Question 1

If a labor market is in equilibrium at a wage that sets the quantity of labor demanded equal to the quantity of labor supplied, how can there still be unemployment?

Accepted Answer

Even when a labor market is in equilibri...

Question 2

If money income remains the same while the average price level doubles:

Accepted Answer

A)   nominal income will fall.
B)   real income will fall.
C)   interest rates will fall.
D)   purchasing power will increase.

Question 3

Use the following to answer questions : 
-(Table: Dexter's Employment Statistics) Look at the table Dexter's Employment Statistics. Use these data for the following computations.
a. What is the unemployment rate?
b. Including discouraged workers, what is the unemployment rate?

Accepted Answer

The answer of Use the following to answer questions :...

Question 4

The Bureau of Labor Services calculates U-6. This measures the:

Accepted Answer

A)   underuse of labor that includes discouraged workers, marginally attached workers, and underemployed workers.
B)   use of labor based on various demographics.
C)   labor force participation rate in a comprehensive way.
D)   rate of overuse of labor when workers hold multiple jobs.

Question 5

Unanticipated inflation does all of the following EXCEPT:

Accepted Answer

A)   reduce the value of money.
B)   reduce the value of debt.
C)   cause uncertainty about the future.
D)   cause disinflation.

Question 6

A survey reveals that on a small island 1,000 people have jobs, 200 people don't have jobs but are looking for jobs, and 200 people are neither working nor looking for work. The unemployment rate on the island is:

Accepted Answer

A)   12.5%.
B)   16.7%.
C)   20%.
D)   30%.

Question 7

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

Accepted Answer

A)   39.4%.
B)   30.3%.
C)   9.1%.
D)   6.25%.

Question 8

During the mid-1980s, Israel had a high rate of inflation, and prices often rose by more than 10% per month.

Accepted Answer

A) True 
 B)False

Question 9

Unemployment is at its natural level if there is no:

Accepted Answer

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

Question 10

Unit-of-account costs refer to the problem associated with high inflation rates that:

Accepted Answer

A)   cause people to expend extra effort to reduce their holdings of money.
B)   result in increased costs associated with necessary changes in the list price of items.
C)   makes money a less reliable unit of measurement.
D)   decrease the costs associated with holding less money.

Question 11

Since the 2007 recession, recent college graduates aged 21 to 23, have had an unemployment rate lower than that of any other age group in the labor force.

Accepted Answer

A) True 
 B)False

Question 12

Use the following to answer questions 
Figure: The Minimum Wage 
-It is generally accepted that a binding minimum wage does all of the following EXCEPT:

Accepted Answer

A)   decrease the quantity of labor demanded.
B)   increase unemployment.
C)   increase the amount of labor supplied.
D)   decrease the amount of labor supplied.

Question 13

Use the following to answer questions 
Figure: The Labor Market 
-(Figure: The Labor Market)  Look at the figure The Labor Market. The size of the labor force at the equilibrium wage rate is:

Accepted Answer

A)   80,000.
B)   110,000.
C)   100,000.
D)   200,000.

Question 14

Cyclical unemployment:

Accepted Answer

A)   occurs when people are between jobs.
B)   is a lack of good matches between available jobs and skills.
C)   is the normal unemployment around which the actual unemployment rate fluctuates.
D)   is the deviation from the natural rate in the actual rate of unemployment.

Question 15

Most economists agree that a binding minimum wage causes structural unemployment.

Accepted Answer

A) True 
 B)False

Question 16

Use the following to answer questions 
Figure: The Labor Market 
-(Figure: The Labor Market)  Look at the figure The Labor Market. The unemployment rate at the equilibrium wage rate is:

Accepted Answer

A)   0%.
B)   50%.
C)   80%.
D)   15%.

Question 17

If the actual inflation rate is less than the expected inflation rate:

Accepted Answer

A)   lenders gain and borrowers lose.
B)   borrowers gain and lenders lose.
C)   everyone benefits.
D)   everyone is worse off.

Question 18

Unanticipated inflation:

Accepted Answer

A)   increases the value of money.
B)   decreases uncertainty about the future.
C)   reduces the real value of debt.
D)   helps lenders.

Question 19

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 college.
D)   real estate agent who leaves a job in Texas and searches for a similar higher-paying job in California.

Question 20

All of the following cause structural unemployment EXCEPT:

Accepted Answer

A)   a government-mandated floor on the price of labor set above the equilibrium wage.
B)   collective bargaining efforts that secure higher wages for unionized workers than for nonunionized workers.
C)   offering high wages to attract high-quality workers.
D)   granting Social Security benefits to laid-off workers.

Exam 22: Unemployment and Inflation

The Bureau of Labor Services calculates U-6. This measures the:

Correct AnswerverifiedShow Answer

Use the following to answer questions Figure: The Minimum Wage -It is generally accepted that a binding minimum wage does all of the following EXCEPT:

Correct AnswerverifiedShow Answer

Use the following to answer questions : -(Table: Dexter's Employment Statistics) Look at the table Dexter's Employment Statistics. Use these data for the following computations. a. What is the unemployment rate? b. Including discouraged workers, what is the unemployment rate?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If money income remains the same while the average price level doubles:

Correct AnswerverifiedShow Answer

A survey reveals that on a small island 1,000 people have jobs, 200 people don't have jobs but are looking for jobs, and 200 people are neither working nor looking for work. The unemployment rate on the island is:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Cyclical unemployment:

Correct AnswerverifiedShow Answer

Unanticipated inflation does all of the following EXCEPT:

Correct AnswerverifiedShow Answer

If a labor market is in equilibrium at a wage that sets the quantity of labor demanded equal to the quantity of labor supplied, how can there still be unemployment?

Correct AnswerverifiedEven when a labor market is in equilibri...View AnswerShow Answer

All of the following cause structural unemployment EXCEPT:

Correct AnswerverifiedShow Answer

If the actual inflation rate is less than the expected inflation rate:

Correct AnswerverifiedShow Answer

Since the 2007 recession, recent college graduates aged 21 to 23, have had an unemployment rate lower than that of any other age group in the labor force.

Correct AnswerverifiedShow Answer

Most economists agree that a binding minimum wage causes structural unemployment.

Correct AnswerverifiedShow Answer

Use the following to answer questions Figure: The Labor Market -(Figure: The Labor Market) Look at the figure The Labor Market. The unemployment rate at the equilibrium wage rate is:

Correct AnswerverifiedShow Answer

During the mid-1980s, Israel had a high rate of inflation, and prices often rose by more than 10% per month.

Correct AnswerverifiedShow Answer

Unemployment is at its natural level if there is no:

Correct AnswerverifiedShow Answer

Use the following to answer questions Figure: The Labor Market -(Figure: The Labor Market) Look at the figure The Labor Market. The size of the labor force at the equilibrium wage rate is:

Correct AnswerverifiedShow Answer

Unanticipated inflation:

Correct AnswerverifiedShow Answer

Unit-of-account costs refer to the problem associated with high inflation rates that:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Even when a labor market is in equilibri...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified