Question 1

Which of the following is false?

Accepted Answer

A)  The rate considered to be the full employment rate of unemployment has changed over the years. 
B)  Changes in the composition of the labor force and the growth in temporary, part-time work have caused a re-evaluation of the unemployment rate associated with full employment. 
C)  The full employment rate of unemployment has been 4% since the Depression of the 1930s; prior to that it was 5%. 
D)  The goal of full employment means that only those voluntarily out of work are unemployed. 
A)  The rate considered to be the full employment rate of unemployment has changed over the years. 
B)  Changes in the composition of the labor force and the growth in temporary, part-time work have caused a re-evaluation of the unemployment rate associated with full employment. 
C)  The full employment rate of unemployment has been 4% since the Depression of the 1930s; prior to that it was 5%. 
D)  The goal of full employment means that only those voluntarily out of work are unemployed.

Question 2

The natural rate of unemployment includes the:

Accepted Answer

A)  frictionally and cyclically unemployed. 
B)  cyclically and structurally unemployed. 
C)  frictionally and structurally unemployed. 
D)  frictionally, cyclically, and structurally unemployed. 
A)  frictionally and cyclically unemployed. 
B)  cyclically and structurally unemployed. 
C)  frictionally and structurally unemployed. 
D)  frictionally, cyclically, and structurally unemployed.

Question 3

The natural rate of unemployment occurs when only the frictionally and structurally unemployed are out of work.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following would be expected to increase the rate of unemployment associated with full employment?

Accepted Answer

A)  People live longer. 
B)  Unemployment benefits increase. 
C)  More people attend school full time. 
D)  An increase in the general level of wages. 
A)  People live longer. 
B)  Unemployment benefits increase. 
C)  More people attend school full time. 
D)  An increase in the general level of wages.

Question 5

Technology has caused a number of people to lose their jobs in the dairy business. These people are:

Accepted Answer

A)  structurally unemployed. 
B)  frictionally unemployed. 
C)  seasonally unemployed. 
D)  cyclically unemployed. 
A)  structurally unemployed. 
B)  frictionally unemployed. 
C)  seasonally unemployed. 
D)  cyclically unemployed.

Question 6

If money GDP was $10 trillion and real GDP was $8 trillion, the GDP price index number would be:

Accepted Answer

A)  80.00 
B)  120.00 
C)  125.00 
D)  200.00 
A)  80.00 
B)  120.00 
C)  125.00 
D)  200.00

Question 7

A person who is voluntarily out of work and seeking work is frictionally unemployed.

Accepted Answer

A) True 
 B)False

Question 8

Inflation:

Accepted Answer

A)  hurts all groups in society equally. 
B)  occurs only if every price in an economy increases. 
C)  increases the scarcity problem by reducing the purchasing power of money. 
D)  if severe, tends to unify society as people seek solutions to a common problem. 
A)  hurts all groups in society equally. 
B)  occurs only if every price in an economy increases. 
C)  increases the scarcity problem by reducing the purchasing power of money. 
D)  if severe, tends to unify society as people seek solutions to a common problem.

Question 9

A structurally unemployed person would be one who is out of work because:

Accepted Answer

A)  she just graduated and is looking for work. 
B)  she quit her summer job to return to school. 
C)  a computerized system now performs her job. 
D)  weak overall economic conditions caused a decrease in her employer's sales. 
A)  she just graduated and is looking for work. 
B)  she quit her summer job to return to school. 
C)  a computerized system now performs her job. 
D)  weak overall economic conditions caused a decrease in her employer's sales.

Question 10

In calculating GDP, a number of transactions are excluded such as the purchase of used goods and the purchase of stocks and bonds.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements about GDP is FALSE?

Accepted Answer

A)  Real GDP will increase if there is an increase in the output of the economy. 
B)  Real GDP will increase if there is an increase in the economy's level of prices. 
C)  Money GDP will increase if there is an increase in the output of the economy. 
D)  Money GDP will increase if there is an increase in the economy's level of prices. 
A)  Real GDP will increase if there is an increase in the output of the economy. 
B)  Real GDP will increase if there is an increase in the economy's level of prices. 
C)  Money GDP will increase if there is an increase in the output of the economy. 
D)  Money GDP will increase if there is an increase in the economy's level of prices.

Question 12

A person who has dropped out of the labor force after a long and unsuccessful search for a job is:

Accepted Answer

A)  a discouraged worker. 
B)  frictionally unemployed. 
C)  structurally unemployed. 
D)  still included in the unemployment statistics. 
A)  a discouraged worker. 
B)  frictionally unemployed. 
C)  structurally unemployed. 
D)  still included in the unemployment statistics.

Question 13

Real GDP for 2006 is equal to:

Accepted Answer

A)  .
  
B)  .
  
C)  (2006 money GDP) - (2005 money GDP). 
D)  (2006 money GDP) - (2006 GDP price index number) × 100. 
A)  .
  
B)  .
  
C)  (2006 money GDP) - (2005 money GDP). 
D)  (2006 money GDP) - (2006 GDP price index number) × 100.

