When the economy moves into recession, some companies lay off workers. Those unemployed workers are ...

When the economy moves into recession, some companies lay off workers. Those unemployed workers are experiencing cyclical unemployment.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Economics is a science that:
 a. typically uses controlled experiments to learn about consumer and firm behavior.
 b. uses models that cannot be tested empirically due to the complex nature of the economy.
  c. explores how choices are made between conflicting wants and desires in a world of scarcity.
  d. relies entirely upon normative analysis.

Question 3

The smaller the underground economy the more will be the overstatement of the official unemployment rate.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 4

Economics is primarily concerned with the study of:
 a. problems such as poverty and unemployment.
 b. limited desires pursuing unlimited resources.
 c. production and distribution of goods in a world of unlimited resources.
  d. production and distribution of goods in a world of limited resources.

Question 5

Underemployed workers include individuals who are employed in tasks that do not fully utilize their productive potential.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 6

In economic terms, religious and spiritual services are treated as:
 a. goods that people desire.
  b. resources or inputs.
 c. marginal benefits.
 d. priceless commodities.

Question 7

Including discouraged workers in the labor market statistics would raise the unemployment rate.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 8

Scarcity would cease to exist as an economic problem if:
 a. we learned to cooperate and not compete with each other.
 b. there were new discoveries of an abundance of natural resources.
  c. output per worker increased.
 d. none of the above.

Question 9

Frictional and structural unemployment are always present in a dynamic economy.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 10

By the study of scarcity, an economist means how we best utilize our:
 a. limited resources in order to promote full employment and price stability.
  b. unlimited desires in order to best use our unlimited resources.
 c. unlimited resources to best satisfy our unlimited desires.
 d. limited resources in order to best satisfy our unlimited desires.