than what is expected benefits and hurts .

The broadest measure of the price level which includes all final goods and services is the

Hyperinflation is caused by a country's central bank when it reduces liquidity,thereby creating a shortage of money,leading to inflation.

The demand for new motor vehicles falls when the economy enters a downturn and,as a result,motor vehicle manufacturers sack some workers.This would be an example of

Which of the following is an economic cost of rising unemployment rates?

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

In Australia in early 2014,approximately how many people were not in the labour force but were of working age?

What does the producer price index (PPI)measure?

The unemployment resulting from workers laid off due to an economic contraction or a recession would be classified as

An increase in real wages shifts the aggregate supply curve to the left,always resulting in cost-push inflation.

What effect does the payment of government unemployment benefits have on the unemployment rate?

The demand for new motor vehicles falls due to high oil prices and a move by people toward a greater use of public transport.As a result,motor vehicle manufacturers sack some workers.This would be an example of

Deflation occurs when there is a

Assume that between 2012 and 2013,the CPI of a country rose from 182 to 185.If household incomes rose by 3 per cent during that period of time,then which of the following is true?

Frictional unemployment would increase when

If the CPI rises from 206.7 to 212.7 between two consecutive years,by how much has the cost of living changed between these two years?

Unemployment benefits reduce the opportunity cost of job search.

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

Most economists agree that trade unions reduce the overall unemployment rate in the economy.

If consumers purchase fewer of those products that increase most in price and more of those products that decrease in price as compared to the CPI basket,then changes in the CPI

When the Australian Bureau of Statistics conducts surveys to estimate the rate of unemployment,one of the survey questions asked is?

Inflation that is ________ than what is expected benefits ________ and hurts ________.

The broadest measure of the price level which includes all final goods and services is the

Hyperinflation is caused by a country's central bank when it reduces liquidity,thereby creating a shortage of money,leading to inflation.

The demand for new motor vehicles falls when the economy enters a downturn and,as a result,motor vehicle manufacturers sack some workers.This would be an example of

Which of the following is an economic cost of rising unemployment rates?

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

In Australia in early 2014,approximately how many people were not in the labour force but were of working age?

What does the producer price index (PPI)measure?

The unemployment resulting from workers laid off due to an economic contraction or a recession would be classified as

An increase in real wages shifts the aggregate supply curve to the left,always resulting in cost-push inflation.

What effect does the payment of government unemployment benefits have on the unemployment rate?

The demand for new motor vehicles falls due to high oil prices and a move by people toward a greater use of public transport.As a result,motor vehicle manufacturers sack some workers.This would be an example of

Deflation occurs when there is a

Assume that between 2012 and 2013,the CPI of a country rose from 182 to 185.If household incomes rose by 3 per cent during that period of time,then which of the following is true?

Frictional unemployment would increase when

If the CPI rises from 206.7 to 212.7 between two consecutive years,by how much has the cost of living changed between these two years?

Unemployment benefits reduce the opportunity cost of job search.

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

Inflation that is than what is expected benefits and hurts .