Exam 10: Consumer Choice Theory

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

The official unemployment rate may not reflect the true state of unemployment because:

A federal program aimed at retraining the unemployed workers of the declining auto and steel industries is designed to reduce which type of unemployment?

If a minimum wage law is passed imposing a price floor above the equilibrium price of unskilled labor:

Which piece of legislation committed the government to pursuing unemployment policies that are consistent with maintaining price stability?

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

If unemployment benefits became more generous it would be likely to _____ frictional unemployment and _____ the natural rate of unemployment:

If the economy is operating at the natural rate of unemployment, which of the following is essentially eliminated?

The average duration of unemployment tends to be longer, the higher the unemployment rate.

If some people who were frictionally unemployed became structurally unemployed instead, the natural rate of unemployment:

An unanticipated increase in inflation will:

The total labor force consists of:

Some people working in the underground economy could be counted in labor statistics as unemployed, while others may be counted as not in the labor force.

Underemployment occurs when:

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

If inflation had long been 7% and was therefore expected to continue, then it unexpectedly increased to 4% inflation:

Inflation exists whenever:

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

If you were a lender, which of the following unexpected changes in inflation would you prefer once you have issued a long term fixed rate loan?

The existence of discouraged workers: