Question 1

The index of leading economic indicators usually turns downward:

Accepted Answer

A) ​prior to economic expansions. 
B) ​prior to economic contractions. 
C) ​prior to a contraction, but then turns upward before the contraction begins. 
D) ​a full 24 months before a recession begins. 
A) ​prior to economic expansions. 
B) ​prior to economic contractions. 
C) ​prior to a contraction, but then turns upward before the contraction begins. 
D) ​a full 24 months before a recession begins.

Question 2

Another name for the contractionary phase of a business cycle is recession.

Accepted Answer

A) True 
 B)False

Question 3

Real gross domestic product is the total value of all:

Accepted Answer

A) ​goods and services produced in a country adjusted for inflation. 
B) ​goods and services produced in a country without an adjustment for inflation. 
C) ​final goods and produced in a country services adjusted for inflation. 
D) ​final goods and services produced in a country without adjustment for inflation. 
A) ​goods and services produced in a country adjusted for inflation. 
B) ​goods and services produced in a country without an adjustment for inflation. 
C) ​final goods and produced in a country services adjusted for inflation. 
D) ​final goods and services produced in a country without adjustment for inflation.

Question 4

Why does the term full employment imply an unemployment rate greater than zero? Discuss your answer in terms of the types of unemployment.
​

Accepted Answer

Full employment implies an unemployment

Question 5

Which of the following refers to extremely high rates of inflation for sustained periods of time?

Accepted Answer

A) ​deflation 
B) ​hyperinflation 
C) ​bust 
D) ​depression 
A) ​deflation 
B) ​hyperinflation 
C) ​bust 
D) ​depression

Question 6

The costs imposed on a firm from changing listed prices is termed:

Accepted Answer

A) ​the nominal cost of inflation. 
B) ​the shoe-leather cost of inflation. 
C) ​the menu cost of inflation. 
D) ​the implied cost of inflation. 
A) ​the nominal cost of inflation. 
B) ​the shoe-leather cost of inflation. 
C) ​the menu cost of inflation. 
D) ​the implied cost of inflation.

Question 7

Which of the following is true?

Accepted Answer

A) ​At the natural rate of unemployment, the economy is considered to be at full employment. 
B) ​At full employment, the economy is producing at its potential output. 
C) ​If unemployment is greater than its natural rate, the economy is producing at less than its potential output. 
D) ​All of the above are true. 
A) ​At the natural rate of unemployment, the economy is considered to be at full employment. 
B) ​At full employment, the economy is producing at its potential output. 
C) ​If unemployment is greater than its natural rate, the economy is producing at less than its potential output. 
D) ​All of the above are true.

Question 8

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 9

If the population older than 16 years of age equals 150 million, the labor force equals 110 million, and the total number of persons employed equals 98 million, then the unemployment rate is:

Accepted Answer

A) ​8 percent. 
B) ​38 percent. 
C) ​10.9 percent. 
D) ​28 percent. 
A) ​8 percent. 
B) ​38 percent. 
C) ​10.9 percent. 
D) ​28 percent.

Question 10

A rapid, unexpected increase in the inflation rate could make real interest rates negative.

Accepted Answer

A) True 
 B)False

Question 11

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. From the data provided, the labor force participation rate is approximately ____ percent.

Accepted Answer

A) ​69.6 
B) ​64.3 
C) ​92.3 
D) ​5.4 
A) ​69.6 
B) ​64.3 
C) ​92.3 
D) ​5.4

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

The index of leading economic indicators:

Accepted Answer

A) ​provide accurate information on the duration of downturns in the economy. 
B) ​virtually always predicts downturns in the economy with a lead time of six months. 
C) ​can result in a self-fulfilling prophecy if business firms respond to leading economic indicator predictions. 
D) ​provide accurate information on the depth of downturns in the economy. 
A) ​provide accurate information on the duration of downturns in the economy. 
B) ​virtually always predicts downturns in the economy with a lead time of six months. 
C) ​can result in a self-fulfilling prophecy if business firms respond to leading economic indicator predictions. 
D) ​provide accurate information on the depth of downturns in the economy.

Question 14

Which of the following categories account for the smallest fraction of unemployed workers?

Accepted Answer

A) ​Job leavers 
B) ​Job losers 
C) ​Reentrants 
D) ​New entrants 
A) ​Job leavers 
B) ​Job losers 
C) ​Reentrants 
D) ​New entrants

Question 15

Unemployment caused by a contraction in the economy 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 16

Roughly 60 percent of women participate in the labor force today.

