Economics Practice MCQ Page 49

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: 4102   An underground worker is 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: 4103   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: 4105   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: 4106   When the economy experiences a recession,which of the following tends to occur?
  1. The number of unemployed falls
  2. Real GDP increase
  3. The number of people out of the labor force decreases
  4. The growth in the number of people employed slows
Question: 4108   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: 4109   A worker 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: 4111   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: 4112   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 newspaper and other job listings
  3. time spent watching television for job listings
  4. cost of travel to job interviews
Question: 4113   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: 4115   One measure of the seriousness of unemployment is associated with
  1. frictional unemployment
  2. bottleneck unemployment
  3. salient unemployment
  4. seasonal unemployment
Question: 4117   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: 4118   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 on income
  4. unanticipated inflation