Question 1

Internet employment agencies have simplified the job search for the applicants. They have also led to a(n) _____ unemployment.

Accepted Answer

A) increase in frictional 
B) increase in cyclical 
C) decrease in frictional 
D) decrease in structural 
A) increase in frictional 
B) increase in cyclical 
C) decrease in frictional 
D) decrease in structural C

Question 2

A bank makes a loan for one year. The nominal annual interest rate is 7.5%. The real rate is 4%. Over the course of the year, overall prices increase by 4%. This rate of inflation hurt the _____ because the actual rate of inflation was _____ than the anticipated rate.

Accepted Answer

A) borrower; lower 
B) borrower; higher 
C) lender; higher 
D) lender; lower 
A) borrower; lower 
B) borrower; higher 
C) lender; higher 
D) lender; lower C

Question 3

The minimum wage is higher in the United States than in most Western European countries.

Accepted Answer

A) True 
 B)False  False

Question 4

Frictional unemployment exists because of all of the following reasons EXCEPT:

Accepted Answer

A) that new jobs are continually being created. 
B) that some old jobs are always being destroyed. 
C) that new workers are always entering the labor market. 
D) for the minimum wage. 
A) that new jobs are continually being created. 
B) that some old jobs are always being destroyed. 
C) that new workers are always entering the labor market. 
D) for the minimum wage.

Question 5

A fixed interest rate of _____ with _____ inflation will yield the highest rate of return for a lender.

Accepted Answer

A) 8%; 1% 
B) 11%; 5% 
C) 12%; 7% 
D) 19%; 15% 
A) 8%; 1% 
B) 11%; 5% 
C) 12%; 7% 
D) 19%; 15%

Question 6

If the price level decreases, real income will:

Accepted Answer

A) increase. 
B) decrease. 
C) remain constant. 
D) fluctuate randomly. 
A) increase. 
B) decrease. 
C) remain constant. 
D) fluctuate randomly.

Question 7

If a country has a working-age population of 200 million, 135 million people with jobs, 10 million people who were looking for a job but have given up, and 5 million people unemployed and seeking employment, then the number of discouraged workers is:

Accepted Answer

A) 25 million. 
B) 15 million. 
C) 10 million. 
D) 5 million. 
A) 25 million. 
B) 15 million. 
C) 10 million. 
D) 5 million.

Question 8

The real wage is the wage rate _____ the price level.

Accepted Answer

A) plus 
B) minus 
C) divided by 
D) multiplied by 
A) plus 
B) minus 
C) divided by 
D) multiplied by

Question 9

The National Bureau of Economic Research announced that the U.S. economic recession that began in December of 2007 hit a trough in June of 2009. During that period, which type of unemployment increased for sure?

Accepted Answer

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

Question 10

Suppose that immigration laws are relaxed and many workers from other nations enter the U.S. labor force. The _____ for labor will _____.

Accepted Answer

A) demand; increase 
B) demand; decrease 
C) supply; decrease 
D) supply; increase 
A) demand; increase 
B) demand; decrease 
C) supply; decrease 
D) supply; increase

Question 11

If a country has a working-age population of 200 million, 120 million people with jobs, and 30 million people unemployed and seeking employment, then its unemployment rate is:

Accepted Answer

A) 5%. 
B) 7.5%. 
C) 15%. 
D) 20%. 
A) 5%. 
B) 7.5%. 
C) 15%. 
D) 20%.

Question 12

Last month Brent lost his job at the auto parts factory because the factory relocated to Asia. Brent and his former coworkers have been looking for similar jobs, but they have found no openings. In Brent's town the _____ labor has _____.

Accepted Answer

A) supply of; fallen 
B) supply of; risen 
C) demand for; risen 
D) demand for; fallen 
A) supply of; fallen 
B) supply of; risen 
C) demand for; risen 
D) demand for; fallen

Question 13

The Bureau of Labor Statistics calls a person who is out of work, would like to work, but has given up looking for work:

Accepted Answer

A) unemployed. 
B) employed. 
C) a discouraged worker. 
D) lazy. 
A) unemployed. 
B) employed. 
C) a discouraged worker. 
D) lazy.

