Question 1

Which of the following is not a cost of unemployment?​

Accepted Answer

A) A loss of income 
B) Emotional or psychological problems​ 
C) Loss of job skills​ 
D) A decrease in production​ 
E) Higher annual inflation rates​ 
A) A loss of income 
B) Emotional or psychological problems​ 
C) Loss of job skills​ 
D) A decrease in production​ 
E) Higher annual inflation rates​

Question 2

A person whose skills do not match available job openings is considered frictionally unemployed.​

Accepted Answer

A) True 
 B)False

Question 3

In April 2010,the U.S.economy added 290,000 jobs but the unemployment rate still increased from 9.7 percent to 9.9 percent.Which of the following best explains this situation?​

Accepted Answer

A) The size of the labor force shrunk. 
B) The number of unemployed workers also increased,but by a smaller percentage. 
C) The number of illegal immigrants increased substantially. 
D) The number of discouraged workers increased substantially. 
E) The number of unemployed workers also increased,but by an even greater percentage. 
A) The size of the labor force shrunk. 
B) The number of unemployed workers also increased,but by a smaller percentage. 
C) The number of illegal immigrants increased substantially. 
D) The number of discouraged workers increased substantially. 
E) The number of unemployed workers also increased,but by an even greater percentage.

Question 4

Construction workers at times face high rates of unemployment because their work is both seasonal and subject to wide swings over the business cycle.​

Accepted Answer

A) True 
 B)False

Question 5

The official unemployment rate disguises the extent of the unemployment problem because:​

Accepted Answer

A) children are not counted as unemployed. 
B) retired persons are not counted as unemployed. 
C) full-time students are not counted as unemployed. 
D) discouraged workers are counted as unemployed. 
E) people overqualified for their current job are not considered unemployed. 
A) children are not counted as unemployed. 
B) retired persons are not counted as unemployed. 
C) full-time students are not counted as unemployed. 
D) discouraged workers are counted as unemployed. 
E) people overqualified for their current job are not considered unemployed.

Question 6

If the price level increases by 2 percent each year,the inflation rate is increasing.​

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is true about U.S.history prior to the 1950s?​

Accepted Answer

A) The inflation rate remained constant during this period. 
B) Cost-push inflation led to depressions,which were followed by slowly-rising price levels. 
C) The price level remained constant during this period. 
D) Major wars resulted in high inflation rates,after which the inflation rate tapered off. 
E) Major wars resulted in high inflation rates that were usually followed by deflation. 
A) The inflation rate remained constant during this period. 
B) Cost-push inflation led to depressions,which were followed by slowly-rising price levels. 
C) The price level remained constant during this period. 
D) Major wars resulted in high inflation rates,after which the inflation rate tapered off. 
E) Major wars resulted in high inflation rates that were usually followed by deflation.

Question 8

In an economy,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 labor force.The labor force participation rate in the economy is equal to:​

Accepted Answer

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

Question 9

If the inflation rate in an economy is 5 percent and the income earned by workers increases by 5 percent,then _____.​

Accepted Answer

A) nominal income declines and real income increases 
B) both nominal income and real income increase by 5 percent​ 
C) nominal income increases and real income declines​ 
D) both nominal income and real income decrease by 5 percent​ 
E) nominal income increases by 5 percent and real income is unchanged​ 
A) nominal income declines and real income increases 
B) both nominal income and real income increase by 5 percent​ 
C) nominal income increases and real income declines​ 
D) both nominal income and real income decrease by 5 percent​ 
E) nominal income increases by 5 percent and real income is unchanged​

Question 10

Which of the following factors makes the official unemployment rate an overstatement of the actual level of unemployment in the economy?​

Accepted Answer

A) Inclusion of discouraged workers 
B) Inclusion of those only working part time​ 
C) Inclusion of those who are overqualified for their current jobs​ 
D) Inclusion of those who are marginally attached to the labor force​ 
E) Inclusion of those who pretend to look for work in order to qualify for welfare programs​ 
A) Inclusion of discouraged workers 
B) Inclusion of those only working part time​ 
C) Inclusion of those who are overqualified for their current jobs​ 
D) Inclusion of those who are marginally attached to the labor force​ 
E) Inclusion of those who pretend to look for work in order to qualify for welfare programs​

Question 11

Which of the following is true of labor force participation rates in the United States since the 1950s?​

Accepted Answer

A) The rates for both men and women have risen. 
B) The rate for women has fallen; the rate for men has risen. 
C) The rate for men has fallen; the rate for women has increased. 
D) The rates for both men and women have fallen. 
E) The rates for both men and women have remained fairly constant. 
A) The rates for both men and women have risen. 
B) The rate for women has fallen; the rate for men has risen. 
C) The rate for men has fallen; the rate for women has increased. 
D) The rates for both men and women have fallen. 
E) The rates for both men and women have remained fairly constant.

