Question 1

The unemployment rate measures:​

Accepted Answer

A) the number of unemployed workers as a percentage of the entire population. 
B) the number of unemployed workers as a percentage of the population over the age of sixteen. 
C) the number of unemployed workers as a percentage of the labor force. 
D) the number of people unemployed divided by the number of people employed. 
E) the number of people unemployed divided by the number of people over the age of thirty five. 
A) the number of unemployed workers as a percentage of the entire population. 
B) the number of unemployed workers as a percentage of the population over the age of sixteen. 
C) the number of unemployed workers as a percentage of the labor force. 
D) the number of people unemployed divided by the number of people employed. 
E) the number of people unemployed divided by the number of people over the age of thirty five. C

Question 2

High rates of unemployment are undesirable because:

Accepted Answer

A) they encourage high levels of per capita savings. 
B) they result in the loss of potential output of goods and services. 
C) they lead to high rates of inflation 
D) they lead to high levels of individual consumption. 
E) they lead to excessive increases in informal activities. 
A) they encourage high levels of per capita savings. 
B) they result in the loss of potential output of goods and services. 
C) they lead to high rates of inflation 
D) they lead to high levels of individual consumption. 
E) they lead to excessive increases in informal activities. B

Question 3

The nominal interest rate was 14% and the inflation rate was 10% initially. If the nominal interest rate fell to 7% and the inflation rate fell to 4% eventually, the real interest rate would change from _____.

Accepted Answer

A) 24% to 11% 
B) 11% to 24% 
C) 4% to 3% 
D) 3% to 4% 
E) 10% to 7% 
A) 24% to 11% 
B) 11% to 24% 
C) 4% to 3% 
D) 3% to 4% 
E) 10% to 7% D

Question 4

Union officials negotiate their wages and benefits through a process called _____.

Accepted Answer

A) outsourcing 
B) collective bargaining 
C) undercutting 
D) collusion 
E) merging 
A) outsourcing 
B) collective bargaining 
C) undercutting 
D) collusion 
E) merging

Question 5

The unemployment rate in a town in which 65,400 persons are employed and 11,000 persons are unemployed equals:

Accepted Answer

A) 11 percent. 
B) 14.4 percent. 
C) 16.8 percent. 
D) 18.2 percent. 
E) 15.4 percent. 
A) 11 percent. 
B) 14.4 percent. 
C) 16.8 percent. 
D) 18.2 percent. 
E) 15.4 percent.

Question 6

Unemployment resulting from normal turnover in the labor market is called:

Accepted Answer

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

Question 7

The difference between the nominal interest rate and the rate of inflation is known as the _____.

Accepted Answer

A) prime rate 
B) real interest rate 
C) discount rate 
D) federal funds rate 
E) exchange rate 
A) prime rate 
B) real interest rate 
C) discount rate 
D) federal funds rate 
E) exchange rate

Question 8

The figure below shows the total adult population in an economy and the number of civilians who are employed and unemployed. Based on the figure, _____ people constitute the labor force.Figure 11-1

Accepted Answer

A) 100 million 
B) 195 million 
C) 85 million 
D) 180 million 
E) 165 million 
A) 100 million 
B) 195 million 
C) 85 million 
D) 180 million 
E) 165 million

Question 9

Explain how the use of leading economic indicators to predict recessions can lead to less accurate policy decisions.

Accepted Answer

Answers will vary. The use of leading ec

Question 10

In November 1995, the labor force in Aberdeen, South Dakota, was 14,800. There were 14,483 persons employed. The local unemployment rate was:

Accepted Answer

A) 1.2 percent. 
B) 2.1 percent. 
C) 5.6 percent. 
D) 7.1 percent. 
E) 3.5 percent. 
A) 1.2 percent. 
B) 2.1 percent. 
C) 5.6 percent. 
D) 7.1 percent. 
E) 3.5 percent.

Question 11

What are the three major types of unemployment? What are their causes?

Accepted Answer

Answers will vary. The first major type

Question 12

An individual who voluntarily leaves one job and spends a period of time seeking another is considered _____.

Accepted Answer

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

Question 13

Unemployment insurance can lower the cost of job searches to individuals and result in higher rates of unemployment.

Accepted Answer

A) True 
 B)False

Question 14

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 15

Unanticipated inflation will benefit creditors at the expense of debtors.

Accepted Answer

A) True 
 B)False

Question 16

Unemployment insurance leads to a better match of jobs with job seekers.

Accepted Answer

A) True 
 B)False

Question 17

A forestry worker who is out of work because of a temporary low demand for wood products during a recession is facing _____.

Accepted Answer

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

Question 18

Seasonal unemployment is the temporary unemployment that results from the search time that people require when searching for suitable jobs and that firms require when looking for suitable workers.

