Question 1

Suppose unemployment benefits are increased.Which of the following is the most likely outcome of the increase?

Accepted Answer

A)  An unemployed person will have less incentive to look for work. 
B)  The direct cost of being unemployed will increase. 
C)  The need to accept the first available job after becoming unemployed will increase. 
D)  It will be more difficult for an unemployed person to take a longer time to search for a job most appropriate to his skill level. 
A)  An unemployed person will have less incentive to look for work. 
B)  The direct cost of being unemployed will increase. 
C)  The need to accept the first available job after becoming unemployed will increase. 
D)  It will be more difficult for an unemployed person to take a longer time to search for a job most appropriate to his skill level. A

Question 2

Which of the following would likely lead to the most inflation?

Accepted Answer

A)  if aggregate demand increases and aggregate supply increases 
B)  if aggregate demand decreases and aggregate supply decreases 
C)  if aggregate demand increases and aggregate supply decreases 
D)  if aggregate demand decreases and aggregate supply increases 
A)  if aggregate demand increases and aggregate supply increases 
B)  if aggregate demand decreases and aggregate supply decreases 
C)  if aggregate demand increases and aggregate supply decreases 
D)  if aggregate demand decreases and aggregate supply increases C

Question 3

What does hyperinflation refer to?

Accepted Answer

A)  extremely rapidly rising prices 
B)  extremely rapidly falling prices 
C)  an extremely high price level 
D)  an extremely low price level 
A)  extremely rapidly rising prices 
B)  extremely rapidly falling prices 
C)  an extremely high price level 
D)  an extremely low price level A

Question 4

Suppose tastes and preferences change.As a result, newspaper journalists are laid off.What type of unemployment would this be classified as?

Accepted Answer

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

Question 5

Which type of unemployment is NOT included in Canada's official monthly unemployment figures?

Accepted Answer

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

Question 6

-Refer to the graph in the exhibit.What type of inflation is illustrated?

Accepted Answer

A)  cost-pull inflation 
B)  cost-push inflation 
C)  demand-push inflation 
D)  demand-pull inflation 
A)  cost-pull inflation 
B)  cost-push inflation 
C)  demand-push inflation 
D)  demand-pull inflation

Question 7

What typically causes cost-push inflation?

Accepted Answer

A)  an outward shift of the demand curve 
B)  an inward shift of the demand curve 
C)  an outward shift of the supply curve 
D)  an inward shift of the supply curve 
A)  an outward shift of the demand curve 
B)  an inward shift of the demand curve 
C)  an outward shift of the supply curve 
D)  an inward shift of the supply curve

Question 8

Juanita earned a B.A.Sc.in engineering and went to work for a defence contractor.When the government cut spending, Juanita and 99 others were laid off.The only other business in the town is a grape-growing firm, but the firm refuses to hire laid-off engineers, knowing they will leave at the first opportunity.What type of unemployment is Juanita experiencing?

Accepted Answer

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

Question 9

The unemployment rate does NOT measure all unemployed people.Which groups are NOT counted as unemployed in the official unemployment statistics?

Accepted Answer

A)  the underemployed and the cyclically unemployed 
B)  the underemployed and the discouraged workers 
C)  the frictionally unemployed and the structurally unemployed 
D)  the cyclically unemployed and the frictionally unemployed 
A)  the underemployed and the cyclically unemployed 
B)  the underemployed and the discouraged workers 
C)  the frictionally unemployed and the structurally unemployed 
D)  the cyclically unemployed and the frictionally unemployed

Question 10

What does cyclical unemployment result from?

Accepted Answer

A)  a mismatch of skills 
B)  taking the time to find the best job 
C)  seasonal decreases in demand for labour 
D)  a recession in the economy 
A)  a mismatch of skills 
B)  taking the time to find the best job 
C)  seasonal decreases in demand for labour 
D)  a recession in the economy

Question 11

Suppose U = the number of adults who are unemployed, E = the number of adults who are employed, and NLF = the number of adults NOT in the labour force.Which expression would equal the labour force participation rate?

