Question

If Samantha quits her job voluntarily and actively searches for other work, then she is considered A) structurally unemployed. B) frictionally unemployed. C) cyclically unemployed. D) not to be unemployed. Telephone operators who have lost their jobs as a result of computerized switchboards are an example of A) structural unemployment. B) frictional unemployment. C) cyclical unemployment. D) voluntary unemployment. The floods of 1993 caused the price of corn to increase. This is an example of A) inflation. B) deflation C) a sustained inflation. D) the operations of supply and demand. A price index is A) a measurement showing how the average price of a bundle of goods changes over time. B) a measurement showing the cost of a bundle of goods at a point in time. C) a sustained increase in the overall price level. D) a decrease in the overall price level. The broadest-based price index available is the A) GDP deflator. B) producer price index. C) consumer price index. D) wholesale price index. The MPC is A) the change in consumption divided by the change in income. B) consumption divided by income. C) the change in consumption divided by the change in saving D) the change in saving divided by the change in income. The MPS is A) the change in saving divided by the change in income. B) 1+ MPC C) income divided by saving D) total saving divided by total income Saving equals A) Y-C B) Y-planned I. C)Y.actual D) inventory changes. If you earn additional $500 in disposable income one week for painting your neighbor's house A) the total of your consumption and saving will increase by more than $500. B) the total of your consumption and saving will increase by $500. C) the total of your consumption and saving will increase by less than $500. D) your consumption will increase by more than $500, even if your MPS is 0.1.

Answer 1

1. B

Explanation: Frictional unemployment is when workers are jobless and looking for work in a healthy economy. It doesn't matter if they leave voluntarily or are fired.

2. A

Explanation: organisation structure has changed due to automation.

3. D

Explanation: Due to floods, supply decreased and with same demand, price rose and quantity fell.

4. B

Explanation: A price index is a normalized average of price relatives for a given class of goods or services in a given region, during a given interval of time.

5. A

Explanation: It includes all the goods and services contained in GDP.

6. A

Explanation: MPC is change in consumption due to change in income.

7. A.

Explanation: MPS = 1 - MPC

8. A

Explanation: Income = Consumption + Saving

9. B

Explanation: Income = Consumption + Saving

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