1.Assume that there was a 10 per cent increase in the price of all goods in 2010; if the base year is 2009, then the price index in 2010 will be Select one:
a. 1100. b. 200. c. 90. d. 110.
2.The value of your money income, in terms of buying goods and services, is referred to like your money's
a. transaction cost.
b. rigidity factor.
c. staying power.
d. purchasing power.
3. Unemployment that is caused by business recessions is called
a. frictional unemployment.
b. seasonal unemployment.
c. structural unemployment.
d. cyclical unemployment.
4.All of the following are examples of a flow EXCEPT
a. the current unemployment rate.
b. a person who is fired from a job.
c. an individual who voluntarily leaves the labour force.
d. a new entrant into the labour force.
5.Which one of these factors plays a role in determining the extent and duration of frictional unemployment?
a. the ease with which job seekers can obtain information about job openings
b. the degree to which the overall level of business activity fluctuates up and down
c. the extent to which government legislation requires firms to provide health insurance for employees
d. the education and skill levels of labour force participants
6.Since 1950, the labour force participation rate in the United States
a. of men and women both decreased.
b. of men decreased and for women increased.
c. of men increased and women decreased.
d. of men and women both increased.
7.Increases in the duration of unemployment may
a. reflect a general downturn in economic activity that depresses job openings.
b. increase the unemployment rate.
c. All of these.
d. increase the number of discouraged workers.
8. A discouraged worker is someone who
a. is unemployed.
b. has been fired.
c. is not in the labour force.
d. is employed.
9.In the United States, the wage floor legislated by the government below which it is generally illegal to pay workers is known as
a. the going wage.
b. the employment gap.
c. the minimum wage.
d. the wage ceiling.
10. Which of the following is an effect of a minimum wage law that establishes a ceiling wage below the current market-clearing wage?
a. Surplus labour, or unemployment
b. A decrease in the market-clearing wage
c. A decrease in the quantity of labour supplied
d. An increase in the quantity of labour supplied
11. Which group of individuals most likely benefits from rent controls?
a. low-income wage earners who fail to obtain rental housing
b. the unemployed who fail to obtain rental housing
c. single-parent families without savings or other financial assets who fail to obtain rental housing
d. upper-income professionals who rent apartments at the price ceiling rate
