Please help me with this practice quiz for the most correct answer.

Question 1

The labour-force participation rate:

Group of answer choices

1. equals one minus the unemployment rate
2. measures the percentage of the number of employed in the labour force
3. equals one minus the labour force
4. measures the percentage of the total adult population in the labour force

Question 2

The unemployment rate is never zero because:

Group of answer choices

1. some wages are always above the market equilibrium level
2. of maximum wage laws
3. of the presence of discouraged workers
4. there is always some frictional and structural unemployment

Question 3

Effective collective bargaining will:

Group of answer choices

1. none of the options
2. increase the demand for union workers
3. raise the wage of union workers
4. decrease the supply of labour in the non-unionised parts of the economy

Question 4

Wages at a rate greater than the minimum level can:

Group of answer choices

1. encourage a labour surplus
2. encourage higher quality candidates to apply for positions
3. all of the options
4. create productivity gains if managed correctly

Question 5

Sally has just graduated with an aeronautical engineering degree and has struggled to find work because of aeronautical jobs has just recently moved overseas. She decides that she needs to remain competitive in the market and has enrolled in a business degree part-time. The category of unemployment that Sally falls under is:

Group of answer choices

1. Frictional unemployment
2. Wage-induced unemployment
3. Structural unemployment
4. Demand-deficient unemployment

Question 6

Mary has been out of the paid workforce in order to raise her children. Now she decides to do paid work and is looking for a job.

This means that the number of unemployed [ Select ] ["increases", "is unchanged", "decreases", "there is not enough information to say"] and the labour force [ Select ] ["is unchanged", "there is not enough information to say", "decreases", "increases"] .

Question 7

Suppose that the adult population consists of 19.04 million, those not in the labour force are 7.56 million and the number of unemployed is 0.88 million. Prior to the calculation of these figures, 0.1 million people dropped out of the labour force as they were unable to find suitable work. What is the total number of employed? Write the answer in millions, and round it to 1 decimal place.

Question 8

If the bank posts a nominal interest rate of 7 per cent per year and the inflation rate is 4 per cent per year, then what is the real interest rate? Write the answer as a percentage.

Question 9

A rise in the price level means a:

Group of answer choices

1. lower value of money
2. lower value of goods
3. higher value of money
4. deflation

Question 10

Cost-push inflation is most likely caused by:

Group of answer choices

1. An increase in the price level
2. A surge in aggregate demand, causing firms spend more to rebuild inventories and therefore raise prices
3. Unions with strong bargaining power successfully negotiate higher wages for workers
4. A reduction in interest rates by the Reserve Bank of Australia

Question 11

Which of the following variables is not a real variable?

Group of answer choices

1. The nominal interest rate adjusted for inflation
2. The price of bananas relative to the price of oranges
3. The amount of corn
4. The dollar wage

Question 12

A fall in the amount of inflation, given a fixed nominal interest rate will cause:

Group of answer choices

1. The nominal interest rate to rise
2. The real interest rate to fall
3. The real interest rate to rise
4. The nominal interest rate to fall

Question 13

In which situation is the real interest rate lowest?

Group of answer choices

1. The nominal interest rate is 2% and the inflation rate 1%.
2. The nominal interest rate is 25% and the inflation rate 30%.
3. The nominal interest rate is 8% and the inflation rate 5%.
4. The nominal interest rate is 11% and the inflation rate 9%.

Question 14

Profit-push inflation is caused by:

Group of answer choices

1. Firms negotiate lower pay with unions for stronger job security, creating larger profit margins for the firm
2. Firms raising prices to raise profits further
3. Firms lowering prices, causing demand to increase and eventually inflation to rise
4. Workers push for higher wages, causing firms to raise prices and their cost of production has now risen

Question 15

Masako buys a house in 1999. She obtains a mortgage that carries an annual interest rate of 12 per cent, and makes payments of $880 per month. The CPI in 1999 is 100, in 2000 it is 110, and in 2001 it is 120. What is the real interest rate in 2001?

Group of answer choices

1. 4 per cent
2. 9 per cent
3. 3 per cent
4. 21 per cent