MATP Practice Quiz-2 PDF

MATP Practice Quiz-2 No. of Questions-20 Duration-12 minutes Guidelines 1. Each question carries 1 Marks 2. Wrong answer to a question will get -0.2 marks 1. Economists define the unemployed as individuals who are 0 I do not want to answer this Question...

MATP Practice Quiz-2 No. of Questions-20 Duration-12 minutes Guidelines 1. Each question carries 1 Marks 2. Wrong answer to a question will get -0.2 marks 1. Economists define the unemployed as individuals who are 0 I do not want to answer this Question 1 not currently working. 2 not currently working but are actively looking for work. 3 working but looking for different job. 4 working less than their desired amount of time. 5 none of the above. 2. The unemployment rate is the number of unemployed people 0 I do not want to answer this Question 1 divided by the number of people who are working. 2 divided by the total working-age population. 3 divided by the sum of the number of people who are working and the number of people who are looking for work. 4 and the number of people working fewer than their desired number of hours, divided by the number of people who are working or looking for work. 5 none of the above. 3. For the purpose of statistically reporting the unemployment rate, "discouraged workers," are 0 I do not want to answer this Question 1 counted. 2 not counted. 3 offered other jobs. 4 trained to do different work. 5 none of the above 4. In December 2008, the U.S. labour force consisted of 154,447,000 employed and 11, 100, 000 unemployed. The U.S. unemployment rate for December 2008 was about 0 I do not want to answer this Question 1 6.1 per cent 2 6.3 per cent 3 7.2 per cent 4 8.4 per cent 5 none of the above 5. Customer service representatives who have lost their jobs as a result of call centers being out- sourced to India are an example of 0 I do not want to answer this Question 1 structural unemployment. 2 cyclical unemployment. 3 frictional unemployment. 4 voluntary unemployment. 5 none of the above 6. ____________Unemployment occurs due to a mismatch between the jobs that are available and the skills of workers seeking jobs. 0 I do not want to answer this Question 1 Structural 2 Cyclical 3 Frictional 4 Voluntary 5 None of the above 7. When displaced workers require retraining before entering the labour force again, it is the result of ___________ unemployment. 0 I do not want to answer this Question 1 cyclical 2 frictional 3 structural 4 seasonal 5 voluntary 8. In periods when GDP fails to grow at its normal rate, the actual unemployment rate will be __ than the natural rate of unemployment. 0 I do not want to answer this Question 1 lower 2 higher 3 the same 4 failing faster 5 none of the above 9. Actual unemployment can exceed the natural rate of unemployment due to 0 I do not want to answer this Question 1 Frictional Unemployment 2 Structural Unemployment 3 Natural rate of Unemployment 4 Cyclial Unemployment 5 None of the above 10.The consumer Price Index (CPI) relies on the calculation of 0 I do not want to answer this Question 1 prices of a fixex basket of goods that does not change often. 2 prices of a variable basket of goods that changes frequently. 3 the components of GDP that change annually. 4 the components of GDP that do not change frequently. 5 none of the above 11. Cost-of-living adjustments are 0 I do not want to answer this Question 1 automatic wage changes based on the CPI which are included in some union contracts. 2 changes in the basket of goods used in calculating the CPI. 3 averages of neighbouring years' base prices used in constructing the CPI. 4 quality measuements included in the calculation of the CPI. 5 none of the above. 12. Union contracts with built-in cost-of-living adjustments and home mortgages that vary with the rate of inflation are: 0 I do not want to answer this Question 1 inappropriate ways of combating inflation. 2 examples of bracket creep. 3 means of implementing fiscal policy. 4 steps that can be taken to decrease the adverse impacts of inflation. 5 examples of failed discarded policies of the 1970s. 13. Price indexes like the CPI are calculated using a base year. The term base year refers to: 0 I do not want to answer this Question 1 the first year that price data are available. 2 any year in which inflation was higher than 5 percent. 3 the most recent year in which the business cycle hit the trough. 4 an arbitrarily chosen reference year. 5 none of the above. 14. Suppose the consumer price index (CPI) stands at 250 this year. If the inflation rate is 10 per cent, then next year's CPI will equal: 0 I do not want to answer this Question 1 250. 2 260. 3 275. 4 500. 5 none of the above. 15. Consider an economy with only two goods: bread and wine. In 1982, the typical family bought 4 loaves of bread at 50c per loaf and 2 bottles of wine for $9 per bottle. In Year X, bread cost 75c per loaf and wine cost $10 per bottle. The CPI for Year X (using a 1982 base year) is: 0 I do not want to answer this Question 1 100. 2 115. 3 126. 4 130 5 none of the above 16. Suppose we shopped for a basket of goods in Year 1 and it cost $350. Suppose the same basket of goods adds up to $385 in year 2. If we use Year 1 as a base year, what would be the Year 2 CPI. 0 I do not want to answer this Question 1 35. 2 90. 3 100. 4 110. 5 135. 17. Deflation: 0 I do not want to answer this Question 1 was prevalent during the oil shocks of the 1970s. 2 unde the current trends will cause consumers' purchasing power to shrink. 3 has been persistent in the U.S. economy since the Great Depression. 4 all of the above. 5 none of the above 18. Disinflation means a decrease in: 0 I do not want to answer this Question 1 the rate of inflation. 2 the general level of prices in the economy. 3 the prices of all products in the economy. 4 the circulation flow. 5 none of the above. 19. Which of the following statements would come from someone classified as unemployed? 0 I do not want to answer this Question 1 I'm not working because I'm going to Jamaica with my buddy. 2 I haven't had a job in a year, and I stopped looking for a job nine months ago. 3 I'm a full-time student at the University of Illinois who doesn't have time to work. 4 I can't stand my current job as a telemarketer. I used to be a nuclear engineer. 5 I'm not working. I had three interviews this week, and I'm trying to find a job. 20. Brian Vargo, an auto repair mechanic who remains unemployed because he refuses to work for less than $1,000 an hour, is: 0 I do not want to answer this Question 1 counted as part of the labour force. 2 considered frictionally unemployed. 3 an underemployed worker. 4 not counted as part of the labour force. 5 considered as productively active.