exam 4 econ

Central Banks sell

trust that they will maintain the purchasing power of money.

What metal was used to mint the first coins?

electrum

The civilian labor force includes: a. the sum of all employed and all unemployed people. b. all working people not in the military. c. the sum of all employed people. d. the sum of all people not in the military and all unemployed people.

a. the sum of all employed and all unemployed people.

Fiat money: a. exists by government decree. b. only has use as a medium of exchange, store of value, and unit of account. c. is divisible, recognizable, portable, and acceptable. d. All of the above

d. All of the above

The great benefit of a fiat money:

is its efficiency to serve as a medium of exchange, especially since much of it is electronic money.

Commodity money has intrinsic value. This means:

it has value outside of its use as a medium of exchange.

When money is used to purchase goods and services and circulates in our economy, it is acting as a(n): a. store of value. b. unit of account. c. medium of exchange. d. bill of attainder.

medium of exchange

The essential problem that money solves in an economy is: a. a lack of a double coincidence of wants in an economy based on barter. b. it serves as a common acceptable medium of exchange for trade. c. it is backed by a gold standard that protects against inflation over the long-term. d. both A and B.

D. both a and b

Where did the first coins emerge?

Lydia

Which agency provides key employment data, including the unemployment rate? a. Bureau of Labor Statistics b. Commerce Department c. National Bureau of Economic Research d. Bureau of Economic Analysis

a. Bureau of Labor Statistics

cyclical unemployment a. is unemployment that occurs as a result of a downturn in the economy. b. is short-term unemployment associated with individuals who are not working while seeking their first job or changing jobs. c. occurs when the jobs that are available require skills that do not match the skills possessed by those seeking jobs. d. is the only type of unemployment that makes a person eligible for unemployment benefits.

a. is unemployment that occurs as a result of a downturn in the economy.

The Federal Reserve has a mandate from Congress that includes______ a. price stability and employment. b. price stability and fiscal policy. c. price stability and taxation. d. regulating the collection of unemployment data.

a. price stability and employment.

The costs and consequences of high unemployment may include all of the following, EXCEPT: a. lower wages and slower career advancement for college graduates. b. a decrease in property crime. c. an effect on the health of individuals and families. d. an effect on family stability.

b. a decrease in property crime

Comparing level of education data and employment/income prospects shows______ a higher unemployment rate for persons with a higher level of education. b. a lower unemployment rate for persons with a higher level of education. c. similar unemployment rates for all persons regardless of the level of education. d. no difference in the income levels of workers with different levels of education.

b. a lower unemployment rate for persons with a higher level of education.

Frictional unemployment: a. is unemployment that occurs as a result of a downturn in the economy. b. is short-term unemployment associated with individuals who are not working while seeking their first job or changing jobs. c. occurs when the jobs that are available require skills that do not match the skills possessed by those seeking jobs. d. is the only type of unemployment that makes a person eligible for unemployment benefits.

b. is short-term unemployment associated with individuals who are not working while seeking their first job or changing jobs.

The unemployment rate is a. the number of people receiving unemployment benefits as a percent of the total labor force. b. the number of unemployed as a percent of the total labor force. c. the number of unemployed as a percent of the total population. d. the number of people receiving unemployment benefits as a percent of the total population.

b. the number of unemployed as a percent of the total labor force.

A review of a graph showing the national unemployment rate can identify: a. which industries are experiencing stable employment. b. the percentage of the labor force not presently working but seeking a job. c. reasons for job loss over time. d. the number of individuals who have lost their jobs in a given period of time.

b. the percentage of the labor force not presently working but seeking a job.

When money is used to price goods and services, it is acting as a(n): a. store of value. b. unit of account. c. medium of exchange. d. bill of attainder.

b. unit of account.

Reports on employment and unemployment are generated through surveys of ______ a. fifty percent of households in each large city. b. approximately one-half of all households in the U.S. each month. c. a representative sample of households. d. all households in the U.S. each month.

c. a representative sample of households.

10. Structural Unemployment a. is unemployment that occurs as a result of a downturn in the economy. b. is short-term unemployment associated with individuals who are not working while seeking their first job or changing jobs. c. occurs when the jobs that are available require skills that do not match the skills possessed by those seeking jobs. d. the only type of unemployment that makes a person eligible for unemployment benefits.

c. occurs when the jobs that are available require skills that do not match the skills possessed by those seeking jobs.