Question 1

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

Accepted Answer

A)   Q1
B)   Q2
C)   Q3
D)   Q4E) None of the above
F) All of the above

Question 2

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 labour force.
B)   the loss of labour 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 labour productivity.E) C) and D)
F) A) and D)

Question 3

Which statement about unemployment is FALSE?

Accepted Answer

A)   Unemployment always falls during recessions.
B)   Unemployment always falls during expansions.
C)   There is a strong negative relation between growth in real GDP and changes in unemployment.
D)   In general,there is a trade-off between inflation and unemployment in the short run.E) All of the above
F) A) and B)

Question 4

Suppose that the real interest rate is 2.1% and the nominal interest rate is 5.4%.The inflation rate is _____%.

Accepted Answer

A)   7.5
B)   3.3
C)   -3.3
D)   2.1E) A) and C)
F) A) and B)

Question 5

Frictional unemployment:

Accepted Answer

A)   occurs only during expansions.
B)   is due to time workers spend in job search.
C)   is the difference between cyclical unemployment and the natural rate of unemployment.
D)   hasn't occurred since the 1930s.E) A) and C)
F) A) and D)

Question 6

The sum of the frictional and structural rates of unemployment is the:

Accepted Answer

A)   cyclical rate of unemployment.
B)   cyclical rate of employment.
C)   natural rate of unemployment.
D)   natural rate of employment.E) All of the above
F) A) and B)

Question 7

Use the following to answer questions: 
-(Table: Unemployment and Employment Data) Use Table: Unemployment and Employment Data.If marginally attached workers are included,the labour force in this economy is _____ million.

Accepted Answer

A)   170
B)   103
C)   100
D)   98E) B) and D)
F) B) and C)

Question 8

Natural unemployment equals _____ unemployment plus _____ unemployment.

Accepted Answer

A)   frictional;structural
B)   cyclical;structural
C)   frictional;cyclical
D)   frictional;both structural and cyclicalE) None of the above
F) C) and D)

Question 9

The costs that arise from the way inflation makes money a less reliable unit of measurement are:

Accepted Answer

A)   shoe-leather costs.
B)   menu costs.
C)   unit-of-account costs.
D)   medium of exchange costs.E) A) and C)
F) A) and D)

Question 10

An example of the frictionally unemployed is a(n) :

Accepted Answer

A)   autoworker who is temporarily laid off because of a decline in sales.
B)   geologist who is permanently laid off from an oil company because of a technological advance.
C)   worker at a fast-food restaurant who quits work and attends university.
D)   real estate agent who leaves a job in Montreal and searches for a similar,higher paying job in Toronto.E) All of the above
F) B) and D)

Question 11

A high unemployment rate implies a high level of GDP.

Accepted Answer

A) True 
 B)False

Question 12

If there are 100 million people in the total population,a labour force of 50 million,and 47 million employed workers,the unemployment rate is _____%.

Accepted Answer

A)   3
B)   6
C)   8
D)   10E) A) and B)
F) A) and D)

Question 13

If the actual unemployment rate is 7% and the cyclical unemployment rate is 2%,then the natural rate of unemployment is:

Accepted Answer

A)   2%.
B)   5%.
C)   7%.
D)   9%.E) B) and C)
F) C) and D)

Question 14

Scenario: Employment in Xenia
Xenia has 10 000 people.Of this population,1 000 residents are below age 15,and 2 000 have given up looking for work.Currently,500 people are unemployed but are actively looking for work;2 500 work part time,and the rest are fully employed.
What is the unemployment rate?

Accepted Answer

A)   7.14%
B)   4.25%
C)   11.11%
D)   2%E) All of the above
F) A) and D)

Question 15

Costs of inflation do NOT include _____ costs.

Accepted Answer

A)   menu
B)   shoe-leather
C)   unit-of-account
D)   efficiency-wageE) None of the above
F) A) and B)

Question 16

If the government increases the length and amount of unemployment benefits,the unemployment rate will fall.

Accepted Answer

A) True 
 B)False

Question 17

An efficiency wage:

Accepted Answer

A)   can be secured only with the help of a labour union.
B)   is one that causes greater frictional unemployment.
C)   is offered by an employer to encourage workers to work harder.
D)   results in a less productive work force.E) None of the above
F) A) and C)

Question 18

To be officially unemployed,a person must:

Accepted Answer

A)   not have a job and must have looked for work in the past 4 weeks.
B)   be under 55 years old.
C)   be working fewer than 30 hours per week.
D)   be working fewer than 20 hours per week.E) All of the above
F) B) and C)

Question 19

A person who is NOT working or looking for work is:

Accepted Answer

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

Question 20

A wage offered by an employer as an incentive for more work effort and performance and that exceeds the equilibrium wage rate is known as a(n) _____ wage.

