quiz 6ma - unemployment c Provides a safety net for some...

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QUIZ FOR CHAPTER 6 1. Who among the following is not in the labor force? a. A person who works for pay only one hour a week b. A non-working person who checks in at the local employment office once a month c. A non-working person who has not sought a job in months d. A highly trained technician whose job is dishwashing 2. Most economists think that “full employment “: a. Is in the range of .5% to 0% unemployment b. Used to be 6.0% but is now closer to 4% c. Occurs when there is structural and frictional unemployment, but no cyclical unemployment d. Occurs when there is frictional and cyclical unemployment, but no structural unemployment 3. Unemployment insurance: a. Completely cushions the financial impact of unemployment on the unemployed b. Partially but not completely compensates the country for the loss of output during periods of high
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Unformatted text preview: unemployment c. Provides a safety net for some but not all unemployed d. Creates incentives that lower the unemployment rate 4. Which of the following is frequently a real cost of inflation? a. It shifts real income from wages to profits b. It raises the price of necessities beyond the reach of ordinary people c. It redistributes real income in an arbitrary way d. It is particularly hard on the real income of borrowers 5. If nominal interest rates are fixed, an increase in inflation: a. Lowers real interest rates b. Raises real interest rates c. Helps lenders d. Helps people on fixed incomes 6. Since governments tax nominal, not real, incomes, an increase in inflation may create an unintended tax burden on: a. Wage earners b. People on fixed incomes c. Borrowers d. People who declare capital gains...
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This note was uploaded on 09/09/2008 for the course ECON 202 taught by Professor Fernandez during the Fall '08 term at University of Louisville.

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quiz 6ma - unemployment c Provides a safety net for some...

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