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11. A country has 50 million people, 30 million of whom areadults. Of the adults, 5 million are not interested in working,another 5 million are interested in working but have given uplooking for work, and 5 million are still looking for work. Ofthose who do have jobs, 5 million are working part time but wouldlike to work full time, and the remaining 10 million are workingfull time. How many discouraged workers does the country have?

A 5 million B 20 million C 10 million D 15 million

12. A patient with a rare disease has the same chance ofsurvival as one with a common disease, thanks to the spillovereffect.

True or False

13. Deflation is a decrease in the:

A average level of prices B velocity of money C exchange rate Dinflation rate

14. The supply of savings curve shows the relationship betweensavings and:

A investment B income C the interest rate D age

15. A country has 24 million people in the labor force, and 21.5million of them are employed. What is the unemployment rate in thiscountry?

A 89.6% B 10.4% C 2.5% D 21.5%

16. The Fisher effect is the tendency of nominal interest ratesto rise with the expected inflation rates.

True or False

17. Technological advances are generally expected tohave  ____ spillovers.

A both positive and negative B negative C positive D no

18. Figure loanable funds expansion: In the accompanying figure,if the demand for loanable funds increased from Dlf to D1lf and thesupply of loanable funds remains at Slf, the equilibrium interestrate will:

A increase to i1 temporarily and then return to i0 B fall belowi0 C increase to i1 D remain at i0

19. Episodes of hyperinflation are caused by:

A moderately high rates of real GDP growth B extremely highrates of money growth C severe recessions D extreme economicbooms

20. According to the textbook, one major reason for the increasein the female labor force participation rate after Worlds War IIwas:

A an increase in the overall production because of the baby boomB a decrease in the male labor force participation rate

   C an increase in the incentive to work D anincrease in income taxes