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1 | |
A person who is made redundant because of the contraction of an industry is a victim of ____________ |
|
| | A) | frictional unemployment |
| | B) | demand-deficient unemployment |
| | C) | classical unemployment |
| | D) | structural unemployment |
|
2 | |
An advocate of the classical model of the economy would claim that unemployment is created when the ________ is above its equilibrium level in the ____________ |
|
| | A) | price level, aggregate economy |
| | B) | tax rate, government budget |
| | C) | wage rate, labour market |
| | D) | interest rate, market for loanable funds |
|
3 | |
We would normally expect the size of the labour force to be __________ than the number of workers willing to accept job offers at any real wage rate |
|
| | A) | smaller |
| | B) | larger |
| | C) | the same size |
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4 | |
The natural rate of unemployment, at any real wage, is the difference between ____________ and _________ |
|
| | A) | those willing to work at the going wage, labour demand |
| | B) | labour demand, those willing to work at the going wage |
| | C) | labour demand, labour supply |
| | D) | those willing to work at the going wage, labour supply |
|
5 | |
If somebody is prepared to work at the going wage rate but cannot find work then they are victims of |
|
| | A) | voluntary unemployment |
| | B) | classical unemployment |
| | C) | Keynesian or voluntary unemployment |
| | D) | Frictional unemployment |
|
6 | |
Policies to reduce unemployment by reducing union power, tax cuts, reductions in unemployment benefit and investment subsidies are examples of _________ |
|
| | A) | Keynesian policies |
| | B) | Supply-side policies |
| | C) | Monetarist policies |
| | D) | Classical policies |
|
7 | |
If the income tax rate changes from 30% to 40% on incomes over £30,000 and a person's income is £31,000 then her marginal tax rate is _________ |
|
| | A) | 30% |
| | B) | 10% |
| | C) | 70% |
| | D) | 40% |
|
8 | |
The abolition of income tax would probably ___________ the number of workers in employment and __________ the natural rate of unemployment |
|
| | A) | increase, reduce |
| | B) | increase, increase |
| | C) | reduce, increase |
| | D) | reduce, reduce |
|
9 | |
If the long run equilibrium of an economy depends upon its short run path, the economy is experiencing |
|
| | A) | involuntary unemployment |
| | B) | hysteresis |
| | C) | the natural rate of unemployment |
| | D) | structural unemployment |
|
10 | |
All of the following may contribute to hysteresis except |
|
| | A) | the insider outsider distinction |
| | B) | discouraged workers |
| | C) | the scrapping of old machinery during recessions |
| | D) | imperfections in the capital market |
|
11 | |
The natural rate of unemployment, (equilibrium unemployment), will always be zero |
|
| | A) | TRUE |
| | B) | FALSE |
|
12 | |
In booms and slumps recorded employment data change by more than recorded unemployment data because of the discouraged worker effect |
|
| | A) | TRUE |
| | B) | FALSE |
2002 A McGraw-Hill Online Learning Centre