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Unformatted text preview: Second Midterm Examination Economics 1101 Name: TUiD: You have 1 hour 20 minutes to finish the exam. The exam consists of fifty (50) multiple-choice questions, each worth one (1) point for a total of 50 points. If you have any doubts about any question feel free to ask the examiner. This is a closed book, closed notes exam. Use of calculators and cell-phones is prohibited during the exam. Any person found cheating will earn an F grade for the course. 1. A person is said to be unemployed when he/she does not have a job, and (a) is actively looking for a job, (b) is willing to work at the prevailing wage rate, (c) both (a) and (b). (d) none of the above. 2. An effective minimum wage (a) leads to higher unemployment. (b) leads to lower unemployment. (c) has an ambiguous effect on labor markets. (d) does not exist. 3. The advent of personal computers reduced the need of typists. This type of unemployment is called (a) frictional unemployment. (b) structural unemployment. (c) cyclical unemployment. (d) seasonal unemployment. 4. Ski resorts in Utah close every summer leaving their employees to look for other jobs. This type of unemployment is called (a) frictional unemployment. (b) structural unemployment. (c) cyclical unemployment. (d) seasonal unemployment. 1 5. In the aftermath of the sub-prime crisis construction industry took a major hit. The unemployment that construction workers face today can be called (a) frictional unemployment. (b) structural unemployment. (c) cyclical unemployment. (d) seasonal unemployment. Questions 6-8 are based on the following information. The government of Liliput came out with the following statistics: Civilian Working Age Population: 1000. Labor Force: 500. Number of People Unemployed: 100. 6. The number of employed people is (a) 100. (b) 400. (c) 900. (d) 1000. 7. The unemployment rate is (a) 10%. (b) 20 %. (c) 50%. (d) 80%. 8. The labor force participation rate is (a) 10%. (b) 20%. (c) 50 %. (d) 80%. 9. Macroeconomic equilibrium is the point of intersection of (a) the short-run aggregate supply curve and the aggregate demand curve. (b) the short-run aggregate supply curve and the long-run aggregate supply curve....
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- Fall '08