Question 1

A major macroeconomic goal of nearly every society is:

Accepted Answer

A) maintaining stability of prices. 
B) maintaining high levels of employment. 
C) achieving high rates of economic growth. 
D) all of the above. 
E) none of the above. 
A) maintaining stability of prices. 
B) maintaining high levels of employment. 
C) achieving high rates of economic growth. 
D) all of the above. 
E) none of the above.

Question 2

The unemployment rate is the number of people classified as unemployed as a percentage of:

Accepted Answer

A) the entire population. 
B) the population over the age of sixteen. 
C) the labor force. 
D) the number of people over the age of sixteen who are employed. 
A) the entire population. 
B) the population over the age of sixteen. 
C) the labor force. 
D) the number of people over the age of sixteen who are employed.

Question 3

The economy reaches full employment when the unemployment rate equals zero.

Accepted Answer

A) True 
 B)False

Question 4

Economists refer to the median or "typical" rate of unemployment as the natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 5

The natural rate of unemployment can change over time as technological, demographic, institutional, and other conditions vary.

Accepted Answer

A) True 
 B)False

Question 6

Billy loses his job as a road construction worker and cannot find another position with equivalent pay and benefits.As a result, he is still checking the want ads and reporting to the unemployment office on a weekly basis.He is considered to be:

Accepted Answer

A) unemployed. 
B) out of the labor force. 
C) underemployed. 
D) lazy. 
E) part of the underground economy. 
A) unemployed. 
B) out of the labor force. 
C) underemployed. 
D) lazy. 
E) part of the underground economy.

Question 7

A college student who is enrolled in school full-time and not seeking employment is considered:

Accepted Answer

A) out of the labor force. 
B) unemployable, and not counted in official statistics. 
C) employed in leisure. 
D) underemployed. 
E) in the labor force. 
A) out of the labor force. 
B) unemployable, and not counted in official statistics. 
C) employed in leisure. 
D) underemployed. 
E) in the labor force.

Question 8

In the 1970s, the United States federal government created a Department of Energy.This is a time when the OPEC (Organization of Petroleum Exporting Countries) cartel first became prominent.Identify how this action might have impacted the three major macroeconomic goals of our economy.

Accepted Answer

At the time we would have been concerned

Question 9

The cost of unemployment to society includes loss of the goods and services that might have been produced if the unemployed had been employed.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following individuals would be considered unemployed?

Accepted Answer

A) a lawyer temporarily working as an assistant in a law firm 
B) a computer technician who has not worked for 10 months and gave up looking 4 months ago 
C) a full time student who feel that he is taking too many classes to work 
D) none of the above 
A) a lawyer temporarily working as an assistant in a law firm 
B) a computer technician who has not worked for 10 months and gave up looking 4 months ago 
C) a full time student who feel that he is taking too many classes to work 
D) none of the above

Question 11

Since 1950, there has been ____ in the labor force participation rate.

Accepted Answer

A) no change 
B) an increase 
C) a decrease 
D) first an increase and then a significant decrease 
A) no change 
B) an increase 
C) a decrease 
D) first an increase and then a significant decrease

Question 12

New inventions may displace some workers, but generally lead to the growth of jobs in new industries.

Accepted Answer

A) True 
 B)False

Question 13

If the unemployment rate is 8 percent, this means:

Accepted Answer

A) 8 percent of the population is unemployed. 
B) 8 percent of the population over age 16 is unemployed. 
C) 8 percent of the labor force is unemployed. 
D) the number of unemployed persons equals 8 percent of the employed persons. 
A) 8 percent of the population is unemployed. 
B) 8 percent of the population over age 16 is unemployed. 
C) 8 percent of the labor force is unemployed. 
D) the number of unemployed persons equals 8 percent of the employed persons.

Question 14

Unemployment that results from an economy-wide downturn is called:

Accepted Answer

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

Question 15

If the economy is operating with full employment, which of the following is essentially eliminated?

Accepted Answer

A) frictional unemployment 
B) structural unemployment 
C) cyclical unemployment 
D) all of the above 
A) frictional unemployment 
B) structural unemployment 
C) cyclical unemployment 
D) all of the above

Question 16

Which of the following groups would not tend to lose from unexpected inflation?

Accepted Answer

A) Retirees on fixed pensions. 
B) Creditors. 
C) Those whose incomes are tied to long-term contracts 
D) Those whose wages have cost of living adjustment clauses in their contracts. 
E) All of the above would tend to lose from unexpected inflation 
A) Retirees on fixed pensions. 
B) Creditors. 
C) Those whose incomes are tied to long-term contracts 
D) Those whose wages have cost of living adjustment clauses in their contracts. 
E) All of the above would tend to lose from unexpected inflation

Question 17

A country's currency unit changes in purchasing power:

Accepted Answer

A) only when there is inflation. 
B) only when there is deflation. 
C) when there is either inflation or deflation. 
D) in none of the above cases. 
A) only when there is inflation. 
B) only when there is deflation. 
C) when there is either inflation or deflation. 
D) in none of the above cases.

