assessment2 - Submit via WebCT! Assessment 2 (Due: 5:10pm,...

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Unformatted text preview: Submit via WebCT! Assessment 2 (Due: 5:10pm, 26 Sep, 2008 (Fri)) 1) iscouraged workers are classified by the BLS as D A) art of the labor force. p B) onsidered out of the labor force. c C) onsidered unemployed. c D) onsidered employed. c E) art time employees. p 2) hich of the following causes the unemployment rate to understate the true extent of W joblessness? A) any full time workers really want to be part time workers. M B) ersons who collect unemployment benefits report themselves to be searching for a P job. C) iscouraged workers are not counted as unemployed. D D) drug dealer reports herself as unemployed. A E) iscouraged workers are counted as unemployed. D 3) eople who lost their jobs as hand-drawn animators because of the popularity of computer P generated 3D animation are examples of persons who are suffering A) rictional unemployment. f B) tructural unemployment. s C) yclical unemployment. c D) easonal unemployment. s E) nnatural unemployment. u 4) inimum wage laws cause unemployment because the legal minimum wage is set M A) elow the market wage, causing labor demand to be greater than labor supply. b B) elow the market wage, causing labor demand to be less than labor supply. b C) bove the market wage, causing labor demand to be greater than labor supply. a D) bove the market wage, causing labor demand to be less than labor supply. a E) oo low. t 5) CPI (1982-1984 =100) 2004 100 2005 113 Suppose that the data in the table above reflects the prices in the economy. Given that data, we can say that the cost of living rose by ________ between 2004 and change the wording to purchasing power of 2005? A) % 2 B) % 5 C) % 8 D) 1% 1 E) 3% 1 Year 1 Submit via WebCT! 6) f your nominal wage rises faster than the price level then we can say your real wage has I _______ and the purchasing power of your income has ________. A) allen; fallen f B) allen; risen f C) isen; risen r D) isen; fallen r Nominal Average CPI Hourly Earnings (1982-1984 =100) 2001 10 100 2002 10 105 2003 12 117 Looking at the table above, what is the rate of growth of real average hourly earnings from 2002 to 2003? A) .25% 6 B) 4% C) .69% 7 D) % 4 8) f consumers purchase fewer of those products that increase most in price and more of those I products that decrease in price as compared to the CPI basket, then A) hanges in the CPI accurately reflect the true rate of inflation. c B) hanges in the CPI understate the true rate of inflation. c C) hanges in the CPI overstate the true rate of inflation. c D) hanges in the CPI are unrelated to the true rate of inflation. c Year 7) 9) f inflation increases unexpectedly, then I A) orrowers lose. b B) enders lose. l C) lenders gain and borrowers gain. D) either borrowers nor lenders lose. n 10) f inflation is completely anticipated: I A) o one loses in the economy. n B) orrowers lose in the economy. b C) enders lose in the economy. l D) irms lose because they incur menu costs. f 2 ...
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