Eocnomics week 10

By offering training to workers whose firms sacked them because of competition from foreign firms, the federal government is attempting to reduce: a) structural unemployment. b) frictional unemployment. c) cyclical unemployment. d) seasonal unemployment.

A

Inflation is an increase in the: a) average hourly wage rate. b) general price level in the economy. c) rate of growth of GDP. d) overall level of economic activity. Answer B

B

The demand for new motor vehicles falls when the economy enters a downturn, and as a result, motor vehicle manufacturers sack some workers. This would be an example of: a) frictional unemployment. b) cyclical unemployment. c) natural unemployment. d) structural unemployment.

B

Which of the following is an example of a worker experiencing frictional unemployment? a) An airline pilot who loses her job because of lack of demand for air travel. b) A worker who quits his job at the post office to find more interesting work. c) An employee who loses his job because the economy is suffering a recession. d) A computer programmer who loses her job because it is out-sourced to India.

B

With cost-push inflation, initially: a) the price level and real GDP both increase. b) the price level rises and real GDP declines. c) only real GDP changes while the price level remains constant. d) all of these options are correct.

B

A full time student who is not working is categorised as: a) a discouraged worker. b) employed. c) not in the labour force. d) unemployed.

C

Which of the following do NOT suffer the costs of inflation? a) An investor that has to pay higher taxes because of the inflation. b) People on fixed incomes. c) People whose incomes rise more rapidly than inflation. d) Firms that have to devote more time and labour to raising prices.

C