Economics Practice MCQ Page 50

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: 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
Question: 4120   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: 4122   The natural rate of unemployment has been increasing for all 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. expended coverage of unemployment benefits
Question: 4123   Unanticipated inflation causes unemployment to fall if
  1. workers believe real wages are falling
  2. workers believe real wages are rising
  3. firms believe real wages are rising
  4. firms believe their costs are rising
Question: 4124   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
Question: 4126   Search theory predicts a negative relationship between unemployment and
  1. interest rates
  2. unemployment benefits
  3. unanticipated inflation
  4. the benefits of search
Question: 4128   In order to reduce the mismatch between unemployed workers,skills and skills requirements for vacant jobs,the federal governments enacted manpower training programs which
  1. substantially lowered the natural rate of unemployment
  2. did not stop teenage unemployment from rising
  3. were primarily operated to train adult workers
  4. specifically excluded vocational and remedial training
Question: 4130   Unanticipated inflation can
  1. lower workers reservation wages
  2. increase the amount of search
  3. make nominal wage offers less attractive
  4. shorten job search in the economy
Question: 4133   When the economy reaches a new long-run equilibrium after the one -and -for all increase in the money supply
  1. the interest rate has been lower
  2. the price level is 100
  3. the price level is 200
  4. the natural level of real GDP is lower
Question: 4136   As the price level rises
  1. the interest rate continues to fall
  2. the interest rate increases
  3. inflationary expectations are lowered
  4. real GDP drops below its natural level
Question: 4139   Which of the following is not a valid statement about a rigid program of wage and price controls as the solution to inflation?
  1. The productive efficiently of the economy will decline
  2. The program would operate indefinitely
  3. Supply and evasion of controls
  4. Inflationary expectations will likely be unaffected