Discouraged workers are defined as those:
a. whose productivity is low because working in dead-end jobs reduces their morale.
b. who are counted as frictionally unemployed, having become dissatisfied with their previous jobs.
c. who are counted as structurally unemployed, lacking training for the skilled positions for which they are applying.
d. who have given up looking for a job and are not counted as unemployed.
Question 2One of the disadvantages of a fixed exchange rate system is:
a. too much stability in exchange rates.
b. import and export industries forego the benefits of highly variable exchange rates.
c. that to maintain fixed exchange rates, nations must give up control of their monetary policies.
d. None of the above are disadvantages of a fixed exchange rate system.
Question 3Hometown, USA, has a labor force of 78,567 persons and employment of 74,382 . The unemployment rate for the city is:
a. 5.3 percent.
b. 5.6 percent.
c. 6.0 percent.
d. none of the above.
Question 4Exchange rates determined by the laws of supply and demand are called:
a. equilibrium exchange rates.
b. fixed exchange rates.
c. dirty exchange rates.
d. floating exchange rates.
Question 5A city in which 320,000 persons are employed has a labor force of 359,500 persons. The unemployment rate for the city is:
a. 7.8 percent.
b. 11.0 percent.
c. 12.3 percent.
d. 14.5 percent.
Question 6Is it possible for a currency to appreciate relative to another currency, and depreciate relative to a third?
a. No, this is not theoretically possible; a currency rises or falls against all others.
b. No, although this could occur under a strict gold standard.
c. Yes, this is possible in a world of floating exchange rates.
d. Yes, in theory, but it does not happen in reality.
Question 7Persons who do not have jobs and who do not look for work are considered:
a. unemployed.
b. out of the labor force.
c. underemployed.
d. overemployed.
Question 8The tendency of the prices of identical baskets of goods across countries to converge:
a. Is stronger to the extent the countries compared have substantial tariffs on imported goods.
b. Is weaker, the higher the cost of transporting the goods between countries.
c. Is stronger for goods and services not traded internationally.
d. Would tend to become weaker when countries eliminated quotas on imports of the goods in the baskets.
Question 9Which of the following individuals would be considered unemployed?
a. a lawyer temporarily working as an assistant in a law firm
b. a computer technician who has not worked for 10 months and gave up looking 4 months ago
c. a full time student who feel that he is taking too many classes to work
d. none of the above
Question 10The tendency of the prices of identical baskets of goods across countries to converge:
a. Is weaker to the extent the countries compared have substantial tariffs on imported goods.
b. Is weaker to the extent the countries compared have limiting quotas on imported goods.
c. Is weaker for goods and services not traded internationally.
d. All of the above are true.
Question 11Parts of the unemployment rate which might increase when labor market conditions are better do include:
a. Those who voluntarily quit existing jobs.
b. Those who are newly entering the labor force.
c. Those who are re-entering the labor force after leaving it earlier.
d. All of the above.
Question 12If the cost of buying an identical basket of goods in country A is greater than country B:
a. People will tend to sell currency from country A and buy currency from country B.
b. The prices of those baskets of goods will tend to converge.
c. If the goods in the baskets are internationally traded, the tendency for prices to converge will be stronger.
d. All of the above are true.
Question 13Which of the following groups of people would be included in the official unemployment rate?
a. part-time workers
b. workers temporarily laid off from jobs to which they expect to return
c. discouraged workers
d. all of the above
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