Accepted Answer

A) True 
 B)False

Question 19

Why do higher union wages, the minimum wage, and efficiency wages all tend to increase unemployment? Why does unemployment insurance affect unemployment?

Accepted Answer

Answers will vary. Higher union wages, m

Question 20

Which of the following exclusively measures the trend in the prices of certain goods and services purchased by a typical household?

Accepted Answer

A) The GDP deflator 
B) Nominal GDP 
C) Real GDP 
D) The Consumer Price Index 
E) Purchasing power parity 
A) The GDP deflator 
B) Nominal GDP 
C) Real GDP 
D) The Consumer Price Index 
E) Purchasing power parity

The unemployment rate measures:

High rates of unemployment are undesirable because:

The nominal interest rate was 14% and the inflation rate was 10% initially. If the nominal interest rate fell to 7% and the inflation rate fell to 4% eventually, the real interest rate would change from _____.

Union officials negotiate their wages and benefits through a process called _____.

The unemployment rate in a town in which 65,400 persons are employed and 11,000 persons are unemployed equals:

Unemployment resulting from normal turnover in the labor market is called:

The difference between the nominal interest rate and the rate of inflation is known as the _____.

The figure below shows the total adult population in an economy and the number of civilians who are employed and unemployed. Based on the figure, _____ people constitute the labor force.Figure 11-1

Explain how the use of leading economic indicators to predict recessions can lead to less accurate policy decisions.

In November 1995, the labor force in Aberdeen, South Dakota, was 14,800. There were 14,483 persons employed. The local unemployment rate was:

What are the three major types of unemployment? What are their causes?

An individual who voluntarily leaves one job and spends a period of time seeking another is considered _____.

Unemployment insurance can lower the cost of job searches to individuals and result in higher rates of unemployment.

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

Unanticipated inflation will benefit creditors at the expense of debtors.

Unemployment insurance leads to a better match of jobs with job seekers.

A forestry worker who is out of work because of a temporary low demand for wood products during a recession is facing _____.

Seasonal unemployment is the temporary unemployment that results from the search time that people require when searching for suitable jobs and that firms require when looking for suitable workers.

Why do higher union wages, the minimum wage, and efficiency wages all tend to increase unemployment? Why does unemployment insurance affect unemployment?

Which of the following exclusively measures the trend in the prices of certain goods and services purchased by a typical household?

The Role and Method of Economics

The Economic Way of Thinking

Supply and Demand

Using Supply and Demand

Market Failure and Public Choice

Production and Costs

Firms in Perfectly Competitive Markets

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets, Income Distribution, and Poverty

Economic Growth

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Institutions

The Federal Reserve and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Economics

Filters

Exam 11: Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

The unemployment rate measures:​

High rates of unemployment are undesirable because:

The nominal interest rate was 14% and the inflation rate was 10% initially. If the nominal interest rate fell to 7% and the inflation rate fell to 4% eventually, the real interest rate would change from _____.

Union officials negotiate their wages and benefits through a process called _____.

The unemployment rate in a town in which 65,400 persons are employed and 11,000 persons are unemployed equals:

Unemployment resulting from normal turnover in the labor market is called:

The difference between the nominal interest rate and the rate of inflation is known as the _____.

The figure below shows the total adult population in an economy and the number of civilians who are employed and unemployed. Based on the figure, _____ people constitute the labor force.Figure 11-1

Explain how the use of leading economic indicators to predict recessions can lead to less accurate policy decisions.

In November 1995, the labor force in Aberdeen, South Dakota, was 14,800. There were 14,483 persons employed. The local unemployment rate was:

What are the three major types of unemployment? What are their causes?

An individual who voluntarily leaves one job and spends a period of time seeking another is considered _____.

Unemployment insurance can lower the cost of job searches to individuals and result in higher rates of unemployment.

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

Unanticipated inflation will benefit creditors at the expense of debtors.

Unemployment insurance leads to a better match of jobs with job seekers.

A forestry worker who is out of work because of a temporary low demand for wood products during a recession is facing _____.

Seasonal unemployment is the temporary unemployment that results from the search time that people require when searching for suitable jobs and that firms require when looking for suitable workers.

Why do higher union wages, the minimum wage, and efficiency wages all tend to increase unemployment? Why does unemployment insurance affect unemployment?

Which of the following exclusively measures the trend in the prices of certain goods and services purchased by a typical household?

The Role and Method of Economics

The Economic Way of Thinking

Supply and Demand

Using Supply and Demand

Market Failure and Public Choice

Production and Costs

Firms in Perfectly Competitive Markets

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets, Income Distribution, and Poverty

Economic Growth

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Institutions

The Federal Reserve and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Economics

Filters

The unemployment rate measures: