Question 1

Each person in the population can be classified as employed,unemployed,or not in the labour force.

Accepted Answer

A) True 
 B)False

Question 2

The cost of unemployment to society includes the loss of the goods and services that might have been produced if the unemployed had been employed.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following people is structurally unemployed?

Accepted Answer

A) Danielle lost her job when the electronics assembly plant was shut down temporarily due to low product sales in a slumping economy. 
B) Brendan left his job as a short-order cook in Prince George to become a short-order cook in New Glasgow. He was unemployed for six weeks during the transition. 
C) Mildred quit her job after giving birth to a child. 
D) Clem, a skilled corset maker, lost his job when his factory shut down due to a permanent reduction in the demand for corsets. 
A) Danielle lost her job when the electronics assembly plant was shut down temporarily due to low product sales in a slumping economy. 
B) Brendan left his job as a short-order cook in Prince George to become a short-order cook in New Glasgow. He was unemployed for six weeks during the transition. 
C) Mildred quit her job after giving birth to a child. 
D) Clem, a skilled corset maker, lost his job when his factory shut down due to a permanent reduction in the demand for corsets.

Question 4

Which of the following statements best describes unemployment in Canada?

Accepted Answer

A) Adult males experience lower rates of unemployment than do adult females. 
B) Seniors citizens have the highest unemployment level since they are not actively looking for work. 
C) Teenagers have unemployment levels that are considerably higher than all other age groups. 
D) Teenagers experience lower rates of unemployment than do adults. 
A) Adult males experience lower rates of unemployment than do adult females. 
B) Seniors citizens have the highest unemployment level since they are not actively looking for work. 
C) Teenagers have unemployment levels that are considerably higher than all other age groups. 
D) Teenagers experience lower rates of unemployment than do adults.

Question 5

New inventions may displace some workers,but generally lead to the growth of jobs in new industries.

Accepted Answer

A) True 
 B)False

Question 6

If the unemployment rate is 8 percent,what can we conclude?

Accepted Answer

A) that 8 percent of the labour force is unemployed 
B) that 8 percent of the population is unemployed 
C) that 8 percent of the population aged 15 and over is unemployed 
D) that the number of unemployed persons equals 8 percent of the employed persons 
A) that 8 percent of the labour force is unemployed 
B) that 8 percent of the population is unemployed 
C) that 8 percent of the population aged 15 and over is unemployed 
D) that the number of unemployed persons equals 8 percent of the employed persons

Question 7

Which of the following best describes persons who work 25 hours per week?

Accepted Answer

A) They are considered to be overemployed. 
B) They are considered to be discouraged workers. 
C) They are considered to be unemployed. 
D) They are considered to part of the labour force. 
A) They are considered to be overemployed. 
B) They are considered to be discouraged workers. 
C) They are considered to be unemployed. 
D) They are considered to part of the labour force.

Question 8

When does frictional unemployment occur?

Accepted Answer

A) when college students go back to school at the end of the summer 
B) when there is friction between an employer and employee 
C) when a worker decides to quit a job to seek a different job 
D) when a large corporation transfers a worker to another city 
A) when college students go back to school at the end of the summer 
B) when there is friction between an employer and employee 
C) when a worker decides to quit a job to seek a different job 
D) when a large corporation transfers a worker to another city

Question 9

In the CPI,what is the base year?

Accepted Answer

A) the year of the first basket, which was 1986 
B) the benchmark against which other years are compared 
C) the previous year 
D) the current year 
A) the year of the first basket, which was 1986 
B) the benchmark against which other years are compared 
C) the previous year 
D) the current year

Question 10

Nearly every society desires to achieve the macroeconomic goals of high employment,a stable price level,and high economic growth.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements about the index of leading economic indicators is the most accurate?

Accepted Answer

A) It provides accurate information on the duration of downturns in the economy. 
B) It provides accurate information on the depth of downturns in the economy. 
C) It can result in a self-fulfilling prophecy if business firms respond to leading economic indicator predictions. 
D) It virtually always predicts downturns in the economy with a lead-time of six months. 
A) It provides accurate information on the duration of downturns in the economy. 
B) It provides accurate information on the depth of downturns in the economy. 
C) It can result in a self-fulfilling prophecy if business firms respond to leading economic indicator predictions. 
D) It virtually always predicts downturns in the economy with a lead-time of six months.

Question 12

When does structural unemployment occur?

Accepted Answer

A) when frictional unemployment exceeds 5 percent of the labour force 
B) when a person leaves a job to seek a better position and can't find the job he or she wants 
C) when steelworkers are laid off due to a downturn in the economy 
D) when automation reduces the need for welders in Oshawa 
A) when frictional unemployment exceeds 5 percent of the labour force 
B) when a person leaves a job to seek a better position and can't find the job he or she wants 
C) when steelworkers are laid off due to a downturn in the economy 
D) when automation reduces the need for welders in Oshawa

Question 13

The economy reaches full employment when the unemployment rate equals zero.

