Question 1

Which one of the following individuals would be classified as structurally unemployed?

Accepted Answer

A) Bennett lost his job because there was a reduction in the number of houses built during the winter of 1986. 
B) Gail lost her job with the province because there was a reduction in the provincial budget. 
C) Tommy lost his job when the steel mill where he worked closed because domestic producers would not produce as efficiently and cheaply as foreign firms. 
D) Fay lost her job in early January when the Christmas store where she worked closed. 
A) Bennett lost his job because there was a reduction in the number of houses built during the winter of 1986. 
B) Gail lost her job with the province because there was a reduction in the provincial budget. 
C) Tommy lost his job when the steel mill where he worked closed because domestic producers would not produce as efficiently and cheaply as foreign firms. 
D) Fay lost her job in early January when the Christmas store where she worked closed.

Question 2

According to Statistics Canada,if you voluntarily leave your job,then

Accepted Answer

A) you are classified as unemployed. 
B) you are eligible for unemployment compensation. 
C) you may not re-enter the labour force for six months. 
D) you are classified as a job loser. 
A) you are classified as unemployed. 
B) you are eligible for unemployment compensation. 
C) you may not re-enter the labour force for six months. 
D) you are classified as a job loser.

Question 3

Assume you borrow money to buy a new car at 10 percent interest,and you think that the economy-wide rate of inflation over the life of the loan will be 8 percent.If you are correct in your assumption,your real rate of interest on the car loan will be

Accepted Answer

A) 2 percent. 
B) 8 percent. 
C) 10 percent. 
D) 18 percent. 
A) 2 percent. 
B) 8 percent. 
C) 10 percent. 
D) 18 percent.

Question 4

How are the effects of anticipated and unanticipated inflation different on individuals and the economy?

Accepted Answer

Anticipated inflation is the rate of inf

Question 5

Fully anticipated inflation occurs when

Accepted Answer

A) the actual inflation rate equals the anticipated inflation rate. 
B) the actual inflation rate is less than the anticipated inflation rate. 
C) the inflation rate is zero. 
D) the anticipated inflation rate and the unanticipated inflation rate are equal. 
A) the actual inflation rate equals the anticipated inflation rate. 
B) the actual inflation rate is less than the anticipated inflation rate. 
C) the inflation rate is zero. 
D) the anticipated inflation rate and the unanticipated inflation rate are equal.

Question 6

The Consumer Price Index attempts to measure

Accepted Answer

A) the average of raw material prices paid by producing firms. 
B) the level of prices with respect to goods and services purchased by wage earners in urban areas. 
C) the level of prices with respect to goods and services purchased by retired couples in rural areas. 
D) hourly wage rates of manufacturing workers. 
A) the average of raw material prices paid by producing firms. 
B) the level of prices with respect to goods and services purchased by wage earners in urban areas. 
C) the level of prices with respect to goods and services purchased by retired couples in rural areas. 
D) hourly wage rates of manufacturing workers.

Question 7

The rate of unemployment is found by

Accepted Answer

A) dividing the number unemployed by the number of people in the labour force. 
B) dividing the number unemployed by the number employed. 
C) dividing the number employed by the number of people in the labour force. 
D) dividing the number employed by the number unemployed. 
A) dividing the number unemployed by the number of people in the labour force. 
B) dividing the number unemployed by the number employed. 
C) dividing the number employed by the number of people in the labour force. 
D) dividing the number employed by the number unemployed.

Question 8

Which of the following best fits the definition of unemployed?

Accepted Answer

A) retired and not working 
B) working less than a full work week 
C) not working but looking for a job 
D) not working at a gainful pursuit,either in or out of the home 
A) retired and not working 
B) working less than a full work week 
C) not working but looking for a job 
D) not working at a gainful pursuit,either in or out of the home

Question 9

The CPI may be an inaccurate measure of changes in the price level because

Accepted Answer

A) consumers rarely switch to less expensive products when the price of a particular good increases. 
B) it is a changing quantity index. 
C) consumers can substitute higher priced goods when the price of a particular good increases. 
D) the market basket of goods was determined arbitrarily by the government without conducting surveys of spending patterns. 
A) consumers rarely switch to less expensive products when the price of a particular good increases. 
B) it is a changing quantity index. 
C) consumers can substitute higher priced goods when the price of a particular good increases. 
D) the market basket of goods was determined arbitrarily by the government without conducting surveys of spending patterns.

