In which of the following industries are workers least likely to suffer from cyclical unemployment?
a. Construction industry
b. Automobile manufacturing
c. Apparel industry
d. Education
e. Tourism
QUESTION 2Which of the following statements about the tax cut enacted in 1981 is correct?
a. The tax cut caused the recession of 1982.
b. The tax cut and the recession of 1982 combined to produce one of the largest peace-time deficits ever experienced up to that time.
c. The tax cut stimulated a large increase in economic activity and led directly to the balanced budget of 1982.
d. The tax cut was opposed by supply-side economists.
e. The tax cut was favored by Congress but opposed by the President and passed over his veto.
QUESTION 3Recently, banking has become easier with automated teller machines replacing bank tellers. The loss of tellers' jobs is an example of _____.
a. cyclical unemployment
b. structural unemployment
c. frictional unemployment
d. underemployment
e. voluntary unemployment
QUESTION 4The main attractive feature(s) of a negative income tax program is (are):
a. c and d.
b. c, d, and e.
c. it is simple.
d. it avoids the stigma of hand-outs.
e. it only subsidizes the unemployed.
QUESTION 5Which of the following correctly describes the trend in the federal budget during the 1980s?
a. Federal spending declined relative to GDP, while federal revenues rose relative to GDP.
b. Federal spending rose relative to GDP, while federal revenues declined relative to GDP.
c. Balanced budgets were passed through cooperation between the President and Congress.
d. The dollar depreciated, thereby lowering the deficit.
e. The budget deficit decreased and then disappeared, turning into a surplus in the 1980s.
QUESTION 6Which type of unemployment is likely to increase the most during an economy's recession?
a. Frictional unemployment
b. Seasonal unemployment
c. Structural unemployment
d. Cyclical unemployment
e. Underemployment
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