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Ise the figure below to answer the following question. mwan 1950 1960 1970 1980 Figure 1.4 13) — 13) Refer to Figure A1.4. The behaviour of x over time is best characterized as exhibiting A) an upward trend and decreasing variability. B) a constant trend and increasing variability. C) a downward trend and increasing variability. D) a downward trend and decreasing variability. E) an upward trend and increasing variability.

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13 Dec 2017
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Related questions

5. Plots of the yield curve can be useful for: a. Predicting the future course of inflation b. Predicting the future trends in international trade c. Predicting the future course of interest rates d. Prediction the future policy actions of the Federal Reserve System

6. An upward sloping yield curve means that, a. Short-term interest rates are expected to fall, so that long-term interest rates will be higher than short-term interest b. Short-term interest rates are expected to rise, so that short-term interest rates will be higher than long-term interest c. Short-term interest rates are expected to rise, so that long-term interest rates will be higher than short-term interest d. Short-term interest rates are expected to fall, so that short-term interest rates will be lower than long-term interest

7. Which of the following is NOT a stylized fact about the yield curve. a. The yield curve is generally upward sloping b. The yield curve is generally downward sloping c. The yield curve tends to shift over time d. The yield curve tends tend to predict future economic activity

8. If the Expectations Hypothesis holds true about long-term and short-term bonds being substitutes, then if the U.S. government decides to issue a large stock of long-term bonds, we could expect, a. The yield curve to become steeper b. The yield curve to become flatter c. The yield curve to shift down d. The yield curve to shift up

9. Suppose that businesses believe that the economy is about to expand, then we could expect, a. The yield curve to become steeper b. The yield curve to become flatter c. The yield curve to shift down d. The yield curve to shift up

10. Empirical evidence in US shows that when the spread between long term bonds and short-term bonds is negative (that is: the yield curve slopes downward or is inverted) then __________ is highly possible. a. Higher inflation b. Lower inflation c. A recession d. An economic expansion

11. According to the pure expectations theory of term structure, a flat yield curve is interpreted to mean that, a. Interest rates are expected to rise b. Interest rates are expected to fall c. Interest rates are expected to remain constant d. Interest rates are expected to rise and then to fall e. None of the above

12. Yield curves can be classified as: a. Upward sloping b. Downward sloping c. Flat d. All of the above e. Only (a) and (b)

13. Yield curves can be: a. Steeply upward sloping b. Moderately upward sloping c. Downward sloping d. All of the above e. Only (a) and (b)

14. Typically, yield curves are: a. Gently upward sloping b. Gently downward sloping c. Flat d. Bowl shaped e. Mound shaped

15. When yield curves are steeply upward sloping, a. Long-term interest rates are above short-term interest rates b. Short-term interest rates are above long-term interest rates c. Short-term interest rates are about the same as long-term interest rates d. Medium-term interest rates are above both short-term and long-term interest rates e. Medium-term interest rates are below both short-term and long-term interest rates

16. An inverted yield curve: a. Slopes up b. Is flat c. Slopes down d. Has a U shape e. Has an inverted U shape

17. According to the expectations theory of the term structure, a. The interest rate on long-term bonds will equal an average of short-term interest rates that people expect to occur over the life of the long-term bonds b. Buyers of bonds do not prefer bonds of one maturity over another c. Interest rates on bonds of different maturities move together over time d. All of the above e. Only (a) and (b)

18. According to the expectations theory of the term structure, a. The interest rate on long-term bonds will equal an average of short-term interest rates that people expect to occur over the life of the long-term bonds b. Interest rates on bonds of different maturities move together over time c. Buyers of bonds prefer short-term to long-term bonds d. All of the above e. Only (a) and (b)

19. According to the expectations theory of the term structure, a. When the yield curve is steeply upward sloping, short-term interest rates are expected to rise in the future b. When the yield curve is downward sloping, short-term interest rates are expected to decline in the future c. Buyers of bonds do not prefer bonds of one maturity over another d. All of the above e. Only (a) and (b)

20. According to the expectations theory of the term structure, a. When the yield curve is steeply upward sloping, short-term interest rates are expected to rise in the future b. When the yield curve is downward sloping, short-term interest rates are expected to decline in the future c. Investors have strong preferences for short-term relative to long-term bonds, explaining why yield curves typically slope upward d. All of the above e. Only (a) and (b)

21. According to the expectations theory of the term structure, a. When the yield curve is steeply upward sloping, short-term interest rates are expected to rise in the future b. When the yield curve is downward sloping, short-term interest rates are expected to decline in the future c. Yield curves should be as equally likely to slope downward as slope upward d. All of the above e. Only (a) and (b)

22. According to the expectations theory of the term structure, a. The interest rate on long-term bonds will equal an average of short-term interest rates that people expect to occur over the life of the long-term bonds b. Buyers of bonds do not prefer bonds of one maturity over another c. Yield curves should be as equally likely to slope downward as slope upward d. All of the above e. Only (a) and (b)

