Question 1

The base year in a price index is:

Accepted Answer

A)  always given a value of 0.0. 
B)  always the first year listed in the index. 
C)  the year against which prices in all other years are compared. 
D)  all of the above. 
A)  always given a value of 0.0. 
B)  always the first year listed in the index. 
C)  the year against which prices in all other years are compared. 
D)  all of the above.

Question 2

Unemployment that is voluntary and of short duration to allow time to find new work is:

Accepted Answer

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

Question 3

Why do we say the economy is at full employment when less than 100 percent of the labor force is working?

Accepted Answer

As long as cyclical unemployment has bee

Question 4

What types of hardships might unemployment create for individuals?

Accepted Answer

Unemployment creates not only

Question 5

Cost-push inflation can result from:

Accepted Answer

A)  an over abundance of available resources. 
B)  strong bargaining power of resource owners. 
C)  strong productivity growth. 
D)  falling input prices that lead firms to charge higher retail prices. 
A)  an over abundance of available resources. 
B)  strong bargaining power of resource owners. 
C)  strong productivity growth. 
D)  falling input prices that lead firms to charge higher retail prices.

Question 6

Growth in an economy's productive potential is illustrated by a shift of its production possibilities curve to the right.

Accepted Answer

A) True 
 B)False

Question 7

Due to overall poor economic conditions, Max recently lost his job at a major airline as the demand for air travel slumped. Max would be considered _______________ unemployed.

Accepted Answer

The answer of Due to overall poor economic conditions, Max...

Question 8

Too much money chasing not enough goods is a cause of demand-pull inflation.

Accepted Answer

A) True 
 B)False

Question 9

Persons who take jobs that do not fully utilize their abilities are:

Accepted Answer

A)  underemployed. 
B)  discouraged workers. 
C)  not included in the labor force. 
D)  all of the above. 
A)  underemployed. 
B)  discouraged workers. 
C)  not included in the labor force. 
D)  all of the above.

Question 10

According to Up for Debate: "Will Policies to Protect the Environment Slow Economic Growth,"

Accepted Answer

A)  it is clear that environmental protection will slow economic growth, especially after a period of transitional disruption. 
B)  protection of the environment may create new types of industries and jobs. 
C)  there is support for "cleaning" the environment regardless of the costs. 
D)  all of the above. 
A)  it is clear that environmental protection will slow economic growth, especially after a period of transitional disruption. 
B)  protection of the environment may create new types of industries and jobs. 
C)  there is support for "cleaning" the environment regardless of the costs. 
D)  all of the above.

Question 11

There is virtually complete agreement as to the accuracy of reported unemployment statistics.

Accepted Answer

A) True 
 B)False

Question 12

The unemployment rate that results when cyclical unemployment is eliminated is the:

Accepted Answer

A)  natural rate. 
B)  frictional rate. 
C)  voluntary rate. 
D)  full employment rate. 
A)  natural rate. 
B)  frictional rate. 
C)  voluntary rate. 
D)  full employment rate.

Question 13

Which of the following statements about the effect of unemployment on output in the U.S. economy is true?

Accepted Answer

A)  The output lost due to unemployment changes each year. 
B)  The annual amount of output the economy lost due to unemployment was much higher in the late 1990s and early 2000s than in the 1930s. 
C)  The output of the economy would have more than doubled in the late 1990s and early 2000s if the unemployment problem had been solved. 
D)  all of the above. 
A)  The output lost due to unemployment changes each year. 
B)  The annual amount of output the economy lost due to unemployment was much higher in the late 1990s and early 2000s than in the 1930s. 
C)  The output of the economy would have more than doubled in the late 1990s and early 2000s if the unemployment problem had been solved. 
D)  all of the above.

Question 14

Full employment means everyone in the labor force:

Accepted Answer

A)  is working. 
B)  except the cyclically unemployed is working. 
C)  except the frictionally unemployed is working. 
D)  except the structurally unemployed is working. 
A)  is working. 
B)  except the cyclically unemployed is working. 
C)  except the frictionally unemployed is working. 
D)  except the structurally unemployed is working.

Question 15

Who are the potential winners and losers from inflation? How can persons protect themselves from inflation?

Accepted Answer

A borrower with a fixed-interest rate lo

Question 16

The labor force includes only people 16 years of age and older who are working.

Accepted Answer

A) True 
 B)False

Question 17

A person who quits a job in Los Angeles to look for work in Chicago is:

Accepted Answer

A)  not unemployed. 
B)  cyclically unemployed. 
C)  frictionally unemployed. 
D)  structurally unemployed. 
A)  not unemployed. 
B)  cyclically unemployed. 
C)  frictionally unemployed. 
D)  structurally unemployed.

