Quiz wee

The number of people unemployed equals

• The number of people employed divided by the labour force

• The labour force plus the number of people employed

• The labour force minus the number of people employed

• The number of people employed minus the labor force

The population in country A is 40 million, the total labour force is 250,000 and total employment is 180,500. Calculate the unemployment rate for country A.

• 27.8%

• 9.4%

• 72.2%

• 7.3%

What is the primary determinant of consumption in the Keynesian consumption function?

• Disposable income

• Interest rates

• Consumer expectations

• Government spending

How does an increase in consumer confidence typically impact consumption?

• Increases consumption

• Decreases consumption

• Has no impact on consumption

• Increases saving

Cost push inflation is caused by

• A decrease in the cost of production

• An increase in the cost of production

• Lower indirect taxes imposed by the government

• Lower aggregate demand

How does taxation typically influence the circular flow of income?

• Increases injection

• Decreases injection

• Increases leakage

• Decreases leakage

inflation cannot be caused by

• cost push factor

• demand pull factor

• excessive money supply

• excessive production

All the following statements are true except

• Frictional unemployment occurs when workers are between jobs

• Structural unemployment occurs as a result of changing production methods

• seasonal unemployment occurs because trade union negotiate for higher wages

• Cyclical unemployment is a serios unemployment, leading to a lack of aggregate demand in recession

If households save more money, how does it affect the circular flow of income?

• Increases injection

• Decreases injection

• Increases leakage

• Decreases leakage

Which of the following statements is false?

• Debtors gain during inflation

• Pensioners gain during inflation

• creditors incurs losses during inflation

• those receiving fixed interest from bonds suffer losses during inflation