American Military University ECON 102/ ECON102: Quiz 2 | Answered 2026, Week 3 - Quiz: 2 - Results Attempt 1 of 2 2026 Attempt Score 100 / 100 - 1 00 % Overall Grade (Highest Attempt) 100 / 100 - 1 00 % Questions for Quiz 2 (Week 3) Question 1 5

American Military University ECON 102/ ECON102: Quiz 2 | Answered 2026, Week 3 - Quiz: 2 - Results Attempt 1 of 2 2026 Attempt Score 100 / 100 - 1 00 % Overall Grade (Highest Attempt) 100 / 100 - 1 00 % Questions for Quiz 2 (Week 3) Question 1 5 / 5 points Economists define the unemployed as individuals who are Question options: working less than their desired amount of time. working but looking for a different job. not currently working. not currently working but are actively looking for work. Question 2 5 / 5 points Economists define the labor force to include Question options: people who are not working but are actively looking for a job, and people who are w all individuals of work age, regardless of whether they are working or looking for a only people who are working full time. people who are working.Question 3 5 / 5 points People who want to work but have stopped looking for work because they could not find jobs after actively searching are called Question options: unemployed. employed. empowered. discouraged workers. Question 4 5 / 5 points Unemployment that naturally occurs during the normal workings of an economy as people change jobs and move across the country is called Question options: structural unemployment. cyclical unemployment. natural unemployment. frictional unemployment. Question 5 5 / 5 points ________ unemployment occurs due to a mismatch between the jobs that are available and the skills of workers seeking jobs. Question options: VoluntaryFrictional Structural Cyclical Question 6 5 / 5 points At full employment the unemployment rate equals the Question options: structural unemployment rate plus the frictional unemployment rate. structural unemployment rate. cyclical unemployment rate. structural unemployment rate plus the cyclical unemployment rate. Question 7 5 / 5 points Economists consider an economy to be at "full employment" when Question options: the unemployment rate equals the natural rate of unemployment. there is only a small amount of cyclical unemployment. there is no structural unemployment. there is no frictional unemployment. Question 8 5 / 5 points Economists say that the economy is at "full employment" when the Question options:frictional unemployment rate is zero. structural unemployment rate is zero. cyclical unemployment rate is zero. total unemployment rate is zero. Question 9 5 / 5 points When inflation increases, the purchasing power of money typically: Question options: Remains unchanged because wages always adjust to inflation. Decreases because goods and services become more expensive. Becomes unpredictable because inflation is not related to purchasing power. Increases because goods and services become cheaper. Question 10 5 / 5 points Which of the following best explains how inflation impacts businesses? Question options: It eliminates the need for businesses to adjust their pricing strategies. It decreases the nominal value of goods and services offered by businesses. It increases the real cost of borrowing, reducing investment. It reduces the purchasing power of consumers, potentially lowering demand for pr Question 11 5 / 5 points A prolonged period of inflation without wage growth is most likely to:Question options: Increase the ability of consumers to save money. Enhance consumer purchasing power, boosting economic growth. Have no effect on purchasing power, as wages are unrelated to inflation. Reduce consumer purchasing power, leading to lower consumption levels. Question 12 5 / 5 points How does inflation affect a business’s ability to operate efficiently in the long term? Question options: It simplifies pricing strategies by keeping costs stable. It makes raw materials and wages more affordable, reducing costs. It forces businesses to adjust prices frequently, increasing operational complexity. It boosts consumer spending power, increasing overall revenue. Question 13 5 / 5 points What is the effect of inflation on fixed-income consumers? Question options: It reduces their purchasing power, as their income does not adjust with inflation. It has no impact, as fixed incomes are adjusted for inflation automatically. It increases their purchasing power as prices rise. It leads to a higher standard of living due to fixed expenses.Question 14 5 / 5 points Business cycles are Question options: the transfer of executives between firms. movements in stock prices. used to describe fluctuations in GDP. a description of the time required to bring a new product to market. Question 15 5 / 5 points The economy needs some unemployment to operate efficiently, because without it Question options: workers will find it difficult to find a job, leading to increased wages and prices. workers will find it difficult to find a job, leading to reduced wages and prices. firms will find it difficult to recruit workers, leading to reduced wages and prices. firms will find it difficult to recruit workers, leading to increased wages and prices. Question 16 5 / 5 points Which of the following is a short-term effect of high unemployment on businesses? Question options: Increased consumer spending.Rapid growth in business revenue. Lower demand for goods and services. Higher competition for skilled labor. Question 17 5 / 5 points High inflation affects business sustainability in the long term by: Question options: Increasing uncertainty, making long-term planning more challenging. Stabilizing market conditions through predictable price changes. Reducing operational costs due to lower input prices. Boosting profits by increasing consumer purchasing power. Question 18 5 / 5 points How does prolonged high unemployment impact a business’s workforce over time? Question options: It leads to an oversupply of labor, decreasing wage costs. It enhances employee productivity due to job insecurity. It eliminates the need for training programs within businesses. It reduces the availability of skilled labor as workers exit the labor market. Question 19 5 / 5 points What is a common long-term consequence of high inflation for consumers and businesses?Question options: Increased consumer confidence due to rising wages. Reduced purchasing power, leading to lower demand for goods and services. Stable pricing across industries, encouraging investment. Improved economic growth as prices adjust. Question 20 5 / 5 points In the short term, high unemployment can benefit businesses by: Question options: Boosting consumer spending power, increasing sales. Increasing competition among job seekers, lowering wage costs. Reducing production costs by automating tasks. Enhancing long-term business profitability through higher inflation.