Question 1

Who do economists consider to be discouraged workers?

Accepted Answer

A) workers who are counted as structurally unemployed, lacking training for the skilled positions for which they are applying 
B) workers who have given up looking for a job and are not counted as unemployed 
C) workers who are counted as frictionally unemployed, having become dissatisfied with their previous jobs 
D) workers whose productivity is low because working in dead-end jobs reduces their morale 
A) workers who are counted as structurally unemployed, lacking training for the skilled positions for which they are applying 
B) workers who have given up looking for a job and are not counted as unemployed 
C) workers who are counted as frictionally unemployed, having become dissatisfied with their previous jobs 
D) workers whose productivity is low because working in dead-end jobs reduces their morale

Question 2

What is the total labour force equal to?

Accepted Answer

A) the number of unemployed persons 
B) the number of persons aged 15 and over in the population 
C) the number of employed persons 
D) the number of employed plus unemployed persons 
A) the number of unemployed persons 
B) the number of persons aged 15 and over in the population 
C) the number of employed persons 
D) the number of employed plus unemployed persons

Question 3

What does an economist consider a university student who is enrolled in school full-time and NOT seeking employment?

Accepted Answer

A) underemployed 
B) employed in leisure 
C) out of the labour force 
D) unemployable, and not counted in official statistics 
A) underemployed 
B) employed in leisure 
C) out of the labour force 
D) unemployable, and not counted in official statistics

Question 4

After unsuccessfully looking for full-time work for six weeks,Joey accepted a part-time job.How does the official unemployment rate fail to reflect the true degree of unemployment in this case?

Accepted Answer

A) Joey is viewed to be a discouraged worker and as such is not considered part of the labour force. 
B) It continues to treat Joey as unemployed because he is only employed part-time. 
C) Even though Joey is working less than he wants to work, he is no longer considered unemployed. 
D) Since Joey was out of work for only six weeks, he was never officially considered unemployed. 
A) Joey is viewed to be a discouraged worker and as such is not considered part of the labour force. 
B) It continues to treat Joey as unemployed because he is only employed part-time. 
C) Even though Joey is working less than he wants to work, he is no longer considered unemployed. 
D) Since Joey was out of work for only six weeks, he was never officially considered unemployed.

Question 5

The current cost of a market basket of goods is $9000.The cost of the same basket of goods in the base year was $3000.What is the current price index?

Accepted Answer

A) 133 
B) 166 
C) 300 
D) 900 
A) 133 
B) 166 
C) 300 
D) 900

Question 6

Unemployment rises and falls in the same direction as output over the business cycle.

Accepted Answer

A) True 
 B)False

Question 7

What is the term for the period of declining growth in real GDP between the peak of the business cycle and the trough?

Accepted Answer

A) slowdown phase 
B) contractionary phase 
C) stagnant phase 
D) static phase 
A) slowdown phase 
B) contractionary phase 
C) stagnant phase 
D) static phase

Question 8

Economic growth increased after 1994,which helped to lower Canada's unemployment rate from relatively high levels in the early 1990s.

Accepted Answer

A) True 
 B)False

Question 9

From 1960-2010,when did the Canadian economy experience the most prolonged recession?

Accepted Answer

A) 1968 
B) 1982 
C) 1991 
D) 2009 
A) 1968 
B) 1982 
C) 1991 
D) 2009

Question 10

According to economists,what is a discouraged worker?

Accepted Answer

A) someone who is unemployed and looking for work 
B) someone who works part-time, but is actively seeking full-time work 
C) someone who has a job, but wants to get a different one 
D) someone who gives up looking for work, and is no longer counted as unemployed 
A) someone who is unemployed and looking for work 
B) someone who works part-time, but is actively seeking full-time work 
C) someone who has a job, but wants to get a different one 
D) someone who gives up looking for work, and is no longer counted as unemployed

Question 11

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

Accepted Answer

A) It decreases the burden of paying off the loan 
B) It benefits savers 
C) It does not alter the burden of paying off the loan 
D) It increases the burden of paying off the loan 
A) It decreases the burden of paying off the loan 
B) It benefits savers 
C) It does not alter the burden of paying off the loan 
D) It increases the burden of paying off the loan

Question 12

What do economists consider a welder who quits his job and moves from Windsor to Edmonton to try to get a better welding job?

Accepted Answer

A) cyclically unemployed 
B) underemployed 
C) frictionally unemployed 
D) structurally unemployed 
A) cyclically unemployed 
B) underemployed 
C) frictionally unemployed 
D) structurally unemployed

Question 13

Which of the following best describes the impact of the implementation of a new technology in the economy?

Accepted Answer

A) It causes a substantial hardship on the whole labour force. 
B) It creates economic, and therefore job growth. 
C) It gets rid of structural unemployment. 
D) It causes considerable job losses. 
A) It causes a substantial hardship on the whole labour force. 
B) It creates economic, and therefore job growth. 
C) It gets rid of structural unemployment. 
D) It causes considerable job losses.

