Question 1

When the economy does NOT generate enough jobs to employ all those who are willing to work,what can we conclude?

Accepted Answer

A) The economy must be experiencing a recession. 
B) Unemployment insurance and other social welfare programs prevent society from incurring any significant economic costs as a result. 
C) Potential goods and services that might have been enjoyed by consumers are lost. 
D) The economy must be operating at the full employment level of output. 
A) The economy must be experiencing a recession. 
B) Unemployment insurance and other social welfare programs prevent society from incurring any significant economic costs as a result. 
C) Potential goods and services that might have been enjoyed by consumers are lost. 
D) The economy must be operating at the full employment level of output. C

Question 2

What is the term for the category of unemployment that is a by-product of geographic and occupational mobility and NOT generally considered to be a serious problem?

Accepted Answer

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

Question 3

Which of the following best describes the presence of discouraged workers?

Accepted Answer

A) The unemployment rate will tend to overstate the true level of unemployment when they are present. 
B) The unemployment rate will tend to understate the true level of unemployment when they are present. 
C) They are considered part of the labour force. 
D) They are included in the official count of the unemployed. 
A) The unemployment rate will tend to overstate the true level of unemployment when they are present. 
B) The unemployment rate will tend to understate the true level of unemployment when they are present. 
C) They are considered part of the labour force. 
D) They are included in the official count of the unemployed. B

Question 4

How is the nominal rate of interest calculated?

Accepted Answer

A) by adding a nominal sum to the prime interest rate 
B) by adding the expected rate of inflation to the real interest rate 
C) by adding the inflation rate to the unemployment rate 
D) by adding the increase in the Consumer Price Index to the rate of interest 
A) by adding a nominal sum to the prime interest rate 
B) by adding the expected rate of inflation to the real interest rate 
C) by adding the inflation rate to the unemployment rate 
D) by adding the increase in the Consumer Price Index to the rate of interest

Question 5

Which of the following factors might cause the unemployment rate to underestimate the true extent of unemployment?

Accepted Answer

A) Many people have a part-time as well as a full-time job. 
B) Employees increase the number of hours they work overtime. 
C) There are a large number of people working in the underground economy. 
D) Many people become discouraged and cease looking for work. 
A) Many people have a part-time as well as a full-time job. 
B) Employees increase the number of hours they work overtime. 
C) There are a large number of people working in the underground economy. 
D) Many people become discouraged and cease looking for work.

Question 6

What is the contractionary phase of the business cycle characterized by?

Accepted Answer

A) reduced output and increased unemployment 
B) increased output and increased unemployment 
C) increased output and reduced unemployment 
D) reduced output and reduced unemployment 
A) reduced output and increased unemployment 
B) increased output and increased unemployment 
C) increased output and reduced unemployment 
D) reduced output and reduced unemployment

Question 7

What are the three major macroeconomic goals of nearly every society?

Accepted Answer

A) reducing unemployment, reducing interest rates, and achieving a high rate of economic growth 
B) maintaining stable prices, maintaining high levels of employment, and achieving a high rate of economic growth 
C) maintaining stable prices, reducing interest rates, and achieving a high rate of economic growth 
D) maintaining high levels of employment, increasing the supply of money, and achieving a high rate of economic growth 
A) reducing unemployment, reducing interest rates, and achieving a high rate of economic growth 
B) maintaining stable prices, maintaining high levels of employment, and achieving a high rate of economic growth 
C) maintaining stable prices, reducing interest rates, and achieving a high rate of economic growth 
D) maintaining high levels of employment, increasing the supply of money, and achieving a high rate of economic growth

Question 8

What does the unemployment rate measure?

Accepted Answer

A) unemployed workers as a percentage of the population aged 15 and over 
B) the number of people unemployed divided by the number of people employed 
C) unemployed workers as a percentage of the population 
D) unemployed workers as a percentage of the labour force 
A) unemployed workers as a percentage of the population aged 15 and over 
B) the number of people unemployed divided by the number of people employed 
C) unemployed workers as a percentage of the population 
D) unemployed workers as a percentage of the labour force

Question 9

Since 1976,what has happened to the labour force participation rate?

Accepted Answer

A) There has been a decrease 
B) There was first an increase and then a significant decrease. 
C) There has been an increase 
D) There has been no change 
A) There has been a decrease 
B) There was first an increase and then a significant decrease. 
C) There has been an increase 
D) There has been no change

Question 10

Why do economists believe that the CPI may not be completely accurate?

Accepted Answer

A) Different consumers purchase different baskets. 
B) The CPI is slow to include price decreases for new products, such as iPods. 
C) The CPI is not able to adjust for changes in the price of imports. 
D) Consumers tend to substitute lower-priced items for those in the fixed basket. 
A) Different consumers purchase different baskets. 
B) The CPI is slow to include price decreases for new products, such as iPods. 
C) The CPI is not able to adjust for changes in the price of imports. 
D) Consumers tend to substitute lower-priced items for those in the fixed basket.

Question 11

In the period 1962-2010,how many major recessions have there been?

Accepted Answer

A) 1 
B) 3 
C) 6 
D) 10 
A) 1 
B) 3 
C) 6 
D) 10

Question 12

Given a fixed nominal interest rate on a loan,what is the result of unanticipated deflation?

Accepted Answer

A) It increases the burden of paying off the loan. 
B) It does not alter the burden of paying off the loan. 
C) It has an indeterminate effect on the burden of paying off the loan. 
D) It decreases the burden of paying off the loan. 
A) It increases the burden of paying off the loan. 
B) It does not alter the burden of paying off the loan. 
C) It has an indeterminate effect on the burden of paying off the loan. 
D) It decreases the burden of paying off the loan.

