Masaryk University - Brno
Department of Economics – Faculty of Economics and Administration
Lipová 507/41a, Pisárky, Brno
BPE_MAC1 Macroeconomics 1 – Spring Semester 2011
1
Tutorial session 4 - 18.03.2011, 10:15-11:00 a.m.
Multiple Choice
Identify the choice that best completes the statement or answers the question.
____ 1. The amount of __________increases when the economy goes into a recession and decreases when the
economy goes into an expansion.
a. structural unemployment
b. seasonal unemployment
c. cyclical unemployment
d. frictional unemployment
____ 2. The natural rate of unemployment is the economist's notion of
a. full employment.
b. cyclical employment.
c. structural unemployment.
d. frictional unemployment.
____ 3. Which one of the following types of unemployment will exist even if the wage is at the competitive
equilibrium?
a. Sectoral unemployment.
b. Cyclical employment.
c. Structural unemployment.
d. Frictional unemployment.
____ 4. Providing training for unemployed individuals will help to alleviate
a. frictional unemployment.
b. seasonal unemployment.
c. structural unemployment.
d. cyclical unemployment.
____ 5. The existence of many discouraged workers in an economy may cause us to
a. overstate the employment rate.
b. understate the employment rate.
c. overstate the unemployment rate.
d. understate the unemployment rate.
____ 6. Changes in the composition of demand among industries or regions are called
a. frictional shifts.
b. sectoral shifts.
c. structural shifts.
d. temporary shifts.
____ 7. Unemployment insurance
a. tends to increase unemployment by decreasing the cost of being unemployed.
b. tends to decrease unemployment by providing limited resources to the unemployed.
c. increases the hardships associated with unemployment.
d. increases the amount of job security demanded by employees.
Masaryk University - Brno, Department of Economics - Faculty of Economics and Administration
Lipová 507/41a, Pisárky, Brno
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____ 8. Unions attempt to raise wage rates for their members by
a. reducing the supply of the product their members produce.
b. lowering barriers to entry so their members have greater opportunities.
c. reducing the demand for labour so there are fewer non-union competitors.
d. negotiating a higher wage rate through collective bargaining.
____ 9. To negotiate a higher wage rate, a union cannot
a. start with a strike and then work to reach a contract to end the strike.
b. negotiate in good faith and expect to hold its bargaining power.
c. expect to maintain the same level of employment.
d. offer a supply curve of labour that is horizontal.
____ 10. Efficiency wages are
a. lower than market wages paid by employers to increase profitability.
b. higher than market wages paid by employers to increase productivity.
c. government-determined minimum wages set to protect workers from unfair employers.
d. negotiated by unions when officials are interested in trimming work forces.
ID: A
1
Tutorial session 4 - 18.03.2011, 10:15-11:00 a.m.
Answer Section
MULTIPLE CHOICE
1. ANS: C
cyclical unemployment
PTS: 1
2. ANS: A
full employment.
PTS: 1
3. ANS: D
Frictional unemployment.
PTS: 1
4. ANS: C
structural unemployment.
PTS: 1
5. ANS: D
understate the unemployment rate.
PTS: 1
6. ANS: B
sectoral shifts.
PTS: 1
7. ANS: A
tends to increase unemployment by decreasing the cost of being unemployed.
PTS: 1
8. ANS: D
negotiating a higher wage rate through collective bargaining.
PTS: 1
9. ANS: C
expect to maintain the same level of employment.
PTS: 1
10. ANS: B
higher than market wages paid by employers to increase productivity.
PTS: 1