Multiple Choice Questions:
1. Which is not one of society’s major economic goals?
a. Maintaining employment at high levels
b. Maintaining prices at a stable level
c. Maintaining a high rate of economic growth
d. All of the above are major economic goals of society.
2. The three major macroeconomic goals of nearly every society are
a. Maintaining stable prices, reducing interest rates, and achieving a high rate of economic growth.
b. Maintaining high levels of employment, increasing the supply of money, and achieving a high rate of economic growth.
c. Maintaining stable prices, maintaining high levels of employment, and achieving high rates of economic growth.
d. Achieving high rates of economic growth, reducing unemployment, and reducing interest rates.
3. Economic growth is measured by changes in
a. Nominal GDP.
b. The money supply.
c. Real GDP per capita.
d. The rate of unemployment.
e. None of the above.
4. High rates of unemployment
a. Can lead to increased tensions and despair.
b. Result in the loss of some potential output in society.
c. Reduce the possible level of consumption in society.
d. Represent a loss of efficiency in society.
e. All of the above are true.
5. The unemployment rate is the number of people officially unemployed divided by
a. The civilian labor force.
b. The noninstitutional population.
c. The total population.
d. The number of people employed.
e. None of the above.
6. The labor force consists of
a. Discouraged workers, employed workers, and those actively seeking work.
b. All persons over the age of 16 who are working or actively seeking work.
c. All persons over the age of 16 who are able to work.
d. All persons over the age of 16 who are working, plus those not working.
e. Discouraged workers, part-time workers, and full-time workers.
7. The civilian labor force includes which of the following groups?
a. Those in the armed forces
b. Those who are currently working part time
c. Full-time students
d. Retirees
e. All of the above
8. Discouraged workers
a. Are considered unemployed.
b. Are considered as not in the labor force.
c. Are considered as in the labor force.
d. Are considered as both unemployed and in the labor force.
e. Are considered as unemployed but not in the labor force.
9. Which of these groups tends to have the lowest unemployment rate?
a. Teenagers
b. Those with some college education
c. College graduates
d. Those with a high school diploma but no college experience
10. The largest fraction of those counted as unemployed is due to
a. Job losers.
b. Job leavers.
c. New entrants.
d. Reentrants.