Chapter 13

Which type of unemployment occurs when outsourcing results in layoffs?

• frictional
• cyclical
• structural
• seasonal

A migrant farmer who is unemployed during the winter months is dealing with

• frictional unemployment
• seasonal unemployment
• cyclical unemployment
• structural unemployment

Structural unemployment is often caused by

• severe recessions
• weather changes
• new technology
• changing jobs

Suppose an economy has a civilian non-institutionalized population of 200,000. If the labor force is 100,000 and there are 20,000 people working part-time and 70,000 people working full-time, what is the labor force participation rate?

• 20%
• 10%
• 70%
• 50%

The main reason for demand-pull inflation is the creation of

• excess services by entrepreneurs
• excess money by the government
• excess taxes by the government
• excess goods by the producers

Three basic components of a wage-price spiral are

• wages, demand, production prices
• wages, production costs, prices
• wages, production supply, prices
• wages, production demand, supply

Because of cost-push inflation, producers have to

• raise their prices to produce more goods.
• lower their prices to increase their profits.
• lower their prices to produce more goods.
• raise their prices to mainitain their profits.

A sustained rise in the level of prices or a sustained fall in the purchasing power of money is called

• expansion
• deflation
• recession
• inflation