Accepted Answer

A)   minimum
B)   equilibrium
C)   efficiency
D)   unionE) A) and B)
F) None of the above

Exam 8: Unemployment and Inflation

An efficiency wage:

Correct Answer
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If the government increases the length and amount of unemployment benefits,the unemployment rate will fall.

Correct Answer
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Frictional unemployment:

Correct Answer
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Correct Answer
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The costs that arise from the way inflation makes money a less reliable unit of measurement are:

Correct Answer
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Which statement about unemployment is FALSE?

Correct Answer
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If the actual unemployment rate is 7% and the cyclical unemployment rate is 2%,then the natural rate of unemployment is:

Correct Answer
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A wage offered by an employer as an incentive for more work effort and performance and that exceeds the equilibrium wage rate is known as a(n) _____ wage.

Correct Answer
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An example of the frictionally unemployed is a(n) :

Correct Answer
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Use the following to answer questions: -(Table: Unemployment and Employment Data) Use Table: Unemployment and Employment Data.If marginally attached workers are included,the labour force in this economy is _____ million.

Correct Answer
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If there are 100 million people in the total population,a labour force of 50 million,and 47 million employed workers,the unemployment rate is _____%.

Correct Answer
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Costs of inflation do NOT include _____ costs.

Correct Answer
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Suppose that the real interest rate is 2.1% and the nominal interest rate is 5.4%.The inflation rate is _____%.

Correct Answer
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A person who is NOT working or looking for work is:

Correct Answer
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The sum of the frictional and structural rates of unemployment is the:

Correct Answer
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To be officially unemployed,a person must:

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

Correct Answer
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Natural unemployment equals _ unemployment plus _ unemployment.

Correct Answer
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One factor that raises the natural rate of unemployment is:

Correct Answer
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A high unemployment rate implies a high level of GDP.

Correct Answer
verified

Exam 8: Unemployment and Inflation

An efficiency wage:

Correct AnswerverifiedShow Answer

If the government increases the length and amount of unemployment benefits,the unemployment rate will fall.

Correct AnswerverifiedShow Answer

Frictional unemployment:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The costs that arise from the way inflation makes money a less reliable unit of measurement are:

Correct AnswerverifiedShow Answer

Which statement about unemployment is FALSE?

Correct AnswerverifiedShow Answer

If the actual unemployment rate is 7% and the cyclical unemployment rate is 2%,then the natural rate of unemployment is:

Correct AnswerverifiedShow Answer

A wage offered by an employer as an incentive for more work effort and performance and that exceeds the equilibrium wage rate is known as a(n) _____ wage.

Correct AnswerverifiedShow Answer

An example of the frictionally unemployed is a(n) :

Correct AnswerverifiedShow Answer

Use the following to answer questions: -(Table: Unemployment and Employment Data) Use Table: Unemployment and Employment Data.If marginally attached workers are included,the labour force in this economy is _____ million.

Correct AnswerverifiedShow Answer

If there are 100 million people in the total population,a labour force of 50 million,and 47 million employed workers,the unemployment rate is _____%.

Correct AnswerverifiedShow Answer

Costs of inflation do NOT include _____ costs.

Correct AnswerverifiedShow Answer

Suppose that the real interest rate is 2.1% and the nominal interest rate is 5.4%.The inflation rate is _____%.

Correct AnswerverifiedShow Answer

A person who is NOT working or looking for work is:

Correct AnswerverifiedShow Answer

The sum of the frictional and structural rates of unemployment is the:

Correct AnswerverifiedShow Answer

To be officially unemployed,a person must:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Natural unemployment equals _____ unemployment plus _____ unemployment.

Correct AnswerverifiedShow Answer

One factor that raises the natural rate of unemployment is:

Correct AnswerverifiedShow Answer

A high unemployment rate implies a high level of GDP.

Correct AnswerverifiedShow Answer

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

Correct Answer
verified

Natural unemployment equals _ unemployment plus _ unemployment.

Correct Answer
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Correct Answer
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Correct Answer
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