Microeconomics is the branch of economics in which you study inflation and unemployment in the ...

Microeconomics is the branch of economics in which you study inflation and unemployment in the economy.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Which of the following would tend to increase the natural unemployment rate?
 a. The creation of national unemployment offices to increase the information about job openings
  b. Recessionary downturns in the economy that result in massive layoffs of auto workers
  c. Sociological changes that encourage people to seek employment
  d. The creation of government subsidies for workers who relocate into areas where new jobs can be found
  e. Less government money made available as unemployment compensation

Question 3

One topic that microeconomics explores is how prices are determined in individual markets, while macroeconomics is concerned with issues such as the economy's overall rate of inflation, economic growth and unemployment.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 4

The natural rate of unemployment is the unemployment rate that would exist in the absence of _____.
 a. structural unemployment
  b. educated unemployment
  c. cyclical unemployment
  d. frictional unemployment
  e. underemployment

Question 5

Economists prefer to look at declared preferences (how they say they behave) rather than revealed preferences (how people actually behave).
 a. True
  b. False
  Indicate whether the statement is true or false

Question 6

At potential real GDP:
 a. there is zero unemployment.
  b. there is no seasonal unemployment.
  c. there is no frictional unemployment.
  d. unemployment is at its natural rate.
  e. cyclical unemployment equals approximately 5 percent.

Question 7

Living in a world of scarcity involves trade-offs.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 8

Which of the following is an example of cyclical unemployment?
 a. A recent college graduate still looking for her first job
  b. A car salesman who loses his job because of a recession
  c. A ski instructor who is out of work during the summer
  d. An economics journalist who just quit her writing job in order to begin a new career as a college professor next month
  e. A worker displaced from his factory job because of greater mechanization in the workplace

Question 9

If we choose more work we sacrifice leisure.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 10

A worker who loses his or her job as a consequence of a decline in aggregate demand in the economy is experiencing:
 a. disguised unemployment.
  b. underemployment.
  c. cyclical unemployment.
  d. frictional unemployment.
  e. seasonal unemployment.