Question 1

The official unemployment rate disguises the extent of the unemployment problem because:

Accepted Answer

A) children are not counted as unemployed. 
B) retired persons are not counted as unemployed. 
C) full-time students are not counted as unemployed. 
D) discouraged workers are counted as unemployed. 
E) people overqualified for their current job are not considered unemployed. 
A) children are not counted as unemployed. 
B) retired persons are not counted as unemployed. 
C) full-time students are not counted as unemployed. 
D) discouraged workers are counted as unemployed. 
E) people overqualified for their current job are not considered unemployed.

Question 2

Which of the following is true about inflation?

Accepted Answer

A) Inflation promotes social harmony by uniting people against the government. 
B) Inflation is more damaging if it is unanticipated. 
C) Accurate anticipation of inflation is possible for everyone who is well informed about economic events. 
D) Those who lend money at a rate above the rate of inflation suffer economic losses. 
E) If people accurately anticipate inflation,their actions will prevent it. 
A) Inflation promotes social harmony by uniting people against the government. 
B) Inflation is more damaging if it is unanticipated. 
C) Accurate anticipation of inflation is possible for everyone who is well informed about economic events. 
D) Those who lend money at a rate above the rate of inflation suffer economic losses. 
E) If people accurately anticipate inflation,their actions will prevent it.

Question 3

If someone with a 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 4

If the CPI is 200,then the price level has _____ since the base year.

Accepted Answer

A) doubled 
B) quadrupled 
C) tripled 
D) increased five times 
E) increased six times 
A) doubled 
B) quadrupled 
C) tripled 
D) increased five times 
E) increased six times

Question 5

A sustained decrease in an economy's price level is known as deflation.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following events would most likely cause the nominal interest rate to fall?

Accepted Answer

A) A decrease in the supply of loanable funds 
B) An increase in the demand for loanable funds 
C) An increase in the supply of loanable funds and an increase in the demand for loanable funds 
D) An increase in the supply of loanable funds and a decrease in the demand for loanable funds 
E) A decrease in the supply of loanable funds and an increase in the demand for loanable funds 
A) A decrease in the supply of loanable funds 
B) An increase in the demand for loanable funds 
C) An increase in the supply of loanable funds and an increase in the demand for loanable funds 
D) An increase in the supply of loanable funds and a decrease in the demand for loanable funds 
E) A decrease in the supply of loanable funds and an increase in the demand for loanable funds

Question 7

Which of the following is true of the labor force participation rate?

Accepted Answer

A) When workers become unemployed,the labor force participation rate declines. 
B) When the unemployed become discouraged workers,the labor force participation rate declines. 
C) When workers do not fully use their skills,the labor force participation rate decreases. 
D) Since the 1950s,the labor force participation rate of women has decreased in the United States. 
E) The trend toward earlier retirement has increased the labor force participation rate in the United States. 
A) When workers become unemployed,the labor force participation rate declines. 
B) When the unemployed become discouraged workers,the labor force participation rate declines. 
C) When workers do not fully use their skills,the labor force participation rate decreases. 
D) Since the 1950s,the labor force participation rate of women has decreased in the United States. 
E) The trend toward earlier retirement has increased the labor force participation rate in the United States.

Question 8

An increase in the supply of loanable funds,other things constant,will increase the interest rate.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Consider an economy made up of 100 people sixteen years of age and older,60 of whom hold jobs,10 of whom are looking for work,and 15 of whom are retired.The number of people in the labor force is _____.

Accepted Answer

A) 30 
B) 60 
C) 85 
D) 90 
E) 70 
A) 30 
B) 60 
C) 85 
D) 90 
E) 70

Question 11

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 number of unemployed persons is _____.

Accepted Answer

A) 10 
B) 15 
C) 40 
D) 30 
E) 90 
A) 10 
B) 15 
C) 40 
D) 30 
E) 90

Question 12

Inflation is the hardest on those living on fixed incomes.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is likely to be an effect of inflation?

Accepted Answer

A) An increase in the willingness of lenders to lend money for longer periods 
B) A decrease in the willingness of borrowers to borrow money for longer periods 
C) A decrease in the purchasing power of lenders in the economy 
D) An increase in the willingness of people to buy bonds as a hedge against rising prices 
E) An increase in the willingness of people to buy physical assets as a hedge against rising prices 
A) An increase in the willingness of lenders to lend money for longer periods 
B) A decrease in the willingness of borrowers to borrow money for longer periods 
C) A decrease in the purchasing power of lenders in the economy 
D) An increase in the willingness of people to buy bonds as a hedge against rising prices 
E) An increase in the willingness of people to buy physical assets as a hedge against rising prices

Question 14

Hyperinflation refers to a period of extremely erratic inflation rates.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following will most likely qualify for unemployment compensation benefits?

Accepted Answer

A) A new college graduate who cannot find work despite a desperate job search 
B) An unemployed coal miner who has been receiving benefits for the past six months 
C) A former retail clerk who quit her job because the boss was too demanding 
D) A spot welder who has just gotten his first "pink slip" in the mail after ten years of continuous employment 
E) An accountant who was fired from his last position for drinking alcohol on the job 
A) A new college graduate who cannot find work despite a desperate job search 
B) An unemployed coal miner who has been receiving benefits for the past six months 
C) A former retail clerk who quit her job because the boss was too demanding 
D) A spot welder who has just gotten his first "pink slip" in the mail after ten years of continuous employment 
E) An accountant who was fired from his last position for drinking alcohol on the job

Question 16

Suppose there is a 5 percent increase in the nominal wages of workers in an economy.The annual rate of inflation in the economy is about 2 percent.Which of the following is true in this case?