Question 14

What does the total labour force consist of?

Accepted Answer

A) the number of employed persons plus those who are not working but could 
B) the total population aged 15 and over 
C) the number of employed persons plus the number of unemployed persons seeking work 
D) the entire population 
A) the number of employed persons plus those who are not working but could 
B) the total population aged 15 and over 
C) the number of employed persons plus the number of unemployed persons seeking work 
D) the entire population

Question 15

Economists consider cyclical unemployment to be the by-product of a healthy economy.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is NOT a major macroeconomic goal of nearly every society?

Accepted Answer

A) achieving self-sufficiency in the production of food and energy 
B) maintaining stability of prices 
C) achieving high rates of economic growth 
D) maintaining high levels of employment 
A) achieving self-sufficiency in the production of food and energy 
B) maintaining stability of prices 
C) achieving high rates of economic growth 
D) maintaining high levels of employment

Question 17

Which of the following groups of people would be included in the official unemployment rate?

Accepted Answer

A) discouraged workers 
B) workers temporarily laid off 
C) underemployed workers 
D) part-time workers 
A) discouraged workers 
B) workers temporarily laid off 
C) underemployed workers 
D) part-time workers

Question 18

A business cycle reflects changes in economic activity,particularly real GDP.What are the stages of a business cycle,in order?

Accepted Answer

A) expansion, peak, contraction, trough 
B) trough, expansion, contraction, peak 
C) contraction, recession, expansion, boom 
D) expansion, trough, contraction, peak 
A) expansion, peak, contraction, trough 
B) trough, expansion, contraction, peak 
C) contraction, recession, expansion, boom 
D) expansion, trough, contraction, peak

Question 19

The unemployment rate measures the number of unemployed people expressed as a percentage of the total population.

Accepted Answer

A) True 
 B)False

Question 20

What do economists consider persons who do NOT hold jobs,but are actively seeking work?

Accepted Answer

A) unemployable, and not counted in official statistics. 
B) unemployed 
C) underemployed 
D) out of the labour force 
A) unemployable, and not counted in official statistics. 
B) unemployed 
C) underemployed 
D) out of the labour force

Who do economists consider to be discouraged workers?

What is the total labour force equal to?

What does an economist consider a university student who is enrolled in school full-time and NOT seeking employment?

After unsuccessfully looking for full-time work for six weeks,Joey accepted a part-time job.How does the official unemployment rate fail to reflect the true degree of unemployment in this case?

The current cost of a market basket of goods is $9000.The cost of the same basket of goods in the base year was $3000.What is the current price index?

Unemployment rises and falls in the same direction as output over the business cycle.

What is the term for the period of declining growth in real GDP between the peak of the business cycle and the trough?

Economic growth increased after 1994,which helped to lower Canada's unemployment rate from relatively high levels in the early 1990s.

From 1960-2010,when did the Canadian economy experience the most prolonged recession?

According to economists,what is a discouraged worker?

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

What do economists consider a welder who quits his job and moves from Windsor to Edmonton to try to get a better welding job?

Which of the following best describes the impact of the implementation of a new technology in the economy?

What does the total labour force consist of?

Economists consider cyclical unemployment to be the by-product of a healthy economy.

Which of the following is NOT a major macroeconomic goal of nearly every society?

Which of the following groups of people would be included in the official unemployment rate?

A business cycle reflects changes in economic activity,particularly real GDP.What are the stages of a business cycle,in order?

The unemployment rate measures the number of unemployed people expressed as a percentage of the total population.

What do economists consider persons who do NOT hold jobs,but are actively seeking work?

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

Who do economists consider to be discouraged workers?

What is the total labour force equal to?

What does an economist consider a university student who is enrolled in school full-time and NOT seeking employment?

After unsuccessfully looking for full-time work for six weeks,Joey accepted a part-time job.How does the official unemployment rate fail to reflect the true degree of unemployment in this case?

The current cost of a market basket of goods is $9000.The cost of the same basket of goods in the base year was $3000.What is the current price index?

Unemployment rises and falls in the same direction as output over the business cycle.

What is the term for the period of declining growth in real GDP between the peak of the business cycle and the trough?

Economic growth increased after 1994,which helped to lower Canada's unemployment rate from relatively high levels in the early 1990s.

From 1960-2010,when did the Canadian economy experience the most prolonged recession?

According to economists,what is a discouraged worker?

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

What do economists consider a welder who quits his job and moves from Windsor to Edmonton to try to get a better welding job?

Which of the following best describes the impact of the implementation of a new technology in the economy?

What does the total labour force consist of?

Economists consider cyclical unemployment to be the by-product of a healthy economy.

Which of the following is NOT a major macroeconomic goal of nearly every society?

Which of the following groups of people would be included in the official unemployment rate?

A business cycle reflects changes in economic activity,particularly real GDP.What are the stages of a business cycle,in order?

The unemployment rate measures the number of unemployed people expressed as a percentage of the total population.

What do economists consider persons who do NOT hold jobs,but are actively seeking work?

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