Question 1

Scott is laid off his job. As a result, GDP falls by $27,000. This is an example of unemployment's:

Accepted Answer

A)  economic cost to the individual. 
B)  economic cost to society. 
C)  noneconomic cost to the individual. 
D)  noneconomic cost to society. 
A)  economic cost to the individual. 
B)  economic cost to society. 
C)  noneconomic cost to the individual. 
D)  noneconomic cost to society.

Question 2

Which of the following would be most likely to suffer from unemployment?

Accepted Answer

A)  a 34 year old female. 
B)  a 40 year old male. 
C)  a 17 year old male. 
D)  a 30 year old Hispanic male. 
A)  a 34 year old female. 
B)  a 40 year old male. 
C)  a 17 year old male. 
D)  a 30 year old Hispanic male.

Question 3

The unemployment problem is more severe in the United States than in most European countries.

Accepted Answer

A) True 
 B)False

Question 4

Leslie was laid off her job because of cutbacks in production. At each place she applies for a job, she finds numerous other applicants. Leslie is most likely suffering from:

Accepted Answer

A)  structural unemployment. 
B)  cyclical unemployment. 
C)  frictional unemployment. 
D)  temporary unemployment. 
A)  structural unemployment. 
B)  cyclical unemployment. 
C)  frictional unemployment. 
D)  temporary unemployment.

Question 5

The unemployment rate is the percentage of the civilian labor force that is unemployed.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is likely to lead to a increase in aggregate demand?

Accepted Answer

A)  contractionary fiscal policy. 
B)  expansionary monetary policy. 
C)  contractionary monetary policy 
D)  the interest rate effect. 
A)  contractionary fiscal policy. 
B)  expansionary monetary policy. 
C)  contractionary monetary policy 
D)  the interest rate effect.

Question 7

Suppose GDP is currently at the full employment level. If authorities enact a tax increase, this will lead to:

Accepted Answer

A)  unemployment. 
B)  inflation. 
C)  increased economic growth. 
D)  a fall in the rate of unemployment. 
A)  unemployment. 
B)  inflation. 
C)  increased economic growth. 
D)  a fall in the rate of unemployment.

Question 8

For the individual, the output lost during periods of unemployment is the greatest economic cost of unemployment.

Accepted Answer

A) True 
 B)False

Question 9

Use the following diagram to answer the following questions.
  
-Refer to Diagram 13-1. If the economy is currently in equilibrium at point B, increasing the money supply would:

Accepted Answer

A)  cause the equilibrium level of real GDP and the equilibrium price level to rise. 
B)  cause the equilibrium level of real GDP and the equilibrium price level to fall. 
C)  cause the equilibrium level of real GDP rise and the equilibrium price level to fall. 
D)  cause the equilibrium level of real GDP fall and the equilibrium price level to rise. 
A)  cause the equilibrium level of real GDP and the equilibrium price level to rise. 
B)  cause the equilibrium level of real GDP and the equilibrium price level to fall. 
C)  cause the equilibrium level of real GDP rise and the equilibrium price level to fall. 
D)  cause the equilibrium level of real GDP fall and the equilibrium price level to rise.

Question 10

Use the following diagram to answer the following questions.
  
-Refer to Diagram 13-1. Suppose the economy is currently in equilibrium at point A. If consumption spending increases, this would most likely:

Accepted Answer

A)  cause deflation. 
B)  cause inflation. 
C)  cause unemployment. 
D)  increase the equilibrium level of real GDP. 
A)  cause deflation. 
B)  cause inflation. 
C)  cause unemployment. 
D)  increase the equilibrium level of real GDP.

Question 11

Most economists believe that changes in the unemployment rate over the business cycle are caused by changes in aggregate demand.

Accepted Answer

A) True 
 B)False

Question 12

The minimum wage will likely:

Accepted Answer

A)  have little positive impact on the condition of the working poor. 
B)  have a significant positive impact on the condition of the working poor. 
C)  significantly increase the income of the working poor. 
D)  increase employment among the working poor. 
A)  have little positive impact on the condition of the working poor. 
B)  have a significant positive impact on the condition of the working poor. 
C)  significantly increase the income of the working poor. 
D)  increase employment among the working poor.

