Question 1

Demand-pull inflation ends once full employment is reacheD.

Accepted Answer

A) True 
 B)False

Question 2

Full employment means that everyone in the labor force has a joB.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following factors in an economy contribute to "sticky" wages?

Accepted Answer

A)  Flexible working conditions
B)  Competitive labor markets
C)  Collective bargaining agreements
D)  Highly mobile capital equipment
E)  Investment flexibility

Question 4

Which of the following best describes when the economy is experiencing inflation? When

Accepted Answer

A)  The price of an essential good increases dramatically
B)  The prices of many goods go up
C)  There is a rise in the general level of prices
D)  All prices remain the same or increase; no prices fall
E)  The value of the dollar increases

Question 5

A person is considered unemployed if the person is

Accepted Answer

A)   Seeking a job requiring greater qualifications than the person possesses and no one is willing to hire the person for such a job
B)   Offered a job for which the person is qualified but prefers not to work
C)   Qualified for a job, willing to work, but unable to find work for over 30 days
D)   Out of school during Christmas vacation and cannot find work during that period
E)   All of the above

Question 6

Cyclical unemployment occurs because workers have no marketable job skills.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements concerning the circular flow is FALSE?

Accepted Answer

A)  The circular flow of economic activity shows how the overall economy operates
B)  The circular flow emphasizes the independence of economic variables
C)  There are two circular flows involved in the economy
D)  The circular flow shows that real income is determined by physical goods and services produced in the economy
E)  None of the above

Question 8

When frictional unemployment exists,labor services are voluntarily unemployeD.

Accepted Answer

A) True 
 B)False

Question 9

Frictional unemploymentrefers to persons who are unemployed because the economy is in a recession.

Accepted Answer

A) True 
 B)False

Question 10

All unemployed workers are unemployed for the same reason.

Accepted Answer

A) True 
 B)False

Question 11

In the circular flow diagram,economic units are classified as

Accepted Answer

A)  Imports and exports
B)  Households and producers
C)  Taxpayers and governments
D)  Subsidy receivers and taxpayers
E)  Producers and sellers

Question 12

Expansionary and contractionary policies have not proved to be effective tools to control unemployment and inflation in the American economy.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following people is considered unemployed?

Accepted Answer

A)  A truck driver with a high school education who has been laid off his job and is now training to be a computer programmer
B)  An individual who is currently not working nor actively seeking employment
C)  A secretary who is currently not working and who seeks employment using secretarial skills
D)  All of the above
E)  None of the above

Question 14

The consumer price index is a true cost-of-living index.

Accepted Answer

A) True 
 B)False

Question 15

Suppose a family spends $20,000 on a basket of goods in 2011.Suppose the same basket costs $22,000 in 2012.Using 2011 as the base year,the price index for 2012 is

Accepted Answer

A)  105
B)  102
C)  111
D)  110
E)  None of the above

Question 16

Which of the following statements is correct? Inflation

Accepted Answer

A)  Benefits creditors at the expense of debtors
B)  Increases the purchasing power of the dollar
C)  Increases the real value of savings
D)  Arbitrarily "taxes" fixed income groups
E)  Increases real wages

Question 17

Frictional unemployment is involuntary.

Accepted Answer

A) True 
 B)False

Question 18

Aggregate supply can be increased by

Accepted Answer

A)  Reduced incentives to save
B)  Higher taxes
C)  Increases in government spending
D)  Policies to induce more saving
E)  None of the above

Question 19

During inflation,some prices may be rising and some may be falling.

Accepted Answer

A) True 
 B)False

Question 20

Since 1960,inflation rates were highest during the 1970s.

Accepted Answer

A) True 
 B)False

Exam 13: Unemployment and Inflation: Can We Find a Balance

A person is considered unemployed if the person is

Correct AnswerverifiedShow Answer

Suppose a family spends $20,000 on a basket of goods in 2011.Suppose the same basket costs $22,000 in 2012.Using 2011 as the base year,the price index for 2012 is

Correct AnswerverifiedShow Answer

Which of the following best describes when the economy is experiencing inflation? When

Correct AnswerverifiedShow Answer

Full employment means that everyone in the labor force has a joB.

Correct AnswerverifiedShow Answer

Aggregate supply can be increased by

Correct AnswerverifiedShow Answer

Frictional unemployment is involuntary.

Correct AnswerverifiedShow Answer

Frictional unemploymentrefers to persons who are unemployed because the economy is in a recession.

Correct AnswerverifiedShow Answer

Cyclical unemployment occurs because workers have no marketable job skills.

Correct AnswerverifiedShow Answer

Which of the following people is considered unemployed?

Correct AnswerverifiedShow Answer

During inflation,some prices may be rising and some may be falling.

Correct AnswerverifiedShow Answer

Since 1960,inflation rates were highest during the 1970s.

Correct AnswerverifiedShow Answer

The consumer price index is a true cost-of-living index.

Correct AnswerverifiedShow Answer

Which of the following factors in an economy contribute to "sticky" wages?

Correct AnswerverifiedShow Answer

In the circular flow diagram,economic units are classified as

Correct AnswerverifiedShow Answer

Expansionary and contractionary policies have not proved to be effective tools to control unemployment and inflation in the American economy.

Correct AnswerverifiedShow Answer

When frictional unemployment exists,labor services are voluntarily unemployeD.

Correct AnswerverifiedShow Answer

All unemployed workers are unemployed for the same reason.

Correct AnswerverifiedShow Answer

Demand-pull inflation ends once full employment is reacheD.

Correct AnswerverifiedShow Answer

Which of the following statements is correct? Inflation

Correct AnswerverifiedShow Answer

Which of the following statements concerning the circular flow is FALSE?

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

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