Question 13

Cody has recently graduated from university with an MA in economics.Having been unsuccessful in getting a job in Toronto's financial district,he accepts a job at Home Depot in Kingston.How does Statistics Canada view Cody?

Accepted Answer

A) as employed 
B) as structurally unemployed 
C) as frictionally unemployed 
D) as underemployed 
A) as employed 
B) as structurally unemployed 
C) as frictionally unemployed 
D) as underemployed

Question 14

What is the term for unemployment that results from an economy-wide downturn?

Accepted Answer

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

Question 15

In 2010,which of these provinces had the lowest unemployment rate?

Accepted Answer

A) Quebec 
B) Ontario 
C) Saskatchewan 
D) Newfoundland & Labrador 
A) Quebec 
B) Ontario 
C) Saskatchewan 
D) Newfoundland & Labrador

Question 16

Economic growth refers to an increase in the real per capita output of goods and services in an economy.

Accepted Answer

A) True 
 B)False

Question 17

The information below describes the real GDP per capita for the country of Bedrock for the period of 1975 to 1991.
a.If a new business cycle began in 1975, how long was this cycle?
b.The peak occurred in which year? The trough occurred in which year?
c.How long was the expansion? How long was the contraction?

Accepted Answer

@#IMG-DLM& 
a.14 yea

Question 18

What do economists use the term "business cycle" to refer to?

Accepted Answer

A) fluctuations in economic activity, measured by GDP or unemployment 
B) periods of increase or decrease in the rate of inflation 
C) the growth of small businesses into major corporations 
D) qualitative changes in products resulting from improved technology 
A) fluctuations in economic activity, measured by GDP or unemployment 
B) periods of increase or decrease in the rate of inflation 
C) the growth of small businesses into major corporations 
D) qualitative changes in products resulting from improved technology

Question 19

What is the term for the portion of unemployment that is attributable to an overall decline in the economy's business activity?

Accepted Answer

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

Question 20

When Bob is laid off from his job at the auto plant,which of the following categories would he fall under?

Accepted Answer

A) a job loser 
B) frictionally unemployed 
C) a job leaver 
D) underemployed 
A) a job loser 
B) frictionally unemployed 
C) a job leaver 
D) underemployed

When the economy does NOT generate enough jobs to employ all those who are willing to work,what can we conclude?

What is the term for the category of unemployment that is a by-product of geographic and occupational mobility and NOT generally considered to be a serious problem?

Which of the following best describes the presence of discouraged workers?

How is the nominal rate of interest calculated?

Which of the following factors might cause the unemployment rate to underestimate the true extent of unemployment?

What is the contractionary phase of the business cycle characterized by?

What are the three major macroeconomic goals of nearly every society?

What does the unemployment rate measure?

Since 1976,what has happened to the labour force participation rate?

Why do economists believe that the CPI may not be completely accurate?

In the period 1962-2010,how many major recessions have there been?

Given a fixed nominal interest rate on a loan,what is the result of unanticipated deflation?

Cody has recently graduated from university with an MA in economics.Having been unsuccessful in getting a job in Toronto's financial district,he accepts a job at Home Depot in Kingston.How does Statistics Canada view Cody?

What is the term for unemployment that results from an economy-wide downturn?

In 2010,which of these provinces had the lowest unemployment rate?

Economic growth refers to an increase in the real per capita output of goods and services in an economy.

What do economists use the term "business cycle" to refer to?

What is the term for the portion of unemployment that is attributable to an overall decline in the economy's business activity?

When Bob is laid off from his job at the auto plant,which of the following categories would he fall under?

The Role and Method of Economics

Scarcity, trade-Offs, and Production Possibilities

Supply and Demand

Bringing Supply and Demand Together

Measuring Economic Performance

Economic Growth in the Global Economy

Aggregate Demand

Aggregate Supply and Macroeconomic Equilibrium

Fiscal Policy

Money and the Banking System

The Bank of Canada

Monetary Policy

International Trade

International Finance

Filters

Exam 5: Introduction to the Macroeconomy

When the economy does NOT generate enough jobs to employ all those who are willing to work,what can we conclude?

What is the term for the category of unemployment that is a by-product of geographic and occupational mobility and NOT generally considered to be a serious problem?

Which of the following best describes the presence of discouraged workers?

How is the nominal rate of interest calculated?

Which of the following factors might cause the unemployment rate to underestimate the true extent of unemployment?

What is the contractionary phase of the business cycle characterized by?

What are the three major macroeconomic goals of nearly every society?

What does the unemployment rate measure?

Since 1976,what has happened to the labour force participation rate?

Why do economists believe that the CPI may not be completely accurate?

In the period 1962-2010,how many major recessions have there been?

Given a fixed nominal interest rate on a loan,what is the result of unanticipated deflation?

Cody has recently graduated from university with an MA in economics.Having been unsuccessful in getting a job in Toronto's financial district,he accepts a job at Home Depot in Kingston.How does Statistics Canada view Cody?

What is the term for unemployment that results from an economy-wide downturn?

In 2010,which of these provinces had the lowest unemployment rate?

Economic growth refers to an increase in the real per capita output of goods and services in an economy.

What do economists use the term "business cycle" to refer to?

What is the term for the portion of unemployment that is attributable to an overall decline in the economy's business activity?

When Bob is laid off from his job at the auto plant,which of the following categories would he fall under?

The Role and Method of Economics

Scarcity, trade-Offs, and Production Possibilities

Supply and Demand

Bringing Supply and Demand Together

Measuring Economic Performance

Economic Growth in the Global Economy

Aggregate Demand

Aggregate Supply and Macroeconomic Equilibrium

Fiscal Policy

Money and the Banking System

The Bank of Canada

Monetary Policy

International Trade

International Finance

Filters