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\fs26
\cf1
{Practice Test, The Market for Loanable Funds and Unemployment (Chapters
26 & 28)}\plain \f0
\fs2
\cf1
{\par
}\plain \f0
\fs2
\cf1
\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
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\fs36
\cf1
{\par
}\plain \f0
\fs36
\cf1
\pard
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\li-1080\ri0\fi0
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\fs22
\cf1
{Multiple Choice}\plain \f0
\fs20
\cf1
{\par

}\plain \f0
\fs20
\cf1
\plain \i \f0
\fs22
\cf1
{Identify the choice that best completes the statement or answers the
question.}\plain \f0
\fs2
\cf1
{\par
}\plain \f0
\fs2
\cf1
\pard
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{\par
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\fs22
\cf1
\pard
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\fs22
\cf1
{Scenario 26-1.}\plain \f0
\fs22
\cf1
{ Assume the following information for an imaginary, closed economy.\par
}\plain \f0
\fs22
\cf1
\trowd \trql\trgaph90\trleft-90\trautofit1
\clvertalt
\cellx1350
\clvertalt
\cellx8370
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{\cell
}{GDP = $110,000; consumption = $70,000; private saving = $8,000;
national saving
= $12,000.\cell
}\row
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql\pard

\nowidctlpar\hyphpar0
\li0\ri0\fi0
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\fs2
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{\par
}\plain \f0
\fs2
\cf1
\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\sa1\plain \f0
\fs22
\cf1
{\par
}\plain \f0
\fs22
\cf1
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi-1080
\ql\tqr\tx-180\tx0
{____\tab }\plain \f0
\fs22
\cf1
{1.}{\tab }\plain \f0
\fs22
\cf1
\plain \b \f0
\fs22
\cf1
{Refer to Scenario 26-1.}\plain \f0
\fs22
\cf1
{ For this economy, investment amounts to\par
}\plain \f0
\fs22
\cf1
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx2069
\clvertalt
\cellx2429
\clvertalt
\cellx4183
\clvertalt
\cellx4543
\clvertalt
\cellx6297
\clvertalt
\cellx6657

\clvertalt
\cellx8411
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{a.}{\cell
}{$4,000.\cell
}{b.}{\cell
}{$8,000.\cell
}{c.}{\cell
}{$12,000.\cell
}{d.}{\cell
}{$16,000.\cell
}\row
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi0
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\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\plain \f0
\fs2
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{\par
}\plain \f0
\fs2
\cf1
\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\sa1{\par
}\plain \f0
\fs2
\cf1
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi-1080
\ql\tqr\tx-180\tx0
\plain \f0
\fs22
\cf1
{____\tab }\plain \f0
\fs22
\cf1
{2.}{\tab }\plain \f0
\fs22
\cf1
\plain \b \f0
\fs22
\cf1
{Refer to Scenario 26-1.}\plain \f0
\fs22
\cf1
{ This economy\'92

s government is running a\par

}\plain \f0
\fs22
\cf1
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx4185
\clvertalt
\cellx4545
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{a.}{\cell
}{budget surplus of $4,000.\cell
}{c.}{\cell
}{budget deficit of $4,000.\cell
}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx4185
\clvertalt
\cellx4545
\clvertalt
\cellx8415
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\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{b.}{\cell
}{budget surplus of $8,000.\cell
}{d.}{\cell
}{budget deficit of $8,000.\cell
}\row
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\plain \f0
\fs2
\cf1
{\par
}\plain \f0
\fs2
\cf1
\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0

\ql\sa1{\par
}\plain \f0
\fs2
\cf1
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi-1080
\ql\tqr\tx-180\tx0
\plain \f0
\fs22
\cf1
{____\tab }\plain \f0
\fs22
\cf1
{3.}{\tab }\plain \f0
\fs22
\cf1
\plain \b \f0
\fs22
\cf1
{Refer to Scenario 26-1.}\plain \f0
\fs22
\cf1
{ For this economy, government purchases amount to\par
}\plain \f0
\fs22
\cf1
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx2069
\clvertalt
\cellx2429
\clvertalt
\cellx4183
\clvertalt
\cellx4543
\clvertalt
\cellx6297
\clvertalt
\cellx6657
\clvertalt
\cellx8411
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{a.}{\cell
}{$12,000.\cell
}{b.}{\cell
}{$18,000.\cell
}{c.}{\cell
}{$28,000.\cell
}{d.}{\cell

