Question 1

A person who works part-time is considered to be:

Accepted Answer

A) employed. 
B) unemployed. 
C) out of the labor force. 
D) overemployed. 
E) none of the above. 
A) employed. 
B) unemployed. 
C) out of the labor force. 
D) overemployed. 
E) none of the above.

Question 2

In the expansion phase of the business cycle

Accepted Answer

A) output is rising. 
B) unemployment is falling. 
C) consumer and business confidence is high. 
D) investment is rising. 
E) all of the above are true. 
A) output is rising. 
B) unemployment is falling. 
C) consumer and business confidence is high. 
D) investment is rising. 
E) all of the above are true.

Question 3

Which of the following groups of people would be included in the official unemployment rate?

Accepted Answer

A) part-time workers 
B) workers temporarily laid off from jobs to which they expect to return 
C) discouraged workers 
D) all of the above 
A) part-time workers 
B) workers temporarily laid off from jobs to which they expect to return 
C) discouraged workers 
D) all of the above

Question 4

Which of the following is not a leading economic indicator?

Accepted Answer

A) Prices of common stock 
B) Number of new businesses formed 
C) Unemployment rate 
D) New orders for plants and equipment 
A) Prices of common stock 
B) Number of new businesses formed 
C) Unemployment rate 
D) New orders for plants and equipment

Question 5

Unemployment rises in ____, and falls in ____.

Accepted Answer

A) peaks; troughs 
B) booms; recessions 
C) expansions; contractions 
D) contractions; expansions 
A) peaks; troughs 
B) booms; recessions 
C) expansions; contractions 
D) contractions; expansions

Question 6

Figure 11-A
Assuming the data in this figure are correct, use the data to answer the following questions.  
-Refer to Figure 11-A.From the data provided, the labor force participation rate is approximately ____ percent.

Accepted Answer

A) 69.6 
B) 64.3 
C) 92.3 
D) 5.4 
E) 78.5 
A) 69.6 
B) 64.3 
C) 92.3 
D) 5.4 
E) 78.5

Question 7

Economists consider cyclical unemployment to be the byproduct of a healthy economy.

Accepted Answer

A) True 
 B)False

Question 8

If firms pay employees an efficiency wage:

Accepted Answer

A) absenteeism would be expected to decrease. 
B) turnover would be expected to increase. 
C) training costs would likely increase. 
D) more shirking on the job is likely to occur. 
A) absenteeism would be expected to decrease. 
B) turnover would be expected to increase. 
C) training costs would likely increase. 
D) more shirking on the job is likely to occur.

Question 9

Discouraged workers are defined as those:

Accepted Answer

A) whose productivity is low because working in dead-end jobs reduces their morale. 
B) who are counted as frictionally unemployed, having become dissatisfied with their previous jobs. 
C) who are counted as structurally unemployed, lacking training for the skilled positions for which they are applying. 
D) who have given up looking for a job and are not counted as unemployed. 
A) whose productivity is low because working in dead-end jobs reduces their morale. 
B) who are counted as frictionally unemployed, having become dissatisfied with their previous jobs. 
C) who are counted as structurally unemployed, lacking training for the skilled positions for which they are applying. 
D) who have given up looking for a job and are not counted as unemployed.

Question 10

If the population older than 16 years of age equals 150 million, the labor force equals 110 million, and the total number of persons employed equals 98 million, then the unemployment rate is:

Accepted Answer

A) 8 percent. 
B) 38 percent. 
C) 10.9 percent. 
D) 28 percent. 
E) 12.2 percent. 
A) 8 percent. 
B) 38 percent. 
C) 10.9 percent. 
D) 28 percent. 
E) 12.2 percent.

Question 11

Which of the following is true?

Accepted Answer

A) A depression is a recession that is mild and relatively brief. 
B) The expansions and contractions of real world business cycles last varying lengths of time and often differ in magnitude. 
C) The timing of business fluctuations is regular and therefore easily predictable. 
D) During the contractionary phase of the business cycle, the rate of unemployment is generally quite low. 
A) A depression is a recession that is mild and relatively brief. 
B) The expansions and contractions of real world business cycles last varying lengths of time and often differ in magnitude. 
C) The timing of business fluctuations is regular and therefore easily predictable. 
D) During the contractionary phase of the business cycle, the rate of unemployment is generally quite low.

Question 12

Unemployment caused by a contraction in the economy is called:

Accepted Answer

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

Question 13

Which of the following describes the historical record of the business cycle in the United States?

Accepted Answer

A) The economy experiences an expansion about once every 20 years. 
B) Severe depressions have occurred frequently throughout history. 
C) Recessions have occurred every 25 years and are followed by two years of expansion. 
D) Periods of contraction seem to have gotten shorter over time. 
A) The economy experiences an expansion about once every 20 years. 
B) Severe depressions have occurred frequently throughout history. 
C) Recessions have occurred every 25 years and are followed by two years of expansion. 
D) Periods of contraction seem to have gotten shorter over time.

