Which of the following would be included as a member of the labor force?
A. A full time college student.
B. A recent high school graduate looking for a first job.
C. A homemaker contributing 15 hours per week as a volunteer worker in a hospital.
D. A retired school teacher collecting social security benefits.
2) Which of the following people would be considered unemployed?
A. A full-time college student.
B. A recent high school graduate looking for a first job.
C. A retired school teaching collecting social security benefits.
D. A homemaker contributing 15 hours per week as a volunteer worker in a hospital.
3) Which one of the following persons would NOT be considered unemployed?
A. An auto worker vacationing in Florida during the layoff period, before the production of new models begins next month. He does not know for sure whether he will be called back to work when this happens, and looked for a new job last week.
B. A college student actively searching for a summer job.
C. A construction worker who has given up looking for work after 18 months without a job.
D. A retiree actively looking for part-time work to supplement Social Security income.
4) The labor force participation rate measures the number of people:
A. In the labor force.
B. In the labor force as a percentage of the total population.
C. In the labor force as a percentage of the population at least sixteen years old.
D. Who are working as a percentage of the labor force.
5) Unemployment caused by a recession is called:
A. Frictional unemployment.
B. Cyclical unemployment.
C. Seasonal unemployment
D. Structural unemployment.
6) Frictional unemployment often occurs when:
A. The economy enters a recession.
B. People first enter the labor force.
C. People are discriminated against.
D. People lose a job because their skills are no longer needed.
7) Workers at a steel plant are laid off because the economy is weak and the demand for products requiring steel has fallen. What type of unemployment best describes the workers situation?
A. Cyclical unemployment.
B. Full unemployment.
C. Structural unemployment.
D. Frictional unemployment.
8) Which of the following types of unemployment is considered to be the most controllable through macroeconomic policy?
A. Frictional unemployment.
B. Seasonal unemployment.
C. Cyclical unemployment.
D. Structural unemployment.
9) Workers at a car-manufacturing plant in Flint, Michigan are laid off because the economy is weak and GM cars aren't selling well. GM isn't sure when the plant will reopen. What type of unemployment describes the workers' situation?
A. Cyclical unemployment.
B. Full unemployment.
C. Structural unemployment.
D. Frictional unemployment.
10) The consumer price index is computed by comparing the cost of the typical market basket of goods purchased during a base year (evaluated at base year prices) with:
A. The cost of the same market basket evaluated at current prices.
B. The cost of the current market basket evaluated at base-year prices.
C. The cost of the current market basket evaluated at current prices.
D. The cost of the same market basket evaluated at base year prices.
11) Unexpected inflation will:
A. Hurt borrowers.
B. Hurt lenders.
C. Hurt borrowers and lenders equally.
D. Have no effect on either borrowers or lenders.
12) Which of the following statements is FALSE?
A. Whether you gain or lose during a period of inflation depends on whether your income rises faster or slower than the prices of the things you buy.
B. Inflation that is higher than expected benefits borrowers, and inflation that is lower than expected benefits lenders.
C. There are no costs or losses associated with expected inflation.
D. When unanticipated inflation occurs regularly, the degree of risk associated with investments in the economy increases
13) The consumer price index (CPI) is designed to measure changes in the
A. Spending patterns of urban consumers only
B. Spending patterns of all consumers
C. Wholesale price of all goods and services produced in an economy
D. Cost of a select market basket of goods and services
14) Which of the following statements is true of unanticipated inflation?
A. It decreases the economic well-being of all members of society proportionately
B. It decreases the economic well-being of all members of society equally
C. It increases the economic well-being of net creditors
D. It increases the economic well-being of net debtors
E. It increases the economic well-being of workers with long-term labor contracts
15) An increase in which of the following would cause the aggregate demand curve to shift to the left?
A. Consumer optimism
B. Population
C. Cost of resources
D. Income taxes
E. Net exports