Question 1

Efficiency wages encourage:

Accepted Answer

A) workers to look for a better job. 
B) potential workers to remain out of the labor force. 
C) workers to stay in their current job. 
D) workers to get more job training. 
A) workers to look for a better job. 
B) potential workers to remain out of the labor force. 
C) workers to stay in their current job. 
D) workers to get more job training.

Question 2

The sum of the frictional and structural rates of unemployment is the:

Accepted Answer

A) cyclical rate of unemployment. 
B) cyclical rate of employment. 
C) natural rate of unemployment. 
D) natural rate of employment. 
A) cyclical rate of unemployment. 
B) cyclical rate of employment. 
C) natural rate of unemployment. 
D) natural rate of employment.

Question 3

The official unemployment rate ignores:

Accepted Answer

A) people with professional jobs. 
B) people who work on commission. 
C) discouraged workers. 
D) people with professional jobs, people who work on commission, and discouraged workers. 
A) people with professional jobs. 
B) people who work on commission. 
C) discouraged workers. 
D) people with professional jobs, people who work on commission, and discouraged workers.

Question 4

Structural unemployment consists of people who are unemployed because of:

Accepted Answer

A) temporary changes in jobs. 
B) more labor demanded than labor supplied. 
C) the time it takes for employers and workers to find each other. 
D) more job hunters than jobs. 
A) temporary changes in jobs. 
B) more labor demanded than labor supplied. 
C) the time it takes for employers and workers to find each other. 
D) more job hunters than jobs.

Question 5

The rate of unemployment is found by dividing the:

Accepted Answer

A) number of people looking for work by the population. 
B) number of people not working but looking for work by the number of people not working but looking for work plus the number of people employed. 
C) labor force by the number of people looking for work. 
D) unemployed and discouraged workers by the labor force. 
A) number of people looking for work by the population. 
B) number of people not working but looking for work by the number of people not working but looking for work plus the number of people employed. 
C) labor force by the number of people looking for work. 
D) unemployed and discouraged workers by the labor force.

Question 6

Between 1921 and 1923 Germany underwent:

Accepted Answer

A) deflation. 
B) disinflation. 
C) an increase in the purchasing power of its currency. 
D) hyperinflation. 
A) deflation. 
B) disinflation. 
C) an increase in the purchasing power of its currency. 
D) hyperinflation.

Question 7

Unemployment is at its natural level if there is no:

Accepted Answer

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

Question 8

In 2002, the French adopted the British pound as their national currency.

Accepted Answer

A) True 
 B)False

Question 9

When the price level increases, everyone becomes wealthier.

Accepted Answer

A) True 
 B)False

Question 10

Most economists agree that a binding minimum wage causes structural unemployment.

Accepted Answer

A) True 
 B)False

Question 11

To be officially unemployed, a person must:

Accepted Answer

A) not have a job and must have looked for work in the past four weeks. 
B) under 55 years old. 
C) working less than 30 hours per week. 
D) working less than 20 hours per week. 
A) not have a job and must have looked for work in the past four weeks. 
B) under 55 years old. 
C) working less than 30 hours per week. 
D) working less than 20 hours per week.

Question 12

If the U.S. dollar were replaced with a "new dollar" at an exchange rate of 1 new dollar for 4 old dollars, then an hourly wage of $10 would become an hourly wage of _____ new dollars.

Accepted Answer

A) 2.50 
B) 6 
C) 10 
D) 60 
A) 2.50 
B) 6 
C) 10 
D) 60

Question 13

Periods of recession are likely to be marked by:

Accepted Answer

A) rising unemployment. 
B) constant unemployment. 
C) increasing employment. 
D) constant employment. 
A) rising unemployment. 
B) constant unemployment. 
C) increasing employment. 
D) constant employment.

Question 14

Use the following to answer questions :
Table: Price Levels
  
-(Table: Price Levels) Look at the table Price Levels. What is the rate of inflation from 2012 to 2013?

Accepted Answer

A) 6.4% 
B) 4.5% 
C) 2.9% 
D) 2.0% 
A) 6.4% 
B) 4.5% 
C) 2.9% 
D) 2.0%

Question 15

A survey reveals that on a small island initially 1,000 people have jobs, 200 people are unemployed but are looking for jobs, and 200 people are neither working nor looking for work. Suppose that 100 of the 200 people who weren't looking for work now begin looking for work and that half of the new entrants find a job. The unemployment rate:

Accepted Answer

A) rises to 19.2%. 
B) rises to 21.4%. 
C) rises to 28.6%. 
D) Nothing happens to the unemployment rate. 
A) rises to 19.2%. 
B) rises to 21.4%. 
C) rises to 28.6%. 
D) Nothing happens to the unemployment rate.