Accepted Answer

A)  E/(U + 
E)  
B)  U/(U + E + NLF) 
C)  E/(U + E + NLF) 
D)  (U + 
E) /(U + E + NLF) 
A)  E/(U + 
E)  
B)  U/(U + E + NLF) 
C)  E/(U + E + NLF) 
D)  (U + 
E) /(U + E + NLF)

Question 12

What is the difference between demand-pull inflation and cost-push inflation?

Accepted Answer

A)  Cost-push inflation is caused by shifts of the aggregate demand curve, but demand-pull inflation is caused by cyclical activity in the economy. 
B)  Demand-pull inflation is caused by shifts of the aggregate demand curve, but cost-push inflation is caused by shifts of the aggregate supply curve. 
C)  Demand-pull inflation is caused by government deficit spending, but cost-push inflation is caused by firms. 
D)  Demand-pull inflation is caused by foreign demand, but cost-push inflation is caused by domestic production problems. 
A)  Cost-push inflation is caused by shifts of the aggregate demand curve, but demand-pull inflation is caused by cyclical activity in the economy. 
B)  Demand-pull inflation is caused by shifts of the aggregate demand curve, but cost-push inflation is caused by shifts of the aggregate supply curve. 
C)  Demand-pull inflation is caused by government deficit spending, but cost-push inflation is caused by firms. 
D)  Demand-pull inflation is caused by foreign demand, but cost-push inflation is caused by domestic production problems.

Question 13

Which one of the following categories of workers has a high unemployment rate?

Accepted Answer

A)  professionals in general 
B)  attorneys 
C)  technical workers in general 
D)  auto workers 
A)  professionals in general 
B)  attorneys 
C)  technical workers in general 
D)  auto workers

Question 14

Which of the following is NOT a cost of unemployment?

Accepted Answer

A)  unemployed people who feel a loss of self-respect 
B)  wasted resources 
C)  unemployed people who experience negative psychological effects 
D)  higher inflation rates 
A)  unemployed people who feel a loss of self-respect 
B)  wasted resources 
C)  unemployed people who experience negative psychological effects 
D)  higher inflation rates

Question 15

Which metropolitan area in Canada had the lowest unemployment rate in 2015?

Accepted Answer

A)  Windsor, Ontario 
B)  Saint John, New Brunswick 
C)  Sherbrooke, Quebec 
D)  Kelowna, British Columbia 
A)  Windsor, Ontario 
B)  Saint John, New Brunswick 
C)  Sherbrooke, Quebec 
D)  Kelowna, British Columbia

Question 16

Suppose the official unemployment rate is 10 percent.Which of the following can be concluded without question?

Accepted Answer

A)  The same 10 percent of the people in the economy were out of work for the entire year. 
B)  One of every ten people in the labour force is currently unemployed. 
C)  The same 10 percent of the people in the labour force were out of work for the entire year. 
D)  Every person in the labour force was out of work for 10 percent of the year. 
A)  The same 10 percent of the people in the economy were out of work for the entire year. 
B)  One of every ten people in the labour force is currently unemployed. 
C)  The same 10 percent of the people in the labour force were out of work for the entire year. 
D)  Every person in the labour force was out of work for 10 percent of the year.

Question 17

What type of unemployment is likely to increase the most during a recession?

Accepted Answer

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

Question 18

What type of unemployment is the hardest to reduce?

Accepted Answer

A)  cyclical 
B)  structural 
C)  voluntary 
D)  involuntary 
A)  cyclical 
B)  structural 
C)  voluntary 
D)  involuntary

Question 19

When does the unemployment rate increase?

Accepted Answer

A)  It increases whenever the number of persons classified as unemployed increases. 
B)  It increases whenever the number of unemployed increases relative to the size of the labour force. 
C)  It increases whenever the size of the labour force decreases. 
D)  It increases whenever the size of the labour force decreases and the number of unemployed decreases. 
A)  It increases whenever the number of persons classified as unemployed increases. 
B)  It increases whenever the number of unemployed increases relative to the size of the labour force. 
C)  It increases whenever the size of the labour force decreases. 
D)  It increases whenever the size of the labour force decreases and the number of unemployed decreases.

