Question 1

Use the following to answer questions 
Scenario: The Employment Rate
A group of 10 people includes 3 retirees, 2 part-time workers, 2 discouraged workers, 1 unemployed worker, and 2 full-time workers.
-(Scenario: The Employment Rate)  Look at the scenario The Employment Rate. The unemployment rate is:

Accepted Answer

A)   10%.
B)   30%.
C)   20%.
D)   50%.E) All of the above
F) A) and C)

Question 2

Increases in unemployment benefits:

Accepted Answer

A)   increase the natural rate of unemployment.
B)   decrease the natural rate of unemployment.
C)   affect everyone the same by increasing the natural rate of unemployment.
D)   affect everyone the same by decreasing the natural rate of unemployment.E) A) and B)
F) A) and C)

Question 3

Use the following to answer questions 
Figure: The Minimum Wage 3? A)  Q1 B)  Q2 C)  Q3 D)  Q4" class="answers-bank-image d-inline" rel="preload" >
-(Figure: The Minimum Wage)  Look at the figure The Minimum Wage. What is the quantity of labor supplied at a binding minimum wage of P3?

Accepted Answer

A)   Q1
B)   Q2
C)   Q3
D)   Q4E) B) and C)
F) A) and D)

Question 4

When the actual rate of unemployment is equal to the natural rate of unemployment, we conclude that there is no cyclical unemployment.

Accepted Answer

A) True 
 B)False

Question 5

Unemployment that results when more people are seeking jobs than there are jobs available is _____ unemployment.

Accepted Answer

A)   frictional
B)   structural
C)   cyclical
D)   naturalE) A) and B)
F) None of the above

Question 6

In general, expansions are characterized by:

Accepted Answer

A)   increasing unemployment.
B)   falling unemployment.
C)   decreasing employment.
D)   constant employment.E) B) and C)
F) B) and D)

Question 7

One factor that raises the natural rate of unemployment is:

Accepted Answer

A)   a population boom that increases the number of young workers joining the labor force.
B)   the loss of labor union membership across industries.
C)   the loss of retirement funds, so that more people in the baby boom generation continue to work past the typical retirement age.
D)   the use of new technology in the workplace that increases labor productivity.E) C) and D)
F) A) and D)

Question 8

Use the following to answer questions 
Table: Unemployment and Employment Data 
-(Table: Unemployment and Employment Data)  Look at the table Unemployment and Employment Data. If marginally attached workers are included in the labor force and in the unemployment rate, the unemployment rate in this economy is:

Accepted Answer

A)   8.4%.
B)   7.8%
C)   5%.
D)   3%.E) A) and B)
F) A) and C)

Question 9

A person who is not working and is not looking for work is:

Accepted Answer

A)   included in the unemployment rate.
B)   underemployed.
C)   a member of the labor force who is not working.
D)   not counted in the unemployment statistics.E) A) and B)
F) All of the above

Question 10

Suppose that roughly 8 million people in the United States were actively seeking jobs but had not found them this month, the same number as last month. Suppose that 2 million of the people who were unemployed last month gave up their search this month and stopped looking for work. What will happen to the official unemployment rate this month, all other things unchanged?

Accepted Answer

A)   It will rise, because 2 million people are not in the labor force this month and are not counted as unemployed.
B)   It will fall, because 2 million people are not in the labor force this month and are not counted as unemployed.
C)   It will be unaffected, because the same number of people is unemployed.
D)   The unemployment rate will decrease by 25%.E) All of the above
F) A) and B)

Question 11

In 1896 presidential candidate William Jennings Bryan wanted the United States to abandon the gold standard and print more money, which would raise the price level and benefit farmers who were deeply in debt.

Accepted Answer

A) True 
 B)False

Question 12

Menu costs of inflation are the:

Accepted Answer

A)   costs associated with money not being a reliable unit of measurement.
B)   costs of transactions associated with avoiding the inflation tax.
C)   costs associated with businesses changing prices.
D)   revenue the government gets from printing money.E) None of the above
F) A) and B)

Question 13

If the U.S. dollar were replaced with a "new dollar" at an exchange rate of 1 new dollar for 4 old dollars, then an hourly wage of $10 would become an hourly wage of _____ new dollars.

Accepted Answer

A)   2.50
B)   6
C)   10
D)   60E) All of the above
F) A) and D)

Question 14

Efficiency wages encourage:

Accepted Answer

A)   workers to look for a better job.
B)   potential workers to remain out of the labor force.
C)   workers to stay in their current job.
D)   workers to get more job training.E) None of the above
F) All of the above

Question 15

An increase in the number of discouraged workers in the economy tends to:

Accepted Answer

A)   raise the official unemployment rate.
B)   lower the official unemployment rate.
C)   lower the number of people who are frictionally unemployed.
D)   increase the number of people who are structurally unemployed.E) B) and C)
F) None of the above

Question 16

Unit-of-account costs may be especially important in the tax system when inflation distorts the measures of income on which taxes are collected.

