Economics Quiz

The demand for labor schedule is the same as:

• the minimum wage rate in that economy

• real wage line

• supply of labor schedule

• the marginal product of labor schedule

• none of the above

If the unemployment rate is above its natural rate, then:

• the economy has its potential level

• wages and prices will rise more rapidly and the AS curve will shift to the left

• there are excess tightness in the labor market

• all of the above

• none of the above

In the 1960s, the Phillips curve was:

• suggestive of a permanent trade-off between inflation and unemployment

• consistent with a clear negative relationship between inflation and unemployment

• a very popular explanation for inflation fluctuations

• all of the above

• none of the above

The MP curve indicates the relationship between:

• unemployment; prices

• taxes; price level

• the real interest rate; inflation rate

• all of the above

• none of the above

Only when the goods market is in equilibrium is it true that:

• demand for foreign goods equals foreigners' demand for domestic goods

• the amount of goods and services produced equals actual expenditure

• actual expenditure equals output

• planned expenditure equals the amount of goods and services produced

• none of the above

The fundamental identity of national income accounting implies:

• Expenditure = Production = Income

• Expenditure = Production + Income

• Income = Expenditure / Production

• Income = Expenditure - Production

• None of the above

A discouraged worker might:

• be counted as unemployed

• have been prevented from working during the week prior to the household survey due to illness

• be waiting to return to a job from which he or she has been laid off

• have tried to find a job during the month prior to the household survey, but without success

• none of the above

The quantity theory of money:

• links total income to a country's supply of money

• is the product of classical economists

• is derived from the equation of exchange

• all of the above

• none of the above

Menu costs:

• are one source of price stickiness because firms may not want to change their 'menus' too often

• are the cost a firm bears when it changes its prices

• are one source of price stickiness because changing prices involves many hidden costs

• all of the above

• none of the above

___ is (are) the endogenous variable(s) in the Phillips curve:

• The natural rate of unemployment

• Expected inflation

• All of the above

• none of the above