Question 1

Which of the following are classified as "discouraged workers"?

Accepted Answer

A) all those between 16 and 65 who are neither disabled nor in an institution and are also neither employed nor seeking employment 
B) labor force members who have chosen early retirement because they dislike their work or think the pay is too low 
C) members of the noninstitutional population who say they want to be employed but are not searching for a job 
D) members of the labor force who are looking for a job but cannot find one 
E) anyone in the population who is not working 
A) all those between 16 and 65 who are neither disabled nor in an institution and are also neither employed nor seeking employment 
B) labor force members who have chosen early retirement because they dislike their work or think the pay is too low 
C) members of the noninstitutional population who say they want to be employed but are not searching for a job 
D) members of the labor force who are looking for a job but cannot find one 
E) anyone in the population who is not working

Question 2

Which type of unemployment is experienced by a person who is laid off at an office because new technology reduces the need to handle customer service inquiries?

Accepted Answer

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

Question 3

If the price level increases by 2 percent each year,the inflation rate is increasing.

Accepted Answer

A) True 
 B)False

Question 4

The unemployment rate trended down from the early 1980s to 2000 because there were fewer people in the workforce like

Accepted Answer

A) Juan,age 28 
B) Chien,age 38 
C) Billy,age 18 
D) Daniel,age 48 
E) Gregory,age 58 
A) Juan,age 28 
B) Chien,age 38 
C) Billy,age 18 
D) Daniel,age 48 
E) Gregory,age 58

Question 5

An increase in the interest rate,other things constant,will

Accepted Answer

A) shift the supply of loanable funds curve to the left 
B) shift the supply of loanable funds curve to the right 
C) increase the quantity of loanable funds supplied 
D) shift the demand for loanable funds curve to the left 
E) increase the quantity of loanable funds demanded 
A) shift the supply of loanable funds curve to the left 
B) shift the supply of loanable funds curve to the right 
C) increase the quantity of loanable funds supplied 
D) shift the demand for loanable funds curve to the left 
E) increase the quantity of loanable funds demanded

Question 6

If a new Ph.D.in philosophy finds work as a taxi driver,but continues to look for a college teaching position,he is counted as being employed.

Accepted Answer

A) True 
 B)False

Question 7

Anticipated inflation distorts markets more than does unanticipated inflation.

Accepted Answer

A) True 
 B)False

Question 8

Cost-push inflation is typically caused by an

Accepted Answer

A) inward shift of the demand curve 
B) inward shift of the aggregate supply and demand curves 
C) outward shift of the demand curve 
D) outward shift of the supply curve 
E) inward shift of the supply curve 
A) inward shift of the demand curve 
B) inward shift of the aggregate supply and demand curves 
C) outward shift of the demand curve 
D) outward shift of the supply curve 
E) inward shift of the supply curve

Question 9

Consider an economy made up of 100 people,60 of whom hold jobs,10 of whom are looking for work,and 15 of whom are retired.The labor force participation rate is

Accepted Answer

A) 10% 
B) 25% 
C) 60% 
D) 70% 
E) 90% 
A) 10% 
B) 25% 
C) 60% 
D) 70% 
E) 90%

Question 10

The labor force consists of all adults who are currently employed.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is true regarding labor force participation rates in the United States since the 1950s?

Accepted Answer

A) The rates for both men and women have risen. 
B) The rate for women has fallen; that for men has risen. 
C) The rate for men has fallen; that for women has increased. 
D) The rates for both men and women have fallen. 
E) The rates for both men and women have remained fairly constant. 
A) The rates for both men and women have risen. 
B) The rate for women has fallen; that for men has risen. 
C) The rate for men has fallen; that for women has increased. 
D) The rates for both men and women have fallen. 
E) The rates for both men and women have remained fairly constant.

Question 12

Which of the following is not a way to become officially unemployed?

Accepted Answer

A) quit your job to look for a better job in another part of the country 
B) be fired from your job 
C) look for a job after being out of the labor force for five years 
D) retire 
E) look for a job only for the period in the summer that you are out of school 
A) quit your job to look for a better job in another part of the country 
B) be fired from your job 
C) look for a job after being out of the labor force for five years 
D) retire 
E) look for a job only for the period in the summer that you are out of school

Question 13

Tony lent Dave $1,000 for one year with the understanding that Dave would repay $1,070.If the actual inflation rate was 7 percent,what was the real rate of interest Tony received?

