Question 1

To maintain their standard of living,most people rely on

Accepted Answer

A) government assistance. 
B) their labor earnings. 
C) their personal savings. 
D) All of the above are correct. 
A) government assistance. 
B) their labor earnings. 
C) their personal savings. 
D) All of the above are correct. B

Question 2

In the long run the unemployment rate equals

Accepted Answer

A) zero. 
B) the cyclical rate of unemployment. 
C) the natural rate of unemployment. 
D) the sum of the cyclical and natural rate of unemployment. 
A) zero. 
B) the cyclical rate of unemployment. 
C) the natural rate of unemployment. 
D) the sum of the cyclical and natural rate of unemployment. C

Question 3

An economy's natural rate of unemployment is the

Accepted Answer

A) economy's long-run target level of unemployment. 
B) amount of unemployment that the economy normally experiences. 
C) lowest rate of unemployment the economy can achieve. 
D) All of the above are correct. 
A) economy's long-run target level of unemployment. 
B) amount of unemployment that the economy normally experiences. 
C) lowest rate of unemployment the economy can achieve. 
D) All of the above are correct. B

Question 4

The natural rate of unemployment

Accepted Answer

A) varies less than the measured unemployment rate. 
B) cannot be changed by government policy. 
C) is closely associated with the ups and downs in economic activity. 
D) is set by the Federal Reserve. 
A) varies less than the measured unemployment rate. 
B) cannot be changed by government policy. 
C) is closely associated with the ups and downs in economic activity. 
D) is set by the Federal Reserve.

Question 5

The amount of unemployment that an economy normally experiences is called the

Accepted Answer

A) average rate of unemployment. 
B) natural rate of unemployment. 
C) cyclical rate of unemployment. 
D) typical rate of unemployment. 
A) average rate of unemployment. 
B) natural rate of unemployment. 
C) cyclical rate of unemployment. 
D) typical rate of unemployment.

Question 6

Cyclical unemployment is closely associated with

Accepted Answer

A) long-term economic growth. 
B) short-run ups and downs of the economy. 
C) fluctuations in the natural rate of unemployment. 
D) changes in the minimum wage. 
A) long-term economic growth. 
B) short-run ups and downs of the economy. 
C) fluctuations in the natural rate of unemployment. 
D) changes in the minimum wage.

Question 7

Cyclical unemployment refers to

Accepted Answer

A) the portion of unemployment created by job search. 
B) short-run fluctuations around the natural rate of unemployment. 
C) changes in unemployment due to changes in the natural rate of unemployment. 
D) the portion of unemployment created by wages set above the equilibrium level. 
A) the portion of unemployment created by job search. 
B) short-run fluctuations around the natural rate of unemployment. 
C) changes in unemployment due to changes in the natural rate of unemployment. 
D) the portion of unemployment created by wages set above the equilibrium level.

Question 8

The amount of unemployment varies

Accepted Answer

A) little over time and across countries. 
B) little over time but substantially across countries. 
C) substantially over time but little across countries. 
D) substantially over time and across countries. 
A) little over time and across countries. 
B) little over time but substantially across countries. 
C) substantially over time but little across countries. 
D) substantially over time and across countries.

Question 9

Cyclical unemployment refers to

Accepted Answer

A) the relationship between the probability of unemployment and a worker's changing level of experience. 
B) how often a worker is likely to be employed during her lifetime. 
C) year-to-year fluctuations of unemployment around its natural rate. 
D) long-term trends in unemployment. 
A) the relationship between the probability of unemployment and a worker's changing level of experience. 
B) how often a worker is likely to be employed during her lifetime. 
C) year-to-year fluctuations of unemployment around its natural rate. 
D) long-term trends in unemployment.

Question 10

Which of the following is correct?

Accepted Answer

A) The amount of unemployment that a country typically experiences is a determinant of that country's standard of living,and some degree of unemployment is inevitable in a complex economy. 
B) The amount of unemployment that a country typically experiences is a determinant of that country's standard of living,and a complex economy can achieve zero unemployment. 
C) The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living,and a complex economy can achieve zero unemployment. 
D) The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living,and some degree of unemployment is inevitable in a complex economy. 
A) The amount of unemployment that a country typically experiences is a determinant of that country's standard of living,and some degree of unemployment is inevitable in a complex economy. 
B) The amount of unemployment that a country typically experiences is a determinant of that country's standard of living,and a complex economy can achieve zero unemployment. 
C) The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living,and a complex economy can achieve zero unemployment. 
D) The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living,and some degree of unemployment is inevitable in a complex economy.

Question 11

The natural rate of unemployment is the

Accepted Answer

A) unemployment rate that would prevail with zero inflation. 
B) rate associated with the highest possible level of GDP. 
C) difference between the long-run and short-run unemployment rates. 
D) amount of unemployment that the economy normally experiences. 
A) unemployment rate that would prevail with zero inflation. 
B) rate associated with the highest possible level of GDP. 
C) difference between the long-run and short-run unemployment rates. 
D) amount of unemployment that the economy normally experiences.