Accepted Answer

A) Real wage would fall by about 10 percent. 
B) Real wage would increase by about 20 percent. 
C) Real wage would fall by about 25 percent. 
D) Real wage would increase by about 50 percent. 
E) Real wage would increase by about 3 percent. 
A) Real wage would fall by about 10 percent. 
B) Real wage would increase by about 20 percent. 
C) Real wage would fall by about 25 percent. 
D) Real wage would increase by about 50 percent. 
E) Real wage would increase by about 3 percent.

Question 17

In which of the following industries are workers least likely to suffer from cyclical unemployment?

Accepted Answer

A) Construction industry 
B) Automobile manufacturing 
C) Apparel industry 
D) Education 
E) Tourism 
A) Construction industry 
B) Automobile manufacturing 
C) Apparel industry 
D) Education 
E) Tourism

Question 18

In the market for loanable funds,the equilibrium interest rate is determined by the intersection of:

Accepted Answer

A) the downward-sloping supply curve for loanable funds and the upward-sloping demand curve for loanable funds. 
B) the upward-sloping supply curve for loanable funds and the downward-sloping demand curve for loanable funds. 
C) the downward-sloping supply curve of loanable funds and the horizontal demand curve for loanable funds. 
D) the downward-sloping supply curve of loanable funds and the vertical demand curve for loanable funds. 
E) the upward-sloping supply curve for loanable funds and the horizontal demand curve for loanable funds. 
A) the downward-sloping supply curve for loanable funds and the upward-sloping demand curve for loanable funds. 
B) the upward-sloping supply curve for loanable funds and the downward-sloping demand curve for loanable funds. 
C) the downward-sloping supply curve of loanable funds and the horizontal demand curve for loanable funds. 
D) the downward-sloping supply curve of loanable funds and the vertical demand curve for loanable funds. 
E) the upward-sloping supply curve for loanable funds and the horizontal demand curve for loanable funds.

Question 19

The unemployment rate among African American workers in the United States is higher than that among white workers.

Accepted Answer

A) True 
 B)False

Question 20

Suppose the total population of an economy is 150 million,the labor force is 100 million,and the unemployment is 94 million.The unemployment rate is _____.

Accepted Answer

A) 6 percent 
B) 80 percent 
C) 94 percent 
D) 10 percent 
E) 15 percent 
A) 6 percent 
B) 80 percent 
C) 94 percent 
D) 10 percent 
E) 15 percent

The official unemployment rate disguises the extent of the unemployment problem because:

Which of the following is true about inflation?

If someone with a 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.

If the CPI is 200,then the price level has _____ since the base year.

A sustained decrease in an economy's price level is known as deflation.

Which of the following events would most likely cause the nominal interest rate to fall?

Which of the following is true of the labor force participation rate?

An increase in the supply of loanable funds,other things constant,will increase the interest rate.

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

Consider an economy made up of 100 people sixteen years of age and older,60 of whom hold jobs,10 of whom are looking for work,and 15 of whom are retired.The number of people in the labor force is _____.

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 number of unemployed persons is _____.

Inflation is the hardest on those living on fixed incomes.

Which of the following is likely to be an effect of inflation?

Hyperinflation refers to a period of extremely erratic inflation rates.

Which of the following will most likely qualify for unemployment compensation benefits?

Suppose there is a 5 percent increase in the nominal wages of workers in an economy.The annual rate of inflation in the economy is about 2 percent.Which of the following is true in this case?

In which of the following industries are workers least likely to suffer from cyclical unemployment?

In the market for loanable funds,the equilibrium interest rate is determined by the intersection of:

The unemployment rate among African American workers in the United States is higher than that among white workers.

Suppose the total population of an economy is 150 million,the labor force is 100 million,and the unemployment is 94 million.The unemployment rate is _____.

The Art and Science of Economic Analysis

Some Tools of Economic Analysis

Economic Decision Makers

Demand, Supply, and Markets

Introduction to Macroeconomics

Tracking the U S Economy

Us Productivity and Growth

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

The Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

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Exam 7: Unemployment and Inflation

The official unemployment rate disguises the extent of the unemployment problem because:

Which of the following is true about inflation?

If someone with a 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.

If the CPI is 200,then the price level has _____ since the base year.

A sustained decrease in an economy's price level is known as deflation.

Which of the following events would most likely cause the nominal interest rate to fall?

Which of the following is true of the labor force participation rate?

An increase in the supply of loanable funds,other things constant,will increase the interest rate.

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

Consider an economy made up of 100 people sixteen years of age and older,60 of whom hold jobs,10 of whom are looking for work,and 15 of whom are retired.The number of people in the labor force is _____.

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 number of unemployed persons is _____.

Inflation is the hardest on those living on fixed incomes.

Which of the following is likely to be an effect of inflation?

Hyperinflation refers to a period of extremely erratic inflation rates.

Which of the following will most likely qualify for unemployment compensation benefits?

Suppose there is a 5 percent increase in the nominal wages of workers in an economy.The annual rate of inflation in the economy is about 2 percent.Which of the following is true in this case?

In which of the following industries are workers least likely to suffer from cyclical unemployment?

In the market for loanable funds,the equilibrium interest rate is determined by the intersection of:

The unemployment rate among African American workers in the United States is higher than that among white workers.

Suppose the total population of an economy is 150 million,the labor force is 100 million,and the unemployment is 94 million.The unemployment rate is _____.

The Art and Science of Economic Analysis

Some Tools of Economic Analysis

Economic Decision Makers

Demand, Supply, and Markets

Introduction to Macroeconomics

Tracking the U S Economy

Us Productivity and Growth

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

The Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters