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| 1 | |
Which is the most accurate statement? |
| | A) | We have a least one full business cycle every seven years. |
| | B) | The longest business cycle on record is eight years long. |
| | C) | The economic expansion that began in March, 1991 is the longest on record. |
| | D) | There is no such thing as a business cycle. |
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| 2 | |
Since November, 1982 we have had _______ recessions. |
| | A) | one |
| | B) | two |
| | C) | three |
| | D) | four |
| | E) | five |
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| 3 | |
We know a recession is definitely over when |
| | A) | output rises. |
| | B) | output has reached the level of the previous peak. |
| | C) | the unemployment rate begins to decline. |
| | D) | the consumer confidence index rises. |
| | E) | the index of leading economic indicators rises. |
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| 4 | |
Each of the following is a leading economic indicator except |
| | A) | average workweek of production workers in manufacturing. |
| | B) | new orders for capital goods. |
| | C) | the unemployment rate. |
| | D) | new building permits issued. |
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| 5 | |
Which is the most accurate statement? |
| | A) | The period 2001 through 2005 was one of deflation. |
| | B) | A dollar today is worth only about 25 cents. |
| | C) | Consumer prices in 2005 were about 10 times as high as they were in 1945. |
| | D) | Consumer prices in 2005 were about double what they were in 1990. |
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| 6 | |
Statement I: Our economy has never attained full employment. Statement II: In the late 1990s, our
unemployment rate dipped below 4 percent. |
| | A) | Statement I is true and statement II is false. |
| | B) | Statement II is true and statement I is false |
| | C) | Both statements are true |
| | D) | Both statements are false |
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| 7 | |
Which is the most accurate statement? |
| | A) | Unemployment is no longer an economic problem. |
| | B) | Over five million Americans are currently unemployed. |
| | C) | In the period from 1998 - 2001, unemployment was our greatest economic problem. |
| | D) | The unemployment rate for blacks is a little higher than the unemployment rate for whites. |
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| 8 | |
Which statement about the computation of the unemployment rate is false? |
| | A) | The unemployed are overcounted because people collecting unemployment benefits, who are not necessarily looking for work, are counted as unemployed when they report to a state employment office. |
| | B) | The unemployed are undercounted because those who want to work, but have given up looking (the discouraged workers), are not counted as unemployed. |
| | C) | The unemployed are undercounted because if you are currently out of work, but did work even one day during that month, you are counted as unemployed. |
| | D) | The unemployed are undercounted because only those are collecting unemployment insurance benefits are counted as unemployed. |
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| 9 | |
A computerized job bank would tend to lower ______ unemployment. |
| | A) | frictional |
| | B) | seasonal |
| | C) | cyclical |
| | D) | structural |
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| 10 | |
Statement I. The American unemployment rate is low relative to other industrialized countries.
Statement II. The unemployment rate in 2000 was the lowest on record. |
| | A) | Statement I is true and statement II is false. |
| | B) | Statement II is true and statement I is false. |
| | C) | Both statements are true. |
| | D) | Both statements are false. |
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| 11 | |
Which one of the following descriptions of inflation is accurate? |
| | A) | When there is inflation, the prices of all goods and services are rising. |
| | B) | When there is inflation, it almost always accelerates until it becomes a hyperinflation. |
| | C) | Once inflation sets in, it is almost impossible to bring under control. |
| | D) | While a little inflation is good for business, a high rate of inflation is bad for business. |
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| 12 | |
Statement I. Deflation and disinflation are basically the same thing. Statement II. Deflation is very
good for business. |
| | A) | Statement I is true and statement II is false. |
| | B) | Statement II is true and statement I is false. |
| | C) | Both statements are true. |
| | D) | Both statements are false. |
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| 13 | |
Inflation was worst in the |
| | A) | 1930s |
| | B) | 1960s |
| | C) | 1970s |
| | D) | 1990s |
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| 14 | |
If the Consumer Price Index rose annually from 100 to 102 to 104 to 106, this would be an
example of |
| | A) | deflation. |
| | B) | disinflation. |
| | C) | creeping inflation. |
| | D) | hyperinflation. |
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| 15 | |
Each of the following has been partially responsible for our low rate of inflation in recent years
except |
| | A) | the rise of huge discounters like WalMart, Toys R Us, and Price-Costco. |
| | B) | the rising tide of imported goods. |
| | C) | the advent of E-commerce. |
| | D) | the price control program of the Clinton Administration. |
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