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Concept of Unemployment and Utility Theory

Total questions: 25

Worksheet time: 15mins

Name
Class
Date
1.

Macroeconomics deals with

a)

Economy as a whole

b)

Individual

c)

Both Economy as a whole as well as individual

d)

None of these

2.

If operators are fired and replaced with computer technology, the operators would be considered

a)

frictionally unemployed

b)

structurally unemployed

c)

cyclically unemployed

d)

dissatisfiededly unemployed dissatisfiededly unemployed

3.

What type of unemployment occurs when there is a change in the pattern of demand of certain commodity?

a)

Frictional

b)

Structural

c)

Seasonal

d)

Cyclical

4.

What is the formula of unemployment rate???

a)

=(labor force/unemployed)*100%

b)

=(GDP*labor force)/100%

c)

=(unemployed/labor force)*100%

d)

none of them

5.

What is the unemployment????

a)

decisions to work based on each individuals' valuation of their own work

b)

proportion of younger workers in the labor force

c)

the situation of actively looking for employment but not being currently employed.

d)

person who is simultaneously an income earner,

6.

Those who are willing and able to work at the current wage rate and have a paid job

a)

Employed

b)

Structural unemployment

c)

Frictional unemployment

d)

Voluntary unemployment

e)

Cyclical unemployment

7.

The workforce population includes people from

a)

10 years to 50 years

b)

18-60 year of age

c)

15 years to 65 years

d)

20 years to 60 years

8.

You made a good decision if:

a)

Marginal cost is greater then marginal benefit

b)

Marginal cost is less than marginal benefit

c)

Marginal benefit is greater then marginal cost

d)

Marginal benefit is less then marginal cost

9.

What best reflects the goal of a consumer?

a)

To acquire the largest possible quantity of goods.

b)

To acquire the largest possible variety of goods.

c)

To maximize utility.

d)

To save money.

10.

Which of the following best refers to the additional cost a person or firm incur to produce one more unit?

a)

Consumer Benefit

b)

Intersection

c)

Marginal Benefit

d)

Marginal Cost

11.

If Ann gets 100 units of utility from reading a book and 500 units of utility from playing with her cat, What can we determine about Ann?

a)

She does not enjoy reading books.

b)

She does not enjoy playing with her cat.

c)

She prefers reading a book to playing with her cat.

d)

She prefers playing with her cat to reading a book.

12.

The relationship between demand and marginal utility is best explained as ...

a)

the marginal utility a person gets from consuming a good determines their demand for the good.

b)

the total utility a person gets from consuming a good determines their demand for the good.

c)

the marginal utility a person gets from consuming a good determines their market demand for the good.

d)

the total utility a person gets from consuming a good determines their market demand for the good.

13.

Total utility is the benefit received from consuming an extra unit of a good.

a)

TRUE

b)

FALSE

14.

The total utility definition states:

a)

The usefulness, benefit or satisfaction a consumer gains from consuming a product.

b)

The satisfaction gained from consuming a quantity of an economic good, measured in utils.

c)

The added consumer satisfaction from consuming a quantity of a good.

d)

The consumer's satisfaction from consuming a quantity of a good.

15.

The definition of the law of diminishing marginal utility

a)

As more units are consumed the marginal utility falls.

b)

As more units are consumed the marginal utility increases.

c)

As price decreases quantity demanded increases.

d)

As price increases consumers are willing to pay more.

16.

Definition of Marginal Utility

a)

the satisfaction from consumption

b)

to total satisfaction from consuming a product

c)

the extra satisfaction from the last unit consumed

d)

the extra consumption from last unit consumed

17.

Marcus wants to buy a laptop but he can’t afford one right away. So, an electronics store holds it for him until he’s able to pay the outstanding balance. This payment process is known as:

a)

Credit

b)

Form Utility

c)

Possession Utility

d)

Layaway

18.

In possession utiity, a consumer finds a product helpful after doing what?

a)

Using the product

b)

Upgrading the product

c)

Buying the product

d)

Selling the product

19.

Where a product is available for purchase is referred to as

a)

the right location

b)

the setting

c)

place utility

d)

Where product display

20.

Kara orders a dress for her school dance on Saturday. If the dress doesn't arrive until the next Monday it has no _______ utility.

a)

time

b)

form

c)

possession

d)

place

21.

To provide utility, a product must

a)

be innovative

b)

be eonomical

c)

look appealing

d)

provide satisfaction

22.
Which of the following is NOT a benefit of self-employment?
a)
Providing employment opportunities
b)
Depending solely on employer decisions
c)
Being one's own boss
d)
Managing one's income
23.
What does self-employment promote?
a)
Limited opportunities
b)
Creativity and independence
c)
Dependency on others
d)
None of the above
24.
What type of employment involves working for oneself?
a)
Self-employment
b)
Unemployment
c)
Corporate employment
d)
None of the above
25.

State what type of unemployment is shown....

A parent who has been caring for children for four years has been job-hunting for three months.

a)

Cyclical

b)

Structural

c)

Frictional

d)

Seasonal