Test2 Multiple Choice Econ2200

what is the opportunity cost of holding money?
a.the real interest rate
b.the nominal interest rate
c.the inflation rate
d.prevailing treasury bill rate

in practive, in order to stop hyperinflation, in addition to stopping monetary growth, the government must
a.lower taxes and raise gov spending
b.lower gov spending
c.change from one kind of currency to another
d.call for a new election

the inconvenience associated with reducing money holdings to avoid the inflation tax is called
a.menu costs
b.shoeleather costs
c.variable yardstick costs
d.fixed costs

people use money as a store of value when they
a.hold money to transfer purchasing power into the future
b.use money as a measure of economic transactions
c.use money to buy goods and services
d.hold money to gain power and esteem

unemployment insurance may be desireable because unemployment insurance
a. raises the natural rate of unemployment
b. reduces the rate of job finding
c.increases morkers' uncertainty abt their incomes
d.induces workers to reject unattractive job offers

permitting a lower min wage for teens would likely
a.raise teenage unemployment
b.raise teenage wages overall
c.prevent teenagers from getting job experience
d.raise unemployment among unskilled adults

suppose over the course of a year, 100 people are unemployed for 4 weks each (short-term unemployed) while 10 people are unemployed for 52 weeks each (long-term unemployed) What percentage of the total weeks of unemployment were attributable to the long term unemployed?

according to RBC (Real business cycle) theory, an increase in environmental regulations will shift the Ag Supp curve :
a.up
b.down
c.left
d.right

a decrease in gov spending generally shifts the IS curve
a. downward and to the left
b. downward and to the right
c. upward and to the left
d. upward and to the right

if a short run EQ occurs at a level of output below the natural rate, then in the transition to the long run prices will _____ and output will _____
a. increase;increase
b. increase;decrease
c. decrease;decrease
d.decrease;increase

according to the qty theory of money, if output is higher, ______ real balances are required, and for fixed money supply M this means ______ Price P
a.higher;higher
b.higher;lower
c.lower;lower
d.lower;higher

the classical dichotomy:
a.cannot hold if money is "neutral"
b. is said to hold when the values of real vars can be determined without any reference to nominal variables or the existence of money
c.fully describes the world in which we live, especially in the short run
d.arises because money depends on the nominal interest rate

discouraged workers are indiciduals who
a. have jobs that dont match their skills
b.have been unemployed for more than 26 weeks
c.call themselves unemployed but are not seriously looking for a job
d.want a job but have given up looking for one

in the keynesian cross, when planned expenditure exceeds income
a. income falls
b.planned expenditure falls
c.inventories fall
d.prices rise

in the case of unions the conflict of interest between diff gorups of workers results in insiders wanting ________, while outsiders want ______
a. more hirings; high wages
b. high wages;more hirings
c. high wages; fewer hirings
d. fewer hirings; high wages

efficiency wage theories suggest that a firm may pay owrkers more than the market-clearing wage for all of the following reasons except to
a. reduce labor turnover
b.improve the quality of the firm's labor force
c.increase worker's effort
d. reduce the firm's wage bill