Question 14

Recent declines in union membership are likely _____ the natural rate of unemployment.

Accepted Answer

A) to increase 
B) to decrease 
C) not to affect 
D) to alter unpredictably 
A) to increase 
B) to decrease 
C) not to affect 
D) to alter unpredictably

Question 15

In February 2012, the Bureau of Labor Statistics calculated the unemployment rate to be 8.3%. If frictional unemployment was 3.1% and structural unemployment was 3.2%, then the natural rate of unemployment was:

Accepted Answer

A) 4.5%. 
B) 2.0%. 
C) 1%. 
D) 5.5%. 
A) 4.5%. 
B) 2.0%. 
C) 1%. 
D) 5.5%.

Question 16

Shoe-leather costs may be especially important in the tax system when inflation distorts the measures of income on which taxes are collected.

Accepted Answer

A) True 
 B)False

Question 17

When the price level increases, everyone becomes poorer.

Accepted Answer

A) True 
 B)False

Question 18

Use the following to answer questions:  
-(Table: Population Data for Estill County) Look at the table Population Data for Estill County. How many people are in the labor force?

Accepted Answer

A) 6,000 
B) 9,400 
C) 7,400 
D) 6,500 
A) 6,000 
B) 9,400 
C) 7,400 
D) 6,500

Question 19

Unemployment that is due to the time workers spend in job search is _____ unemployment.

Accepted Answer

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

Question 20

Use the following to answer questions:
Figure: The Labor Market  
-(Figure: The Labor Market) Look at the figure The Labor Market. The equilibrium wage rate is:

Accepted Answer

A) $16. 
B) $15. 
C) $14. 
D) $17. 
A) $16. 
B) $15. 
C) $14. 
D) $17.

Internet employment agencies have simplified the job search for the applicants. They have also led to a(n) _____ unemployment.

A bank makes a loan for one year. The nominal annual interest rate is 7.5%. The real rate is 4%. Over the course of the year, overall prices increase by 4%. This rate of inflation hurt the _ because the actual rate of inflation was _ than the anticipated rate.

The minimum wage is higher in the United States than in most Western European countries.

Frictional unemployment exists because of all of the following reasons EXCEPT:

A fixed interest rate of _ with _ inflation will yield the highest rate of return for a lender.

If the price level decreases, real income will:

If a country has a working-age population of 200 million, 135 million people with jobs, 10 million people who were looking for a job but have given up, and 5 million people unemployed and seeking employment, then the number of discouraged workers is:

The real wage is the wage rate _____ the price level.

The National Bureau of Economic Research announced that the U.S. economic recession that began in December of 2007 hit a trough in June of 2009. During that period, which type of unemployment increased for sure?

Suppose that immigration laws are relaxed and many workers from other nations enter the U.S. labor force. The _ for labor will _.

If a country has a working-age population of 200 million, 120 million people with jobs, and 30 million people unemployed and seeking employment, then its unemployment rate is:

Last month Brent lost his job at the auto parts factory because the factory relocated to Asia. Brent and his former coworkers have been looking for similar jobs, but they have found no openings. In Brent's town the _ labor has _.

The Bureau of Labor Statistics calls a person who is out of work, would like to work, but has given up looking for work:

Recent declines in union membership are likely _____ the natural rate of unemployment.

In February 2012, the Bureau of Labor Statistics calculated the unemployment rate to be 8.3%. If frictional unemployment was 3.1% and structural unemployment was 3.2%, then the natural rate of unemployment was:

Shoe-leather costs may be especially important in the tax system when inflation distorts the measures of income on which taxes are collected.

When the price level increases, everyone becomes poorer.

Use the following to answer questions: -(Table: Population Data for Estill County) Look at the table Population Data for Estill County. How many people are in the labor force?

Unemployment that is due to the time workers spend in job search is _____ unemployment.

