[{"id":213560,"question":"Fractional unemployment arises when","choices":[{"text":"Unskilled or low skilled workers find it difficult to obtain desirable long term jobs","value":"A"},{"text":"Labor must be reallocated from industries that are shrinking to areas that are growing.","value":"B"},{"text":"Workers must search for suitable jobs and firms must search for suitable workers.","value":"C"},{"text":"Output and employment are below full employment levels","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213559,"question":"Full- employment output is the level of output that firms in the economy supply when","choices":[{"text":"Taxes are zero","value":"A"},{"text":"Wages and prices have fully adjusted","value":"B"},{"text":"The unemployment rate in zero","value":"C"},{"text":"All capital is fully utilized","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213558,"question":"The equilibrium level of employment achieved after the complete adjustment of wages and prices, is known as the.","choices":[{"text":"Zero unemployment level of employment","value":"A"},{"text":"Natural state","value":"B"},{"text":"Invisible handshake","value":"C"},{"text":"Full employment level of employment","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213557,"question":"The aggregate supply of labor is the","choices":[{"text":"Total amount of time a person works over his or her lifetime","value":"A"},{"text":"Total amount of time a person spend in the labor force over his or her life time","value":"B"},{"text":"Unemployment rate","value":"C"},{"text":"Sum of the labor supplied by everyone in the economy","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213556,"question":"Which of the following events would lead to an increase in the marginal product lf labor for every equantity labor.","choices":[{"text":"An increase in the real wage","value":"A"},{"text":"A decrease in the real wage","value":"B"},{"text":"A favorable supply shock such as a fall in the price of oil","value":"C"},{"text":"an adverse supply shock such as a reduced supply of raw materials.","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213555,"question":"Firms hire labor at the point where the","choices":[{"text":"Nominal wage rate equals the marginal product of labor","value":"A"},{"text":"Real wage rate equals the marginal revenue product of capital","value":"B"},{"text":"Nominal wage rate equals the marginal revenue product of labor","value":"C"},{"text":"Real wage rate equals the marginal revenue product of capital","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213554,"question":"What tow factors should you equate in deciding how many workers to employ.","choices":[{"text":"The marginal product of labor and the marginal product of capital","value":"A"},{"text":"The marginal product of labor and the real wage rate","value":"B"},{"text":"The marginal product of labor and the real interest rate","value":"C"},{"text":"The marginal product of capital and the real wage rate","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213553,"question":"An increase in the number of workers hired by a firm could result from","choices":[{"text":"a decrease in the marginal product of labor","value":"A"},{"text":"a decrease in the marginal revenue product of labor","value":"B"},{"text":"An increase in the real wage","value":"C"},{"text":"A decrease in the real wage","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213552,"question":"An increase in the real wage rate will cause.","choices":[{"text":"The labor demand curve to shift to the right","value":"A"},{"text":"The labor demand curve to shift to the left","value":"B"},{"text":"The quantity of labor demanded to rise","value":"C"},{"text":"A movement along the labor demand curve","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213551,"question":"The fac that the production function relating output to labor becomes flatter as wemove from left to right means that.","choices":[{"text":"The marginal product of labor is positive","value":"A"},{"text":"The marginal product of capital is positive","value":"B"},{"text":"There is diminishing marginal productivity of labor","value":"C"},{"text":"There is diminishing marginal productivity of capital","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213550,"question":"The two main characteristics of the production function are.","choices":[{"text":"It slopes downward from left to right and the slope become flatter as teh input increases","value":"A"},{"text":"It slopes upward from left to the right the slope becomes steeper as the input increase","value":"B"},{"text":"It slopes upward from left to right unput increases","value":"C"},{"text":"It slopes downward from left to right and the slope becomes steeper ath the input increase","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213549,"question":"An increase in the real wage rate will cause","choices":[{"text":"The labor demand curve to shift to the right","value":"A"},{"text":"The labor demand curve to shift to the left","value":"B"},{"text":"The quantity of labor demanded to rise","value":"C"},{"text":"A movement along the labor demand curve","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213548,"question":"An invention that speeds up the internet is an example of.","choices":[{"text":"An income effect","value":"A"},{"text":"An increase in labor","value":"B"},{"text":"A substitution effect","value":"C"},{"text":"A supply shock","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213547,"question":"The fact that the production function relating output to labor becomes flatter as we move from left to right means that.","choices":[{"text":"The marginal product of labor is positive","value":"A"},{"text":"The marginal product of capital is positive","value":"B"},{"text":"There is diminishing marginal productivity of labor","value":"C"},{"text":"there is diminishing marginal productivity of capital","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213546,"question":"The marginal product of labor","choices":[{"text":"Is measured by the slope of the production function relating capital of employment","value":"A"},{"text":"Is larger when the labor supply is relatively larger","value":"B"},{"text":"Is smaller when the labor supply is relatively smaller","value":"C"},{"text":"Decreases as the number of workers already employed increases","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213545,"question":"The fact that the Production function relating output to capital becomes flatter as we move from left to right means that.","choices":[{"text":"The marginal product of labor is positive","value":"A"},{"text":"The marginal product of capital is positive","value":"B"},{"text":"There is diminishing marginal productivity of labor","value":"C"},{"text":"There is diminishing marginal productivity of capital","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213544,"question":"A mathematical expression relating the amount of output produced to quantities of capital and labor utilized is the","choices":[{"text":"Real interest rate","value":"A"},{"text":"Production function","value":"B"},{"text":"Productivity relation","value":"C"},{"text":"Marginal product","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213543,"question":"The expected real interest rate minus expected inflation rate.","choices":[{"text":"Nominal interest rate minus inflation rate","value":"A"},{"text":"Nominal interest rate minus expected inflation rate.","value":"B"},{"text":"Expected nominal interest rate minus inflation rate","value":"C"},{"text":"Nominal interest rate plus expected inflation rate.","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213542,"question":"The normal interest rate minus the inflation rate is the","choices":[{"text":"Depreciation rate","value":"A"},{"text":"Discount rate","value":"B"},{"text":"Real interest rate","value":"C"},{"text":"Forward rate","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213541,"question":"A mathematical expression relating the amount of output produced to quantities of capital and labor utilized is the.","choices":[{"text":"Real interest rate","value":"A"},{"text":"Productivity relation","value":"B"},{"text":"Production function","value":"C"},{"text":"Marginal product","value":"D"},{"value":"E"}],"correctAnswer":3}]