Question 12

Unemployment arising from a mismatch of skills is called:​

Accepted Answer

A) frictional unemployment. 
B) structural unemployment. 
C) seasonal unemployment. 
D) cyclical unemployment. 
E) underemployment. 
A) frictional unemployment. 
B) structural unemployment. 
C) seasonal unemployment. 
D) cyclical unemployment. 
E) underemployment.

Question 13

Full employment:​

Accepted Answer

A) exists when,on average,nearly two out of three adults in the labor force are employed. 
B) exists when everyone who wants a job has one. 
C) exists when the unemployment rate is zero. 
D) exists when everyone in the labor force has a job. 
E) will always include some unemployment. 
A) exists when,on average,nearly two out of three adults in the labor force are employed. 
B) exists when everyone who wants a job has one. 
C) exists when the unemployment rate is zero. 
D) exists when everyone in the labor force has a job. 
E) will always include some unemployment.

Question 14

Which type of unemployment is likely to increase the most during an economy's recession?​

Accepted Answer

A) Frictional unemployment 
B) Seasonal unemployment​ 
C) Structural unemployment​ 
D) Cyclical unemployment​ 
E) Underemployment​ 
A) Frictional unemployment 
B) Seasonal unemployment​ 
C) Structural unemployment​ 
D) Cyclical unemployment​ 
E) Underemployment​

Question 15

The unemployment rate among African American workers in the United States is higher than that among white workers.​

Accepted Answer

A) True 
 B)False

Question 16

An increase in the demand for loanable funds,other things constant,will increase the interest rate.​

Accepted Answer

A) True 
 B)False

Question 17

After graduating from Harvard Law School,Anne started looking for a job.She could not find a job after looking for one week.Which of the following is true in this case?​

Accepted Answer

A) This is an example of frictional unemployment. 
B) This is an example of cyclical unemployment. 
C) This is an example of seasonal unemployment. 
D) She is underemployed. 
E) She is a discouraged worker. 
A) This is an example of frictional unemployment. 
B) This is an example of cyclical unemployment. 
C) This is an example of seasonal unemployment. 
D) She is underemployed. 
E) She is a discouraged worker.

Question 18

Relative prices describe the terms at which individual goods are exchanged for one another.

Accepted Answer

A) True 
 B)False

Question 19

The inflation experienced in the United States during the 1970s as a result of OPEC oil price increases is an example of:​

Accepted Answer

A) demand-pull inflation. 
B) hyperinflation. 
C) cost-push inflation. 
D) cyclical inflation. 
E) disinflation. 
A) demand-pull inflation. 
B) hyperinflation. 
C) cost-push inflation. 
D) cyclical inflation. 
E) disinflation.

Question 20

The problems of inflation are caused primarily by:​

Accepted Answer

A) greed on the part of sellers. 
B) uncertainty about inflation. 
C) too much incentive to lend money. 
D) greed on the part of union leaders. 
E) governments' actions to reduce the effects of inflation. 
A) greed on the part of sellers. 
B) uncertainty about inflation. 
C) too much incentive to lend money. 
D) greed on the part of union leaders. 
E) governments' actions to reduce the effects of inflation.

Which of the following is not a cost of unemployment?

A person whose skills do not match available job openings is considered frictionally unemployed.

In April 2010,the U.S.economy added 290,000 jobs but the unemployment rate still increased from 9.7 percent to 9.9 percent.Which of the following best explains this situation?

Construction workers at times face high rates of unemployment because their work is both seasonal and subject to wide swings over the business cycle.

The official unemployment rate disguises the extent of the unemployment problem because:

If the price level increases by 2 percent each year,the inflation rate is increasing.