Question 14

Which of the following statements is correct?

Accepted Answer

A) Technological advances always lead to the permanent displacement of workers. 
B) In a growing and dynamic economy, jobs are constantly being destroyed and created. 
C) Without unemployment insurance, the average duration of unemployment would likely be longer. 
D) If there is a balance between demand and supply in the labor market, frictional employment must equal zero. 
A) Technological advances always lead to the permanent displacement of workers. 
B) In a growing and dynamic economy, jobs are constantly being destroyed and created. 
C) Without unemployment insurance, the average duration of unemployment would likely be longer. 
D) If there is a balance between demand and supply in the labor market, frictional employment must equal zero.

Question 15

Persons who do not hold a job and are not actively seeking work are considered:

Accepted Answer

A) out of the labor force. 
B) unemployable, and not counted in official statistics. 
C) underemployed. 
D) unemployed. 
A) out of the labor force. 
B) unemployable, and not counted in official statistics. 
C) underemployed. 
D) unemployed.

Question 16

Offering employees an efficiency wage may:

Accepted Answer

A) reduce turnover. 
B) attract the most productive workers. 
C) lead to a reduction in training costs. 
D) boost employee morale. 
E) result in any of the above. 
A) reduce turnover. 
B) attract the most productive workers. 
C) lead to a reduction in training costs. 
D) boost employee morale. 
E) result in any of the above.

Question 17

The portion of unemployment that is attributable to an overall decline in the economy's business activity is called:

Accepted Answer

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

Question 18

Inflation:

Accepted Answer

A) can cause a redistribution of income from creditors to borrowers. 
B) may discourage investment and economic growth. 
C) can decrease the value of a nation's currency relative to other nations. 
D) may result in any of the above. 
A) can cause a redistribution of income from creditors to borrowers. 
B) may discourage investment and economic growth. 
C) can decrease the value of a nation's currency relative to other nations. 
D) may result in any of the above.

Question 19

Which of the following is false?

Accepted Answer

A) The unemployment rate is the number of people officially unemployed divided by the civilian labor force. 
B) The labor force includes those people over the age of 14 who are either employed or unemployed. 
C) Discouraged workers, who have not actively sought work for four weeks are not counted as unemployed; instead they fall out of the labor force 
D) Some people working overtime or extra jobs might be considered to be overemployed. 
A) The unemployment rate is the number of people officially unemployed divided by the civilian labor force. 
B) The labor force includes those people over the age of 14 who are either employed or unemployed. 
C) Discouraged workers, who have not actively sought work for four weeks are not counted as unemployed; instead they fall out of the labor force 
D) Some people working overtime or extra jobs might be considered to be overemployed.

Question 20

The index of leading economic indicators:

Accepted Answer

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

A person who works part-time is considered to be:

In the expansion phase of the business cycle

Which of the following groups of people would be included in the official unemployment rate?

Which of the following is not a leading economic indicator?

Unemployment rises in , and falls in .

Figure 11-A Assuming the data in this figure are correct, use the data to answer the following questions. -Refer to Figure 11-A.From the data provided, the labor force participation rate is approximately ____ percent.

Economists consider cyclical unemployment to be the byproduct of a healthy economy.

If firms pay employees an efficiency wage:

Discouraged workers are defined as those:

If the population older than 16 years of age equals 150 million, the labor force equals 110 million, and the total number of persons employed equals 98 million, then the unemployment rate is:

Which of the following is true?

Unemployment caused by a contraction in the economy is called:

Which of the following describes the historical record of the business cycle in the United States?

Which of the following statements is correct?

Persons who do not hold a job and are not actively seeking work are considered:

Offering employees an efficiency wage may:

The portion of unemployment that is attributable to an overall decline in the economy's business activity is called:

Inflation:

Which of the following is false?

The index of leading economic indicators:

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 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 System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Economics

Filters

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

A person who works part-time is considered to be:

In the expansion phase of the business cycle

Which of the following groups of people would be included in the official unemployment rate?

Which of the following is not a leading economic indicator?

Unemployment rises in ____, and falls in ____.

Figure 11-A Assuming the data in this figure are correct, use the data to answer the following questions. -Refer to Figure 11-A.From the data provided, the labor force participation rate is approximately ____ percent.

Economists consider cyclical unemployment to be the byproduct of a healthy economy.

If firms pay employees an efficiency wage:

Discouraged workers are defined as those:

If the population older than 16 years of age equals 150 million, the labor force equals 110 million, and the total number of persons employed equals 98 million, then the unemployment rate is:

Which of the following is true?

Unemployment caused by a contraction in the economy is called:

Which of the following describes the historical record of the business cycle in the United States?

Which of the following statements is correct?

Persons who do not hold a job and are not actively seeking work are considered:

Offering employees an efficiency wage may:

The portion of unemployment that is attributable to an overall decline in the economy's business activity is called:

Inflation:

Which of the following is false?

The index of leading economic indicators:

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 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 System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Economics

Filters

Unemployment rises in , and falls in .