Question 1

If the numbers of employed and unemployed do not change but the size of the civilian population increases by 15%, what would be the effect?

Accepted Answer

A) ​no change in the unemployment rate and a decrease in the labor force participation rate 
B) ​an increase in the unemployment rate and a decrease in the labor force participation rate 
C) ​an increase in the unemployment rate and no change in the labor force participation rate 
D) ​an increase in the unemployment rate and an increase in the labor force participation rate 
A) ​no change in the unemployment rate and a decrease in the labor force participation rate 
B) ​an increase in the unemployment rate and a decrease in the labor force participation rate 
C) ​an increase in the unemployment rate and no change in the labor force participation rate 
D) ​an increase in the unemployment rate and an increase in the labor force participation rate

Question 2

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 3

The development of a nationwide computerized job bank listing of all job openings would be most likely to reduce:

Accepted Answer

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

Question 4

Structural unemployment occurs when:

Accepted Answer

A) ​automation reduces the need for welders in Detroit. 
B) ​frictional unemployment exceeds 5 percent of the labor force. 
C) ​steelworkers are laid off due to a downturn in the economy. 
D) ​a person leaves a job to seek a better position and has not yet found the job he or she wants. 
A) ​automation reduces the need for welders in Detroit. 
B) ​frictional unemployment exceeds 5 percent of the labor force. 
C) ​steelworkers are laid off due to a downturn in the economy. 
D) ​a person leaves a job to seek a better position and has not yet found the job he or she wants.

Question 5

The period of declining growth in real GDP, between the peak of the business cycle and the trough, is called the:

Accepted Answer

A) ​contractionary phase. 
B) ​boom. 
C) ​expansionary phase. 
D) ​static phase. 
A) ​contractionary phase. 
B) ​boom. 
C) ​expansionary phase. 
D) ​static phase.

Question 6

____ experience lower rates of unemployment than do ____.

Accepted Answer

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

Question 7

If both frictional and structural unemployment increased, the natural rate of unemployment:

Accepted Answer

A) ​Would increase 
B) ​Would not change 
C) ​Would decrease 
D) ​Would be affected in an unpredictable manner 
A) ​Would increase 
B) ​Would not change 
C) ​Would decrease 
D) ​Would be affected in an unpredictable manner

Question 8

Exhibit 10-2
Assume the following information about a country for the following problems:
The total adult population equals 580 million;
The number of civilians employed is 360 million;
The number of civilians unemployed is 30 million
​
-Refer to Exhibit 10-2. According to the data provided, ____ people constitute the labor force.

Accepted Answer

A) ​200 million. 
B) ​390 million 
C) ​170 million. 
D) ​360 million. 
A) ​200 million. 
B) ​390 million 
C) ​170 million. 
D) ​360 million.

Question 9

If the price index is now 120, it means:

Accepted Answer

A) ​prices are 120 percent higher than in the base year. 
B) ​prices are 20 percent higher than in the base year. 
C) ​prices are 1.2 percent higher than in the base year. 
D) ​nominal GDP will be less than real GDP. 
A) ​prices are 120 percent higher than in the base year. 
B) ​prices are 20 percent higher than in the base year. 
C) ​prices are 1.2 percent higher than in the base year. 
D) ​nominal GDP will be less than real GDP.

Question 10

Which of the following is false?

Accepted Answer

A) ​The most well known price index is the consumer price index, which provides a measure of the trend in the prices of goods and services purchased for consumption purposes. 
B) ​The GDP deflator measures the average level of prices of all final goods and services produced in the economy. 
C) ​The CPI is the price index that is most relevant to households trying to evaluate their changing financial position over time. 
D) ​A price index is equal to the cost of the chosen market basket in the base year, divided by the cost of the same market basket in the current year, times 100. 
A) ​The most well known price index is the consumer price index, which provides a measure of the trend in the prices of goods and services purchased for consumption purposes. 
B) ​The GDP deflator measures the average level of prices of all final goods and services produced in the economy. 
C) ​The CPI is the price index that is most relevant to households trying to evaluate their changing financial position over time. 
D) ​A price index is equal to the cost of the chosen market basket in the base year, divided by the cost of the same market basket in the current year, times 100.

Question 11

Unanticipated inflation will benefit creditors at the expense of debtors.

Accepted Answer

A) True 
 B)False

Question 12

Many economists believe that skill-biased technical change has increased the incomes of highly skilled workers and decreased the incomes of low-skill workers.

Accepted Answer

A) True 
 B)False

Question 13

Structural unemployment includes:

Accepted Answer

A) ​unemployment caused by workers who leave positions to seek better jobs. 
B) ​unemployment caused by automation that displaces workers from their jobs. 
C) ​unemployment caused by a decline in the economy's total production. 
D) ​unemployment caused by the geographical and occupational mobility of the labor force. 
A) ​unemployment caused by workers who leave positions to seek better jobs. 
B) ​unemployment caused by automation that displaces workers from their jobs. 
C) ​unemployment caused by a decline in the economy's total production. 
D) ​unemployment caused by the geographical and occupational mobility of the labor force.

Question 14

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

Question 15

Given a fixed nominal interest rate on a loan, unanticipated inflation:

Accepted Answer

A) decreases the burden of paying off the loan. 
B) increases the burden of paying off the loan. 
C) does not alter the burden of paying off the loan. 
D) benefits savers. 
A) decreases the burden of paying off the loan. 
B) increases the burden of paying off the loan. 
C) does not alter the burden of paying off the loan. 
D) benefits savers.