}{$40,000.\cell
}\row
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\plain \f0
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{\par
}\plain \f0
\fs2
\cf1
\pard
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\li0\ri0\fi0
\ql\sa1{\par
}\plain \f0
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\pard
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{____\tab }\plain \f0
\fs22
\cf1
{4.}{\tab }\plain \f0
\fs22
\cf1
\plain \b \f0
\fs22
\cf1
{Refer to Scenario 26-1.}\plain \f0
\fs22
\cf1
{ For this economy, Taxes amount to\par
}\plain \f0
\fs22
\cf1
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx2069
\clvertalt
\cellx2429
\clvertalt
\cellx4183

\clvertalt
\cellx4543
\clvertalt
\cellx6297
\clvertalt
\cellx6657
\clvertalt
\cellx8411
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{a.}{\cell
}{$16,000.\cell
}{b.}{\cell
}{$24,000.\cell
}{c.}{\cell
}{$28,000.\cell
}{d.}{\cell
}{$32,000.\cell
}\row
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\plain \f0
\fs2
\cf1
{\par
}\plain \f0
\fs2
\cf1
\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\sa1{\par
}\plain \f0
\fs2
\cf1
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi-1080
\ql\tqr\tx-180\tx0
\plain \f0
\fs22
\cf1
{____\tab }\plain \f0
\fs22
\cf1
{5.}{\tab }\plain \f0
\fs22
\cf1
{For an imaginary closed economy, }\plain \i \f0

\fs22
\cf1
{T}\plain \f0
\fs22
\cf1
{ = $5,000; }\plain \i \f0
\fs22
\cf1
{S}\plain \f0
\fs22
\cf1
{ = $11,000; }\plain \i \f0
\fs22
\cf1
{C}\plain \f0
\fs22
\cf1
{ = $50,000; and the government is running a budget deficit of $1,000.
Then\par
}\plain \f0
\fs22
\cf1
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{a.}{\cell
}{private saving = $10,000 and GDP = $54,000.\cell
}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{b.}{\cell
}{private saving = $10,000 and GDP = $58,000.\cell
}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{c.}{\cell
}{private saving = $12,000 and GDP = $67,000.\cell

}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{d.}{\cell
}{private saving = $12,000 and GDP = $72,000.\cell
}\row
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\plain \f0
\fs2
\cf1
{\par
}\plain \f0
\fs2
\cf1
\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\sa1{\par
}\plain \f0
\fs2
\cf1
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi-1080
\ql\tqr\tx-180\tx0
\plain \f0
\fs22
\cf1
{____\tab }\plain \f0
\fs22
\cf1
{6.}{\tab }\plain \f0
\fs22
\cf1
{The source of the supply of loanable funds is\par
}\plain \f0
\fs22
\cf1
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415

\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{a.}{\cell
}{saving, and the source of the demand for loanable funds is
investment.\cell
}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{b.}{\cell
}{consumption, and the source of the demand for loanable funds is
investment.\cell
}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{c.}{\cell
}{investment, and the source of the demand for loanable funds is
saving.\cell
}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{d.}{\cell
}{the interest rate, and the source of the demand for loanable funds is
saving.\cell
}\row
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\plain \f0
\fs2
\cf1
{\par
}\plain \f0

\fs2
\cf1
\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\sa1{\par
}\plain \f0
\fs2
\cf1
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi-1080
\ql\tqr\tx-180\tx0
\plain \f0
\fs22
\cf1
{____\tab }\plain \f0
\fs22
\cf1
{7.}{\tab }\plain \f0
\fs22
\cf1
{In the market for loanable funds, the interaction of the demand for, and
supply
of, loanable funds determines the equilibrium level of\par
}\plain \f0
\fs22
\cf1
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx4185
\clvertalt
\cellx4545
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{a.}{\cell
}{the inflation rate.\cell
}{c.}{\cell
}{the real interest rate.\cell
}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx4185
\clvertalt
\cellx4545
\clvertalt
\cellx8415

\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{b.}{\cell
}{gross domestic product. \cell
}{d.}{\cell
}{the nominal interest rate.\cell
}\row
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\plain \f0
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\cf1
{\par
}\plain \f0
\fs2
\cf1
\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\sa1{\par
}\plain \f0
\fs2
\cf1
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi-1080
\ql\tqr\tx-180\tx0
\plain \f0
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\cf1
{____\tab }\plain \f0
\fs22
\cf1
{8.}{\tab }\plain \f0
\fs22
\cf1
{Suppose the government changed the tax laws, with the result that people
were en
couraged to consume more and save less. Using the loanable funds model, a
consequ
ence would be\par
}\plain \f0
\fs22
\cf1
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415

\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{a.}{\cell
}{lower interest rates and lower investment.\cell
}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{b.}{\cell
}{lower interest rates and greater investment.\cell
}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{c.}{\cell
}{higher interest rates and lower investment.\cell
}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{d.}{\cell
}{higher interest rates and higher investment.\cell
}\row
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\plain \f0
\fs2
\cf1
{\par
}\plain \f0
\fs2
\cf1
\pard
\nowidctlpar\hyphpar0

\li0\ri0\fi0
\ql\sa1{\par
}\plain \f0
\fs2
\cf1
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi-1080
\ql\tqr\tx-180\tx0
\plain \f0
\fs22
\cf1
{____\tab }\plain \f0
\fs22
\cf1
{9.}{\tab }\plain \f0
\fs22
\cf1
{According to the loanable funds model, which of the following events
would resul
t in higher interest rates and greater saving?\par
}\plain \f0
\fs22
\cf1
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{a.}{\cell
}{Firms become pessimistic about the future and, as a result, they cut
back on th
eir plans to buy new equipment and build new factories.\cell
}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{b.}{\cell
}{The government goes from running a budget deficit to running a budget
surplus.\cell
}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415

\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{c.}{\cell
}{Congress passes a reform of the tax laws that encourages greater
saving.\cell
}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{d.}{\cell
}{Congress passes a reform of the tax laws that encourages greater
investment.\cell
}\row
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
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{\par
}\plain \f0
\fs2
\cf1
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\fs22
\cf1
{\par
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\pard
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\ql\trowd \trql\trgaph90\trleft-90\trautofit1
\clvertalt
\cellx1350
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\cellx8370
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql\plain \b \f0

\fs22
\cf1
{Figure 26-1.}\plain \f0
\fs22
\cf1
{\cell
}{The figure depicts a demand-for-loanable-funds curve and two \cell
}\row
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\clvertalt
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\pard
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\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{b.}{\cell
}{is self-employed.\cell
}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{c.}{\cell
}{works without pay in a family member\'92
s business.\cell
}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{d.}{\cell
}{All of the above are correct.\cell
}\row

\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\plain \f0
\fs2
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{\par
}\plain \f0
\fs2
\cf1
\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\sa1{\par
}\plain \f0
\fs2
\cf1
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi-1080
\ql\tqr\tx-180\tx0
\plain \f0
\fs22
\cf1
{____\tab }\plain \f0
\fs22
\cf1
{16.}{\tab }\plain \f0
\fs22
\cf1
{The labor force consists of\par
}\plain \f0
\fs22
\cf1
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{a.}{\cell
}{only those people who are classified as employed.\cell
}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard

\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{b.}{\cell
}{only those people who are classified as employed or unemployed.\cell
}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{c.}{\cell
}{only those people who are classified as employed or unemployed or are
full-time
students.\cell
}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{d.}{\cell
}{the entire adult population.\cell
}\row
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\plain \f0
\fs2
\cf1
{\par
}\plain \f0
\fs2
\cf1
\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\sa1\plain \f0
\fs22
\cf1
{\par
}\plain \f0
\fs22
\cf1
\pard
\widctlpar\keep\hyphpar0

