Question 1

In November 2008,the labour force in Centraltown was 14 800.There were 14 483 persons employed.What was the local unemployment rate?

Accepted Answer

A) 1.2 percent 
B) 2.1 percent 
C) 5.6 percent 
D) 7.1 percent 
A) 1.2 percent 
B) 2.1 percent 
C) 5.6 percent 
D) 7.1 percent

Question 2

What is the term for unemployment resulting from normal turnover in the labour market?

Accepted Answer

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

Question 3

What do economists consider a person who works part-time to be?

Accepted Answer

A) overemployed 
B) out of the labour force 
C) unemployed 
D) employed 
A) overemployed 
B) out of the labour force 
C) unemployed 
D) employed

Question 4

During an inflationary period,who are most likely to suffer reduced wealth?

Accepted Answer

A) those that hold their wealth in stocks 
B) those that hold their wealth in currency 
C) those that hold their wealth in real estate 
D) those that hold their wealth in gold 
A) those that hold their wealth in stocks 
B) those that hold their wealth in currency 
C) those that hold their wealth in real estate 
D) those that hold their wealth in gold

Question 5

Another name for the contractionary phase of a business cycle is recession.

Accepted Answer

A) True 
 B)False

Question 6

Why are creditors harmed by unexpected inflation?

Accepted Answer

A) Creditors receive lower nominal rates of interest when prices rise. 
B) Creditors are paid back money with less spending power than when it was originally loaned out. 
C) Creditors receive higher nominal rates of interest when prices rise. 
D) Creditors are paid back with more valuable dollars. 
A) Creditors receive lower nominal rates of interest when prices rise. 
B) Creditors are paid back money with less spending power than when it was originally loaned out. 
C) Creditors receive higher nominal rates of interest when prices rise. 
D) Creditors are paid back with more valuable dollars.

Question 7

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

Accepted Answer

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

Question 8

What is the term for the type of unemployment that occurs because of a recession?

Accepted Answer

A) frictional unemployment 
B) seasonal unemployment 
C) the natural rate of unemployment 
D) cyclical unemployment 
A) frictional unemployment 
B) seasonal unemployment 
C) the natural rate of unemployment 
D) cyclical unemployment

Question 9

Which of the following will equal zero when an economy is operating at full employment?

Accepted Answer

A) the unemployment rate 
B) cyclical unemployment 
C) frictional unemployment 
D) structural unemployment 
A) the unemployment rate 
B) cyclical unemployment 
C) frictional unemployment 
D) structural unemployment

Question 10

Economists refer to the median or "typical" rate of unemployment as the natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 11

If the CPI was 100 in the base year and 110 in the following year,what was the inflation rate?

Accepted Answer

A) 10 percent 
B) 11 percent 
C) 100 percent 
D) 110 percent 
A) 10 percent 
B) 11 percent 
C) 100 percent 
D) 110 percent

Question 12

Which of the following statements best describes unemployment in Canada?

Accepted Answer

A) Adult females experience higher rates of unemployment than do adult males. 
B) Teenagers experience lower rates of unemployment than do adult males. 
C) People in Western Canada tend to experience lower rates of unemployment than do people in Eastern Canada. 
D) People in Eastern Canada tend to experience lower rates of unemployment than do people in Western Canada. 
A) Adult females experience higher rates of unemployment than do adult males. 
B) Teenagers experience lower rates of unemployment than do adult males. 
C) People in Western Canada tend to experience lower rates of unemployment than do people in Eastern Canada. 
D) People in Eastern Canada tend to experience lower rates of unemployment than do people in Western Canada.

Question 13

In the 1970s,lending institutions earned a large portion of their income from extending fixed-rate mortgages and loans.They extended many of these loans in the early 1970s when inflation was low.Were the lending institutions winners or losers as inflation skyrocketed in the late 1970s?

Accepted Answer

The lending institutions were big losers

Question 14

If the nominal rate of interest is 10.5 percent and the inflation rate is 4.3 percent,what is the real rate of interest?

Accepted Answer

A) 3.0 percent 
B) 4.3 percent 
C) 6.2 percent 
D) 10.5 percent 
A) 3.0 percent 
B) 4.3 percent 
C) 6.2 percent 
D) 10.5 percent

Question 15

Nicholas has recently lost his job as a welder at an automobile manufacturing plant in Windsor.Tyler,who owns a pipeline construction company in Fort McMurray is desperately trying to hire welders.What is this an example of?

Accepted Answer

A) lack of occupational mobility 
B) natural unemployment 
C) labour market imperfections 
D) structural unemployment 
A) lack of occupational mobility 
B) natural unemployment 
C) labour market imperfections 
D) structural unemployment

Question 16

What type of unemployment is a federal government program aimed at retraining the unemployed workers of the declining fishing industries designed to reduce?

Accepted Answer

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

Question 17

Which of the following does NOT occur in an economy experiencing full employment?

Accepted Answer

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

Question 18

Is the CPI thought to be an accurate measure of changes in the cost of living?

Accepted Answer

A) It overestimates changes in the cost of living in some years, but underestimates changes in the cost of living in others. 
B) It does accurately measure changes in the cost of living without bias. 
C) It underestimates changes in the cost of living. 
D) It overestimates changes in the cost of living. 
A) It overestimates changes in the cost of living in some years, but underestimates changes in the cost of living in others. 
B) It does accurately measure changes in the cost of living without bias. 
C) It underestimates changes in the cost of living. 
D) It overestimates changes in the cost of living.

Question 19

Hometown,NB,has a labour force of 78 567 persons and employment of 74 382.What is the unemployment rate for the city?

Accepted Answer

A) 5.3 percent 
B) 5.6 percent 
C) 6.0 percent 
D) 7.1 percent 
A) 5.3 percent 
B) 5.6 percent 
C) 6.0 percent 
D) 7.1 percent

Question 20

What is the term for unemployment that results from technological changes?

Accepted Answer

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

In November 2008,the labour force in Centraltown was 14 800.There were 14 483 persons employed.What was the local unemployment rate?

What is the term for unemployment resulting from normal turnover in the labour market?

What do economists consider a person who works part-time to be?

During an inflationary period,who are most likely to suffer reduced wealth?

Another name for the contractionary phase of a business cycle is recession.

Why are creditors harmed by unexpected inflation?

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

What is the term for the type of unemployment that occurs because of a recession?

Which of the following will equal zero when an economy is operating at full employment?

Economists refer to the median or "typical" rate of unemployment as the natural rate of unemployment.

If the CPI was 100 in the base year and 110 in the following year,what was the inflation rate?

Which of the following statements best describes unemployment in Canada?

In the 1970s,lending institutions earned a large portion of their income from extending fixed-rate mortgages and loans.They extended many of these loans in the early 1970s when inflation was low.Were the lending institutions winners or losers as inflation skyrocketed in the late 1970s?

If the nominal rate of interest is 10.5 percent and the inflation rate is 4.3 percent,what is the real rate of interest?

Nicholas has recently lost his job as a welder at an automobile manufacturing plant in Windsor.Tyler,who owns a pipeline construction company in Fort McMurray is desperately trying to hire welders.What is this an example of?

What type of unemployment is a federal government program aimed at retraining the unemployed workers of the declining fishing industries designed to reduce?

Which of the following does NOT occur in an economy experiencing full employment?

Is the CPI thought to be an accurate measure of changes in the cost of living?

Hometown,NB,has a labour force of 78 567 persons and employment of 74 382.What is the unemployment rate for the city?

What is the term for unemployment that results from technological changes?

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

In November 2008,the labour force in Centraltown was 14 800.There were 14 483 persons employed.What was the local unemployment rate?

What is the term for unemployment resulting from normal turnover in the labour market?

What do economists consider a person who works part-time to be?

During an inflationary period,who are most likely to suffer reduced wealth?

Another name for the contractionary phase of a business cycle is recession.

Why are creditors harmed by unexpected inflation?

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

What is the term for the type of unemployment that occurs because of a recession?

Which of the following will equal zero when an economy is operating at full employment?

Economists refer to the median or "typical" rate of unemployment as the natural rate of unemployment.

If the CPI was 100 in the base year and 110 in the following year,what was the inflation rate?

Which of the following statements best describes unemployment in Canada?

In the 1970s,lending institutions earned a large portion of their income from extending fixed-rate mortgages and loans.They extended many of these loans in the early 1970s when inflation was low.Were the lending institutions winners or losers as inflation skyrocketed in the late 1970s?

If the nominal rate of interest is 10.5 percent and the inflation rate is 4.3 percent,what is the real rate of interest?

Nicholas has recently lost his job as a welder at an automobile manufacturing plant in Windsor.Tyler,who owns a pipeline construction company in Fort McMurray is desperately trying to hire welders.What is this an example of?

What type of unemployment is a federal government program aimed at retraining the unemployed workers of the declining fishing industries designed to reduce?

Which of the following does NOT occur in an economy experiencing full employment?

Is the CPI thought to be an accurate measure of changes in the cost of living?

Hometown,NB,has a labour force of 78 567 persons and employment of 74 382.What is the unemployment rate for the city?

What is the term for unemployment that results from technological changes?

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