ECON TEST 4 QUESTIONS AND ANSWERS UPDATED 2023/2024 WITH
COMPLETE SOLUTION
Which of the following would cause the demand for carpenters to increase?(correct
answer)an increase in the demand for housing
The relationship between the wage rate and the quantity of labor that employers wish to
hire is called:(correct answer)the market demand curve for labor
Which of the following does NOT contribute to increased worker productivity?(correct
answer)increased labor supply
Improvements in the productivity of labor will tend to:(correct answer)increase wages
Which of the following is the best example of an investment in human capital?(correct
answer)a summer internship at a law firm by someone attending law school
Since the 1980s the proportion of income recieved by the top (richest) 5 percent of
Americans has ___ and the measured income of Americans in the lowest (poorest) fifth
has ___.(correct answer)risen; fallen
Which of the following countries has the greatest degree of income inequality?(correct
answer)the United States
A major macroeconomics goal of almost all societies is:(correct answer)all of the above
The unemployment rate is the number of people classified as unemployed as a
percentage of:(correct answer)the labor force
Frictional unemployment occurs when:(correct answer)a worker decides to quit to seek
a different job
A federal program aimed at retraining the unemployed workers of the declining coal and
steel industries is designed to reduce which type of unemployment?(correct
answer)structural
Cyclical unemployment arises when:(correct answer)business activity in the
macroeconomy declines
When unemployment rises above the natural rate it reflects the existence of ___
unemployment.(correct answer)cyclical
Inflation exists whenever:(correct answer)the overall price level is rising
In the expansion phase of the business cycle:(correct answer)all of the above
COMPLETE SOLUTION
Which of the following would cause the demand for carpenters to increase?(correct
answer)an increase in the demand for housing
The relationship between the wage rate and the quantity of labor that employers wish to
hire is called:(correct answer)the market demand curve for labor
Which of the following does NOT contribute to increased worker productivity?(correct
answer)increased labor supply
Improvements in the productivity of labor will tend to:(correct answer)increase wages
Which of the following is the best example of an investment in human capital?(correct
answer)a summer internship at a law firm by someone attending law school
Since the 1980s the proportion of income recieved by the top (richest) 5 percent of
Americans has ___ and the measured income of Americans in the lowest (poorest) fifth
has ___.(correct answer)risen; fallen
Which of the following countries has the greatest degree of income inequality?(correct
answer)the United States
A major macroeconomics goal of almost all societies is:(correct answer)all of the above
The unemployment rate is the number of people classified as unemployed as a
percentage of:(correct answer)the labor force
Frictional unemployment occurs when:(correct answer)a worker decides to quit to seek
a different job
A federal program aimed at retraining the unemployed workers of the declining coal and
steel industries is designed to reduce which type of unemployment?(correct
answer)structural
Cyclical unemployment arises when:(correct answer)business activity in the
macroeconomy declines
When unemployment rises above the natural rate it reflects the existence of ___
unemployment.(correct answer)cyclical
Inflation exists whenever:(correct answer)the overall price level is rising
In the expansion phase of the business cycle:(correct answer)all of the above
