Question 1

The threat of future inflation:

Accepted Answer

A) makes people reluctant to lend money for long periods. 
B) makes people eager to lend money for long periods. 
C) has no effect on lending money. 
D) increases the value of money paid back in the future. 
A) makes people reluctant to lend money for long periods. 
B) makes people eager to lend money for long periods. 
C) has no effect on lending money. 
D) increases the value of money paid back in the future.

Question 2

Economists claim that the unemployment rate can understate the true level of unemployment because none of the following groups is included EXCEPT:

Accepted Answer

A) discouraged workers. 
B) marginally attached workers. 
C) underemployed workers. 
D) workers without jobs who have looked for work in the past four weeks. 
A) discouraged workers. 
B) marginally attached workers. 
C) underemployed workers. 
D) workers without jobs who have looked for work in the past four weeks.

Question 3

When the unemployment rate increased, the annual growth rate of real GDP has usually:

Accepted Answer

A) increased. 
B) decreased. 
C) not changed. 
D) shown no relationship with changes in the unemployment rate. 
A) increased. 
B) decreased. 
C) not changed. 
D) shown no relationship with changes in the unemployment rate.

Question 4

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 and in the unemployment rate, the unemployment rate is:

Accepted Answer

A) 39.4%. 
B) 30.3%. 
C) 9.1%. 
D) 6.25%. 
A) 39.4%. 
B) 30.3%. 
C) 9.1%. 
D) 6.25%.

Question 5

If a worker becomes unemployed because of an increase in the minimum wage, that worker is:

Accepted Answer

A) frictionally unemployed. 
B) structurally unemployed. 
C) cyclically unemployed. 
D) engaged in job search. 
A) frictionally unemployed. 
B) structurally unemployed. 
C) cyclically unemployed. 
D) engaged in job search.

Question 6

The U.S. inflation rate was higher in the 2000s than it was in the 1970s.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) 8.4%. 
B) 7.8% 
C) 5%. 
D) 3%. 
A) 8.4%. 
B) 7.8% 
C) 5%. 
D) 3%.

Question 8

Use the following to answer questions :  
-(Table: Dexter's Employment Statistics) Look at the table Dexter's Employment Statistics. Use these data to complete the following computations.
a. What is the size of the labor force?
b. What is the labor force participation rate?

Accepted Answer

a. The labor force is the sum of the emp

Question 9

Income divided by the price level is _____ income.

Accepted Answer

A) personal 
B) real 
C) disposable 
D) national 
A) personal 
B) real 
C) disposable 
D) national

Question 10

A wage offered by an employer as an incentive for more work effort and performance and that exceeds the equilibrium wage rate is known as a(n) _____ wage.

Accepted Answer

A) minimum 
B) equilibrium 
C) efficiency 
D) union 
A) minimum 
B) equilibrium 
C) efficiency 
D) union

Question 11

Underemployed people are counted as employed even though they are not fully using their skills.

Accepted Answer

A) True 
 B)False

Question 12

Alex expects the inflation rate to be 4%. If Alex borrows money at a nominal interest rate of 5%, his real interest rate is:

Accepted Answer

A) greater than the nominal interest rate. 
B) less than the nominal interest rate. 
C) equal to the nominal interest rate. 
D) negative. 
A) greater than the nominal interest rate. 
B) less than the nominal interest rate. 
C) equal to the nominal interest rate. 
D) negative.

Question 13

In 2011, 10 million people did not have a job but were actively looking for employment, and 85 million people had either a full-time or a part-time job. The unemployment rate in 2011 was:

Accepted Answer

A) 10%. 
B) 9.5%. 
C) 10.5%. 
D) 8.5%. 
A) 10%. 
B) 9.5%. 
C) 10.5%. 
D) 8.5%.

Question 14

In a particular labor market, the demand for labor is given by W = 20 - (1 / 100)L, and the supply of labor is given by W = 4 + (1 / 100)L, where W is the wage rate and L is the number of workers. The equilibrium wage is _____, and the equilibrium number of workers is _____.

Accepted Answer

A) $10; 1,000 
B) $12; 800 
C) $8; 1,200 
D) $20; 1,000 
A) $10; 1,000 
B) $12; 800 
C) $8; 1,200 
D) $20; 1,000

Question 15

During Brazil's hyperinflation of the 1990s the economy lost real resources when the _____ sector grew very large to cope with the consequences of the high rate of inflation.

Accepted Answer

A) banking 
B) transportation 
C) government 
D) manufacturing 
A) banking 
B) transportation 
C) government 
D) manufacturing

Question 16

A survey reveals that on a small island initially 40 people have jobs, 10 people are not working but looking for jobs, and 30 people are neither working nor looking for work. Suppose that 10 of the 30 people who weren't working or looking for work now begin looking for work. There are now 20 people without jobs but looking for work and 40 people working. The unemployment rate:

Accepted Answer

A) rises to 33.3%. 
B) rises to 50%. 
C) falls to 25%. 
D) Nothing happens to the unemployment rate, because these people weren't working before and they aren't working now. 
A) rises to 33.3%. 
B) rises to 50%. 
C) falls to 25%. 
D) Nothing happens to the unemployment rate, because these people weren't working before and they aren't working now.

