Economics Practice MCQ Page 37

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: 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
Question: 3458   perhaps the most significant cost of continued job search for the unemployed is the
  1. opportunity cost of not accepting a job sooner
  2. cost of newspapers and other job listing
  3. time spent watching television for job listings
  4. cost of travel to job interviews
Question: 3459   Which of the following may help explain the gradual rise in the unemployment rate?
  1. the trend toward multiple earners in a household
  2. reductions in unemployment compensation benefits
  3. the additional work incentives provided by a progressive income tax
  4. the decline in the number of teenagers covered by the minimum wage
Question: 3460   A worker's reservation wage for a particular job is the
  1. minimum acceptable wage
  2. maximum acceptable wage
  3. gross wage that the job pays before taxes
  4. net wage that the job pays after taxes
Question: 3461   Increases in the unemployment rate above the natural rate are identified with
  1. economic expansion
  2. structural unemployment
  3. cyclical unemployment
  4. frictional unemployment
Question: 3462   one measure of the seriousness of unemployment is associated with
  1. frictional unemployment
  2. bottleneck unemployment
  3. salient unemployment
  4. seasonal unemployment
Question: 3463   Studies of employer search behavior in labor markets reveal that
  1. employers search more the greater is the level of training that must be given to new workers
  2. larger employers are less efficient at interviewing than smaller employers
  3. larger employers interview fewer applicants per job than smaller employers
  4. smaller employers tend to spend less time per interview than larger employers
Question: 3464   The tendency of wages to remain stable during periods of high unemployment may be explained by
  1. unemployment compensation benefits
  2. implicit contracting and layoff unemployment
  3. high marginal tax rates on income
  4. unanticipated in
Question: 3465   Unanticipated inflation can cause people to reduce job search by
  1. increasing the costs of additional search
  2. causing workers to accept job offers
  3. increasing the benefits of additional search
  4. increasing the value of unemployment benefits
Question: 3466   The natural rate of unemployment has been increasing for all of the following reasons except
  1. higher taxes on unemployment benefits
  2. increasing labor force participation by teenagers
  3. increasing labor force participation by women
  4. expanded coverage of unemployment benefits
Question: 3467   Which of the following statements concerning the minimum wage is true?
  1. the percentage of covered employment has increased
  2. the relative minimum wage has increased
  3. only teenagers are covered by the minimum wage
  4. only persons living in poverty are covered by the minimum wage