Question 14

Joe painted cars in an auto manufacturing facility. Joe is laid off when robots are installed to paint the cars. Joe would be considered frictionally unemployed.

Accepted Answer

A) True 
 B)False

Question 15

What is real income, and what can cause real income to decrease while money income is increasing?

Accepted Answer

Real income is money income ad

Question 16

Price indexes:

Accepted Answer

A)  are used by firms in negotiating contracts. 
B)  affect the benefits received by Social Security recipients. 
C)  affect the earnings of workers who are protected with cost-of-living adjustments. 
D)  all of the above. 
A)  are used by firms in negotiating contracts. 
B)  affect the benefits received by Social Security recipients. 
C)  affect the earnings of workers who are protected with cost-of-living adjustments. 
D)  all of the above.

Question 17

The dollar figure that measures the value of all finished goods and services produced in the economy in one year is called:

Accepted Answer

A)  gross domestic product (GDP). 
B)  the consumer price index. 
C)  national accounting. 
D)  inflation. 
A)  gross domestic product (GDP). 
B)  the consumer price index. 
C)  national accounting. 
D)  inflation.

Question 18

Assume a part-time student was laid off from work last June because the economy was in a slump. The student spent the month of July looking for a job, and decided in August to not look for work and become a full-time student. During July and August, this student was:

Accepted Answer

A)  cyclically unemployed. 
B)  cyclically unemployed and then out of the labor force. 
C)  frictionally unemployed and then out of the labor force. 
D)  cyclically unemployed and then frictionally unemployed. 
A)  cyclically unemployed. 
B)  cyclically unemployed and then out of the labor force. 
C)  frictionally unemployed and then out of the labor force. 
D)  cyclically unemployed and then frictionally unemployed.

Question 19

Deflation is:

Accepted Answer

A)  low prices. 
B)  a slowing of the inflation rate. 
C)  a sustained decrease in the general level of prices. 
D)  none of the above. 
A)  low prices. 
B)  a slowing of the inflation rate. 
C)  a sustained decrease in the general level of prices. 
D)  none of the above.

Question 20

Demand-pull inflation:

Accepted Answer

A)  tends to get worse as unemployment increases. 
B)  can be described as too few dollars chasing too many goods. 
C)  is caused by improved productivity of the economy's resources. 
D)  occurs when spending exceeds the economy's ability to produce goods and services. 
A)  tends to get worse as unemployment increases. 
B)  can be described as too few dollars chasing too many goods. 
C)  is caused by improved productivity of the economy's resources. 
D)  occurs when spending exceeds the economy's ability to produce goods and services.

Which of the following is false?

The natural rate of unemployment includes the:

The natural rate of unemployment occurs when only the frictionally and structurally unemployed are out of work.

Which of the following would be expected to increase the rate of unemployment associated with full employment?

Technology has caused a number of people to lose their jobs in the dairy business. These people are:

If money GDP was $10 trillion and real GDP was $8 trillion, the GDP price index number would be:

A person who is voluntarily out of work and seeking work is frictionally unemployed.

Inflation:

A structurally unemployed person would be one who is out of work because:

In calculating GDP, a number of transactions are excluded such as the purchase of used goods and the purchase of stocks and bonds.

Which of the following statements about GDP is FALSE?

A person who has dropped out of the labor force after a long and unsuccessful search for a job is:

Real GDP for 2006 is equal to:

Joe painted cars in an auto manufacturing facility. Joe is laid off when robots are installed to paint the cars. Joe would be considered frictionally unemployed.

What is real income, and what can cause real income to decrease while money income is increasing?

Price indexes:

The dollar figure that measures the value of all finished goods and services produced in the economy in one year is called:

Assume a part-time student was laid off from work last June because the economy was in a slump. The student spent the month of July looking for a job, and decided in August to not look for work and become a full-time student. During July and August, this student was:

Deflation is:

Demand-pull inflation:

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

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

Which of the following is false?

The natural rate of unemployment includes the:

The natural rate of unemployment occurs when only the frictionally and structurally unemployed are out of work.

Which of the following would be expected to increase the rate of unemployment associated with full employment?

Technology has caused a number of people to lose their jobs in the dairy business. These people are:

If money GDP was $10 trillion and real GDP was $8 trillion, the GDP price index number would be:

A person who is voluntarily out of work and seeking work is frictionally unemployed.

Inflation:

A structurally unemployed person would be one who is out of work because:

In calculating GDP, a number of transactions are excluded such as the purchase of used goods and the purchase of stocks and bonds.

Which of the following statements about GDP is FALSE?

A person who has dropped out of the labor force after a long and unsuccessful search for a job is:

Real GDP for 2006 is equal to:

Joe painted cars in an auto manufacturing facility. Joe is laid off when robots are installed to paint the cars. Joe would be considered frictionally unemployed.

What is real income, and what can cause real income to decrease while money income is increasing?

Price indexes:

The dollar figure that measures the value of all finished goods and services produced in the economy in one year is called:

Assume a part-time student was laid off from work last June because the economy was in a slump. The student spent the month of July looking for a job, and decided in August to not look for work and become a full-time student. During July and August, this student was:

Deflation is:

Demand-pull inflation:

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