Lackawanna ECO105 2022 February Module 4 Quiz Latest

ECO105 Macroeconomics

Module 4 Quiz  

Question 1The ultimate objective of macroeconomics is to

  develop and test theories about how the overall economy works

  improve the international competitiveness of the U.S. financial markets

  stabilize the economy's growth rate

  reduce the unemployment rate

 Question 2Which of the following is a stock variable?

  the federal government's budget deficit

  the federal government's debt

  consumer income               

  business spending on capital equipment

 Question 3Which of the following is a flow variable?

  the U.S. population

  investment spending

  money supply

  U.S. plant and equipment

 Question 4If business leaders become optimistic about future sales and profits, they will __________ spending on plant and equipment, which __________ employment and income and, therefore, their expectations are __________.

  increase; decreases; fulfilled

  increase; increases; fulfilled

  decrease; decreases; fulfilled

  increase; increases; not met

 Question 5During the Great Depression, President Hoover

  incorrectly called for a decrease in taxes

  incorrectly called for an increase in taxes

  correctly called for a decrease in government spending

  correctly called for an increase in taxes

 Question 6A recession is best defined as a period during which

  the budget deficit and trade deficit are both growing

  more resources are used

  he percentage of the population employed is declining

  employment, output, and income decline

 Question 7A depression can be defined as

  a mild reduction in total production coupled with a rising unemployment rate that lasts for several years

  a severe reduction in total production coupled with high unemployment that lasts several years

  a decline in government spending and taxes that lasts for several months

  a decline in total production that lasts less than six months

 Question 8When economists refer to the economy’s price level, they mean

  the price of goods and services relative to consumers' incomes

  the rate of inflation

  a general measure of prices of all goods and services

  a period of level, or steady, prices

 Question 9If the wealth of consumers increases substantially, this would shift

  the aggregate supply curve outward

  the aggregate supply curve inward

  the aggregate demand curve inward

  the aggregate demand curve outward

 Question 10Equilibrium of aggregate supply and aggregate demand is best described as a situation in which

  the slope of aggregate demand equals the slope of aggregate supply

  quantity supplied exceeds quantity demanded at a unique price level

  quantity demanded equals quantity supplied at a unique price level

  quantity demanded exceeds quantity supplied

 Question 11The labor force consists of all

  the noninstitutionalized population over 16 in the economy who hold jobs or are looking for them

  people in the economy over 16 years of age

  the people in the economy who are not retired

  the adults in the economy between 18 and 65 years old who are able to work

 Question 12The unemployment rate is the

  percentage of the labor force that does not have a job

  number of people in the labor force without jobs

  number of people in the economy who have given up looking for employment

  percentage of people in the economy who do not hold jobs

 Question 13Consider an economy with an adult population of 100, 50 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The labor force participation rate is

  60%

  10%

  100%

  50%

 Question 14A discouraged worker is one who

  is underqualified for his current job

  is overqualified for his current job

  dislikes his current job but is afraid to quit

  drops out of the labor force because he cannot find a job

 Question 15When workers are over-qualified for their current jobs or can find only part-time work, we say they are

  overemployed

  discouraged workers

  underemployed

  unemployed

 Question 16Sharon was being treated unfairly by her boss, so she stormed off the job and two weeks later found another position. For two weeks Sharon experienced

  frictional unemployment

  structural unemployment

  seasonal unemployment

  cyclical unemployment

 Question 17Juanita earned a B.S. inengineering and went to work for a defense contractor. When the government cut spending, Juanita and 99 others were laid off. The only other business in the town is growing grapes, but the growers refuse to hire laid-off engineers, knowing they will leave at the first opportunity. The unemployment Juanita is experiencing is

  seasonal

  structural

  cyclical

  frictional

 Question 18The type of unemployment most likely to be experienced by a touring professional golfe

  cyclical unemployment

  structural unemployment

  frictional unemployment

  seasonal unemployment

 Question 19Because of the way discouraged workers and part-time employment are measured, the official unemployment rate

  understates the unemployment problem

  overstates the unemployment problem

  overstates the size of the labor force

  truly reflects the level of unemployment

 Question 20Inflation is

  a reduction in everyone's standard of living

  a rise in the real prices of all goods and services

  an increase in the value of money compared to the value of goods

  a general and continuing rise in the money prices of goods and services