Question 12

Cyclical unemployment

Accepted Answer

A) has a different explanation than does the natural rate of unemployment. 
B) refers to the year-to-year fluctuation in unemployment around an economy's natural rate of unemployment. 
C) is closely associated with short-run ups and downs of economic activity. 
D) All of the above are correct. 
A) has a different explanation than does the natural rate of unemployment. 
B) refers to the year-to-year fluctuation in unemployment around an economy's natural rate of unemployment. 
C) is closely associated with short-run ups and downs of economic activity. 
D) All of the above are correct.

Question 13

The natural rate of unemployment

Accepted Answer

A) arises from a single problem that has a single solution. 
B) is easy for policymakers to reduce. 
C) Both a and b are correct. 
D) None of the above is correct. 
A) arises from a single problem that has a single solution. 
B) is easy for policymakers to reduce. 
C) Both a and b are correct. 
D) None of the above is correct.

Question 14

The deviation of unemployment from its natural rate is called

Accepted Answer

A) the economic rate of unemployment. 
B) cyclical unemployment. 
C) frictional unemployment. 
D) structural unemployment. 
A) the economic rate of unemployment. 
B) cyclical unemployment. 
C) frictional unemployment. 
D) structural unemployment.

Question 15

To maintain their standard of living,most people rely on

Accepted Answer

A) government assistance. 
B) their personal savings. 
C) their labor earnings. 
D) rental income. 
A) government assistance. 
B) their personal savings. 
C) their labor earnings. 
D) rental income.

Exam 15: Unemployment

To maintain their standard of living,most people rely on

In the long run the unemployment rate equals

An economy's natural rate of unemployment is the

The natural rate of unemployment

The amount of unemployment that an economy normally experiences is called the

Cyclical unemployment is closely associated with

Cyclical unemployment refers to

The amount of unemployment varies

Cyclical unemployment refers to

Which of the following is correct?

The natural rate of unemployment is the

Cyclical unemployment

The natural rate of unemployment

The deviation of unemployment from its natural rate is called

To maintain their standard of living,most people rely on

Ten Principles of Economics

Ten Principles of Economics: How People Make Decisions

Ten Principles of Economics: How People Interact

Ten Principles of Economics: How the Economy As a Whole Works

Ten Principles of Economics: Part A

Ten Principles of Economics: Part B

Thinking Like an Economist

Thinking Like an Economist: The Economist As Scientist

Thinking Like an Economist: The Economist As Policy Adviser

Thinking Like an Economist: Why Economists Disagree

Thinking Like an Economist: Lets Get Going

Thinking Like an Economist: Graphing a Brief Review

Thinking Like an Economist: Part A

Thinking Like an Economist: Part B

Interdependence and the Gains From Trade

Interdependence and the Gains From Trade: A Parable for the Modern Economy

Interdependence and the Gains From Trade: Comparative Advantage the Driving Force of Specialization

Interdependence and the Gains From Trade: Applications of Comparative Advantage

Interdependence and the Gains From Trade: Conclusion

Interdependence and the Gains From Trade: Part A

Interdependence and the Gains From Trade: Part B

The Market Forces of Supply and Demand

The Market Forces of Supply and Demand:Markets and Competition

The Market Forces of Supply and Demand: Demand

The Market Forces of Supply and Demand: Supply

The Market Forces of Supply and Demand: Supply and Demand Together

The Market Forces of Supply and DemandConclusion How Prices Allocate Resources

The Market Forces of Supply and Demand: Part A

The Market Forces of Supply and Demand: Part B

Elasticity and Its Applications

Elasticity and Its Applications: The Elasticity of Demand

Elasticity and Its Applications: The Elasticity of Supply

Elasticity and Its Applications: Three Applications of Supply,demand,and Elasticity

Elasticity and Its Applications: Part A

Elasticity and Its Applications: Part B

Supply Demand and Government Policies

Supply Demand and Government Policies: Controls on Prices

Supply Demand and Government Policies: Taxes

Supply Demand and Government Policies: Part A

Supply Demand and Government Policies: Part B

Consumers Producers and the Efficiency of Markets

Consumers Producers and the Efficiency of Markets: Consumer Surplus

Consumers Producers and the Efficiency of Markets: Producer Surplus

Consumers Producers and the Efficiency of Markets: Market Efficiency

Consumers Producers and the Efficiency of Markets: Conclusion Market Efficiency and Market Failure

Consumers Producers and the Efficiency of Markets: Part A

Consumers Producers and the Efficiency of Markets: Part B

Application the Cost of Taxation

Application the Cost of Taxation: The Deadweight Loss of Taxation

Application the Cost of Taxation: The Determinants of the Deadweight Loss

Application the Cost of Taxation: Deadweight Loss and Tax Revenue As Taxes Vary

Application the Cost of Taxation: Conclusion

Application the Cost of Taxation: Part A

Application the Cost of Taxation: Part B

Application International Trade

Application International Trade: The Determinants of Trade

Application International Trade: The Winners and Losers From Trade

Application International Trade: The Arguments for Restricting Trade

Application International Trade: Conclusion

Application International Trade: Part A

Application International Trade: Part B

Measuring a Nations Income

Measuring a Nations Income: The Economy's Income and Expenditure

Measuring a Nations Income: The Measurement of GDP