ECON 1101 PRINCIPLES OF ECONOMICS
HOMEWORK ASSIGNMENT #5
DUE DATE: 11/30/2022
1. If a nation's labor force receives a significant influx of young workers:
A. the natural rate of unemployment is likely to increase.
B. the natural rate of unemployment is likely to decrease.
C. the natural rate of unemployment is unlikely to change
D. frictional unemployment will likely decrease to zero.
2. The type of unemployment that occurs because of a recession is called:
A. cyclical unemployment.
B. the natural rate of unemployment.
C. seasonal unemployment.
D. frictional unemployment.
3. The definition of market equilibrium states that at the _______________, the
quantity of labor demanded by employers will equal the quantity supplied.
A. efficiency wage
B. equilibrium wage
C. sticky wage
D. natural rate of unemployment
4. The rise in unemployment that occurs because of a recession is known as
cyclical unemployment, because it is closely tied to the ______________.
A. natural rate of unemployment
B. business cycle
C. supply curve
D. labor supply
5. The most significant real economic cost of high unemployment is:
A. the potential goods and services that might have been produced but
weren't.
B. the money cost of retraining persons to obtain new jobs.
C. the lost tax revenue that might have been paid by persons if they had
worked.
D. the money cost of unemployment insurance payments to the
unemployed.
6. __________ implies that pressure for price increases reaches across _______________markets, not
just one.
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, A. inflation; all
B. deflation; most
C. inflation; most
D. deflation; all
7. While one occasionally sees references to inflation over short time periods, the term typically implies
a(n)_____________ in prices.
A. ongoing decrease
B. ongoing rise
C. short term rise
D. short term decrease
8. The effects of inflation are seen in:
A. goods and services only
B. wages and income levels only
C. services and wages only
D. goods, services, wages and income levels
9. Inflation implies that the level of all prices _____________________.
A. decrease
B. stay the same
C. increase
D. none of the above
10. When Alex took out his first two-year membership with Marietta Gym in 2004, the fee was $540.00.
He renewed his membership three times; in 2006 for $580.00, in 2008, for $600.00, and again in 2010,
for $630.00. What is the overall rate of inflation for Alex's gym membership?
A. 8.6%
B. 5.4%
C. 7.87%
D. 16.66%
11. Which of the following institutions determines the quantity of money in the economy as its most
important task?
This study source was downloaded by 100000900629999 from CourseHero.com on 10-31-2025 03:06:25 GMT -05:00
https://www.coursehero.com/file/189844712/ECON-HOMEWORK-5docx/
HOMEWORK ASSIGNMENT #5
DUE DATE: 11/30/2022
1. If a nation's labor force receives a significant influx of young workers:
A. the natural rate of unemployment is likely to increase.
B. the natural rate of unemployment is likely to decrease.
C. the natural rate of unemployment is unlikely to change
D. frictional unemployment will likely decrease to zero.
2. The type of unemployment that occurs because of a recession is called:
A. cyclical unemployment.
B. the natural rate of unemployment.
C. seasonal unemployment.
D. frictional unemployment.
3. The definition of market equilibrium states that at the _______________, the
quantity of labor demanded by employers will equal the quantity supplied.
A. efficiency wage
B. equilibrium wage
C. sticky wage
D. natural rate of unemployment
4. The rise in unemployment that occurs because of a recession is known as
cyclical unemployment, because it is closely tied to the ______________.
A. natural rate of unemployment
B. business cycle
C. supply curve
D. labor supply
5. The most significant real economic cost of high unemployment is:
A. the potential goods and services that might have been produced but
weren't.
B. the money cost of retraining persons to obtain new jobs.
C. the lost tax revenue that might have been paid by persons if they had
worked.
D. the money cost of unemployment insurance payments to the
unemployed.
6. __________ implies that pressure for price increases reaches across _______________markets, not
just one.
This study source was downloaded by 100000900629999 from CourseHero.com on 10-31-2025 03:06:25 GMT -05:00
https://www.coursehero.com/file/189844712/ECON-HOMEWORK-5docx/
, A. inflation; all
B. deflation; most
C. inflation; most
D. deflation; all
7. While one occasionally sees references to inflation over short time periods, the term typically implies
a(n)_____________ in prices.
A. ongoing decrease
B. ongoing rise
C. short term rise
D. short term decrease
8. The effects of inflation are seen in:
A. goods and services only
B. wages and income levels only
C. services and wages only
D. goods, services, wages and income levels
9. Inflation implies that the level of all prices _____________________.
A. decrease
B. stay the same
C. increase
D. none of the above
10. When Alex took out his first two-year membership with Marietta Gym in 2004, the fee was $540.00.
He renewed his membership three times; in 2006 for $580.00, in 2008, for $600.00, and again in 2010,
for $630.00. What is the overall rate of inflation for Alex's gym membership?
A. 8.6%
B. 5.4%
C. 7.87%
D. 16.66%
11. Which of the following institutions determines the quantity of money in the economy as its most
important task?
This study source was downloaded by 100000900629999 from CourseHero.com on 10-31-2025 03:06:25 GMT -05:00
https://www.coursehero.com/file/189844712/ECON-HOMEWORK-5docx/