Use the following to answer questions: Figure: The Labor Market -(Figure: The Labor Market) Look at the figure The Labor Market. The equilibrium wage rate is:

First Principles

Economic Models

Supply and Demand

International Trade 5

Macroeconomics: the Big Picture

Gdp and Cpi: Tracking the Macroeconomy

Long-Run Economic Growth

Savings, Investment Spending, and the Financial System

Fiscal Policy Appendix Taxes and the Multiplier

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Crises and Consequences

Events and Ideas

Open-Economy Macroeconomics

Graphs in Economics

toward a Fuller Understanding of Present Value

Filters

Exam 8: Unemployment and Inflation

Internet employment agencies have simplified the job search for the applicants. They have also led to a(n) _____ unemployment.

A bank makes a loan for one year. The nominal annual interest rate is 7.5%. The real rate is 4%. Over the course of the year, overall prices increase by 4%. This rate of inflation hurt the _____ because the actual rate of inflation was _____ than the anticipated rate.

The minimum wage is higher in the United States than in most Western European countries.

Frictional unemployment exists because of all of the following reasons EXCEPT:

A fixed interest rate of _____ with _____ inflation will yield the highest rate of return for a lender.

If the price level decreases, real income will:

If a country has a working-age population of 200 million, 135 million people with jobs, 10 million people who were looking for a job but have given up, and 5 million people unemployed and seeking employment, then the number of discouraged workers is:

The real wage is the wage rate _____ the price level.

The National Bureau of Economic Research announced that the U.S. economic recession that began in December of 2007 hit a trough in June of 2009. During that period, which type of unemployment increased for sure?

Suppose that immigration laws are relaxed and many workers from other nations enter the U.S. labor force. The _____ for labor will _____.

If a country has a working-age population of 200 million, 120 million people with jobs, and 30 million people unemployed and seeking employment, then its unemployment rate is:

Last month Brent lost his job at the auto parts factory because the factory relocated to Asia. Brent and his former coworkers have been looking for similar jobs, but they have found no openings. In Brent's town the _____ labor has _____.

The Bureau of Labor Statistics calls a person who is out of work, would like to work, but has given up looking for work:

Recent declines in union membership are likely _____ the natural rate of unemployment.

In February 2012, the Bureau of Labor Statistics calculated the unemployment rate to be 8.3%. If frictional unemployment was 3.1% and structural unemployment was 3.2%, then the natural rate of unemployment was:

Shoe-leather costs may be especially important in the tax system when inflation distorts the measures of income on which taxes are collected.

When the price level increases, everyone becomes poorer.

Use the following to answer questions: -(Table: Population Data for Estill County) Look at the table Population Data for Estill County. How many people are in the labor force?

Unemployment that is due to the time workers spend in job search is _____ unemployment.

Use the following to answer questions: Figure: The Labor Market -(Figure: The Labor Market) Look at the figure The Labor Market. The equilibrium wage rate is:

First Principles

Economic Models

Supply and Demand

International Trade 5

Macroeconomics: the Big Picture

Gdp and Cpi: Tracking the Macroeconomy

Long-Run Economic Growth

Savings, Investment Spending, and the Financial System

Fiscal Policy Appendix Taxes and the Multiplier

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Crises and Consequences

Events and Ideas

Open-Economy Macroeconomics

Graphs in Economics

toward a Fuller Understanding of Present Value

Filters

A bank makes a loan for one year. The nominal annual interest rate is 7.5%. The real rate is 4%. Over the course of the year, overall prices increase by 4%. This rate of inflation hurt the _ because the actual rate of inflation was _ than the anticipated rate.

A fixed interest rate of _ with _ inflation will yield the highest rate of return for a lender.

Suppose that immigration laws are relaxed and many workers from other nations enter the U.S. labor force. The _ for labor will _.

Last month Brent lost his job at the auto parts factory because the factory relocated to Asia. Brent and his former coworkers have been looking for similar jobs, but they have found no openings. In Brent's town the _ labor has _.