21. Oil shocks, the shift from manufacturing to service jobs,and the use of new technologies are reasons for ___unemployment.
A permanent B structural C cyclical D frictional
22. In a country where both the labor force participation rateand the unemployment rate are very low, which of the followinganswers explains why this may be the case?
A a large percentage of the population is employed B a largepercentage of the population consist of children
C a large percentage of the population is unemployed D a largepercentage of the population is aging and thus has retired
23. A real price is:
A an increase in the average level of the price of a good B theaverage number of times a dollar is spent on final goods andservices in a year
C a price that has been corrected for inflation D a decrease inthe average level of the price of a good
24. When the U.S government borrows, it sells:
A treasury bonds B federal paper C federal paper, treasurybonds, and government stocks D government stocks
25. The most basic U.S. employment law stipulates that anemployee may quit and employer may fire at any time and for anyreason is called:
A the Equal Employment Opportunity Act B the employee privacylaw C affirmative action D the employment at will doctrine
26. Which of the following can drive long run economic growth inthe Solow model?
A human capital B real capital C technological knowledge Dphysical capital
27. The consumer price index measures the:
A average price of a basket of goods and services bought by allfamilies in the country B average price of a basket of goods andservices bought by a typical consumer
C total price of a basket of goods and services bought by allfamilies in the country D total price of a basket of goods andservices bought by a typical consumer
28. The social benefits of research and development are equal tothe private benefits.
True or False
29. The quantity theory of money predicts that if the moneysupply doubles, the price level will also double.
True or False
30. When it occurs at the industry level, Joseph Schumpeter's\"creative destruction\" results in:
A cyclical unemployment B Structural unemployment C frictionalunemployment D underemployment
