Question 1

Which of the following statements is FALSE?

Accepted Answer

A)  Expectations affect demand-pull but not cost-push inflation since price increases come after the goods are produced. 
B)  Inflation need not come solely from the sellers' or the buyers' side of the market, it can come simultaneously from both sides. 
C)  Cost-push inflation can result from bargaining power by resource owners, limited resource availabilities, or chance events. 
D)  Cost-push inflation more likely results when cost increases push up the product prices of large firms or a significant number of smaller firms. 
A)  Expectations affect demand-pull but not cost-push inflation since price increases come after the goods are produced. 
B)  Inflation need not come solely from the sellers' or the buyers' side of the market, it can come simultaneously from both sides. 
C)  Cost-push inflation can result from bargaining power by resource owners, limited resource availabilities, or chance events. 
D)  Cost-push inflation more likely results when cost increases push up the product prices of large firms or a significant number of smaller firms.

Question 2

A comparison of the benefits and costs of economic growth:

Accepted Answer

A)  has always shown that the benefits outweigh the costs. 
B)  is not meaningful when evaluating growth because growth should be attained at any cost. 
C)  is difficult because the benefits may appear immediately, while it may take several years for the costs to become apparent. 
D)  all of the above. 
A)  has always shown that the benefits outweigh the costs. 
B)  is not meaningful when evaluating growth because growth should be attained at any cost. 
C)  is difficult because the benefits may appear immediately, while it may take several years for the costs to become apparent. 
D)  all of the above.

Question 3

In general over the past several decades, the participation rates for men and women in the labor force have:

Accepted Answer

A)  both increased. 
B)  both decreased. 
C)  increased and decreased, respectively. 
D)  decreased and increased, respectively. 
A)  both increased. 
B)  both decreased. 
C)  increased and decreased, respectively. 
D)  decreased and increased, respectively.

Question 4

Matt has just finished his first year at the local community college. Despite discreet parental prodding to find a job, Matt plans to spend the summer on the couch playing video games and watching movies. Matt has made no attempt to contact prospective employers. Matt would be considered:

Accepted Answer

A)  in the labor force but unemployed. 
B)  in the labor force but frictionally unemployed. 
C)  not in the labor force. 
D)  not in the labor force and marginally unemployed. 
A)  in the labor force but unemployed. 
B)  in the labor force but frictionally unemployed. 
C)  not in the labor force. 
D)  not in the labor force and marginally unemployed.

Question 5

Economic growth can be illustrated by:

Accepted Answer

A)  a shift of a production possibilities curve to the right. 
B)  a shift of a production possibilities curve to a perfectly vertical position. 
C)  a movement away from consumer goods and toward capital goods along a production possibilities curve. 
D)  a movement from a point to the left of an economy's production possibilities curve to a point on the curve. 
A)  a shift of a production possibilities curve to the right. 
B)  a shift of a production possibilities curve to a perfectly vertical position. 
C)  a movement away from consumer goods and toward capital goods along a production possibilities curve. 
D)  a movement from a point to the left of an economy's production possibilities curve to a point on the curve.

Question 6

Cost-push inflation tends to occur when output grows at a faster rate than the supply of money in the economy.

Accepted Answer

A) True 
 B)False

Question 7

Deflation is a slowing in the rate of inflation.

Accepted Answer

A) True 
 B)False

Question 8

Full employment is achieved when there is no cyclical unemployment.

Accepted Answer

A) True 
 B)False

Question 9

The formula for calculating real GDP is:

Accepted Answer

A)  (real GDP/GDP price index number) x 100. 
B)  (GDP price index number/real GDP) x 100. 
C)  (money GDP/GDP price index number) x 100. 
D)  (GDP price index number/money GDP) x 100. 
A)  (real GDP/GDP price index number) x 100. 
B)  (GDP price index number/real GDP) x 100. 
C)  (money GDP/GDP price index number) x 100. 
D)  (GDP price index number/money GDP) x 100.

Question 10

People are considered to be "underemployed"if they work:

Accepted Answer

A)  in a job that fully utilizes their skills. 
B)  in a job that does not fully utilize their skills. 
C)  one job and would like to work two jobs. 
D)  two jobs to make enough income but would prefer just to work one job. 
A)  in a job that fully utilizes their skills. 
B)  in a job that does not fully utilize their skills. 
C)  one job and would like to work two jobs. 
D)  two jobs to make enough income but would prefer just to work one job.

Question 11

-Economic growth is illustrated by the movement from Point A to Point B in:

Accepted Answer

A)  Figure A. 
B)  Figure B. 
C)  all four figures. 
D)  Figure A and Figure B. 
A)  Figure A. 
B)  Figure B. 
C)  all four figures. 
D)  Figure A and Figure B.

Question 12

A college student looking for work immediately after graduation would be:

Accepted Answer

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

Question 13

In officially compiled unemployment statistics, a person would be classified as unemployed if, during the week the statistics were collected, he or she:

Accepted Answer

A)  worked without pay for 25 hours on the family farm. 
B)  was away from the job due to a labor-management dispute. 
C)  worked 4 hours on a part-time basis but wanted to work 40 hours. 
D)  none of the above. 
A)  worked without pay for 25 hours on the family farm. 
B)  was away from the job due to a labor-management dispute. 
C)  worked 4 hours on a part-time basis but wanted to work 40 hours. 
D)  none of the above.

