Question 1

Which of the following statements is correct?

Accepted Answer

A) If unions successfully bargain for higher wages for their union members, employment among union members will increase. 
B) Wages are higher in nonunion jobs than in union jobs of comparable skill. 
C) The efficiency wage model asserts that higher wages will lead to higher productivity. 
D) The imposition of a minimum wage above the market price for unskilled labor creates a shortage of labor. 
A) If unions successfully bargain for higher wages for their union members, employment among union members will increase. 
B) Wages are higher in nonunion jobs than in union jobs of comparable skill. 
C) The efficiency wage model asserts that higher wages will lead to higher productivity. 
D) The imposition of a minimum wage above the market price for unskilled labor creates a shortage of labor.

Question 2

What are the three major types of unemployment? What are their causes?

Accepted Answer

The first is frictional unemployment. Pe

Question 3

Each person in the population can be classified as employed or unemployed.

Accepted Answer

A) True 
 B)False

Question 4

If firms offer an efficiency wage:

Accepted Answer

A) the quantity of labor supplied will exceed the quantity of labor demanded. 
B) the quantity of labor demanded will exceed the quantity of labor supplied. 
C) the quantity of labor supplied will equal the quantity of labor demanded. 
D) absenteeism is expected to increase. 
A) the quantity of labor supplied will exceed the quantity of labor demanded. 
B) the quantity of labor demanded will exceed the quantity of labor supplied. 
C) the quantity of labor supplied will equal the quantity of labor demanded. 
D) absenteeism is expected to increase.

Question 5

The unemployment rate may underestimate the true extent of unemployment if:

Accepted Answer

A) many part-time employees would like to work full-time, but are unable to get the additional work. 
B) employees increase the number of hours they work overtime. 
C) there are a large number of people working in the underground economy. 
D) any of the above occur. 
A) many part-time employees would like to work full-time, but are unable to get the additional work. 
B) employees increase the number of hours they work overtime. 
C) there are a large number of people working in the underground economy. 
D) any of the above occur.

Question 6

____ experience lower rates of unemployment than do ____.

Accepted Answer

A) Teenagers; adults 
B) Adult females; adult males 
C) Skilled workers; unskilled workers 
D) Black females; white females 
A) Teenagers; adults 
B) Adult females; adult males 
C) Skilled workers; unskilled workers 
D) Black females; white females

Question 7

A discouraged worker is:

Accepted Answer

A) one who opts to quit work to attend college. 
B) one who opts to quit searching for work after unsuccessfully seeking employment. 
C) a part-time worker who would like to work more hours. 
D) none of the above. 
A) one who opts to quit work to attend college. 
B) one who opts to quit searching for work after unsuccessfully seeking employment. 
C) a part-time worker who would like to work more hours. 
D) none of the above.

Question 8

In the typical CPI shopping basket, which of the categories below represents the largest percentage of consumer spending?

Accepted Answer

A) housing 
B) food & beverages 
C) transportation 
D) medical care 
E) recreation 
A) housing 
B) food & beverages 
C) transportation 
D) medical care 
E) recreation

Question 9

Unemployment resulting from normal turnover in the labor market is called:

Accepted Answer

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

Question 10

An individual who voluntarily leaves one job and spends a period of time seeking another is considered:

Accepted Answer

A) frictionally unemployed. 
B) cyclically unemployed. 
C) structurally unemployed. 
D) seasonally unemployed. 
A) frictionally unemployed. 
B) cyclically unemployed. 
C) structurally unemployed. 
D) seasonally unemployed.

Question 11

When unemployment rises above the natural rate it reflects the existence of ____ unemployment.

Accepted Answer

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

Question 12

In recent years, economists have come to believe that full employment in the U.S.economy occurs at an unemployment rate between:

Accepted Answer

A) 1.0 and 2.0 percent. 
B) 2.5 and 3.5 percent. 
C) 4.5 and 5.5 percent. 
D) 6.5 and 7.5 percent. 
E) 9 and 10.0 percent. 
A) 1.0 and 2.0 percent. 
B) 2.5 and 3.5 percent. 
C) 4.5 and 5.5 percent. 
D) 6.5 and 7.5 percent. 
E) 9 and 10.0 percent.

Question 13

Unemployment that results from technological changes 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 14

If a large number of individuals file unemployment claims and work in the underground economy:

Accepted Answer

A) the unemployment rate overstates the level of unemployment. 
B) the unemployment rate understates the level of unemployment. 
C) the unemployment rate is not affected. 
D) discouraged worker statistics will underestimate the true state of frustration by job seekers. 
A) the unemployment rate overstates the level of unemployment. 
B) the unemployment rate understates the level of unemployment. 
C) the unemployment rate is not affected. 
D) discouraged worker statistics will underestimate the true state of frustration by job seekers.

Question 15

Which of the following individuals are considered officially unemployed?

