Understanding Unemployment Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Jim owns a custom printing business. According to the theory of rational expectations, how would he reach a decision about whether to expand his business in the next year?

Question 2 2. Which of the following statements about the natural rate of unemployment is FALSE?

Question 3 3. Which term describes unemployment that is due to the business cycle and growth and contraction of the economy?

Question 4 4. How would the philosophy of new classical economists be described?

Question 5 5. Which of the following individuals would be counted as unemployed?

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Question 6 6. Which of the following is NOT one of the three types of unemployment discussed in this lesson?

Question 7 7. Derek was working in construction when the housing bubble burst following the 2008 financial crisis. The demand for new construction declined, and Derek lost his job. This scenario is an example of which type of unemployment?

Question 8 8. Which of the following statements is true regarding a minimum wage?

Question 9 9. Why is seasonal unemployment considered to be a type of structural unemployment?

Question 10 10. Which of the following methods best describes how data is gathered for the monthly unemployment rate?

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Question 11 11. What does the theory of Rational Expectations attempt to explain?

Question 12 12. How can the rational expectations theory be applied to the labor market and the government's role in employment levels?

Question 13 13. Which of the following groups includes the sum of employed and unemployed workers?

Question 14 14. Governments often impose minimum wages in order to help unskilled workers. Which of the following statements is true?

Question 15 15. When actual unemployment falls below the natural rate, that LIKELY results in _____.

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Question 16 16. How does efficiency wage theory generally affect a company's turnover rate?

Question 17 17. Why does frictional unemployment occur in the workforce?

Question 18 18. The Bureau of Labor Statistics categorizes an individual as unemployed if they are:

Question 19 19. Why do most economists not subscribe to the classical theory of unemployment?

Question 20 20. Which of the following workers is MOST likely to be classified as structurally unemployed?

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Question 21 21. If Anytown, USA has a high unemployment rate but also has a large number of unfilled computer programming jobs, what type of unemployment are they suffering from?

Question 22 22. Which of the following individuals is structurally unemployed?

Question 23 23. Which of the following statements is true regarding changes to the unemployment rate?

Question 24 24. What do we call the wage that occurs when labor supplied equals labor demanded?

Question 25 25. According to the chart, a government imposed minimum wage of $7 will result in which of the following?

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Question 26 26. When the labor market is in equilibrium, how does labor affect other economic drivers?

Question 27 27. If the unemployment rate rose from 5% to 7%, but more people were employed, what LIKELY occurred?

Question 28 28. How does the theory of rational expectations relate future economic outcomes to the behavior of those making market decisions?

Question 29 29. Economists describe an economy that is at the natural rate of unemployment as _____.

Question 30 30. Which one of the following is a negative effect of efficiency wage theory?

Understanding Unemployment Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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