Which of the following individuals are considered officially unemployed?
a. a discouraged worker
b. an individual who quits his job to raise a child
c. an individual who is not looking for a job because he works in the underground economy
d. None of the above
Question 2A country would tend to experience currency appreciation relative to other countries if:
a. the profitability of investments within the country increases relative to the rest of the world.
b. people in the foreign currency markets expect the value of the currency to rise in the near future.
c. the foreign demand for its exports increases.
d. all of the above
Question 3A person who works 25 hours per week:
a. is considered to be a discouraged worker.
b. is considered to be unemployed.
c. is considered to part of the labor force.
d. none of the above
Question 4A country would tend to experience currency depreciation relative to other countries if:
a. the profitability of investments within the country increases relative to the rest of the world.
b. people in the foreign currency markets expect the value of the currency to rise in the near future.
c. the foreign demand for its exports decreases.
d. none of the above
Question 5If there are discouraged workers:
a. they are included in the official count of the unemployed.
b. the unemployment rate will tend to overstate the true level of unemployment.
c. the unemployment rate will tend to understate the true level of unemployment.
d. they are considered part of the labor force.
Question 6A country would tend to experience currency depreciation relative to other countries if:
a. the profitability of investments within the country increases relative to the rest of the world.
b. people in the foreign currency markets expect the value of the currency to rise in the near future.
c. the foreign demand for its exports decreases.
d. none of the above.
Question 7A discouraged worker is:
a. one who opts to quit work to attend college.
b. one who opts to quit searching for work after unsuccessfully seeking employment.
c. a part-time worker who would like to work more hours.
d. none of the above.
Question 8Sweden's currency would tend to depreciate if:
a. Sweden's inflation rate rises relative to inflation in the rest of the world.
b. the demand for imports by Swedes increases.
c. real interest rates in Sweden decrease relative to the rest of the world.
d. all of the above
Question 9If 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:
a. 8 percent.
b. 20 percent.
c. 25 percent.
d. 32 percent.
Question 10If real interest rates in the United States rise relative to real interest rates in other countries, other things being equal,
a. the exchange value of the dollar would decline relative to other currencies.
b. the exchange value of the dollar would increase relative to other currencies.
c. there would likely be no effect on the exchange value of the dollar relative to other currencies.
d. there would be an indeterminate effect on the exchange value of the dollar relative to other currencies.
Question 11Kathryn chooses to go to college full-time rather than to work. Kathryn:
a. is not part of the labor force.
b. is part of the labor force and what economists call a discouraged worker.
c. is part of the labor force, but not actively seeking work.
d. is considered employed.
Question 12If real incomes in foreign nations were growing less rapidly than U.S. real incomes, one would expect that as a result,
a. the exchange value of the dollar would decline relative to other currencies.
b. the exchange value of the dollar would increase relative to other currencies.
c. there would likely be no effect on the exchange value of the dollar relative to other currencies.
d. there would be an indeterminate effect on the exchange value of the dollar relative to other currencies.
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