Economics CC 2 Sec ON 1 Week 2 Quiz 1

Economics CC 2 Sec ON 1 Week 2 Quiz 1| chatbot las positas  community college

Question 1

At the time of Carol’s 10 year high school reunion she was earning $30,000 and the CPI was 90.  Now that it is time for her to attend her 20 year high school reunion, Carol’s income has risen to $65,000 and the CPI is 200.  At her 20 year reunion, can Carol rightfully brag that her real income has risen since the last time she saw her former classmates ten years ago?  

·         Yes, Carol’s real income rose during that 10 year period.  

·         No, Carol’s real income fell during that 10 year period.  

·         No, Carol’s real income remained constant during that 10 year period.  

·         It is impossible to determine what happened to Carol’s real income.

Question 2

If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals:    

·         8 percent.    

·         20 percent.    

·         25 percent.    

·         32 percent.

Question 3

Which of the following refers to business cycles?  

·         Variations in the economy that are all equal in intensity  

·         Seasonal variations in the economy that occur every year  

·         Fluctuations in economic output that show a declining growth pattern over time  

·         Periodic but irregular variations in economic activity  

·         Fluctuations in the profits that businesses in an economy earn over a period of time

Question 4

Which of the following individuals would be considered unemployed?    

·         a lawyer temporarily working as an assistant in a law firm    

·         a computer technician who has not worked for 10 months and gave up looking 4 months ago    

·         a full time student who feel that he is taking too many classes to work    

·         none of the above

Question 5

Which of the following people is most likely to be structurally unemployed?    

·         Brendan left his job as a short-order cook in New Jersey to become a short-order cook in Madrid, New Mexico. He was unemployed for six weeks during the transition.  

·         Mildred quit her job after giving birth to a child.  

·         Clem, a skilled corset maker, lost his job when his factory shut down due to a permanent reduction in the demand for corsets.  

·         Danielle lost her job when the electronics assembly plant was shut down temporarily due to low product sales in a slumping economy.

Question 6

Which of the following about unemployment is true?  

·         Frictional unemployment implies a lack of available jobs.  

·         During a recession, cyclical unemployment will be low.  

·         When an economy is at full employment, actual unemployment will be less than the natural rate of unemployment.  

·         When an economy is at full employment, the actual unemployment rate will equal the economy's natural rate of unemployment.

Question 7

Which of the following about unemployment is true?  

·         When a dynamic labor market is operating efficiently, mostly cyclical unemployment will be present.  

·         Some unemployment will be present even when a dynamic labor market is operating efficiently.  

·         When full employment is present, the rate of unemployment will be zero.  

·         When full employment is present, there will not be any frictional unemployment.  

·         When full employment is present, it will be impossible to sustain the current rate of output in the future.

Question 8

If the numbers of employed and unemployed do not change but the size of the population increases by 10%, what would be the effect?  

·         an increase in the unemployment rate    

·         a decrease in the unemployment rate  

·         no change in the unemployment rate

Question 9

Fred has lost his factory job, replaced by welding robots, and soon plans to go to technical school to learn computer repair because he cannot find a similar job to the one he lost. The type of unemployment facing Fred is:    

·         frictional.    

·         structural.    

·         cyclical.    

·         natural.

Question 10

Suppose that everyone who has looked for a job for more than six months gave up in despair and stopped looking. What would happen to the unemployment rate?    

·         It would increase.    

·         It would fall.    

·         It would change, but the effect cannot be predicted.    

·         It would not change.