Which of the following is true about U.S.history prior to the 1950s?

In an economy,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 labor force.The labor force participation rate in the economy is equal to:

If the inflation rate in an economy is 5 percent and the income earned by workers increases by 5 percent,then _____.

Which of the following factors makes the official unemployment rate an overstatement of the actual level of unemployment in the economy?

Which of the following is true of labor force participation rates in the United States since the 1950s?

Unemployment arising from a mismatch of skills is called:

Full employment:

Which type of unemployment is likely to increase the most during an economy's recession?

The unemployment rate among African American workers in the United States is higher than that among white workers.

An increase in the demand for loanable funds,other things constant,will increase the interest rate.

After graduating from Harvard Law School,Anne started looking for a job.She could not find a job after looking for one week.Which of the following is true in this case?

Relative prices describe the terms at which individual goods are exchanged for one another.

The inflation experienced in the United States during the 1970s as a result of OPEC oil price increases is an example of:

The problems of inflation are caused primarily by:

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Economic Decision Makers

Demand, supply, and Markets

Introduction to Macroeconomics

Tracking the Useconomy

Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

Exam 7: Unemployment and Inflation

Which of the following is not a cost of unemployment?​

A person whose skills do not match available job openings is considered frictionally unemployed.​

In April 2010,the U.S.economy added 290,000 jobs but the unemployment rate still increased from 9.7 percent to 9.9 percent.Which of the following best explains this situation?​

Construction workers at times face high rates of unemployment because their work is both seasonal and subject to wide swings over the business cycle.​

The official unemployment rate disguises the extent of the unemployment problem because:​

If the price level increases by 2 percent each year,the inflation rate is increasing.​

Which of the following is true about U.S.history prior to the 1950s?​

In an economy,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 labor force.The labor force participation rate in the economy is equal to:​

If the inflation rate in an economy is 5 percent and the income earned by workers increases by 5 percent,then _____.​

Which of the following factors makes the official unemployment rate an overstatement of the actual level of unemployment in the economy?​

Which of the following is true of labor force participation rates in the United States since the 1950s?​

Unemployment arising from a mismatch of skills is called:​

Full employment:​

Which type of unemployment is likely to increase the most during an economy's recession?​

The unemployment rate among African American workers in the United States is higher than that among white workers.​

An increase in the demand for loanable funds,other things constant,will increase the interest rate.​

After graduating from Harvard Law School,Anne started looking for a job.She could not find a job after looking for one week.Which of the following is true in this case?​

Relative prices describe the terms at which individual goods are exchanged for one another.

The inflation experienced in the United States during the 1970s as a result of OPEC oil price increases is an example of:​

The problems of inflation are caused primarily by:​

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Economic Decision Makers

Demand, supply, and Markets

Introduction to Macroeconomics

Tracking the Useconomy

Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

Which of the following is not a cost of unemployment?

A person whose skills do not match available job openings is considered frictionally unemployed.

In April 2010,the U.S.economy added 290,000 jobs but the unemployment rate still increased from 9.7 percent to 9.9 percent.Which of the following best explains this situation?

Construction workers at times face high rates of unemployment because their work is both seasonal and subject to wide swings over the business cycle.

The official unemployment rate disguises the extent of the unemployment problem because:

If the price level increases by 2 percent each year,the inflation rate is increasing.

Which of the following is true about U.S.history prior to the 1950s?

In an economy,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 labor force.The labor force participation rate in the economy is equal to:

If the inflation rate in an economy is 5 percent and the income earned by workers increases by 5 percent,then _____.

Which of the following factors makes the official unemployment rate an overstatement of the actual level of unemployment in the economy?

Which of the following is true of labor force participation rates in the United States since the 1950s?

Unemployment arising from a mismatch of skills is called:

Full employment:

Which type of unemployment is likely to increase the most during an economy's recession?

The unemployment rate among African American workers in the United States is higher than that among white workers.

An increase in the demand for loanable funds,other things constant,will increase the interest rate.

After graduating from Harvard Law School,Anne started looking for a job.She could not find a job after looking for one week.Which of the following is true in this case?

The inflation experienced in the United States during the 1970s as a result of OPEC oil price increases is an example of:

The problems of inflation are caused primarily by: