Question 1

Discouraged workers:

Accepted Answer

A) are getting paid too little. 
B) do not like their job. 
C) are working part-time but are looking for a full-time job. 
D) have given up looking for a job. 
A) are getting paid too little. 
B) do not like their job. 
C) are working part-time but are looking for a full-time job. 
D) have given up looking for a job.

Question 2

Use the following to answer questions :
Figure: The Effect of a Minimum Wage  
-(Figure: The Effect of a Minimum Wage) Look at the figure The Effect of a Minimum Wage. Suppose the labor market is in equilibrium at E when the government imposes a minimum wage of WF. Structural unemployment will equal:

Accepted Answer

A) QS - QD. 
B) QE - QD. 
C) QS - QE. 
D) zero. 
A) QS - QD. 
B) QE - QD. 
C) QS - QE. 
D) zero.

Question 3

Unanticipated inflation:

Accepted Answer

A) reduces the value of money. 
B) increases the value of future obligations. 
C) increases certainty about the future. 
D) helps lenders. 
A) reduces the value of money. 
B) increases the value of future obligations. 
C) increases certainty about the future. 
D) helps lenders.

Question 4

Unemployment rates tend to decrease when:

Accepted Answer

A) the economy expands. 
B) discouraged workers become active job seekers. 
C) underemployed workers become unemployed. 
D) the economy contracts. 
A) the economy expands. 
B) discouraged workers become active job seekers. 
C) underemployed workers become unemployed. 
D) the economy contracts.

Question 5

If a country has a working-age population of 200 million, 135 million people with jobs, and 15 million people unemployed and seeking employment, then its labor force is:

Accepted Answer

A) 335 million. 
B) 200 million. 
C) 155 million. 
D) 150 million. 
A) 335 million. 
B) 200 million. 
C) 155 million. 
D) 150 million.

Question 6

The labor force is the total:

Accepted Answer

A) number of people employed. 
B) population. 
C) number of people in the population of working age. 
D) number of people who are employed or unemployed. 
A) number of people employed. 
B) population. 
C) number of people in the population of working age. 
D) number of people who are employed or unemployed.

Question 7

An efficiency wage:

Accepted Answer

A) can be secured only with the help of a labor union. 
B) is one that causes greater frictional unemployment. 
C) is offered by an employer to encourage workers to work harder. 
D) results in a less productive work force. 
A) can be secured only with the help of a labor union. 
B) is one that causes greater frictional unemployment. 
C) is offered by an employer to encourage workers to work harder. 
D) results in a less productive work force.

Question 8

The unemployment rate equals the number _____ divided by the number _____ times 100.

Accepted Answer

A) unemployed; employed 
B) unemployed; population 
C) employed; labor force 
D) unemployed; labor force 
A) unemployed; employed 
B) unemployed; population 
C) employed; labor force 
D) unemployed; labor force

Question 9

A jobless recovery occurs when GDP is growing at a below-average rate and unemployment is rising.

Accepted Answer

A) True 
 B)False

Question 10

A minimum wage of $7.25 per hour can cause structural unemployment if the equilibrium wage is:

Accepted Answer

A) $7.25. 
B) $8.00. 
C) $6.85. 
D) $7.30. 
A) $7.25. 
B) $8.00. 
C) $6.85. 
D) $7.30.

Question 11

All of the following cause structural unemployment EXCEPT:

Accepted Answer

A) a government-mandated floor on the price of labor set above the equilibrium wage. 
B) collective bargaining efforts that secure higher wages for unionized workers than for nonunionized workers. 
C) offering high wages to attract high-quality workers. 
D) granting Social Security benefits to laid-off workers. 
A) a government-mandated floor on the price of labor set above the equilibrium wage. 
B) collective bargaining efforts that secure higher wages for unionized workers than for nonunionized workers. 
C) offering high wages to attract high-quality workers. 
D) granting Social Security benefits to laid-off workers.

Question 12

The real interest rate is the nominal interest rate less the rate of inflation.

Accepted Answer

A) True 
 B)False

Question 13

For most of U.S. modern economic history, when the unemployment rate is _____, real GDP is _____.

Accepted Answer

A) falling; rising 
B) falling; falling 
C) rising; unchanged 
D) rising; rising 
A) falling; rising 
B) falling; falling 
C) rising; unchanged 
D) rising; rising

Question 14

The unemployment rate is the:

Accepted Answer

A) percent of the labor force that is unemployed. 
B) number of people unemployed. 
C) the labor force minus the number of people unemployed. 
D) average length of time someone is unemployed. 
A) percent of the labor force that is unemployed. 
B) number of people unemployed. 
C) the labor force minus the number of people unemployed. 
D) average length of time someone is unemployed.

Question 15

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 2011 to 2012?

Accepted Answer

A) 0% 
B) 2.9% 
C) 4.5% 
D) 6.4% 
A) 0% 
B) 2.9% 
C) 4.5% 
D) 6.4%

Question 16

Counted among the unemployed are underemployed people, who cannot find a job working as many hours as they wish.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements is FALSE?

Accepted Answer

A) Both frictional and structural unemployment can occur even if unemployment is at its natural level. 
B) Cyclical unemployment is unemployment in excess of the natural rate. 
C) A new college graduate looking for that first professional job may be frictionally unemployed. 
D) Efficiency wages may cause frictional unemployment. 
A) Both frictional and structural unemployment can occur even if unemployment is at its natural level. 
B) Cyclical unemployment is unemployment in excess of the natural rate. 
C) A new college graduate looking for that first professional job may be frictionally unemployed. 
D) Efficiency wages may cause frictional unemployment.

Question 18

A survey reveals that on a small island 1,000 people have jobs, 250 people are unemployed and looking for jobs, and 450 people are neither working nor looking for work. The unemployment rate on the island is:

Accepted Answer

A) 20%. 
B) 25%. 
C) 45%. 
D) 15.6%. 
A) 20%. 
B) 25%. 
C) 45%. 
D) 15.6%.

Question 19

One factor that reduces the natural rate of unemployment is:

Accepted Answer

A) a binding minimum wage. 
B) the recent proliferation of temporary employment agencies. 
C) a slowdown in productivity growth. 
D) government policies such as those that produced Eurosclerosis. 
A) a binding minimum wage. 
B) the recent proliferation of temporary employment agencies. 
C) a slowdown in productivity growth. 
D) government policies such as those that produced Eurosclerosis.

Question 20

Structural unemployment means there are:

Accepted Answer

A) more people seeking work than there are jobs. 
B) more jobs than workers. 
C) wages that are too low. 
D) people just entering the labor force. 
A) more people seeking work than there are jobs. 
B) more jobs than workers. 
C) wages that are too low. 
D) people just entering the labor force.

Discouraged workers:

Use the following to answer questions : Figure: The Effect of a Minimum Wage -(Figure: The Effect of a Minimum Wage) Look at the figure The Effect of a Minimum Wage. Suppose the labor market is in equilibrium at E when the government imposes a minimum wage of W_F. Structural unemployment will equal:

Unanticipated inflation:

Unemployment rates tend to decrease when:

If a country has a working-age population of 200 million, 135 million people with jobs, and 15 million people unemployed and seeking employment, then its labor force is:

The labor force is the total:

An efficiency wage:

The unemployment rate equals the number _ divided by the number _ times 100.

A jobless recovery occurs when GDP is growing at a below-average rate and unemployment is rising.

A minimum wage of $7.25 per hour can cause structural unemployment if the equilibrium wage is:

All of the following cause structural unemployment EXCEPT:

The real interest rate is the nominal interest rate less the rate of inflation.

For most of U.S. modern economic history, when the unemployment rate is _, real GDP is _.

The unemployment rate is the:

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 2011 to 2012?

Counted among the unemployed are underemployed people, who cannot find a job working as many hours as they wish.

Which of the following statements is FALSE?

A survey reveals that on a small island 1,000 people have jobs, 250 people are unemployed and looking for jobs, and 450 people are neither working nor looking for work. The unemployment rate on the island is:

One factor that reduces the natural rate of unemployment is:

Structural unemployment means there are:

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

Discouraged workers:

Use the following to answer questions : Figure: The Effect of a Minimum Wage -(Figure: The Effect of a Minimum Wage) Look at the figure The Effect of a Minimum Wage. Suppose the labor market is in equilibrium at E when the government imposes a minimum wage of WF. Structural unemployment will equal:

Unanticipated inflation:

Unemployment rates tend to decrease when:

If a country has a working-age population of 200 million, 135 million people with jobs, and 15 million people unemployed and seeking employment, then its labor force is:

The labor force is the total:

An efficiency wage:

The unemployment rate equals the number _____ divided by the number _____ times 100.

A jobless recovery occurs when GDP is growing at a below-average rate and unemployment is rising.

A minimum wage of $7.25 per hour can cause structural unemployment if the equilibrium wage is:

All of the following cause structural unemployment EXCEPT:

The real interest rate is the nominal interest rate less the rate of inflation.

For most of U.S. modern economic history, when the unemployment rate is _____, real GDP is _____.

The unemployment rate is the:

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 2011 to 2012?

Counted among the unemployed are underemployed people, who cannot find a job working as many hours as they wish.

Which of the following statements is FALSE?

A survey reveals that on a small island 1,000 people have jobs, 250 people are unemployed and looking for jobs, and 450 people are neither working nor looking for work. The unemployment rate on the island is:

One factor that reduces the natural rate of unemployment is:

Structural unemployment means there are:

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

The unemployment rate equals the number _ divided by the number _ times 100.

For most of U.S. modern economic history, when the unemployment rate is _, real GDP is _.