23. According to the expectations theory of the term structure, a. The interest rate on long-term bonds will equal an average of short-term interest rates that people expect to occur over the life of the long-term bonds b. Buyers of bonds do prefer short-term to long-term bonds c. Interest rates on bonds of different maturities do not move together over time d. All of the above

24. Assume that over the next two years, the expected path of 1-year interest rates is 4 percent and 1 percent. The expectations theory of the term structure predicts that the current interest rate on 2-year bond is: a. 1% b. 1.5% c. 2% d. 2.5% e. 4%

25. Assume that over the next two years, the expected path of 1-year interest rates is 1 percent and 4 percent. The expectations theory of the term structure predicts that the current interest rate on 2-year bond is: a. 1% b. 1.5% c. 2% d. 2.5% e. 4%

26. Assume that the current 1-year interest rate is 3 percent and the current 2-year interest rate is 2 percent. The expectations theory of the term structure predicts that the interest rate expected on 1-year bonds next year is: a. 1% b. 1.5% c. 2% d. 2.5% e. 4%

1. “Total compensation” includes:

a. Wages and salaries and all fringe benefits

b. Wages and salaries and public (legally mandated) fringe benefits only

c. Wages and salaries and private (nonmandatory) fringe benefits only

d. Wages and salaries and all fringe benefits net of all personal taxes

2. Fringe benefits currently account for approximately what percentage of total compensation?

a. 5% – 10%

c. 25% – 30%

b. 15% – 20%

d. 35% – 40%

3. As a percentage of benefits, the largest share goes to:

a. retirement and savings

c. paid leave

b. insurance

d. legally required benefits

4. The proportion of total compensation paid out as fringe benefits tends to be larger in:

a. high-paid industries compared to low-paid industries

b. service industries compared to manufacturing industries

c. white-collar occupations compared to blue-collar occupations

d. retail trade compared to transportation and public utilities

5. The share of fringe benefits in total employee compensation:

a. grew steadily in the 1960s and 1970s but has fallen since 1980

b. was unchanged in the 1960s and 1970s and has fallen since 1980

c. shrank in the 1960s and 1970s and has remained constant since then

d. grew steadily from 1960 through the mid-1990s

6. Which one of the following is not a valid explanation for why workers may prefer an extra dollar’s worth of fringe benefits to an extra dollar’s worth of cash?

a. workers may prefer to bind themselves against their own tendencies toward immediate gratification

b. certain fringe benefits effectively trade current taxes for future taxes

c. people generally prefer in-kind benefits to cash

d. certain fringe benefits are untaxed

7. Because there is a _______ marginal rate of substitution of fringe benefits for wages, a worker’s wage-fringe indifference curves are typically _______:

a. diminishing; convex to the origin

b. constant; straight lines

c. diminishing; concave to the origin

d. negative; straight lines

8. The slope of a wage-fringe indifference curve reflects:

a. the overall utility level of a person

b. a worker’s willingness to give up an extra dollar of wages in exchange for an extra dollar of fringe benefits

c. the firm’s cost of paying an extra dollar of compensation as wages rather than fringe benefits

d. an increasing marginal rate of substitution of fringe benefits for cash 2

9. An individual wage-fringe isoprofit line shows:

a. combinations of wages and fringe benefits that result in constant dollar values of total compensation

b. combinations of wages and fringe benefits that result in the same profit to the firm

c. the greatest possible profit attainable from a given level of fringe benefits

d. the greatest possible profit attainable from a given level of wages

10. The slope of a wage-fringe isoprofit curve reflects:

a. the overall profitability of the firm

b. a worker’s willingness to give up an extra dollar of wages in exchange for an extra dollar of fringe benefits

c. the relative “price” of fringe benefits compared to wages

d. an increasing marginal rate of substitution of fringe benefits for cash

11. The firm’s wage-fringe isoprofit curve typically has a slope less than 1 (absolute value) because:

a. fringe benefits confer tax advantages on workers

b. on average, it costs firms more to purchase fringe benefits than workers

c. the composition of fringe benefits may increase worker productivity

d. increasing the proportion of compensation received as fringe benefits reduces a firm’s profit level

12. If a firm can offer fringe benefits worth more than one dollar for a one dollar reduction in wages:

a. the wage-fringe isoprofit line will be upward-sloping

b. the wage-fringe isoprofit line will have a slope less than one in absolute value

c. the marginal rate of substitution between wages and fringe benefits will be greater than one at the wage-fringe optimum

d. as a proportion of total compensation, fringe benefits will likely exceed one half

