Econ 225-0 Test 3

An electrician who quits his job in Georgia and moves to South Carolina where additional electricians needed and paid higher wage rate is said to be:

• Structurally unemployed.

• Cyclically unemployed.

• Seasonal unemployed.

• Frictionally unemployed.

Which of the following types of unemployment is most likely to occur when the harvest season is just over?

• Structurally unemployed.

• Cyclically unemployed.

• Seasonal unemployed.

• Frictionally unemployed.

GM auto workers who lose their jobs because of import cars, but at the same time they do not have the necessary computer skills to fill up the vacancies exist for computer programmers. In this case, the GM auto workers are an example of:

• Cyclically unemployed.

• Structurally unemployed.

• Frictionally unemployed.

• Cyclically unemployed.

If the population of Paradise Island is 400,000 people, if its labor force consists of 250,000, and if 240,000 people are employed, theh what is its unemployment rate?

• 2.5%.

  
  

• 4%.

  
  

• 4.5%.

  
  

• 4.75%.

  
  

Matt loses his job and collects unemployment insurance until finding a new job. Other things the same, the unemployment rate

• Increases, and the labor-force participation rate is unaffected.

• Increases, and the labor-force participation rate decreases.

• Decreases, and the labor-force participation rate decreases.

• Decreases, and the labor-force participation rate increases.

What of the following is likely to occur during a period of deflation:

• Both relative prices and average prices are rising.

• Average prices are falling, but it is not certain what is happening to relative prices. de!

• Average prices are rising, but it is not certain what is happening to relative prices.

• Relative prices are rising, but it is not certain what is happening to average prices.

  
  

If the CPI had a value of 120 in 2001 and if 2000 is selected as the base year, what is the inflation rate between 2000 to 2001?

.

• 10%.

• 15%.

• 20%.

• 25%

The direct exchange of one good for another is known as barter. Which of the following is an example of barter?

• A) Jordan buys eggs from Garrett's Grocery, and Garrett buys gas from Jordan's Gas Station.

• Stephanie sews a dress for Katie, and expects Katie to baby sit her kids for couple nights.

• Shelby borrows sugar from her neighbor and pays $2 back the next day.

• All of the above.

Essential characteristics of money include a medium of exchange, a standard of value, and a store of value. Thus, money does NOT:

• Serve as a mechanism for transforming current income into future purchases.

• Facilitate the continuous series of exchanges that characterize a market economy.

• Increase the transaction cost of exchange.

• Promote specialization of labor.

Which of the following are NOT constraints on deposit creation?

• The decision by the Federal Reserve to raise the required reserve ratio.

• The decision by consumers, businesses, and governments to stop borrowing.

• The decision by banks to increase more lending money to qualified borrowers.

• The decision by consumers and businesses to take money out of transactives accounts and hold it as cash.