Question

41. Inflation is A a rise in the price of every good and service. B. a rise of exactly a specified percentage in the price of every good or service. C. a rise in the average price level D. a rise in average prices of at least 10 percent a year. 42. Kimberly quit her job as a computer programmer, spent two weeks in Hawai expects to soon find) another job. She is unemployed A. psychologically B. structurally C. frictionally i, and is now looking for (and D. cyclically 43. In 1973 the OPEC countries A. lowered the price of oil by 50% B. raised the price of oil by 50%. C. doubled the price of oil. D. quadrupled the price of oil. 44. Which ordering is correct? A. Recession, recovery, prosperity. B. Prosperity, recovery, recession. C. Recession, prosperity, recovery. D. Recovery, recession, prosperity 45. A high school dropout with poor work habits, little experience, and no vocational of work for three years but is actively seeking employment, would be unemployed training, who has been o A. Frictionally B. Structurally C. Cyclically 46. The labor force includes only A. people who are employed B. the employed and the unemployed C. the employed, the unemployed, and discouraged workers. D. the unemployed and discouraged workers.

Answer 1

41. Answer: C. A rise in average price level.
Reason: inflation is defined as the consistent increase in the price level of market goods and services over a period of time.

42. Answer: Frictionally unemployed.
Reason: Frictional unemployment is the kind of unemployment where people are in between jobs.

43. Answer: D. quadrupled the price level.
Reason: Due to the war between Arab countries and Israel, the OPEC countries ( that export oil) demonstrated oil embargo where there was decrease in oil production and increase in prices by 4 times from $3 per barrel to $12 per barrel. This is known as 1973 oil crisis and oil supply shock.

44. Answer: A. Recession, recovery and prosperity.
Reason: this is the working of business cycle where recession is followed by recovery which turns into boom (prosperity).

45. Answer:B Structurally unemployed.
Reason: Structural unemployment shows a kind of unemployment where the requirement of the economy does not match the skills provided by the labor force.

46. Answer: B. the employed and unemployed.
Reason: The labor force consists of both unemployed and employed. However, those with no job and are also not interested are not included (children and retired etc).
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