If the overall unemployment rate is 8 percent, it is likely that:
a. It is greater than 8 percent for teenagers.
b. It is less than 8 percent for college=educated middle-aged men.
c. It is more than 8 percent for those without a high school diploma.
d. All of the above are true.
Question 2If the rate of inflation overseas falls relative to the rate of inflation in the United States, U.S. net exports will tend to ____, causing the exchange value of the U.S. dollar to ____.
a. rise; rise
b. rise; fall
c. fall; rise
d. fall; fall
Question 3If the unemployment rate is 8 percent, this means:
a. 8 percent of the population is unemployed.
b. 8 percent of the population over age 16 is unemployed.
c. 8 percent of the labor force is unemployed.
d. the number of unemployed persons equals 8 percent of the employed persons.
Question 4If the rate of inflation overseas rises relative to the rate of inflation in the United States, U.S. net exports will tend to ____, causing the exchange value of the U.S. dollar to ____.
a. rise; rise
b. rise; fall
c. fall; rise
d. fall; fall
Question 5The most significant real economic cost of high unemployment is:
a. the money cost of unemployment insurance payments to the unemployed.
b. the lost tax revenue that might have been paid by persons if they had worked.
c. the difference in income between a person's lost job and new job.
d. the potential goods and services that might have been produced but weren't.
Question 6If the rate of inflation in the United States rises relative to the rate of inflation in foreign nations, U.S. net exports will tend to ____, causing the exchange value of the U.S. dollar to ____.
a. rise; rise
b. rise; fall
c. fall; rise
d. fall; fall
Question 7The unemployment rate may overestimate the true extent of unemployment if:
a. many part-time employees would like to work full-time, but are unable to get the additional work.
b. many people become discouraged and cease looking for work.
c. people falsely claim that they are actively seeking work in order to receive unemployment benefits.
d. all of the above
Question 8Which of the following would cause an increase in the exchange value of the U.S. dollar?
a. A decrease in the amount of foreign debt purchased by U.S. citizens
b. An increase in U.S. exports
c. Increased demand by foreigners to buy U.S. government securities
d. all of the above
Question 9The unemployment rate may underestimate the true extent of unemployment if:
a. many part-time employees would like to work full-time, but are unable to get the additional work.
b. employees increase the number of hours they work overtime.
c. there are a large number of people working in the underground economy.
d. any of the above occur.
Question 10To ensure interest rate parity, a decrease in the interest rate on Euroyen relative to Eurodollar deposits will require a greater expected appreciation of the Japanese yen against the U.S. dollar.
a. True
b. False
Indicate whether the statement is true or false
Question 11Ceteris paribus, if the U.S. dollar depreciated in relation to the Canadian dollar, which of the following would be true?
a. U.S. goods would become less expensive to Canadian consumers.
b. Canadian goods would become more expensive to Canadian consumers.
c. U.S. goods would become less expensive to European consumers.
d. all of the above
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