1 During this century the growth rate of real GDP in the United States has averaged approximately a 1 percent b 3 percent c 6 percent d 10 percent 2 Mallory Trammell is a homemaker Last week she was busy with her normal household chores She is a a member of the civilian labor force who is employed b a member of the civilian labor force who is unemployed c a member of the civilian labor force who is underemployed d a discouraged worker who is not a member of the labor force e not a member of the labor force 3 Which of the following would be classified as unemployed a mothers who choose to stay at home with their preschool age children b retirees who are no longer working at a job c students attending school full time d a 20 year old looking for her first job 4 If the official unemployment rate increases in March from its February level because of sluggish sales in the auto industry we can conclude that unemployment is responsible for the increase a seasonal b cyclical c structural d frictional e any one of the causes of 5 When information about potential jobs is costly to acquire and individuals must spend time searching for jobs which type of unemployment will result a frictional b seasonal c structural d cyclical 6 A general mismatch between the skills of unemployed workers and the skills needed by employers with job openings results in a frictional unemployment b structural unemployment c cyclical unemployment d a higher labor force participation rate 7 Which of the following is true a High benefit payments to unemployed workers will tend to increase the rate of unemployment b If a system of personal savings accounts replaced the current unemployment benefit system the unemployment rate would fall to zero c The rate of unemployment in the large European economies has been persistently lower than that of the United States due to their more generous unemployment benefits d Under the current unemployment insurance system benefits replace about 90 percent of the typical worker s prior pretax earnings 8 During periods when the inflation rate fluctuates widely a all relative prices increase at the same rate leaving money prices constant b economic efficiency increases because decision makers pay closer attention to changes in money prices c uncertainty about changes in relative prices causes a decrease in economic efficiency d all money prices increase at the same rate leaving relative prices constant Answers 1 B 2 E 3 D 4 B 5 A 6 B 7 A 8 C
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