Accepted Answer

A) 14 percent 
B) 7 percent 
C) 4 percent 
D) 0 percent 
E) -7 percent 
A) 14 percent 
B) 7 percent 
C) 4 percent 
D) 0 percent 
E) -7 percent

Question 14

During periods when the inflation rate fluctuates widely,

Accepted Answer

A) all relative prices increase at the same rate,leaving money prices constant 
B) all money prices rise at the same rate,causing relative prices to increase 
C) economic efficiency increases because decision makers pay closer attention to changes in money prices 
D) uncertainty about changes in relative prices causes a decrease in economic efficiency 
E) all money prices increase at the same rate,leaving relative prices constant 
A) all relative prices increase at the same rate,leaving money prices constant 
B) all money prices rise at the same rate,causing relative prices to increase 
C) economic efficiency increases because decision makers pay closer attention to changes in money prices 
D) uncertainty about changes in relative prices causes a decrease in economic efficiency 
E) all money prices increase at the same rate,leaving relative prices constant

Question 15

The view that union wage demands may be a source of inflation would be best associated with the

Accepted Answer

A) supply shock view of inflation 
B) demand pull view of inflation 
C) cost push view of inflation 
D) demand push view of inflation 
E) monetary view of inflation 
A) supply shock view of inflation 
B) demand pull view of inflation 
C) cost push view of inflation 
D) demand push view of inflation 
E) monetary view of inflation

Question 16

Because of the way discouraged workers and part-time employment are measured,the official unemployment rate

Accepted Answer

A) overstates the unemployment problem 
B) understates the unemployment problem 
C) truly reflects the level of unemployment 
D) overstates the size of the labor force 
E) understates the size of the labor force 
A) overstates the unemployment problem 
B) understates the unemployment problem 
C) truly reflects the level of unemployment 
D) overstates the size of the labor force 
E) understates the size of the labor force

Question 17

At the rate of inflation in Zimbabwe in 2008,a $25 pair of jeans would have cost $3.8 billion at the end of the year.

Accepted Answer

A) True 
 B)False

Question 18

Measured unemployment includes discouraged workers.

Accepted Answer

A) True 
 B)False

Question 19

An example of structural unemployment caused by a change in tastes and preferences is

Accepted Answer

A) newspaper journalists 
B) administrative assistants 
C) lifeguards 
D) steelworkers during recessions 
E) None of the answers is correct 
A) newspaper journalists 
B) administrative assistants 
C) lifeguards 
D) steelworkers during recessions 
E) None of the answers is correct

Question 20

Unanticipated inflation penalizes

Accepted Answer

A) those who are saving 
B) those who are borrowing 
C) governments 
D) those who are in high growth industries where wages are growing faster than prices 
E) those who can't find jobs at any wage rate 
A) those who are saving 
B) those who are borrowing 
C) governments 
D) those who are in high growth industries where wages are growing faster than prices 
E) those who can't find jobs at any wage rate

Exam 7: Unemployment and Inflation

Which of the following are classified as "discouraged workers"?

Which type of unemployment is experienced by a person who is laid off at an office because new technology reduces the need to handle customer service inquiries?

If the price level increases by 2 percent each year,the inflation rate is increasing.

The unemployment rate trended down from the early 1980s to 2000 because there were fewer people in the workforce like

An increase in the interest rate,other things constant,will

If a new Ph.D.in philosophy finds work as a taxi driver,but continues to look for a college teaching position,he is counted as being employed.

Anticipated inflation distorts markets more than does unanticipated inflation.

Cost-push inflation is typically caused by an

Consider an economy made up of 100 people,60 of whom hold jobs,10 of whom are looking for work,and 15 of whom are retired.The labor force participation rate is

The labor force consists of all adults who are currently employed.

Which of the following is true regarding labor force participation rates in the United States since the 1950s?

Which of the following is not a way to become officially unemployed?

Tony lent Dave $1,000 for one year with the understanding that Dave would repay $1,070.If the actual inflation rate was 7 percent,what was the real rate of interest Tony received?

During periods when the inflation rate fluctuates widely,

The view that union wage demands may be a source of inflation would be best associated with the

Because of the way discouraged workers and part-time employment are measured,the official unemployment rate

At the rate of inflation in Zimbabwe in 2008,a $25 pair of jeans would have cost $3.8 billion at the end of the year.

Measured unemployment includes discouraged workers.

An example of structural unemployment caused by a change in tastes and preferences is

Unanticipated inflation penalizes

The Art and Science of Economic Analysis

Economic Tools and Economics Systems

Economic Decision Makers

Demand, supply, and Markets

Introduction to Macroeconomics

Tracking the Useconomy

Productivity and Growth

Aaggregate Expenditure and Aggregate Demand

Baggregate Expenditure and Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

International Trade

Externalities and the Environment

International Finance

Economic Development

understanding Graphs

National Income Accounts

The Algebra of Demand-Side Equilibrium

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