Accepted Answer

A) True 
 B)False

Question 17

The unemployment rate is defined as:

Accepted Answer

A) ​unemployed workers plus discouraged workers, divided by the total population over the age of sixteen. 
B) ​part-time workers plus full-time workers, divided by the total population over the age of sixteen. 
C) ​the percentage of the labor force that is unemployed. 
D) ​the percentage of the population over the age of sixteen that is unemployed. 
A) ​unemployed workers plus discouraged workers, divided by the total population over the age of sixteen. 
B) ​part-time workers plus full-time workers, divided by the total population over the age of sixteen. 
C) ​the percentage of the labor force that is unemployed. 
D) ​the percentage of the population over the age of sixteen that is unemployed.

Question 18

Which of the following groups of people would be included in the official unemployment rate?

Accepted Answer

A) ​part-time workers 
B) ​workers temporarily laid off from jobs to which they expect to return 
C) ​discouraged workers 
D) ​all of the above 
A) ​part-time workers 
B) ​workers temporarily laid off from jobs to which they expect to return 
C) ​discouraged workers 
D) ​all of the above

Question 19

​Exhibit 10-1  
-Refer to Exhibit 10-1. From the data provided, the unemployment rate is approximately ____ percent.

Accepted Answer

A) ​4.5 
B) ​7.7 
C) ​9.2 
D) ​5.4 
A) ​4.5 
B) ​7.7 
C) ​9.2 
D) ​5.4

Question 20

The current cost of a market basket of goods is $800. The cost of the same basket of goods in the base year was $1,000. The current price index is:

Accepted Answer

A) ​120. 
B) ​100. 
C) ​80. 
D) ​-20. 
A) ​120. 
B) ​100. 
C) ​80. 
D) ​-20.

The index of leading economic indicators usually turns downward:

Another name for the contractionary phase of a business cycle is recession.

Real gross domestic product is the total value of all:

Why does the term full employment imply an unemployment rate greater than zero? Discuss your answer in terms of the types of unemployment.

Which of the following refers to extremely high rates of inflation for sustained periods of time?

The costs imposed on a firm from changing listed prices is termed:

Which of the following is true?

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

If the population older than 16 years of age equals 150 million, the labor force equals 110 million, and the total number of persons employed equals 98 million, then the unemployment rate is:

A rapid, unexpected increase in the inflation rate could make real interest rates negative.

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

The index of leading economic indicators:

Which of the following categories account for the smallest fraction of unemployed workers?

Unemployment caused by a contraction in the economy is called:

Roughly 60 percent of women participate in the labor force today.

The unemployment rate is defined as:

Which of the following groups of people would be included in the official unemployment rate?

Exhibit 10-1 -Refer to Exhibit 10-1. From the data provided, the unemployment rate is approximately ____ percent.

The current cost of a market basket of goods is $800. The cost of the same basket of goods in the base year was $1,000. The current price index is:

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

The index of leading economic indicators usually turns downward:

Another name for the contractionary phase of a business cycle is recession.

Real gross domestic product is the total value of all:

Why does the term full employment imply an unemployment rate greater than zero? Discuss your answer in terms of the types of unemployment. ​

Which of the following refers to extremely high rates of inflation for sustained periods of time?

The costs imposed on a firm from changing listed prices is termed:

Which of the following is true?

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

If the population older than 16 years of age equals 150 million, the labor force equals 110 million, and the total number of persons employed equals 98 million, then the unemployment rate is:

A rapid, unexpected increase in the inflation rate could make real interest rates negative.

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

The index of leading economic indicators:

Which of the following categories account for the smallest fraction of unemployed workers?

Unemployment caused by a contraction in the economy is called:

Roughly 60 percent of women participate in the labor force today.

The unemployment rate is defined as:

Which of the following groups of people would be included in the official unemployment rate?

​Exhibit 10-1 -Refer to Exhibit 10-1. From the data provided, the unemployment rate is approximately ____ percent.

The current cost of a market basket of goods is $800. The cost of the same basket of goods in the base year was $1,000. The current price index is:

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

Why does the term full employment imply an unemployment rate greater than zero? Discuss your answer in terms of the types of unemployment.

Exhibit 10-1 -Refer to Exhibit 10-1. From the data provided, the unemployment rate is approximately ____ percent.