Economics Practice MCQ Page 36

Multiple Choice questions for Economics in the sets of 10 each on one page with questions and answers. All sets are useful in the preparation of subject tests for employment or admission.
Question: 3445   If inflation is lower than workers expected then unemployment is likely to
  1. rise because wage offers are more likely to exceed a worker's reservation wage
  2. fall because wage offers are more likely to exceed a worker's reservation wage
  3. rise because wage offers are more likely to be below a worker's reservation wage
  4. fall because wage offers are more likely to be below a worker's reservation wage
  5. change unpredictably because wage offers may rise or fall relative to a worker's reservation wage
Question: 3447   Persons with working spouses tend to remain unemployed
  1. less long because of higher marginal costs of search
  2. longer because of lower marginal costs of search
  3. less long because of lower marginal benefits of search
  4. longer because of higher marginal benefits of search
  5. the same length of time as unmarried persons
Question: 3448   An increase in the minimum wage tends to increase
  1. structural unemployment
  2. frictional unemployment
  3. cyclical unemployment
  4. structural and cyclical unemployment
  5. frictional and cyclical unemployment
Question: 3449   Economists identify each of the following categories of unemployment except
  1. frictional
  2. structural
  3. permanent
  4. cyclical
Question: 3450   Unemployment associated with the normal changing of jobs in a dynamic economy is called
  1. frictional unemployment
  2. structural unemployment
  3. permanent unemployment
  4. cyclical unemployment
Question: 3451   The cost of being unemployed has been increasing in part because
  1. states are raising taxes that fund unemployment insurance too quickly
  2. there are too many employment offices where unemployed workers can apply for benefits
  3. union membership has been growing
  4. employment has been shifting to the service sector
Question: 3452   The human costs of unemployment include all of the following except
  1. lost output
  2. increasing family conflicts
  3. higher divorce rates
  4. increasing health problems
Question: 3453   An underground worker i a worker
  1. counted as being employed
  2. counted as being unemployed
  3. whose income is not fully reported to the government
  4. that has no skills to offer in the job market
Question: 3454   Which of the following is not an important problem concerning the measurement of unemployment
  1. voluntary part time unemployment
  2. discouraged workers
  3. involuntary part time employment
  4. differing intensities of job search
Question: 3455   One major cause of rising unemployment rates in Europe is apparently
  1. unconditional payment of unemployment benefits
  2. government guaranteed jobs
  3. competition from Japanese imports
  4. tight money policies that kept inflation low but unemployment high
Question: 3456   When the economy experiences a recession which of the following tends to occur
  1. the number of unemployed falls
  2. real GDP increases
  3. the number of people out of the labor force decreases
  4. the growth in the number of people employed slows
Question: 3457   Economists believe that both workers and firms search for employment opportunities until
  1. there are no longer any benefits to be obtained by additional search
  2. the cost of additional search is zero
  3. the marginal benefits and marginal costs of search are equal
  4. workers stop searching and become discouraged workers