Question 1

Increases in unemployment compensation:

Accepted Answer

A) reduce unemployment. 
B) increase unemployment. 
C) increase the number of jobs available. 
D) decrease the number of jobs available. 
A) reduce unemployment. 
B) increase unemployment. 
C) increase the number of jobs available. 
D) decrease the number of jobs available.

Question 2

Structural unemployment occurs when:

Accepted Answer

A) new workers enter the work force. 
B) there is a surplus of labor. 
C) the economy expands. 
D) there is cyclical unemployment. 
A) new workers enter the work force. 
B) there is a surplus of labor. 
C) the economy expands. 
D) there is cyclical unemployment.

Question 3

If the U.S. dollar were replaced with a "new dollar" at an exchange rate of 1 new dollar for 5 old dollars, then a loan of $10,000 would become a debt of _____ new dollars.

Accepted Answer

A) 50,000 
B) 10,000 
C) 9,995 
D) 2,000 
A) 50,000 
B) 10,000 
C) 9,995 
D) 2,000

Question 4

If Jim's income is $80,000 and the price level is 4, then Jim's real income is:

Accepted Answer

A) $20,000. 
B) $320,000. 
C) $84,000. 
D) $80,000. 
A) $20,000. 
B) $320,000. 
C) $84,000. 
D) $80,000.

Question 5

Use the following to answer questions :  
-(Table: Employment Data) Look at the table Employment Data. If marginally attached workers are included in the labor force, the labor force is:

Accepted Answer

A) 1 million. 
B) 11 million 
C) 32 million. 
D) 33 million. 
A) 1 million. 
B) 11 million 
C) 32 million. 
D) 33 million.

Question 6

If more women enter or reenter the labor force, the natural rate of unemployment is likely to:

Accepted Answer

A) decrease. 
B) remain unchanged. 
C) increase. 
D) decrease if they are well educated. 
A) decrease. 
B) remain unchanged. 
C) increase. 
D) decrease if they are well educated.

Question 7

Unanticipated inflation does all of the following EXCEPT:

Accepted Answer

A) reduce the value of money. 
B) reduce the value of debt. 
C) cause uncertainty about the future. 
D) cause disinflation. 
A) reduce the value of money. 
B) reduce the value of debt. 
C) cause uncertainty about the future. 
D) cause disinflation.

Question 8

Unit-of-account 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 9

If the labor force includes 100 million workers and 5 million people are unemployed but actively seeking work, then the unemployment rate is:

Accepted Answer

A) 1%. 
B) 5%. 
C) 10%. 
D) 95%. 
A) 1%. 
B) 5%. 
C) 10%. 
D) 95%.

Question 10

Which annual rate of inflation is hyperinflation?

Accepted Answer

A) 5% 
B) 13% 
C) 25% 
D) 2,000% 
A) 5% 
B) 13% 
C) 25% 
D) 2,000%

Question 11

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

Accepted Answer

A) 0%. 
B) 50%. 
C) 80%. 
D) 15%. 
A) 0%. 
B) 50%. 
C) 80%. 
D) 15%.

Question 12

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

Accepted Answer

A) 80,000. 
B) 110,000 
C) 100,000. 
D) 90,000. 
A) 80,000. 
B) 110,000 
C) 100,000. 
D) 90,000.

Question 13

Which of the following situations is likely to increase the natural rate of unemployment?

Accepted Answer

A) the entrance of many new people into the labor force 
B) a decrease in unemployment compensation benefits 
C) a decrease in job search time due to information advances like the Internet 
D) the elimination of the minimum wage 
A) the entrance of many new people into the labor force 
B) a decrease in unemployment compensation benefits 
C) a decrease in job search time due to information advances like the Internet 
D) the elimination of the minimum wage

Question 14

When hyperinflation forces Emily to visit her bank very frequently to keep her cash holdings to a minimum, economists say that Emily has a:

Accepted Answer

A) shoe-leather cost. 
B) menu cost. 
C) unit-of-account cost. 
D) Fisher effect. 
A) shoe-leather cost. 
B) menu cost. 
C) unit-of-account cost. 
D) Fisher effect.

Question 15

Frictional unemployment:

Accepted Answer

A) occurs only during expansions. 
B) is due to time workers spend in job search. 
C) is the difference between cyclical unemployment and the natural rate of unemployment. 
D) hasn't occurred since the 1930s. 
A) occurs only during expansions. 
B) is due to time workers spend in job search. 
C) is the difference between cyclical unemployment and the natural rate of unemployment. 
D) hasn't occurred since the 1930s.