Question 13

In order to be considered unemployed, an individual must:

Accepted Answer

A)  not be working. 
B)  not be working and be available to work. 
C)  not be working, be available to work, and actively sought employment during the past four weeks. 
D)  actively sought employment during the past four weeks. 
A)  not be working. 
B)  not be working and be available to work. 
C)  not be working, be available to work, and actively sought employment during the past four weeks. 
D)  actively sought employment during the past four weeks.

Question 14

Suppose there is unemployment because of inadequate aggregate demand. If wage rates are "sticky:"

Accepted Answer

A)  increases in aggregate supply will cause the economy to return to full employment. 
B)  decreases in aggregate supply will cause the economy to return to full employment 
C)  increases in aggregate demand will cause the economy to return to full employment. 
D)  cyclical unemployment may persist for a long time. 
A)  increases in aggregate supply will cause the economy to return to full employment. 
B)  decreases in aggregate supply will cause the economy to return to full employment 
C)  increases in aggregate demand will cause the economy to return to full employment. 
D)  cyclical unemployment may persist for a long time.

Question 15

The three types of unemployment are:

Accepted Answer

A)  frictional, structural, and cyclical. 
B)  frictional, technical, and cyclical. 
C)  frictional, structural, and recessionary. 
D)  frictional, compositional, and cyclical. 
A)  frictional, structural, and cyclical. 
B)  frictional, technical, and cyclical. 
C)  frictional, structural, and recessionary. 
D)  frictional, compositional, and cyclical.

Question 16

Which of the following results in impediments to hiring in most European nations?

Accepted Answer

A)  relatively low minimum wages. 
B)  relatively generous unemployment benefits. 
C)  relatively long-term unemployment benefits. 
D)  government regulations making it difficult to start or expand new firms. 
A)  relatively low minimum wages. 
B)  relatively generous unemployment benefits. 
C)  relatively long-term unemployment benefits. 
D)  government regulations making it difficult to start or expand new firms.

Question 17

Use the following diagram to answer the following questions.
  
-Refer to Minimum Wage. The imposition of a minimum wage would:

Accepted Answer

A)  increase the wage from W1 to W2. 
B)  decrease the wage from W2 to W1. 
C)  decrease the wage from W1 to W3. 
D)  cause the equilibrium wage to increase. 
A)  increase the wage from W1 to W2. 
B)  decrease the wage from W2 to W1. 
C)  decrease the wage from W1 to W3. 
D)  cause the equilibrium wage to increase.

Question 18

Evaluate the following statement. "A computerized national job bank would significantly reduce frictional unemployment."

Accepted Answer

The impact of such a job bank on frictio

Question 19

Jack works part-time while going to college. Jack would be classified as:

Accepted Answer

A)  employed. 
B)  unemployed. 
C)  not in the civilian labor force. 
D)  a home production worker. 
A)  employed. 
B)  unemployed. 
C)  not in the civilian labor force. 
D)  a home production worker.

Question 20

Jennifer has just graduated from college with a computer science degree. She is temporarily experiencing unemployment while she searches for a job. She would currently be:

Accepted Answer

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

Scott is laid off his job. As a result, GDP falls by $27,000. This is an example of unemployment's:

Which of the following would be most likely to suffer from unemployment?

The unemployment problem is more severe in the United States than in most European countries.

Leslie was laid off her job because of cutbacks in production. At each place she applies for a job, she finds numerous other applicants. Leslie is most likely suffering from:

The unemployment rate is the percentage of the civilian labor force that is unemployed.

Which of the following is likely to lead to a increase in aggregate demand?

Suppose GDP is currently at the full employment level. If authorities enact a tax increase, this will lead to:

For the individual, the output lost during periods of unemployment is the greatest economic cost of unemployment.

Use the following diagram to answer the following questions. -Refer to Diagram 13-1. If the economy is currently in equilibrium at point B, increasing the money supply would:

Use the following diagram to answer the following questions. -Refer to Diagram 13-1. Suppose the economy is currently in equilibrium at point A. If consumption spending increases, this would most likely:

Most economists believe that changes in the unemployment rate over the business cycle are caused by changes in aggregate demand.