Accepted Answer

A) True 
 B)False

Question 17

Unemployment rates are usually higher in Europe than in the United States because:

Accepted Answer

A)   the minimum wage is higher in the United States than in Europe.
B)   U.S. economic policy is much more effective than European economic policy.
C)   there are more unskilled, uneducated workers in Europe than in the United States.
D)   unemployment benefits are more generous in Europe than in the United States.E) A) and D)
F) None of the above

Question 18

During deflation the:

Accepted Answer

A)   general price level falls.
B)   general price level increases.
C)   interest rate rises.
D)   general price level becomes negative.E) None of the above
F) A) and C)

Question 19

Since 1960 in the United States, the price level has:

Accepted Answer

A)   fluctuated randomly by large amounts.
B)   remained the same.
C)   decreased.
D)   increased.E) C) and D)
F) B) and C)

Question 20

To be officially unemployed, a person must:

Accepted Answer

A)   not have a job and must have looked for work in the past four weeks.
B)   under 55 years old.
C)   working less than 30 hours per week.
D)   working less than 20 hours per week.E) A) and B)
F) All of the above

Exam 22: Unemployment and Inflation

One factor that raises the natural rate of unemployment is:

Correct Answer
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Unit-of-account costs may be especially important in the tax system when inflation distorts the measures of income on which taxes are collected.

Correct Answer
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Increases in unemployment benefits:

Correct Answer
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Correct Answer
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Since 1960 in the United States, the price level has:

Correct Answer
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To be officially unemployed, a person must:

Correct Answer
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Unemployment rates are usually higher in Europe than in the United States because:

Correct Answer
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In 1896 presidential candidate William Jennings Bryan wanted the United States to abandon the gold standard and print more money, which would raise the price level and benefit farmers who were deeply in debt.

Correct Answer
verified

Use the following to answer questions Scenario: The Employment Rate A group of 10 people includes 3 retirees, 2 part-time workers, 2 discouraged workers, 1 unemployed worker, and 2 full-time workers. -(Scenario: The Employment Rate) Look at the scenario The Employment Rate. The unemployment rate is:

Correct Answer
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In general, expansions are characterized by:

Correct Answer
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If the U.S. dollar were replaced with a "new dollar" at an exchange rate of 1 new dollar for 4 old dollars, then an hourly wage of $10 would become an hourly wage of _____ new dollars.

Correct Answer
verified

A person who is not working and is not looking for work is:

Correct Answer
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Correct Answer
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Menu costs of inflation are the:

Correct Answer
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Unemployment that results when more people are seeking jobs than there are jobs available is _____ unemployment.

Correct Answer
verified

When the actual rate of unemployment is equal to the natural rate of unemployment, we conclude that there is no cyclical unemployment.

Correct Answer
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Efficiency wages encourage:

Correct Answer
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An increase in the number of discouraged workers in the economy tends to:

Correct Answer
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Use the following to answer questions Figure: The Minimum Wage -(Figure: The Minimum Wage) Look at the figure The Minimum Wage. What is the quantity of labor supplied at a binding minimum wage of P₃?

Correct Answer
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During deflation the:

Correct Answer
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Exam 22: Unemployment and Inflation

One factor that raises the natural rate of unemployment is:

Correct AnswerverifiedShow Answer

Unit-of-account costs may be especially important in the tax system when inflation distorts the measures of income on which taxes are collected.

Correct AnswerverifiedShow Answer

Increases in unemployment benefits:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Since 1960 in the United States, the price level has:

Correct AnswerverifiedShow Answer

To be officially unemployed, a person must:

Correct AnswerverifiedShow Answer

Unemployment rates are usually higher in Europe than in the United States because:

Correct AnswerverifiedShow Answer

In 1896 presidential candidate William Jennings Bryan wanted the United States to abandon the gold standard and print more money, which would raise the price level and benefit farmers who were deeply in debt.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In general, expansions are characterized by:

Correct AnswerverifiedShow Answer

If the U.S. dollar were replaced with a "new dollar" at an exchange rate of 1 new dollar for 4 old dollars, then an hourly wage of $10 would become an hourly wage of _____ new dollars.

Correct AnswerverifiedShow Answer

A person who is not working and is not looking for work is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Menu costs of inflation are the:

Correct AnswerverifiedShow Answer

Unemployment that results when more people are seeking jobs than there are jobs available is _____ unemployment.

Correct AnswerverifiedShow Answer

When the actual rate of unemployment is equal to the natural rate of unemployment, we conclude that there is no cyclical unemployment.

Correct AnswerverifiedShow Answer

Efficiency wages encourage:

Correct AnswerverifiedShow Answer

An increase in the number of discouraged workers in the economy tends to:

Correct AnswerverifiedShow Answer

Use the following to answer questions Figure: The Minimum Wage -(Figure: The Minimum Wage) Look at the figure The Minimum Wage. What is the quantity of labor supplied at a binding minimum wage of P3?

Correct AnswerverifiedShow Answer

During deflation the:

Correct AnswerverifiedShow Answer

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Use the following to answer questions Figure: The Minimum Wage -(Figure: The Minimum Wage) Look at the figure The Minimum Wage. What is the quantity of labor supplied at a binding minimum wage of P₃?

Correct Answer
verified

Correct Answer
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