1. An example of structural unemployment caused with a change in tastes and preferences is
A) Lifeguards
B) Administrative assistants
C) Newspaper journalists
D) Steelworkers during recessions
E) None of the answers is correct
2. Which of the following is not an effect of hyperinflation?
A) People hold on to currency only for very short periods of time.
B) Price differences between sellers of the same product become smaller.
C) Resources are wasted by constant attention to inflation's effects.
D) People tend to exchange the currency that is subject to high inflation for a more stable currency.
E) Inflation-induced activity that is rational for individuals often has detrimental effects on the economy as a whole.
3. Structural unemployment refers to unemployment that results from
A) A recession in the economy
B) Taking the time to find the best job
C) Being in the wrong geographical location
D) Seasonal decreases in demand for labor
E) Inefficiencies in the market for labor that prolong the job search
4. The unemployment rate for blacks in the United States is higher than that for whites.
A) True
B) False
5. Which of the following is true about inflation?
A) Inflation is more damaging if it is unanticipated.
B) If people accurately anticipate inflation, their actions will prevent it.
C) Inflation promotes social harmony by uniting people against the government.
D) Those who lend money at a rate above the rate of inflation suffer economic losses.
E) Accurate anticipation of inflation is possible for everyone who is well informed about economic events.
6. Presume the price levels in four successive years are 100, 120, 133, and 140. Which of the following is true?
A) The economy is experiencing hyperinflation.
B) The economy is experiencing increasing inflation.
C) The economy is experiencing inflation.
D) The economy is experiencing deflation.
E) The economy is experiencing revelation.
7. If the inflation rate is higher than expected, which of the following groups in society would be most probable to gain?
A) Borrowers
B) Lenders
C) Persons holding large amounts of money
D) Persons on fixed incomes
E) Workers under contract without a cost of living adjustment
8. Anticipated inflation distorts markets more than does unanticipated inflation.
A) True
B) False
9. A discouraged worker is one who
A) Is under qualified for his current job
B) Dislikes his current job but is afraid to quit
C) Drops out of the labor force because he cannot find a job
D) quits his job because the possibility of advancement was very low
E) Is overqualified for his current job
10. Unanticipated inflation generally hurts borrowers and benefits lenders.
A) True
B) False
11. Relative prices describe the terms at which individual goods are exchanged for one another.
A) True
B) False
12. Which of the following is not considered a cost of unemployment?
A) Waste of the economy's resources
B) Loss of self-respect by those who are unemployed
C) Negative psychological effects on those who have lost their jobs
D) Higher inflation rates
E) Loss of income by those who are unemployed