1 of 40
Term Definition
Mexico can produce vine-
C
ripened tomatoes at a lower
opportunity cost than firms in
the United States. Through trade
negotiations, the United States
lifted quotas limiting the import
of tomatoes from Mexico. Some
firms in Florida, in the face of
this new competition, had to
close their farms and let go their
workers. Many of the workers
could not find new jobs right
away. What type of
unemployment describes the
workers' situation?
a)Cyclical unemployment
,b)Full unemployment
c)Structural unemployment
d)Target unemployment
Give this one a try later!
True False
2 of 40
Term Definition
If actual inflation is correctly D
expected and built into people's
wage and price setting
decisions, the Phillips curve:
a)becomes a horizontal line.
b)becomes a vertical line.
c)remains a downward sloping
line.
d)becomes an upward sloping
line.
Give this one a try later!
True False
,Correct definition
B
3 of 40
Term Definition
If there is inflation: B
a)the unit of account function of
money is improved
b)the unit of account function of
money is undermined.
c)the distributional function of
money is improved
d)the distributional function of
money is undermined.
Give this one a try later!
True False
4 of 40
Term Definition
Unemployment will be at its B
target rate when actual inflation
, is:
a)3 percent and expected
inflation is 3 percent.
b)3 percent and expected
inflation is 0 percent.
c)0 percent and expected
inflation is 3 percent.
d)6 percent and expected
inflation is 3 percent.
Give this one a try later!
True False
Correct definition
A
5 of 40
Term Definition
Cyclical unemployment results C
from:
a)fluctuations in economic
activity.
Term Definition
Mexico can produce vine-
C
ripened tomatoes at a lower
opportunity cost than firms in
the United States. Through trade
negotiations, the United States
lifted quotas limiting the import
of tomatoes from Mexico. Some
firms in Florida, in the face of
this new competition, had to
close their farms and let go their
workers. Many of the workers
could not find new jobs right
away. What type of
unemployment describes the
workers' situation?
a)Cyclical unemployment
,b)Full unemployment
c)Structural unemployment
d)Target unemployment
Give this one a try later!
True False
2 of 40
Term Definition
If actual inflation is correctly D
expected and built into people's
wage and price setting
decisions, the Phillips curve:
a)becomes a horizontal line.
b)becomes a vertical line.
c)remains a downward sloping
line.
d)becomes an upward sloping
line.
Give this one a try later!
True False
,Correct definition
B
3 of 40
Term Definition
If there is inflation: B
a)the unit of account function of
money is improved
b)the unit of account function of
money is undermined.
c)the distributional function of
money is improved
d)the distributional function of
money is undermined.
Give this one a try later!
True False
4 of 40
Term Definition
Unemployment will be at its B
target rate when actual inflation
, is:
a)3 percent and expected
inflation is 3 percent.
b)3 percent and expected
inflation is 0 percent.
c)0 percent and expected
inflation is 3 percent.
d)6 percent and expected
inflation is 3 percent.
Give this one a try later!
True False
Correct definition
A
5 of 40
Term Definition
Cyclical unemployment results C
from:
a)fluctuations in economic
activity.
