Economics Quiz 9
Even perfectly anticipated inflation imposes costs. Why?
A) paper money loses its purchasing power by the rate of inflation. B.)Menu costs. C.)Some wages will fail to keep up with anticipated inflation. D.)All of the above. E)A and C only. All of the above.
Which of the following is an example of structural unemployment?
Due to technological change, typewriter workers lose jobs and must retrain to find jobs in other industries
Which of the following is an example of cyclical unemployment?
During a recession, aircraft assemblers are laid off but expect to be recalled as the economy improves
Two important trends in the labor force participation rates of adults aged 20 and over in the United States since 1948 are the _________ labor force participation rate of adult women and the __________ labor force participation rate of adult men.
Rising;Falling
What effect do labor unions have on the unemployment rate?
Since few non-government workers are unionized, there is no significant effect on the unemployment rate.
Consider the simple economy that produces only three products. Use the information in the following table to calculate the (annual rate of) inflation for 2014 as measured by the consumer price index. (haircuts,hamburgers,dvds)
The inflation rate for 2014 as measured by the consumer price index (CPI) is 20.05%
Use the graph to the right to help determine which of the following statements regarding the labor force participation rates of adult men and women since 1950 is false
The labor force participation rates of adult men and adult women were equal in 1990
The nominal interest rate is 14%. The inflation rate is 5%.
The real interest rate is equal to 9%.
Which of the following is not one of the conditions someone needs to meet to be counted as unemployed?
They had worked only one hour per week during the previous four weeks.
Unemployment rate
Unemployment Rate= Number of Unemployed/ Labor Force×100.
The natural rate of unemployment tends to be lower when
Unemployment insurance benefits are lower
The monthly market basket for consumers consists of pizza, t-shirts, and rent
Year1= 100.0 Year2 = 109.5
An efficiency wage is
an above-market wage paid by a firm to maximize worker productivity.
The labor force participation rate is calculated by
he percentage of the working-age population that is in the labor force or Labor force/ Working- age population x100
The difference between a nominal variable and a real variable is that
nominal variables are calculated in current-year prices and the real variables are measured in dollars of the base year for the price index to correct the effects of inflation.
Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called
structural unemployment
The table below shows the consumer price index (CPI) in Mar 2014 and Mar 2015 for Brazil, Russia, India, and China. Calculate the inflation rate over this 12-month period for each country.
Brazil= 8.07% Russia=16.99% India=6.25% China=1.59%
Suppose the interest rate on your car loan is 17.00% and the inflation rate is 16.00%. Suppose the interest rate on your car loan is 7.00% and the inflation rate is 4.00%.
Calculate the real interest rate = 1% Calculate the real interest rate = 3%.
All of the following are problems caused by deflation except
firms make higher profits as consumers buy more goods and services.
Menu costs are
the costs to firms of changing prices. The Internet has reduced the size of menu costs.
Jared Bernstein, an economist at the Center on Budget and Policy Priorities, has stated: "I want to see receipt of unemployment insurance...go up in recessions." If government unemployment insurance payments didn't go up, he explains, it "would be a sign that something's very wrong." If government unemployment insurance payments did not rise during a recession, Government unemployment payments can increase the unemployment rate by
the economy would suffer as purchasing power of consumers would suffer. allowing the unemployed to be more picky about taking a new job.
The labor force participation rate is
the percentage of the working-age population in the labor force.