Question 16

Frictional unemployment occurs when:

Accepted Answer

A) ​there is friction between an employer and employee. 
B) ​a worker decides to quit to seek a different job. 
C) ​a large corporation transfers a worker to another city. 
D) ​college students go back to school at the end of the summer. 
A) ​there is friction between an employer and employee. 
B) ​a worker decides to quit to seek a different job. 
C) ​a large corporation transfers a worker to another city. 
D) ​college students go back to school at the end of the summer.

Question 17

A welder who quits his job and moves from Houston to Buffalo to try to get a better welding job is said to be:

Accepted Answer

A) ​frictionally unemployed. 
B) ​underemployed. 
C) ​cyclically unemployed. 
D) ​structurally unemployed. 
A) ​frictionally unemployed. 
B) ​underemployed. 
C) ​cyclically unemployed. 
D) ​structurally unemployed.

Question 18

Kathryn chooses to go to college full-time rather than to work. Kathryn:

Accepted Answer

A) ​is not part of the labor force. 
B) ​is part of the labor force and what economists call a discouraged worker. 
C) ​is part of the labor force, but not actively seeking work. 
D) ​is considered employed. 
A) ​is not part of the labor force. 
B) ​is part of the labor force and what economists call a discouraged worker. 
C) ​is part of the labor force, but not actively seeking work. 
D) ​is considered employed.

Question 19

If postal workers lose their positions because of the widespread e-mailing, texting, and faxing, it would likely _______ the natural rate of unemployment.

Accepted Answer

A) increase. 
B) not change. 
C) decrease 
D) Have an unpredictable effect on. 
A) increase. 
B) not change. 
C) decrease 
D) Have an unpredictable effect on.

Question 20

The first formal acknowledgement of the primary macroeconomic goals of price stability, high employment, and promoting economic growth in the United States came with passage of the:

Accepted Answer

A) ​Federal Reserve Act of 1913. 
B) ​the Sherman Antitrust Act of 1890. 
C) ​the Social Security Act of 1935. 
D) ​the Employment Act of 1946. 
A) ​Federal Reserve Act of 1913. 
B) ​the Sherman Antitrust Act of 1890. 
C) ​the Social Security Act of 1935. 
D) ​the Employment Act of 1946.

If the numbers of employed and unemployed do not change but the size of the civilian population increases by 15%, what would be the effect?

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.

The development of a nationwide computerized job bank listing of all job openings would be most likely to reduce:

Structural unemployment occurs when:

The period of declining growth in real GDP, between the peak of the business cycle and the trough, is called the:

experience lower rates of unemployment than do .

If both frictional and structural unemployment increased, the natural rate of unemployment:

If the price index is now 120, it means:

Which of the following is false?

Unanticipated inflation will benefit creditors at the expense of debtors.

Many economists believe that skill-biased technical change has increased the incomes of highly skilled workers and decreased the incomes of low-skill workers.

Structural unemployment includes:

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

Given a fixed nominal interest rate on a loan, unanticipated inflation:

Frictional unemployment occurs when:

A welder who quits his job and moves from Houston to Buffalo to try to get a better welding job is said to be:

Kathryn chooses to go to college full-time rather than to work. Kathryn:

If postal workers lose their positions because of the widespread e-mailing, texting, and faxing, it would likely _______ the natural rate of unemployment.

The first formal acknowledgement of the primary macroeconomic goals of price stability, high employment, and promoting economic growth in the United States came with passage of the:

The Role and Method of Economics

Eight Powerful Ideas

Scarcity, Trade-Offs, and Production Possibilities

Demand, Supply, and Market Equilibrium

Market in Motion and Price Controls

Elasticities

Market Efficiency and Welfare

Market Failure

Public Finance and Public Choice

The Firm: Production and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Product Differentiation

Oligopoly and Strategic Behavior

The Markets for Labor, Capital, and Land

Income, Poverty and Health Care

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Measuring Economic Performance

Economic Growth in the Global Economy

Financial Markets, Saving, and Investment

Filters

Exam 10: Consumer Choice Theory

If the numbers of employed and unemployed do not change but the size of the civilian population increases by 15%, what would be the effect?

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.

The development of a nationwide computerized job bank listing of all job openings would be most likely to reduce:

Structural unemployment occurs when:

The period of declining growth in real GDP, between the peak of the business cycle and the trough, is called the:

____ experience lower rates of unemployment than do ____.

If both frictional and structural unemployment increased, the natural rate of unemployment:

If the price index is now 120, it means:

Which of the following is false?

Unanticipated inflation will benefit creditors at the expense of debtors.

Many economists believe that skill-biased technical change has increased the incomes of highly skilled workers and decreased the incomes of low-skill workers.

Structural unemployment includes:

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

Given a fixed nominal interest rate on a loan, unanticipated inflation:

Frictional unemployment occurs when:

A welder who quits his job and moves from Houston to Buffalo to try to get a better welding job is said to be:

Kathryn chooses to go to college full-time rather than to work. Kathryn:

If postal workers lose their positions because of the widespread e-mailing, texting, and faxing, it would likely _______ the natural rate of unemployment.

The first formal acknowledgement of the primary macroeconomic goals of price stability, high employment, and promoting economic growth in the United States came with passage of the:

The Role and Method of Economics

Eight Powerful Ideas

Scarcity, Trade-Offs, and Production Possibilities

Demand, Supply, and Market Equilibrium

Market in Motion and Price Controls

Elasticities

Market Efficiency and Welfare

Market Failure

Public Finance and Public Choice

The Firm: Production and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Product Differentiation

Oligopoly and Strategic Behavior

The Markets for Labor, Capital, and Land

Income, Poverty and Health Care

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Measuring Economic Performance

Economic Growth in the Global Economy

Financial Markets, Saving, and Investment

Filters

experience lower rates of unemployment than do .