Question 10

A cost of living adjustment or COLA

Accepted Answer

A) is usually pegged to the GDP deflator. 
B) increases the nominal value of a contract as the rate of inflation increases. 
C) protects the purchasing power of uninvested cash balances. 
D) all of these. 
A) is usually pegged to the GDP deflator. 
B) increases the nominal value of a contract as the rate of inflation increases. 
C) protects the purchasing power of uninvested cash balances. 
D) all of these.

Question 11

In recent years the labour force participation rate has been fairly stable,

Accepted Answer

A) as has the labour force participation rate for males,females,minorities,and nonminorities. 
B) although the female labour force participation rate has fallen while the male labour force participation rate has increased. 
C) although the male labour force participation rate has fallen while the female labour force participation rate has increased. 
D) although the labour force participation rate of young adults has increased while the labour force participation rate of those in the 40-55 age classification has fallen. 
A) as has the labour force participation rate for males,females,minorities,and nonminorities. 
B) although the female labour force participation rate has fallen while the male labour force participation rate has increased. 
C) although the male labour force participation rate has fallen while the female labour force participation rate has increased. 
D) although the labour force participation rate of young adults has increased while the labour force participation rate of those in the 40-55 age classification has fallen.

Question 12

An example of a cyclically unemployed individual is

Accepted Answer

A) Charles who lost his job as a real estate salesperson when the housing market went soft. 
B) Alice who quit her job to enter college. 
C) Mary who lost her job in the textile industry following a decrease in the tariff on textiles. 
D) Bob who has just graduated from college and is entering the labour market. 
A) Charles who lost his job as a real estate salesperson when the housing market went soft. 
B) Alice who quit her job to enter college. 
C) Mary who lost her job in the textile industry following a decrease in the tariff on textiles. 
D) Bob who has just graduated from college and is entering the labour market.

Question 13

In Canada,the labour-force participation rate since 1950 has been

Accepted Answer

A) increasing for females. 
B) declining for females. 
C) declining for both males and females. 
D) unchanged for both males and females. 
A) increasing for females. 
B) declining for females. 
C) declining for both males and females. 
D) unchanged for both males and females.

Question 14

Who stands to gain as a result of continued unanticipated inflation?

Accepted Answer

A) creditors 
B) debtors 
C) persons living on a fixed income 
D) retired individuals 
A) creditors 
B) debtors 
C) persons living on a fixed income 
D) retired individuals

Question 15

The real rate of interest is

Accepted Answer

A) the nominal rate of interest minus the anticipated rate of inflation. 
B) the current rate actually paid by the borrower. 
C) the difference between the bank's lending and savings rates. 
D) the current rate which the government pays on its debt. 
A) the nominal rate of interest minus the anticipated rate of inflation. 
B) the current rate actually paid by the borrower. 
C) the difference between the bank's lending and savings rates. 
D) the current rate which the government pays on its debt.

Question 16

If the government of Canada were to establish an electronic job bank on the Internet.How could such a job bank reduce frictional unemployment? Why would it most likely have no effect on cyclical unemployment?

Accepted Answer

Reductions in frictional unemployment wi

Question 17

Which of the following statements is correct?

Accepted Answer

A) If a contract is stated in nominal terms,unanticipated inflation will increase the value of the contract. 
B) COLAs adjust wage levels to take into account the consumer price index. 
C) Whenever inflation is unanticipated,it affects prices and wages the same,so workers' purchasing power remains unchanged. 
D) Unanticipated inflation means that all prices are rising at the same rate. 
A) If a contract is stated in nominal terms,unanticipated inflation will increase the value of the contract. 
B) COLAs adjust wage levels to take into account the consumer price index. 
C) Whenever inflation is unanticipated,it affects prices and wages the same,so workers' purchasing power remains unchanged. 
D) Unanticipated inflation means that all prices are rising at the same rate.

Question 18

Suppose that Matt quits a job with the XYZ Corporation in order to look for more rewarding employment.Matt would be

Accepted Answer

A) counted as still being employed. 
B) included in the economy's "hidden employment." 
C) counted as frictionally unemployed. 
D) counted as cyclically unemployed. 
A) counted as still being employed. 
B) included in the economy's "hidden employment." 
C) counted as frictionally unemployed. 
D) counted as cyclically unemployed.