Accepted Answer

A) True 
 B)False

Question 14

What will an economy that is operating at its potential output NOT experience?

Accepted Answer

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

Question 15

According to economists,why are high rates of unemployment undesirable?

Accepted Answer

A) Society loses potential production of goods and services. 
B) The Employment Insurance program could go bankrupt. 
C) They cause the incomes of those that are still working to fall. 
D) Everyone has the right to a well-paying job. 
A) Society loses potential production of goods and services. 
B) The Employment Insurance program could go bankrupt. 
C) They cause the incomes of those that are still working to fall. 
D) Everyone has the right to a well-paying job.

Question 16

What is the result of an unanticipated increase in inflation?

Accepted Answer

A) a redistribution of income from employers to workers 
B) a redistribution of income from lenders to borrowers 
C) a redistribution of income from governments to taxpayers 
D) a redistribution of income from borrowers to lenders 
A) a redistribution of income from employers to workers 
B) a redistribution of income from lenders to borrowers 
C) a redistribution of income from governments to taxpayers 
D) a redistribution of income from borrowers to lenders

Question 17

If the CPI decreases from one year to the next,what has the economy experienced?

Accepted Answer

A) deflation 
B) inflation 
C) stagnation 
D) growth 
A) deflation 
B) inflation 
C) stagnation 
D) growth

Question 18

How is the unemployment rate calculated?

Accepted Answer

A) the number of unemployed persons divided by the number of employed plus unemployed persons 
B) the number of unemployed persons divided by the number of employed persons 
C) the number of unemployed persons divided by the population 
D) the number of employed persons divided by the number of unemployed persons 
A) the number of unemployed persons divided by the number of employed plus unemployed persons 
B) the number of unemployed persons divided by the number of employed persons 
C) the number of unemployed persons divided by the population 
D) the number of employed persons divided by the number of unemployed persons

Question 19

Laura has finished her diploma in business and has just started looking for work.What kind of unemployment is she facing?

Accepted Answer

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

Question 20

What is the term for the difference between the nominal interest rate and the rate of inflation?

Accepted Answer

A) the discount rate 
B) the coupon rate 
C) the real interest rate 
D) the prime rate 
A) the discount rate 
B) the coupon rate 
C) the real interest rate 
D) the prime rate

Each person in the population can be classified as employed,unemployed,or not in the labour force.

The cost of unemployment to society includes the loss of the goods and services that might have been produced if the unemployed had been employed.

Which of the following people is structurally unemployed?

Which of the following statements best describes unemployment in Canada?

New inventions may displace some workers,but generally lead to the growth of jobs in new industries.

If the unemployment rate is 8 percent,what can we conclude?

Which of the following best describes persons who work 25 hours per week?

When does frictional unemployment occur?

In the CPI,what is the base year?

Nearly every society desires to achieve the macroeconomic goals of high employment,a stable price level,and high economic growth.

Which of the following statements about the index of leading economic indicators is the most accurate?

When does structural unemployment occur?

The economy reaches full employment when the unemployment rate equals zero.

What will an economy that is operating at its potential output NOT experience?

According to economists,why are high rates of unemployment undesirable?

What is the result of an unanticipated increase in inflation?

If the CPI decreases from one year to the next,what has the economy experienced?

How is the unemployment rate calculated?

Laura has finished her diploma in business and has just started looking for work.What kind of unemployment is she facing?

What is the term for the difference between the nominal interest rate and the rate of inflation?

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

Each person in the population can be classified as employed,unemployed,or not in the labour force.

The cost of unemployment to society includes the loss of the goods and services that might have been produced if the unemployed had been employed.

Which of the following people is structurally unemployed?

Which of the following statements best describes unemployment in Canada?

New inventions may displace some workers,but generally lead to the growth of jobs in new industries.

If the unemployment rate is 8 percent,what can we conclude?

Which of the following best describes persons who work 25 hours per week?

When does frictional unemployment occur?

In the CPI,what is the base year?

Nearly every society desires to achieve the macroeconomic goals of high employment,a stable price level,and high economic growth.

Which of the following statements about the index of leading economic indicators is the most accurate?

When does structural unemployment occur?

The economy reaches full employment when the unemployment rate equals zero.

What will an economy that is operating at its potential output NOT experience?

According to economists,why are high rates of unemployment undesirable?

What is the result of an unanticipated increase in inflation?

If the CPI decreases from one year to the next,what has the economy experienced?

How is the unemployment rate calculated?

Laura has finished her diploma in business and has just started looking for work.What kind of unemployment is she facing?

What is the term for the difference between the nominal interest rate and the rate of inflation?

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