Question 16

Long-term unemployment is usually frictional.

Accepted Answer

A) True 
 B)False

Question 17

Two primary goals for macroeconomists are price stability and:

Accepted Answer

A) no unemployment. 
B) no frictional unemployment. 
C) low unemployment. 
D) no structural unemployment. 
A) no unemployment. 
B) no frictional unemployment. 
C) low unemployment. 
D) no structural unemployment.

Question 18

Radhika just graduated from college. She recently quit her part-time job to focus on finding a full-time job that better uses the skills she acquired in college. Radhika is considered to be:

Accepted Answer

A) structurally unemployed. 
B) frictionally unemployed. 
C) cyclically unemployed. 
D) employed, since she is focusing on finding a full-time job. 
A) structurally unemployed. 
B) frictionally unemployed. 
C) cyclically unemployed. 
D) employed, since she is focusing on finding a full-time job.

Question 19

Jim has a part-time job and would prefer to have a full-time job but has been unable to find one. Jim is classified as:

Accepted Answer

A) a discouraged worker. 
B) underemployed. 
C) unemployed. 
D) out of the labor force. 
A) a discouraged worker. 
B) underemployed. 
C) unemployed. 
D) out of the labor force.

Question 20

Which of the following statements is TRUE?

Accepted Answer

A) The number of people not working but who have looked for work in the past year are is equal to the number of unemployed people. 
B) The labor force is the total number of people working plus those who are unemployed. 
C) The unemployment rate is the number of people unemployed expressed as a percentage of the population. 
D) The labor force is the same as the population. 
A) The number of people not working but who have looked for work in the past year are is equal to the number of unemployed people. 
B) The labor force is the total number of people working plus those who are unemployed. 
C) The unemployment rate is the number of people unemployed expressed as a percentage of the population. 
D) The labor force is the same as the population.

Increases in unemployment compensation:

Structural unemployment occurs when:

If the U.S. dollar were replaced with a "new dollar" at an exchange rate of 1 new dollar for 5 old dollars, then a loan of $10,000 would become a debt of _____ new dollars.

If Jim's income is $80,000 and the price level is 4, then Jim's real income is:

Use the following to answer questions : -(Table: Employment Data) Look at the table Employment Data. If marginally attached workers are included in the labor force, the labor force is:

If more women enter or reenter the labor force, the natural rate of unemployment is likely to:

Unanticipated inflation does all of the following EXCEPT:

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

If the labor force includes 100 million workers and 5 million people are unemployed but actively seeking work, then the unemployment rate is:

Which annual rate of inflation is hyperinflation?

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

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

Which of the following situations is likely to increase the natural rate of unemployment?

When hyperinflation forces Emily to visit her bank very frequently to keep her cash holdings to a minimum, economists say that Emily has a:

Frictional unemployment:

Long-term unemployment is usually frictional.

Two primary goals for macroeconomists are price stability and:

Radhika just graduated from college. She recently quit her part-time job to focus on finding a full-time job that better uses the skills she acquired in college. Radhika is considered to be:

Jim has a part-time job and would prefer to have a full-time job but has been unable to find one. Jim is classified as:

Which of the following statements is TRUE?

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

Increases in unemployment compensation:

Structural unemployment occurs when:

If the U.S. dollar were replaced with a "new dollar" at an exchange rate of 1 new dollar for 5 old dollars, then a loan of $10,000 would become a debt of _____ new dollars.

If Jim's income is $80,000 and the price level is 4, then Jim's real income is:

Use the following to answer questions : -(Table: Employment Data) Look at the table Employment Data. If marginally attached workers are included in the labor force, the labor force is:

If more women enter or reenter the labor force, the natural rate of unemployment is likely to:

Unanticipated inflation does all of the following EXCEPT:

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

If the labor force includes 100 million workers and 5 million people are unemployed but actively seeking work, then the unemployment rate is:

Which annual rate of inflation is hyperinflation?

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

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

Which of the following situations is likely to increase the natural rate of unemployment?

When hyperinflation forces Emily to visit her bank very frequently to keep her cash holdings to a minimum, economists say that Emily has a:

Frictional unemployment:

Long-term unemployment is usually frictional.

Two primary goals for macroeconomists are price stability and:

Radhika just graduated from college. She recently quit her part-time job to focus on finding a full-time job that better uses the skills she acquired in college. Radhika is considered to be:

Jim has a part-time job and would prefer to have a full-time job but has been unable to find one. Jim is classified as:

Which of the following statements is TRUE?

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