Question 18

If a product cost $600 in the base year and the price index number for this year is 125.0, the price of the product this year is:

Accepted Answer

A)  $475. 
B)  $480. 
C)  $725. 
D)  $750. 
A)  $475. 
B)  $480. 
C)  $725. 
D)  $750.

Question 19

There is a tendency for demand-pull inflationary pressure to increase as the economy approaches full employment.

Accepted Answer

A) True 
 B)False

Question 20

The base year in a price index is always the:

Accepted Answer

A)  first year in the index. 
B)  year with the lowest prices. 
C)  most recent year in the index. 
D)  year against which prices in other years are compared. 
A)  first year in the index. 
B)  year with the lowest prices. 
C)  most recent year in the index. 
D)  year against which prices in other years are compared.

The base year in a price index is:

Unemployment that is voluntary and of short duration to allow time to find new work is:

Why do we say the economy is at full employment when less than 100 percent of the labor force is working?

What types of hardships might unemployment create for individuals?

Cost-push inflation can result from:

Growth in an economy's productive potential is illustrated by a shift of its production possibilities curve to the right.

Due to overall poor economic conditions, Max recently lost his job at a major airline as the demand for air travel slumped. Max would be considered _______________ unemployed.

Too much money chasing not enough goods is a cause of demand-pull inflation.

Persons who take jobs that do not fully utilize their abilities are:

According to Up for Debate: "Will Policies to Protect the Environment Slow Economic Growth,"

There is virtually complete agreement as to the accuracy of reported unemployment statistics.

The unemployment rate that results when cyclical unemployment is eliminated is the:

Which of the following statements about the effect of unemployment on output in the U.S. economy is true?

Full employment means everyone in the labor force:

Who are the potential winners and losers from inflation? How can persons protect themselves from inflation?

The labor force includes only people 16 years of age and older who are working.

A person who quits a job in Los Angeles to look for work in Chicago is:

If a product cost $600 in the base year and the price index number for this year is 125.0, the price of the product this year is:

There is a tendency for demand-pull inflationary pressure to increase as the economy approaches full employment.

The base year in a price index is always the:

Introduction to Economics

Economic Decision Making and Economic Systems

Demand, Supply, and the Determination of Price

Foundations of the Macroeconomy

The Role of Government in the Macroeconomy

Money, Financial Institutions, and the Federal Reserve

Money Creation, Monetary Theory, and Monetary Policy

Macroeconomic Viewpoints and Models

Households and Businesses: An Overview

Benefits, Costs, and Maximization

Production and the Costs of Production

Competition and Market Structures

Government and the Markets

Labor Markets, Unions, and the Distribution of Income-A

International Trade

International Finance

Filters

Exam 4: Goals and Problems of the Macroeconomy: Employment, Prices and Production

The base year in a price index is:

Unemployment that is voluntary and of short duration to allow time to find new work is:

Why do we say the economy is at full employment when less than 100 percent of the labor force is working?

What types of hardships might unemployment create for individuals?

Cost-push inflation can result from:

Growth in an economy's productive potential is illustrated by a shift of its production possibilities curve to the right.

Due to overall poor economic conditions, Max recently lost his job at a major airline as the demand for air travel slumped. Max would be considered _______________ unemployed.

Too much money chasing not enough goods is a cause of demand-pull inflation.

Persons who take jobs that do not fully utilize their abilities are:

According to Up for Debate: "Will Policies to Protect the Environment Slow Economic Growth,"

There is virtually complete agreement as to the accuracy of reported unemployment statistics.

The unemployment rate that results when cyclical unemployment is eliminated is the:

Which of the following statements about the effect of unemployment on output in the U.S. economy is true?

Full employment means everyone in the labor force:

Who are the potential winners and losers from inflation? How can persons protect themselves from inflation?

The labor force includes only people 16 years of age and older who are working.

A person who quits a job in Los Angeles to look for work in Chicago is:

If a product cost $600 in the base year and the price index number for this year is 125.0, the price of the product this year is:

There is a tendency for demand-pull inflationary pressure to increase as the economy approaches full employment.

The base year in a price index is always the:

Introduction to Economics

Economic Decision Making and Economic Systems

Demand, Supply, and the Determination of Price

Foundations of the Macroeconomy

The Role of Government in the Macroeconomy

Money, Financial Institutions, and the Federal Reserve

Money Creation, Monetary Theory, and Monetary Policy

Macroeconomic Viewpoints and Models

Households and Businesses: An Overview

Benefits, Costs, and Maximization

Production and the Costs of Production

Competition and Market Structures

Government and the Markets

Labor Markets, Unions, and the Distribution of Income-A

International Trade

International Finance

Filters