Wealthy consumers do not have to make decisions on what to buy or how much to save.
a. True
b. False
Indicate whether the statement is true or false
Question 2A recent economics graduate is looking for a position as an industrial economist. During the period this individual starts looking for a job and ultimately finds one, he may be classified as:
a. seasonally unemployed.
b. frictionally unemployed.
c. cyclically unemployed.
d. structurally unemployed.
e. occasionally unemployed.
Question 3Scarcity forces us to choose, and choices are costly because we must give up other opportunities that we value.
a. True
b. False
Indicate whether the statement is true or false
Question 4Structural unemployment will decline if:
a. more seasonal work becomes available.
b. the government increases taxes to support more welfare programs.
c. consumer spending on new technology decreases.
d. computerized job-search systems are improved.
e. retrained workers can move to areas where new jobs are available.
Question 5Scarcity applies to decision makers in macroeconomics but not in microeconomics.
a. True
b. False
Indicate whether the statement is true or false
Question 6Technological advancements cause structural unemployment. However, they help in:
a. lowering the rate of interest in the economy.
b. increasing the price level in the economy and hence make business more profitable for the firms.
c. improving living standards by giving consumers a greater variety of goods at lower costs.
d. raising government's tax revenue.
e. raising the aggregate income in the economy.
Question 7It is possible to completely eliminate scarcity.
a. True
b. False
Indicate whether the statement is true or false
Question 8Which of the following is the closest example of structural unemployment?
a. An accountant quitting her job to become an investment banker
b. An auto worker being fired for poor job performance
c. Workers in a firm manufacturing films for roll film cameras losing jobs due to the popularity of digital cameras
d. A consultant being laid off because poor economic conditions have depressed the market for consultants
e. A college graduate seeking his/her first job in the IT industry
Question 9Economics is the study of choices we make among our many wants and desires.
a. True
b. False
Indicate whether the statement is true or false
Question 10During the off season, a fruit picker did not work, so he should be considered:
a. cyclically unemployed.
b. frictionally unemployed.
c. structurally unemployed.
d. seasonally unemployed.
e. naturally unemployed.
Question 11Since resources are abundant, we do not have to make choices about their use.
a. True
b. False
Indicate whether the statement is true or false
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