True/False
Indicate whether the
statement is true or false.
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1.
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The worst downturn of the business cycle in the United States occurred during
the Cold War.
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2.
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Econometric models are used to predict future economic activity.
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3.
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The unemployment rate is calculated by dividing the number of unemployed persons
by the total number of persons in the civilian labor force.
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4.
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Structural unemployment is usually temporary.
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5.
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The unemployment rate does not take into account the number of part-time workers
who want to have full-time jobs.
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6.
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Full employment is reached when the unemployment rate drops below 7
percent.
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7.
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The unemployment rate is determined by the Bureau of the Census.
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Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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8.
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The business cycle since World War II has been characterized by
a. | extended expansions alternating with brief recessions. | b. | brief expansions
alternating with lengthy recessions. | c. | uninterrupted expansion. | d. | uninterrupted
recession. |
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9.
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Unemployment that is directly related to swings in the business cycle is
a. | frictional unemployment. | c. | cyclical
unemployment. | b. | structural unemployment. | d. | seasonal unemployment. |
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10.
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According to the cost-push theory, inflation is caused by
a. | workers. | c. | consumers. | b. | government. | d. | producers. |
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11.
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The forty percent of the population with the lowest income controls
a. | less than 2 percent of the nation's wealth. | b. | about 10 percent of
the nation's wealth. | c. | nearly 20 percent of the nation's
wealth. | d. | about 40 percent of the nation's wealth. |
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12.
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This marked the beginning of the Great Depression in 1929:
a. | end of World War I | c. | declaration of a “bank holiday” | b. | beginning of World
War II | d. | stock market
crash |
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13.
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Changes in technology and changes in consumer tastes can cause
a. | frictional unemployment. | c. | cyclical
unemployment. | b. | structural unemployment. | d. | seasonal unemployment. |
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14.
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According to the demand-pull theory, inflation is caused by
a. | workers. | c. | producers. | b. | government. | d. | consumers. |
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15.
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The Lorenz curve is used to demonstrate
a. | consumer demand and spending. | c. | the severity of
inflation. | b. | the severity of a recession. | d. | the degree of income
inequality. |
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16.
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All of the following account for the growing income gap EXCEPT
a. | a decline in unions. | b. | a shift in employment from the manufacturing to
the service industry. | c. | lessening wage advantages for the well
educated. | d. | a shift from married-couple families to single-parent
families. |
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