Question 16

The natural rate of unemployment changes when:

Accepted Answer

A) the cyclical unemployment changes. 
B) the actual rate of unemployment changes. 
C) labor market institutions change. 
D) government policies remain the same. 
A) the cyclical unemployment changes. 
B) the actual rate of unemployment changes. 
C) labor market institutions change. 
D) government policies remain the same.

Question 17

A person who spends time looking for work is:

Accepted Answer

A) engaged in job search. 
B) usually counted as a marginally attached worker. 
C) counted as out of the labor force. 
D) usually counted as a discouraged worker. 
A) engaged in job search. 
B) usually counted as a marginally attached worker. 
C) counted as out of the labor force. 
D) usually counted as a discouraged worker.

Question 18

A survey reveals that on a small island 100 people have jobs, 25 people are not working but are looking for jobs, and 45 people are neither working nor looking for work. The unemployment rate on the island is:

Accepted Answer

A) 12.5%. 
B) 20%. 
C) 25%. 
D) 50%. 
A) 12.5%. 
B) 20%. 
C) 25%. 
D) 50%.

Question 19

Some economists argue that the official unemployment rate understates the true level of unemployment. Summarize these arguments.

Accepted Answer

A person who is not actively seeking wor

Question 20

A person without a job who is actively seeking and available for work is considered:

Accepted Answer

A) employed. 
B) unemployed. 
C) underemployed. 
D) marginally attached. 
A) employed. 
B) unemployed. 
C) underemployed. 
D) marginally attached.

Efficiency wages encourage:

The sum of the frictional and structural rates of unemployment is the:

The official unemployment rate ignores:

Structural unemployment consists of people who are unemployed because of:

The rate of unemployment is found by dividing the:

Between 1921 and 1923 Germany underwent:

Unemployment is at its natural level if there is no:

In 2002, the French adopted the British pound as their national currency.

When the price level increases, everyone becomes wealthier.

Most economists agree that a binding minimum wage causes structural unemployment.

To be officially unemployed, a person must:

If the U.S. dollar were replaced with a "new dollar" at an exchange rate of 1 new dollar for 4 old dollars, then an hourly wage of $10 would become an hourly wage of _____ new dollars.

Periods of recession are likely to be marked by:

Use the following to answer questions : Table: Price Levels -(Table: Price Levels) Look at the table Price Levels. What is the rate of inflation from 2012 to 2013?

The natural rate of unemployment changes when:

A person who spends time looking for work is:

A survey reveals that on a small island 100 people have jobs, 25 people are not working but are looking for jobs, and 45 people are neither working nor looking for work. The unemployment rate on the island is:

Some economists argue that the official unemployment rate understates the true level of unemployment. Summarize these arguments.

A person without a job who is actively seeking and available for work is considered:

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

Efficiency wages encourage:

The sum of the frictional and structural rates of unemployment is the:

The official unemployment rate ignores:

Structural unemployment consists of people who are unemployed because of:

The rate of unemployment is found by dividing the:

Between 1921 and 1923 Germany underwent:

Unemployment is at its natural level if there is no:

In 2002, the French adopted the British pound as their national currency.

When the price level increases, everyone becomes wealthier.

Most economists agree that a binding minimum wage causes structural unemployment.

To be officially unemployed, a person must:

If the U.S. dollar were replaced with a "new dollar" at an exchange rate of 1 new dollar for 4 old dollars, then an hourly wage of $10 would become an hourly wage of _____ new dollars.

Periods of recession are likely to be marked by:

Use the following to answer questions : Table: Price Levels -(Table: Price Levels) Look at the table Price Levels. What is the rate of inflation from 2012 to 2013?

The natural rate of unemployment changes when:

A person who spends time looking for work is:

A survey reveals that on a small island 100 people have jobs, 25 people are not working but are looking for jobs, and 45 people are neither working nor looking for work. The unemployment rate on the island is:

Some economists argue that the official unemployment rate understates the true level of unemployment. Summarize these arguments.

A person without a job who is actively seeking and available for work is considered:

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