Question 17

Unemployment that results when more people are seeking jobs than there are jobs available is _____ unemployment.

Accepted Answer

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

Question 18

The consumer price index in 1979 was 72.6. In 1980 it was 82.4. What was the rate of inflation from 1979 to 1980?

Accepted Answer

A) 13.5% 
B) 11.89% 
C) 17.6% 
D) 9.8% 
A) 13.5% 
B) 11.89% 
C) 17.6% 
D) 9.8%

Question 19

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 its labor force is:

Accepted Answer

A) 150 million. 
B) 145 million. 
C) 140 million. 
D) 135 million. 
A) 150 million. 
B) 145 million. 
C) 140 million. 
D) 135 million.

Question 20

A survey reveals that on a small island 40 people have jobs, 10 people are not working but looking for jobs, and 30 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%.

The threat of future inflation:

Economists claim that the unemployment rate can understate the true level of unemployment because none of the following groups is included EXCEPT:

When the unemployment rate increased, the annual growth rate of real GDP has usually:

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 and in the unemployment rate, the unemployment rate is:

If a worker becomes unemployed because of an increase in the minimum wage, that worker is:

The U.S. inflation rate was higher in the 2000s than it was in the 1970s.

Use the following to answer questions : -(Table: Dexter's Employment Statistics) Look at the table Dexter's Employment Statistics. Use these data to complete the following computations. a. What is the size of the labor force? b. What is the labor force participation rate?

Income divided by the price level is _____ income.

A wage offered by an employer as an incentive for more work effort and performance and that exceeds the equilibrium wage rate is known as a(n) _____ wage.

Underemployed people are counted as employed even though they are not fully using their skills.

Alex expects the inflation rate to be 4%. If Alex borrows money at a nominal interest rate of 5%, his real interest rate is:

In 2011, 10 million people did not have a job but were actively looking for employment, and 85 million people had either a full-time or a part-time job. The unemployment rate in 2011 was:

In a particular labor market, the demand for labor is given by W = 20 - (1 / 100)L, and the supply of labor is given by W = 4 + (1 / 100)L, where W is the wage rate and L is the number of workers. The equilibrium wage is _, and the equilibrium number of workers is _.

During Brazil's hyperinflation of the 1990s the economy lost real resources when the _____ sector grew very large to cope with the consequences of the high rate of inflation.

Unemployment that results when more people are seeking jobs than there are jobs available is _____ unemployment.

The consumer price index in 1979 was 72.6. In 1980 it was 82.4. What was the rate of inflation from 1979 to 1980?

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 its labor force is:

A survey reveals that on a small island 40 people have jobs, 10 people are not working but looking for jobs, and 30 people are neither working nor looking for work. The unemployment rate on the island 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

The threat of future inflation:

Economists claim that the unemployment rate can understate the true level of unemployment because none of the following groups is included EXCEPT:

When the unemployment rate increased, the annual growth rate of real GDP has usually:

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 and in the unemployment rate, the unemployment rate is:

If a worker becomes unemployed because of an increase in the minimum wage, that worker is:

The U.S. inflation rate was higher in the 2000s than it was in the 1970s.

Use the following to answer questions : -(Table: Dexter's Employment Statistics) Look at the table Dexter's Employment Statistics. Use these data to complete the following computations. a. What is the size of the labor force? b. What is the labor force participation rate?

Income divided by the price level is _____ income.

A wage offered by an employer as an incentive for more work effort and performance and that exceeds the equilibrium wage rate is known as a(n) _____ wage.

Underemployed people are counted as employed even though they are not fully using their skills.

Alex expects the inflation rate to be 4%. If Alex borrows money at a nominal interest rate of 5%, his real interest rate is:

In 2011, 10 million people did not have a job but were actively looking for employment, and 85 million people had either a full-time or a part-time job. The unemployment rate in 2011 was:

In a particular labor market, the demand for labor is given by W = 20 - (1 / 100)L, and the supply of labor is given by W = 4 + (1 / 100)L, where W is the wage rate and L is the number of workers. The equilibrium wage is _____, and the equilibrium number of workers is _____.

During Brazil's hyperinflation of the 1990s the economy lost real resources when the _____ sector grew very large to cope with the consequences of the high rate of inflation.

Unemployment that results when more people are seeking jobs than there are jobs available is _____ unemployment.

The consumer price index in 1979 was 72.6. In 1980 it was 82.4. What was the rate of inflation from 1979 to 1980?

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 its labor force is:

A survey reveals that on a small island 40 people have jobs, 10 people are not working but looking for jobs, and 30 people are neither working nor looking for work. The unemployment rate on the island 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

In a particular labor market, the demand for labor is given by W = 20 - (1 / 100)L, and the supply of labor is given by W = 4 + (1 / 100)L, where W is the wage rate and L is the number of workers. The equilibrium wage is _, and the equilibrium number of workers is _.