study_q_-_midterm_2_s08

study_q_-_midterm_2_s08 - Study Questions for Midterm II...

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Study Questions for Midterm II Please note that these questions are for you to get more practice. They may or may not be similar to exam questions . 1) Suppose initially that the working - age population is 220 million, the labor force is 150 million, and the unemployment rate is 10 percent. 5 million new jobs are created and filled by 5 million people who had previously been discouraged workers. What is the new unemployment rate? a. 6.25 percent. b. 6.7 percent. c. 9.7 percent. d. 8.7 percent. 2) To calculate the unemployment rate, which of the following are necessary pieces of information? I. The number of unemployed persons II. the population III. the number of people in the labor force IV. the working age population a. I, II, III and IV b. I and II c. I and III d. I and IV 3) Frictional unemployment comes about because of a. friction between labor and management b. a mismatch between skills and available jobs c. normal labor market turnover d. a general economic slowdown 4) When the economy is operating at full employment, the natural unemployment rate consists of only a. cyclical unemployment b. frictional and structural unemployment c. frictional and cyclical unemployment d. structural and cyclical unemployment 5) The classical dichotomy states that a. the forces that determine the real variables are the same as those that determine the nominal variables b. the forces that determine the real variables are never the same as those that determine the nominal variables c. at full employment, the forces that determine the real variables are independent from those that determine the nominal variables d. at zero unemployment, the forces that determine the real variables are independent from those that determine the nominal variables
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6) In the short run, increasing real GDP requires a. a rise in the price level b. increasing the quantity of labor c. increasing the quantity of capital d. increasing leisure hours 7) If the money wage rate is $10 per hour and the price level is 100, the real wage rate is a. $10.00 b. $10.10 c. $11.00 d. $11.10 8) If economists in the country of Tiny Town estimate that real GDP increases by $100 when an extra hour of labor is used, the economists are calculating a. the PPF b. the marginal product of labor c. the real wage d. the labor demand curve 9) The marginal product curve is ________ which reflects ________ a. downward sloping; diminishing returns as employment increases b. downward sloping; increasing opportunity costs as employment decreases c. upward sloping; increasing opportunity costs as employment decreases
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This note was uploaded on 04/03/2010 for the course ECN 001B 1b taught by Professor Baghermodjtahedi during the Spring '10 term at UC Davis.

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study_q_-_midterm_2_s08 - Study Questions for Midterm II...

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