Question 14

Use the basis of the following table, which lists population statistics for a hypothetical country.
  
-Compared to recent unemployment rates in the United States, this country has a:

Accepted Answer

A)  low rate of unemployment. 
B)  high rate of unemployment. 
C)  normal rate of unemployment. 
D)  negative rate of unemployment. 
A)  low rate of unemployment. 
B)  high rate of unemployment. 
C)  normal rate of unemployment. 
D)  negative rate of unemployment.

Question 15

David just graduated from college. He is sending out resumes and has two interviews scheduled for next week. David would be considered _________________ unemployed.

Accepted Answer

The answer of David just graduated from college. He is...

Question 16

A low unemployment rate provides no information about:

Accepted Answer

A)  the types of jobs held by the employed. 
B)  whether the employed hold full-time or part-time jobs. 
C)  how many skilled people accepted unskilled jobs rather than be unemployed. 
D)  all of the above. 
A)  the types of jobs held by the employed. 
B)  whether the employed hold full-time or part-time jobs. 
C)  how many skilled people accepted unskilled jobs rather than be unemployed. 
D)  all of the above.

Question 17

Cyclical unemployment is more likely to:

Accepted Answer

A)  be voluntary than involuntary. 
B)  affect young workers and workers with low seniority. 
C)  affect workers in the health care industry than workers in the automobile industry. 
D)  all of the above. 
A)  be voluntary than involuntary. 
B)  affect young workers and workers with low seniority. 
C)  affect workers in the health care industry than workers in the automobile industry. 
D)  all of the above.

Question 18

Potential winners from inflation are always:

Accepted Answer

A)  savers. 
B)  lenders. 
C)  individuals on fixed incomes. 
D)  none of the above. 
A)  savers. 
B)  lenders. 
C)  individuals on fixed incomes. 
D)  none of the above.

Question 19

Demand-pull inflation:

Accepted Answer

A)  comes from the buyers' side of the market. 
B)  becomes a problem as the economy experiences worsening unemployment. 
C)  will not occur if the supply of money in the economy increases at a faster rate than the level of production. 
D)  all of the above. 
A)  comes from the buyers' side of the market. 
B)  becomes a problem as the economy experiences worsening unemployment. 
C)  will not occur if the supply of money in the economy increases at a faster rate than the level of production. 
D)  all of the above.

Question 20

-Economic growth is shown by the movement from Point A to Point B on the production possibilities curve in:

Accepted Answer

A)  Figure A. 
B)  Figure B. 
C)  Figure C. 
D)  Figure D. 
A)  Figure A. 
B)  Figure B. 
C)  Figure C. 
D)  Figure D.

Which of the following statements is FALSE?

A comparison of the benefits and costs of economic growth:

In general over the past several decades, the participation rates for men and women in the labor force have:

Matt has just finished his first year at the local community college. Despite discreet parental prodding to find a job, Matt plans to spend the summer on the couch playing video games and watching movies. Matt has made no attempt to contact prospective employers. Matt would be considered:

Economic growth can be illustrated by:

Cost-push inflation tends to occur when output grows at a faster rate than the supply of money in the economy.

Deflation is a slowing in the rate of inflation.

Full employment is achieved when there is no cyclical unemployment.

The formula for calculating real GDP is:

People are considered to be "underemployed"if they work:

-Economic growth is illustrated by the movement from Point A to Point B in:

A college student looking for work immediately after graduation would be:

In officially compiled unemployment statistics, a person would be classified as unemployed if, during the week the statistics were collected, he or she:

Use the basis of the following table, which lists population statistics for a hypothetical country. -Compared to recent unemployment rates in the United States, this country has a:

David just graduated from college. He is sending out resumes and has two interviews scheduled for next week. David would be considered _________________ unemployed.

A low unemployment rate provides no information about:

Cyclical unemployment is more likely to:

Potential winners from inflation are always:

Demand-pull inflation:

-Economic growth is shown by the movement from Point A to Point B on the production possibilities curve in:

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

Which of the following statements is FALSE?

A comparison of the benefits and costs of economic growth:

In general over the past several decades, the participation rates for men and women in the labor force have:

Matt has just finished his first year at the local community college. Despite discreet parental prodding to find a job, Matt plans to spend the summer on the couch playing video games and watching movies. Matt has made no attempt to contact prospective employers. Matt would be considered:

Economic growth can be illustrated by:

Cost-push inflation tends to occur when output grows at a faster rate than the supply of money in the economy.

Deflation is a slowing in the rate of inflation.

Full employment is achieved when there is no cyclical unemployment.

The formula for calculating real GDP is:

People are considered to be "underemployed"if they work:

-Economic growth is illustrated by the movement from Point A to Point B in:

A college student looking for work immediately after graduation would be:

In officially compiled unemployment statistics, a person would be classified as unemployed if, during the week the statistics were collected, he or she:

Use the basis of the following table, which lists population statistics for a hypothetical country. -Compared to recent unemployment rates in the United States, this country has a:

David just graduated from college. He is sending out resumes and has two interviews scheduled for next week. David would be considered _________________ unemployed.

A low unemployment rate provides no information about:

Cyclical unemployment is more likely to:

Potential winners from inflation are always:

Demand-pull inflation:

-Economic growth is shown by the movement from Point A to Point B on the production possibilities curve in:

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