Question 18

Why are creditors harmed by unexpected inflation?

Accepted Answer

A) Creditors receive lower nominal rates of interest when prices rise. 
B) Creditors are paid back with more valuable dollars. 
C) Creditors receive higher nominal rates of interest when prices rise. 
D) Creditors are paid back money with less spending power than when it was originally loaned out. 
A) Creditors receive lower nominal rates of interest when prices rise. 
B) Creditors are paid back with more valuable dollars. 
C) Creditors receive higher nominal rates of interest when prices rise. 
D) Creditors are paid back money with less spending power than when it was originally loaned out.

Question 19

Hometown, USA, has a labor force of 78,567 persons and employment of 74,382.The unemployment rate for the city is:

Accepted Answer

A) 5.3 percent. 
B) 5.6 percent. 
C) 6.0 percent. 
D) 7.1 percent. 
E) none of the above. 
A) 5.3 percent. 
B) 5.6 percent. 
C) 6.0 percent. 
D) 7.1 percent. 
E) none of the above.

Question 20

During an inflationary period, those most likely to suffer reduced wealth are those who are holding their wealth in:

Accepted Answer

A) gold. 
B) real estate. 
C) currency. 
D) stocks. 
A) gold. 
B) real estate. 
C) currency. 
D) stocks.

A major macroeconomic goal of nearly every society is:

The unemployment rate is the number of people classified as unemployed as a percentage of:

The economy reaches full employment when the unemployment rate equals zero.

Economists refer to the median or "typical" rate of unemployment as the natural rate of unemployment.

The natural rate of unemployment can change over time as technological, demographic, institutional, and other conditions vary.

Billy loses his job as a road construction worker and cannot find another position with equivalent pay and benefits.As a result, he is still checking the want ads and reporting to the unemployment office on a weekly basis.He is considered to be:

A college student who is enrolled in school full-time and not seeking employment is considered:

In the 1970s, the United States federal government created a Department of Energy.This is a time when the OPEC (Organization of Petroleum Exporting Countries) cartel first became prominent.Identify how this action might have impacted the three major macroeconomic goals of our economy.

The cost of unemployment to society includes loss of the goods and services that might have been produced if the unemployed had been employed.

Which of the following individuals would be considered unemployed?

Since 1950, there has been ____ in the labor force participation rate.

New inventions may displace some workers, but generally lead to the growth of jobs in new industries.

If the unemployment rate is 8 percent, this means:

Unemployment that results from an economy-wide downturn is called:

If the economy is operating with full employment, which of the following is essentially eliminated?

Which of the following groups would not tend to lose from unexpected inflation?

A country's currency unit changes in purchasing power:

Why are creditors harmed by unexpected inflation?

Hometown, USA, has a labor force of 78,567 persons and employment of 74,382.The unemployment rate for the city is:

During an inflationary period, those most likely to suffer reduced wealth are those who are holding their wealth in:

The Role and Method of Economics

The Economic Way of Thinking

Supply and Demand

Using Supply and Demand

Market Failure and Public Choice

Production and Costs

Firms in Competitive Markets

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets, Income Distribution, and Poverty

Economic Growth

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Economics

Filters

Exam 11: Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

A major macroeconomic goal of nearly every society is:

The unemployment rate is the number of people classified as unemployed as a percentage of:

The economy reaches full employment when the unemployment rate equals zero.

Economists refer to the median or "typical" rate of unemployment as the natural rate of unemployment.

The natural rate of unemployment can change over time as technological, demographic, institutional, and other conditions vary.

Billy loses his job as a road construction worker and cannot find another position with equivalent pay and benefits.As a result, he is still checking the want ads and reporting to the unemployment office on a weekly basis.He is considered to be:

A college student who is enrolled in school full-time and not seeking employment is considered:

In the 1970s, the United States federal government created a Department of Energy.This is a time when the OPEC (Organization of Petroleum Exporting Countries) cartel first became prominent.Identify how this action might have impacted the three major macroeconomic goals of our economy.

The cost of unemployment to society includes loss of the goods and services that might have been produced if the unemployed had been employed.

Which of the following individuals would be considered unemployed?

Since 1950, there has been ____ in the labor force participation rate.

New inventions may displace some workers, but generally lead to the growth of jobs in new industries.

If the unemployment rate is 8 percent, this means:

Unemployment that results from an economy-wide downturn is called:

If the economy is operating with full employment, which of the following is essentially eliminated?

Which of the following groups would not tend to lose from unexpected inflation?

A country's currency unit changes in purchasing power:

Why are creditors harmed by unexpected inflation?

Hometown, USA, has a labor force of 78,567 persons and employment of 74,382.The unemployment rate for the city is:

During an inflationary period, those most likely to suffer reduced wealth are those who are holding their wealth in:

The Role and Method of Economics

The Economic Way of Thinking

Supply and Demand

Using Supply and Demand

Market Failure and Public Choice

Production and Costs

Firms in Competitive Markets

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets, Income Distribution, and Poverty

Economic Growth

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Economics

Filters