13. The employer’s share of the Social Security and Medicare components of the payroll tax has increased, from 6.13% in 1980 to its current rate of 7.65%. Because employers pay no payroll tax on many fringe benefits, this change in tax rates has effectively:

a. reduced the “price” of fringe benefits, increasing the slope of the wage-fringe isoprofit line

b. increased the “price” of fringe benefits, increasing the slope of the wage-fringe isoprofit line

c. reduced the “price” of fringe benefits, reducing the slope of the wage-fringe isoprofit line

d. increased the “price” of fringe benefits, reducing the slope of the wage-fringe isoprofit line

14. The trend of fringe benefits as a percentage of total compensation can be partially explained by the fact that:

a. tax reform has rendered many types of fringe benefits fully taxable

b. “in-kind” benefits restrict workers’ consumption choices

c. the firm may be able to purchase fringe benefits more cheaply than workers

d. many types of fringe benefits are income inelastic

15. Fringe benefits will tend to be a greater proportion of total compensation, the:

a. more income elastic are fringe benefits

b. more they increase worker turnover

c. lower the employer’s share of the Social Security tax

d. less there are economies of scale in purchasing fringe benefits 3

16. Which of the following is not a cause of fringe benefit growth?

a. Tax advantages to the employer

b. Efficiency considerations

c. Economies of scale

d. Fringe benefits are income inelastic

Severe unemployment is socially catastrophic. Mark all items below that can occur due to unemployment.

  Increased Spending
  Increased work hours for other family members
  Increased Savings
  Uninterrupted schooling
  Increased Stress
  Postponed medical care
  Utilities cut off

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Question 51 pts

What years was the unemployment rate equal to or great than 10%?

  1929-1933, 1937-1938, 1981-1982, 2007-2009
  1928-1932, 1936-1937, 1980-1981, 2008-2010
  1929-1933, 1936-1937, 1980-1981, 2007-2009
  1928-1930, 1937-1938, 1981-1982, 2008-2010

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Question 61 pts

The unemployment rate is understated due to:

  None of the above.
  Part-time workers being counted as unemployed
  Discouraged workers not counted in the labor force
  Underemployed workers being counted an unemployed

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Question 71 pts

True or False. The Labor force participation rate is the percentage of adults in an economy who are either employed or who are unemployed and looking for a job.

  True
  False

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Question 81 pts

True or False. The Bureau of Labor Statistics reports the percentage of labor force unemployed utilizing the current population survey.

  True
  False

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Question 91 pts

Mark all that apply. Over time the unemployment rate.....

  does not fluctuate over time
  an upward or downward trend in unemployment rates is apparent
  never falls all the way to zero
  the timing of rises and falls in unemployment do not match the timing of upswings and downswings in the overall economy

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Question 101 pts

According to the graphs presented by the author in this chapter, which group had the highest unemployment rate in 2010?

  Hispanic
  Black
  Asian
  Whites

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Question 111 pts

According to the information presented by the author in this chapter, which group had the highest unemployment rate in 2015?

  New entrants
  Re-entrants
  Job Losers: non-temporary
  Job Leavers
  Job Losers: temporary

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Question 121 pts

According to the information presented by the author in this chapter, which group had the highest unemployment rate in 2015?

  5 to 14 weeks
  Over 27 weeks
  15-26 weeks
  Under 5 weeks

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Question 131 pts

True or False. An international comparison of unemployment rates across countries can be easily accomplished.

  True
  False

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Question 141 pts

Mark all that apply. Wages are sticky downward due to:

  Implicit contract
  Insider-outsider model
  Efficiency Wage Theory
  Adverse selection of wage cuts argument

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Question 151 pts

Match the word to the correct definition.

Cyclical

[ Choose ] unemployment that occurs as workers move between jobs unemployment that occurs because individuals lack skills valued by employers or the Geographic distribution of jobs changes unemployment closely tied to the business cycle, like higher unemployment during a recession

Frictional

[ Choose ] unemployment that occurs as workers move between jobs unemployment that occurs because individuals lack skills valued by employers or the Geographic distribution of jobs changes unemployment closely tied to the business cycle, like higher unemployment during a recession

Structural

[ Choose ] unemployment that occurs as workers move between jobs unemployment that occurs because individuals lack skills valued by employers or the Geographic distribution of jobs changes unemployment closely tied to the business cycle, like higher unemployment during a recession

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Question 161 pts

A financial analyst who quits his/her job in Chicago and is pursuing similar work in Arizona. What type of unemployment occurred?

  Structural
  Cyclical
  Frictional

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Question 171 pts

True or False. With productivity low, average levels of unemployment will tend to be somewhat higher on average.

  True
  False

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Question 181 pts

True or False. Unemployment benefits in the United States are only federally controlled.

  True
  False

Flag this Question

Question 191 pts

True or False. The natural rate of unemployment will never be zero due to cyclical and frictional unemployment.

  True
  False

Flag this Question

Question 201 pts

True or False. Public policies to assist the unemployed as it relates to the supply side of the labor market affect how eager people are to find work

  True
  False

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