Question 19

Environmental regulation reduces the demand for Saskatchewan coal,and the unemployment rate in Saskatchewan increases.This is an example of

Accepted Answer

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

Question 20

The official unemployment rate may understate the true rate of unemployment because of

Accepted Answer

A) workers who hold two jobs. 
B) increases in worker productivity. 
C) changes in wage rates. 
D) discouraged workers who no longer are actively seeking work. 
A) workers who hold two jobs. 
B) increases in worker productivity. 
C) changes in wage rates. 
D) discouraged workers who no longer are actively seeking work.

Which one of the following individuals would be classified as structurally unemployed?

According to Statistics Canada,if you voluntarily leave your job,then

Assume you borrow money to buy a new car at 10 percent interest,and you think that the economy-wide rate of inflation over the life of the loan will be 8 percent.If you are correct in your assumption,your real rate of interest on the car loan will be

How are the effects of anticipated and unanticipated inflation different on individuals and the economy?

Fully anticipated inflation occurs when

The Consumer Price Index attempts to measure

The rate of unemployment is found by

Which of the following best fits the definition of unemployed?

The CPI may be an inaccurate measure of changes in the price level because

A cost of living adjustment or COLA

In recent years the labour force participation rate has been fairly stable,

An example of a cyclically unemployed individual is

In Canada,the labour-force participation rate since 1950 has been

Who stands to gain as a result of continued unanticipated inflation?

The real rate of interest is

If the government of Canada were to establish an electronic job bank on the Internet.How could such a job bank reduce frictional unemployment? Why would it most likely have no effect on cyclical unemployment?

Which of the following statements is correct?

Suppose that Matt quits a job with the XYZ Corporation in order to look for more rewarding employment.Matt would be

Environmental regulation reduces the demand for Saskatchewan coal,and the unemployment rate in Saskatchewan increases.This is an example of

The official unemployment rate may understate the true rate of unemployment because of

The Nature of Economics

Production Possibilities and Economic Systems

Demand and Supply

Measuring the Economys Performance

Modelling Real Gdp and the Price Level in the Long Run

Economic Growth and Development

Modelling Real Gdp and the Price Level in the Short Run

Consumption, investment, and the Multiplier

The Public Sector

Fiscal Policy and the Public Debt

Money and the Banking System

Money Creation and Deposit Insurance

The Bank of Canada and Monetary Policy

Issues in Stabilization Policy

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters

Exam 4: Introduction to Macroeconomics

Which one of the following individuals would be classified as structurally unemployed?

According to Statistics Canada,if you voluntarily leave your job,then

Assume you borrow money to buy a new car at 10 percent interest,and you think that the economy-wide rate of inflation over the life of the loan will be 8 percent.If you are correct in your assumption,your real rate of interest on the car loan will be

How are the effects of anticipated and unanticipated inflation different on individuals and the economy?

Fully anticipated inflation occurs when

The Consumer Price Index attempts to measure

The rate of unemployment is found by

Which of the following best fits the definition of unemployed?

The CPI may be an inaccurate measure of changes in the price level because

A cost of living adjustment or COLA

In recent years the labour force participation rate has been fairly stable,

An example of a cyclically unemployed individual is

In Canada,the labour-force participation rate since 1950 has been

Who stands to gain as a result of continued unanticipated inflation?

The real rate of interest is

If the government of Canada were to establish an electronic job bank on the Internet.How could such a job bank reduce frictional unemployment? Why would it most likely have no effect on cyclical unemployment?

Which of the following statements is correct?

Suppose that Matt quits a job with the XYZ Corporation in order to look for more rewarding employment.Matt would be

Environmental regulation reduces the demand for Saskatchewan coal,and the unemployment rate in Saskatchewan increases.This is an example of

The official unemployment rate may understate the true rate of unemployment because of

The Nature of Economics

Production Possibilities and Economic Systems

Demand and Supply

Measuring the Economys Performance

Modelling Real Gdp and the Price Level in the Long Run

Economic Growth and Development

Modelling Real Gdp and the Price Level in the Short Run

Consumption, investment, and the Multiplier

The Public Sector

Fiscal Policy and the Public Debt

Money and the Banking System

Money Creation and Deposit Insurance

The Bank of Canada and Monetary Policy

Issues in Stabilization Policy

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters