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WorksheetsEcon Chapter 13 Self-Assessment
Total questions: 53
Worksheet time: 45mins
(I)
Who is most likely to be hurt by inflation?
someone who borrowed money
a retiree on a fixed income
a business owner
the U.S. government
(K)
What causes cost push (aggregate supply) inflation
An increase in demand for goods and services
An increase in supply
A rise in production costs passed on to consumers
A fall in the price of imports
(J)
What causes demand pull (aggregate demand) inflation?
rise in price due to a decrease in supply
a rise in price level due to an increase in consumption
a rise in price due to an increase in the cost of production
a decrease in price due to a decrease in supply
(I)
What is inflation?
rise in all prices
rise in most prices
rise in some prices
rise in general prices
(I, J, K)
What 2 main types of inflation are there?
demand pull (aggregate demand) and cost push (aggregate supply)
demand pull (aggregate demand) and supply glut
supply glut and demand side
supply inflation and demand inflation
(I)
What the definition of deflation?
decrease in the average price of goods and services
occurs when the price of goods and services rise
increase in prices
I don't know
(I)
Walter gets a 2% pay increase. The inflation rate is 3%
helped by inflation
hurt by inflation
Which of these is not a cause of poverty in The United States
Lack of Education
lowering of nation's GDP
Location (inner cities)
racial and gender discrimination
(A)
Jerry borrowed $4,000 for 5 years at 6% simple interest rate. How much interest is that?
$800
$1,000
$1,200
$1,500
(A)
Starting money = $350.
Interest rate = 2.5%
TIme = 3 years.
How much interest?
7.50
26.25
87.5
262.50
(K)
What causes cost push (aggregate supply) inflation?
An increase in demand for goods and services
An increase in supply
A rise in production costs passed on to consumers
A fall in the price of imports
(A)
Which of the following would cause the economy to experience slower economic growth?
Interest rate increase
Interest rate cut
(A)
Which of the following would cause the economy to experience higher economic growth?
Interest rate cut
Interest rate increase
(A)
Which of the following would slow inflation?
Interest rate increase
Interest rate cut
(F)
Many older Americans have trouble finding jobs because of their poor computer skills. What type of unemployment would this be considered?
Seasonal Unemployment
Cyclical Unemployment
Frictional Unemployment
Structural Unemployment
(C)
Underemployed and Discouraged workers are counted in the unemployment rate
True
False
(C)
Sally stopped looking for a job after 6 months of being laid off. She is considered...
Seasonally Unemployed
Frictionally Unemployed
A Discouraged Worker
Under Employed
(E)
Which of the following is a type of unemployment that rises during an economic downturn and falls when the economy improves?
Seasonal Unemployment
Cyclical Unemployment
Frictional Unemployment
Structural Unemployment
(G)
Type of unemployment that exists when people change jobs or are laid off.
Seasonal Unemployment
Cyclical Unemployment
Frictional Unemployment
Structural Unemployment
(D)
When a period of steady work is followed by a period of unemployment each year
Seasonal Unemployment
Cyclical Unemployment
Frictional Unemployment
Structural Unemployment
(G)
Sarah is a forty year old investment banker who was laid off six months ago. She decided to switch careers and has spent those six months figuring out what to do next instead of applying for jobs in the banking industry.
Structurally Unemployed
Employed
Fictionally Unemployed
Not a part of the labor force
(F)
Jeff was replaced by a computer. He is experiencing what type of unemployment?
Cyclical
Structural
Seasonal
Frictional
(D)
Seth is laid off from work because he is a life guard at the local water park. He is experiencing what kind of unemployment?
Structural
Seasonal
Frictional
Cyclical
(E)
Jim lost his job as a stock broker during the recession in 2008. He was unable to find a new position until 2010. During 2008-2010 Jim experienced what kind of unemployment?
Cyclical
Structural
Seasonal
Frictional
(E)
When the economy enters into a recession this type of unemployment emerges...
seasonal
frictional
structural
cyclical
(G)
Dean graduated from college in May, but in July had still not found employment. Dean is experiencing...
frictional unemployment
cyclical unemployment
seasonal unemployment
structural unemployment
(F)
A taxi driver in Ankeny is laid off because the taxi company he works for is losing business to Uber and Lyft. What type of unemployment is he experiencing
cyclical
season
frictional
structural
(C)
Molly is a thirty six year old mother of three who works part time as a tutor.
Unemployed
Employed
Labor Force
Not in the labor force
(F)
Thousands of workers at a toy factory lose their jobs when the company they work for relocates their factories and operations to Taiwan. These workers are experiencing
seasonal unemployment
frictional unemployment
structural unemployment
cyclical unemployment
(D)
Billy Bob is 17 and workers every October as a zombie at the Scaryworld Haunted House during that one month. The rest of the year he is
cyclically unemployed
structurally unemployed
seasonally unemployed
frictionally unemployed
(C, Chapter 12 C)
If the unemployment rate goes down, what will most likely happen to real GDP?
goes up
goes down
it will have no effect
(C)
During the economic recession of 2008, what happened to the unemployment rate?
it went up
it went down
it was not affected
(F)
How could lawmakers best address the structural unemployment of farmers?
introduce tax cuts for corporations
increase funding for computer training programs
increase regulation of the financial sector
(G)
A former college basketball star who played one year in the NBA before being cut decides to leave his job at UPS and begin training full-time for try-out with the Hawks. While he trains he is experiencing
seasonal unemployment
frictional unemployment
cyclical unemployment
structural unemployment
(H)
Which year is the base year?
1997 CPI = 95
1998 CPI = 97
1999 CPI = 100
2000 CPI = 104
1997
1998
1999
2000
(H)
Did prices go up or down in 2009?
2008 CPI = 212
2009 CPI = 214
Up
Down
(H)
If the Price of the Market Basket in 2008 is $40 and the Price of the Market Basket in the base year is $20, what is the CPI for 2008?
2
60
80
200
(G)
In January of 2017 President Obama leaves office and begins looking for another job. He would be considered...
Seasonal Unemployment
Cyclical Unemployment
Frictional Unemployment
Structural Unemployment
(F)
Type of unemployment that exists when the skills of workers do not match the jobs that are available.
Seasonal Unemployment
Cyclical Unemployment
Frictional Unemployment
Structural Unemployment
(J)
Demand-Pull inflation (aggregate demand) can be describes as too many _________ chasing too few __________
jobs, workers
consumers, producers
dollars, goods
(H)
If the Price of the Market Basket in 2009 is $40 and the Price of the Market Basket in the base year is $80, what is the CPI for 2009?
.5
50
120
200
(C)
The Unemployment rate is calculated as the number of
unemployed persons divided by number of employed persons
persons in the labor force divided by the number of unemployed
unemployed persons divided by the size of the labour force
employed persons divided by number of unemployed persons
(H)
If CPI goes from 100 to 300 and your salary goes from $100,000 to $200,000, what happened to your purchasing power?
Increase
Decrease
No change
(A, I)
Which of the following would speed up inflation?
Interest rate increase
Interest rate cut
(J)
19 In the diagram AD1 and AD2 are aggregate demand curves for an economy.
What could cause an economy’s aggregate demand to shift from AD1 to AD2?
A Consumers spend more.
B Interest rates rise.
C More output is sent abroad as exports.
D The government switches expenditure from roads to hospitals.
(J)
24 The diagram shows a shift in an economy’s aggregate demand curve from AD1 to AD2.
What could not be a cause of the shift?
A a decrease in income tax
B a decrease in the price of goods
C an increase in money wage rates
D an increase in the money supply
(J)
Refer to the above diagram. If the initial aggregate demand and supply curves are AD0 and AS0, the equilibrium price level and level of real domestic output will be:
F and C, respectively.
G and B, respectively.
F and A, respectively.
E and B, respectively.
(J)
Which of the following could NOT explain the following diagram?
An extensive government infrastructure program
A decline in the price of capital goods
An increase in bank interest rates
A rise in consumer confidence