Accepted Answer

A) a discouraged worker 
B) an individual who quits his job to raise a child 
C) an individual who is not looking for a job because he works in the underground economy 
D) None of the above 
A) a discouraged worker 
B) an individual who quits his job to raise a child 
C) an individual who is not looking for a job because he works in the underground economy 
D) None of the above

Question 16

The natural rate of unemployment:

Accepted Answer

A) is the sum of both frictional and structural unemployment when they are at a maximum. 
B) includes only frictional unemployment. 
C) includes only structural unemployment. 
D) includes only cyclical unemployment. 
A) is the sum of both frictional and structural unemployment when they are at a maximum. 
B) includes only frictional unemployment. 
C) includes only structural unemployment. 
D) includes only cyclical unemployment.

Question 17

The unemployment rate measures:

Accepted Answer

A) unemployed workers as a percentage of the population. 
B) unemployed workers as a percentage of the population over the age of sixteen. 
C) unemployed workers as a percentage of the labor force. 
D) the number of people unemployed divided by the number of people employed. 
A) unemployed workers as a percentage of the population. 
B) unemployed workers as a percentage of the population over the age of sixteen. 
C) unemployed workers as a percentage of the labor force. 
D) the number of people unemployed divided by the number of people employed.

Question 18

Economists use the term "business cycle" to refer to:

Accepted Answer

A) the growth of small businesses into major corporations. 
B) qualitative changes in products resulting from improved technology. 
C) fluctuations in economic activity, measured by GDP or unemployment. 
D) periods of increase or decrease in the rate of inflation. 
A) the growth of small businesses into major corporations. 
B) qualitative changes in products resulting from improved technology. 
C) fluctuations in economic activity, measured by GDP or unemployment. 
D) periods of increase or decrease in the rate of inflation.

Question 19

Luke has lent his friend Mitch some money.However he underestimated the rate of inflation when they agreed to a repayment and interest schedule.Mitch will benefit from the inflation.

Accepted Answer

A) True 
 B)False

Question 20

A forestry worker who is out of work because of the temporarily low demand for wood products associated with a recession is defined as:

Accepted Answer

A) frictionally unemployed. 
B) underemployed. 
C) cyclically unemployed. 
D) structurally unemployed. 
E) a discouraged worker. 
A) frictionally unemployed. 
B) underemployed. 
C) cyclically unemployed. 
D) structurally unemployed. 
E) a discouraged worker.

Which of the following statements is correct?

What are the three major types of unemployment? What are their causes?

Each person in the population can be classified as employed or unemployed.

If firms offer an efficiency wage:

The unemployment rate may underestimate the true extent of unemployment if:

experience lower rates of unemployment than do .

A discouraged worker is:

In the typical CPI shopping basket, which of the categories below represents the largest percentage of consumer spending?

Unemployment resulting from normal turnover in the labor market is called:

An individual who voluntarily leaves one job and spends a period of time seeking another is considered:

When unemployment rises above the natural rate it reflects the existence of ____ unemployment.

In recent years, economists have come to believe that full employment in the U.S.economy occurs at an unemployment rate between:

Unemployment that results from technological changes is called:

If a large number of individuals file unemployment claims and work in the underground economy:

Which of the following individuals are considered officially unemployed?

The natural rate of unemployment:

The unemployment rate measures:

Economists use the term "business cycle" to refer to:

Luke has lent his friend Mitch some money.However he underestimated the rate of inflation when they agreed to a repayment and interest schedule.Mitch will benefit from the inflation.

A forestry worker who is out of work because of the temporarily low demand for wood products associated with a recession is defined as:

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

Which of the following statements is correct?

What are the three major types of unemployment? What are their causes?

Each person in the population can be classified as employed or unemployed.

If firms offer an efficiency wage:

The unemployment rate may underestimate the true extent of unemployment if:

____ experience lower rates of unemployment than do ____.

A discouraged worker is:

In the typical CPI shopping basket, which of the categories below represents the largest percentage of consumer spending?

Unemployment resulting from normal turnover in the labor market is called:

An individual who voluntarily leaves one job and spends a period of time seeking another is considered:

When unemployment rises above the natural rate it reflects the existence of ____ unemployment.

In recent years, economists have come to believe that full employment in the U.S.economy occurs at an unemployment rate between:

Unemployment that results from technological changes is called:

If a large number of individuals file unemployment claims and work in the underground economy:

Which of the following individuals are considered officially unemployed?

The natural rate of unemployment:

The unemployment rate measures:

Economists use the term "business cycle" to refer to:

Luke has lent his friend Mitch some money.However he underestimated the rate of inflation when they agreed to a repayment and interest schedule.Mitch will benefit from the inflation.

A forestry worker who is out of work because of the temporarily low demand for wood products associated with a recession is defined as:

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

experience lower rates of unemployment than do .