Question 20

Which of the following people would be classified as a discouraged worker?

Accepted Answer

A)  a labour force member who has chosen early retirement because he dislikes his work or thinks the pay is too low 
B)  a member of the non-institutional population who says he wants to be employed but is NOT searching for a job 
C)  a member of the labour force who is looking for a job but CANNOT find one 
D)  any member of the population who is NOT working 
A)  a labour force member who has chosen early retirement because he dislikes his work or thinks the pay is too low 
B)  a member of the non-institutional population who says he wants to be employed but is NOT searching for a job 
C)  a member of the labour force who is looking for a job but CANNOT find one 
D)  any member of the population who is NOT working

Suppose unemployment benefits are increased.Which of the following is the most likely outcome of the increase?

Which of the following would likely lead to the most inflation?

What does hyperinflation refer to?

Suppose tastes and preferences change.As a result, newspaper journalists are laid off.What type of unemployment would this be classified as?

Which type of unemployment is NOT included in Canada's official monthly unemployment figures?

-Refer to the graph in the exhibit.What type of inflation is illustrated?

What typically causes cost-push inflation?

The unemployment rate does NOT measure all unemployed people.Which groups are NOT counted as unemployed in the official unemployment statistics?

What does cyclical unemployment result from?

Suppose U = the number of adults who are unemployed, E = the number of adults who are employed, and NLF = the number of adults NOT in the labour force.Which expression would equal the labour force participation rate?

What is the difference between demand-pull inflation and cost-push inflation?

Which one of the following categories of workers has a high unemployment rate?

Which of the following is NOT a cost of unemployment?

Which metropolitan area in Canada had the lowest unemployment rate in 2015?

Suppose the official unemployment rate is 10 percent.Which of the following can be concluded without question?

What type of unemployment is likely to increase the most during a recession?

What type of unemployment is the hardest to reduce?

When does the unemployment rate increase?

Which of the following people would be classified as a discouraged worker?

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Economic Decision Makers

Demand, Supply, and Markets

Algebraic Approach to Demand, Supply, and Equilibrium

Introduction to Macroeconomics

Tracking the Canadian Economy

Productivity and Growth

Aggregate Expenditure and Aggregate Demand

Aggregate Supply

Fiscal Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy in an Open Economy

Macro Policy Debate: Active or Passive

International Finance

International Trade

Economic Development

Understanding Graphs

Filters

Exam 8: Unemployment and Inflation

Suppose unemployment benefits are increased.Which of the following is the most likely outcome of the increase?

Which of the following would likely lead to the most inflation?

What does hyperinflation refer to?

Suppose tastes and preferences change.As a result, newspaper journalists are laid off.What type of unemployment would this be classified as?

Which type of unemployment is NOT included in Canada's official monthly unemployment figures?

-Refer to the graph in the exhibit.What type of inflation is illustrated?

What typically causes cost-push inflation?

The unemployment rate does NOT measure all unemployed people.Which groups are NOT counted as unemployed in the official unemployment statistics?

What does cyclical unemployment result from?

Suppose U = the number of adults who are unemployed, E = the number of adults who are employed, and NLF = the number of adults NOT in the labour force.Which expression would equal the labour force participation rate?

What is the difference between demand-pull inflation and cost-push inflation?

Which one of the following categories of workers has a high unemployment rate?

Which of the following is NOT a cost of unemployment?

Which metropolitan area in Canada had the lowest unemployment rate in 2015?

Suppose the official unemployment rate is 10 percent.Which of the following can be concluded without question?

What type of unemployment is likely to increase the most during a recession?

What type of unemployment is the hardest to reduce?

When does the unemployment rate increase?

Which of the following people would be classified as a discouraged worker?

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Economic Decision Makers

Demand, Supply, and Markets

Algebraic Approach to Demand, Supply, and Equilibrium

Introduction to Macroeconomics

Tracking the Canadian Economy

Productivity and Growth

Aggregate Expenditure and Aggregate Demand

Aggregate Supply

Fiscal Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy in an Open Economy

Macro Policy Debate: Active or Passive

International Finance

International Trade

Economic Development

Understanding Graphs

Filters