The minimum wage will likely:

In order to be considered unemployed, an individual must:

Suppose there is unemployment because of inadequate aggregate demand. If wage rates are "sticky:"

The three types of unemployment are:

Which of the following results in impediments to hiring in most European nations?

Use the following diagram to answer the following questions. -Refer to Minimum Wage. The imposition of a minimum wage would:

Evaluate the following statement. "A computerized national job bank would significantly reduce frictional unemployment."

Jack works part-time while going to college. Jack would be classified as:

Jennifer has just graduated from college with a computer science degree. She is temporarily experiencing unemployment while she searches for a job. She would currently be:

Economic Growth: an Introduction to Scarcity and Choice

An Introduction to Economic Systems and the Workings of the Price System

Competitive Markets and Government Policy: Agriculture

Efficiency in Resource Allocation: How Much Do We Have How Much Do We Want

Market Power: Does It Help or Hurt the Economy

Air Pollution: Balancing Benefits and Costs

Health Care: How Much for Whom

Crime and Drugs: a Modern Dilemma

College Education: Is It Worth the Cost

Educational Reform: the Role of Incentives and Choice

Poverty: Old and New Approaches to a Persistent Problem

Tracking and Explaining the Macroeconomy

Inflation: a Monetary Phenomenon

Sustained Budget Deficits: Is This Any Way to Run a Government

Social Security: Leading Issues and Approaches to Reform

International Trade: Beneficial, but Controversial

Financing Trade and the Trade Deficit

Filters

Exam 13: Unemployment: the Legacy of Recession, Technological Change, and Free Choice

Scott is laid off his job. As a result, GDP falls by $27,000. This is an example of unemployment's:

Which of the following would be most likely to suffer from unemployment?

The unemployment problem is more severe in the United States than in most European countries.

Leslie was laid off her job because of cutbacks in production. At each place she applies for a job, she finds numerous other applicants. Leslie is most likely suffering from:

The unemployment rate is the percentage of the civilian labor force that is unemployed.

Which of the following is likely to lead to a increase in aggregate demand?

Suppose GDP is currently at the full employment level. If authorities enact a tax increase, this will lead to:

For the individual, the output lost during periods of unemployment is the greatest economic cost of unemployment.

Use the following diagram to answer the following questions. -Refer to Diagram 13-1. If the economy is currently in equilibrium at point B, increasing the money supply would:

Use the following diagram to answer the following questions. -Refer to Diagram 13-1. Suppose the economy is currently in equilibrium at point A. If consumption spending increases, this would most likely:

Most economists believe that changes in the unemployment rate over the business cycle are caused by changes in aggregate demand.

The minimum wage will likely:

In order to be considered unemployed, an individual must:

Suppose there is unemployment because of inadequate aggregate demand. If wage rates are "sticky:"

The three types of unemployment are:

Which of the following results in impediments to hiring in most European nations?

Use the following diagram to answer the following questions. -Refer to Minimum Wage. The imposition of a minimum wage would:

Evaluate the following statement. "A computerized national job bank would significantly reduce frictional unemployment."

Jack works part-time while going to college. Jack would be classified as:

Jennifer has just graduated from college with a computer science degree. She is temporarily experiencing unemployment while she searches for a job. She would currently be:

Economic Growth: an Introduction to Scarcity and Choice

An Introduction to Economic Systems and the Workings of the Price System

Competitive Markets and Government Policy: Agriculture

Efficiency in Resource Allocation: How Much Do We Have How Much Do We Want

Market Power: Does It Help or Hurt the Economy

Air Pollution: Balancing Benefits and Costs

Health Care: How Much for Whom

Crime and Drugs: a Modern Dilemma

College Education: Is It Worth the Cost

Educational Reform: the Role of Incentives and Choice

Poverty: Old and New Approaches to a Persistent Problem

Tracking and Explaining the Macroeconomy

Inflation: a Monetary Phenomenon

Sustained Budget Deficits: Is This Any Way to Run a Government

Social Security: Leading Issues and Approaches to Reform

International Trade: Beneficial, but Controversial

Financing Trade and the Trade Deficit

Filters