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Real interest rate

ECO 102 WEEK 4 QUIZ 3 1) The real interest rate can be expressed as the A. nominal interest rate minus the real interest rate B. inflation rate minus the nominal interest rate C. nominal interest rate minus the inflation rate D. inflation rate minus the real interest rate E. nominal interest rate plus the inflation rate 2) Unemployment arising from mismatch of skills is called A. frictional unemployment B. structural unemployment C. seasonal unemployment D. cyclical unemployment E. underemployment 3) Unemployment rates __________ during contractions and __________ during expansions. A. Rise, fall B. Fall, fall C. rise, stay the same D. stay the same, fall E. fall, rise 4) Seasonal unemployment refers to unemployment that results from A. a mismatch of skills B. being in the wrong geographical location C. taking the time to find the best job D. seasonal decreases in demand for labor E. a recession in the economy 5) Uncertainty about inflation a. shifts the attention of business managers away from exchange rate movements and toward concerns about productivity b. reduces the difficulty of making international business decisions c. creates uncertainty about the value of the dollar relative to foreign currencies d. enhances money’s importance as a link between the present and the future e. makes contracts easier to negotiate 6) Cyclical unemployment results from a. a mismatch of skills b. being in the wrong geographical location c. monetary cost and the time it takes to find the best job d. seasonal decreases in demand for labor e. prolonged declines in business activity 7) Seasonal unemployment results from a. unrealistic expectations about the availability of employment b. being in the wrong geographical location c. taking the time to find the best job d. decreases in demand for labor at certain times of the year e. periodic increases in business activity 8) Most of the unemployment experienced in the United States during the Great Depression was a. Cyclical b. Structural c. Seasonal d. Frictional e. Voluntary 9) Frictional unemployment refers to unemployment that results from a. a mismatch of skills b. being in the wrong geographical location c. taking the time to find the best job d. seasonal decreases in demand for labor e. a recession in the economy 10) The labor force participation rate for women in the United States has a. stayed the same over the last 30 years b. increased significantly since the 1950s c. been influenced by decreasing real wages since 1960 d. fluctuated substantially both upward and downward since the 1950s e. increased only very slightly since the 1950s

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