Question 1

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

Accepted Answer

The answer of What are the three major types of...

Question 2

If the price index in the first year was 90,in the second year was 100,and in the third year was 95,what were the inflation rates over those years?

Accepted Answer

A) The economy experienced 11 percent inflation between the first and second years and 5 percent inflation between the second and third years. 
B) The economy experienced 11 percent inflation between the first and second years and 5 percent deflation between the second and third years. 
C) The economy experienced 10 percent inflation between the first and second years and 5 percent inflation between the second and third years. 
D) The economy experienced 10 percent inflation between the first and second years and 5 percent deflation between the second and third years.

Question 3

Which of the following will occur if a large number of individuals file unemployment claims and work in the underground economy?

Accepted Answer

A) The unemployment rate will decrease. 
B) The unemployment rate will overstate the level of unemployment. 
C) The unemployment rate will understate the level of unemployment. 
D) The unemployment rate will not be affected.

Question 4

If the CPI increases from one year to the next,what has the economy experienced?

Accepted Answer

A) stagnation 
B) inflation 
C) stagflation 
D) growth

Question 5

Billy loses his job as a road construction worker and cannot find another position with equivalent pay and benefits.As a result,he is still checking the want ads and reporting to the unemployment office on a weekly basis.According to economists,what is he considered to be?

Accepted Answer

A) a discouraged worker 
B) out of the labour force 
C) underemployed 
D) unemployed

Question 6

What do economists consider persons who have jobs but are actively looking for other work?

Accepted Answer

A) underemployed 
B) employed 
C) out of the labour force 
D) overemployed

Question 7

When does the index of leading economic indicators usually turn downward?

Accepted Answer

A) prior to a contraction, but then turns upward before the contraction begins 
B) a full 24 months before a recession begins 
C) prior to economic contractions 
D) prior to economic expansions

Question 8

How is the basket of goods in the CPI determined?

Accepted Answer

A) The basket is a random sample of goods and services purchased by consumers. 
B) The basket is representative of all the goods and services that make up GDP. 
C) Statistics Canada surveys consumers and finds the basket of goods and services that the typical consumer buys. 
D) A basket of raw materials and unfinished goods purchased by typical producers is selected by Statistics Canada based upon surveys of manufacturers.

Question 9

Which of the following factors might cause the unemployment rate to underestimate the true extent of unemployment?

Accepted Answer

A) People are pretending to look for work so that they can continue receiving EI benefits. 
B) There are a large number of people working in the underground economy. 
C) Many part-time employees would like to work full-time, but are unable to get the additional work. 
D) Employees increase the number of hours they work overtime.

Question 10

In 1980,the Canadian government implemented the National Energy Program.This was a time when the OPEC (Organization of Petroleum Exporting Countries)cartel was becoming prominent and higher oil prices were creating inflationary pressure.Identify how this action might have impacted the three major macroeconomic goals of our economy.

Accepted Answer

The answer of In 1980,the Canadian government implemented the National...

Question 11

Inflation harms both debtors and individuals who live on fixed incomes.

Accepted Answer

A) True 
 B)False

Question 12

When calculating the unemployment rate,what is the number of unemployed divided by?

Accepted Answer

A) the population aged 15 and over 
B) the entire population 
C) the labour force 
D) the number of people aged 15 and over who are employed

Question 13

The natural rate of unemployment can change over time as technological,demographic,institutional,and other conditions vary.

Accepted Answer

A) True 
 B)False

Question 14

The most severe unemployment experienced by Canada was during the Great Depression.When did this period occur?

Accepted Answer

A) 1918-1928 
B) 1929-1930 
C) 1929-1939 
D) 1939-1945

Question 15

Roughly 63 percent of women participate in the labour force today.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements best describes unemployment in a growing and dynamic economy?

Accepted Answer

A) The average duration of unemployment will be shorter. 
B) Technological advances always lead to the permanent displacement of workers. 
C) There is no unemployment. 
D) Jobs are constantly being destroyed and created.

Question 17

Bill looked for work for six months but could not find a job to his liking.He now spends his time at the beach.For purposes of employment,what is he considered to be?

Accepted Answer

A) unemployed 
B) employed in the underground economy 
C) underemployed 
D) out of the labour force

Question 18

What are the four main categories of unemployed workers?

Accepted Answer

A) new entrants, job losers, job leavers and re-entrants 
B) discouraged workers, part-time workers, the cyclically unemployed, and the frictionally unemployed 
C) job losers, job leavers, the structurally unemployed, and the frictionally unemployed 
D) discouraged workers, job losers, new entrants, and the underemployed

Question 19

Which of the following statements about macroeconomic goals is the most accurate?

Accepted Answer

A) Economic growth must be the ultimate aim of a society. 
B) Full employment is the only reasonable objective of macroeconomic policy. 
C) Individuals may differ considerably in their evaluation of the relative importance of certain issues. 
D) Achieving zero inflation is the main priority of the federal government.

Question 20

Since the early 1990s,which of the following has Canada experienced?

Accepted Answer

A) rising rates of unemployment, increasing real GDP, and falling rates of inflation 
B) falling rates of unemployment, increasing real GDP, and increasing rates of inflation 
C) falling rates of unemployment, increasing real GDP, and stable rates of inflation 
D) rising rates of unemployment, falling real GDP, and increasing rates of inflation

Exam 5: Introduction to the Macroeconomy

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

If the price index in the first year was 90,in the second year was 100,and in the third year was 95,what were the inflation rates over those years?

Which of the following will occur if a large number of individuals file unemployment claims and work in the underground economy?

If the CPI increases from one year to the next,what has the economy experienced?

Billy loses his job as a road construction worker and cannot find another position with equivalent pay and benefits.As a result,he is still checking the want ads and reporting to the unemployment office on a weekly basis.According to economists,what is he considered to be?

What do economists consider persons who have jobs but are actively looking for other work?

When does the index of leading economic indicators usually turn downward?

How is the basket of goods in the CPI determined?

Which of the following factors might cause the unemployment rate to underestimate the true extent of unemployment?

Inflation harms both debtors and individuals who live on fixed incomes.

When calculating the unemployment rate,what is the number of unemployed divided by?

The natural rate of unemployment can change over time as technological,demographic,institutional,and other conditions vary.

The most severe unemployment experienced by Canada was during the Great Depression.When did this period occur?

Roughly 63 percent of women participate in the labour force today.

Which of the following statements best describes unemployment in a growing and dynamic economy?

Bill looked for work for six months but could not find a job to his liking.He now spends his time at the beach.For purposes of employment,what is he considered to be?

What are the four main categories of unemployed workers?

Which of the following statements about macroeconomic goals is the most accurate?

Since the early 1990s,which of the following has Canada experienced?