\li0\ri0\fi0
\ql\plain \b \f0
\fs22
\cf1
{Scenario 28-1.}\plain \f0
\fs22
\cf1
{ In an imaginary economy there are 20,000 adults. Of these adults:\par
}\plain \f0
\fs22
\cf1
\trowd \trql\trgaph90\trleft-90\trautofit1
\clvertalt
\cellx1470
\clvertalt
\cellx1770
\clvertalt
\cellx8370
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{\cell
}\plain \f1
\fs22
\cf1
{\'b7
}\plain \f0
\fs22
\cf1
{\cell
}{8,000 are paid employees;\cell
}\row
\trowd \trql\trgaph90\trleft-90\trautofit1
\clvertalt
\cellx1470
\clvertalt
\cellx1770
\clvertalt
\cellx8370
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{\cell
}\plain \f1
\fs22
\cf1
{\'b7
}\plain \f0
\fs22
\cf1
{\cell
}{1,600 work in their own business;\cell
}\row
\trowd \trql\trgaph90\trleft-90\trautofit1

\clvertalt
\cellx1470
\clvertalt
\cellx1770
\clvertalt
\cellx8370
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{\cell
}\plain \f1
\fs22
\cf1
{\'b7
}\plain \f0
\fs22
\cf1
{\cell
}{1,000 work as unpaid workers in a family member\'92
s business;\cell
}\row
\trowd \trql\trgaph90\trleft-90\trautofit1
\clvertalt
\cellx1470
\clvmgf
\clvertalt
\cellx1770
\clvmgf
\clvertalt
\cellx8370
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{\cell
}\plain \f1
\fs22
\cf1
{\'b7
}\plain \f0
\fs22
\cf1
{\cell
}{1,400 do not have a job, are available for work, and have tried to find
a job w
ithin the past four weeks;\cell
}\row
\trowd \trql\trgaph90\trleft-90\trautofit1
\clvertalt
\cellx1470
\clvmrg
\clvertalt
\cellx1770
\clvmrg
\clvertalt

\cellx8370
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{\cell
}{\cell
}{\cell
}\row
\trowd \trql\trgaph90\trleft-90\trautofit1
\clvertalt
\cellx1470
\clvmgf
\clvertalt
\cellx1770
\clvmgf
\clvertalt
\cellx8370
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{\cell
}\plain \f1
\fs22
\cf1
{\'b7
}\plain \f0
\fs22
\cf1
{\cell
}{780 do not have a job, are available for work, but have not tried to
find a job
within the past four weeks;\cell
}\row
\trowd \trql\trgaph90\trleft-90\trautofit1
\clvertalt
\cellx1470
\clvmrg
\clvertalt
\cellx1770
\clvmrg
\clvertalt
\cellx8370
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{\cell
}{\cell
}{\cell
}\row
\trowd \trql\trgaph90\trleft-90\trautofit1
\clvertalt
\cellx1470
\clvertalt
\cellx1770

\clvertalt
\cellx8370
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{\cell
}\plain \f1
\fs22
\cf1
{\'b7
}\plain \f0
\fs22
\cf1
{\cell
}{3,000 are full-time students;\cell
}\row
\trowd \trql\trgaph90\trleft-90\trautofit1
\clvertalt
\cellx1470
\clvertalt
\cellx1770
\clvertalt
\cellx8370
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{\cell
}\plain \f1
\fs22
\cf1
{\'b7
}\plain \f0
\fs22
\cf1
{\cell
}{4,220 are homemakers or retirees.\cell
}\row
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\plain \f0
\fs2
\cf1
{\par
}\plain \f0
\fs2
\cf1
\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\sa1\plain \f0

\fs22
\cf1
{\par
}\plain \f0
\fs22
\cf1
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi-1080
\ql\tqr\tx-180\tx0
{____\tab }\plain \f0
\fs22
\cf1
{17.}{\tab }\plain \f0
\fs22
\cf1
\plain \b \f0
\fs22
\cf1
{Refer to Scenario 28-1.}\plain \f0
\fs22
\cf1
{ Using the U.S. Bureau of Labor Statistics definitions, how many people
in this
economy are employed?\par
}\plain \f0
\fs22
\cf1
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx2069
\clvertalt
\cellx2429
\clvertalt
\cellx4183
\clvertalt
\cellx4543
\clvertalt
\cellx6297
\clvertalt
\cellx6657
\clvertalt
\cellx8411
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{a.}{\cell
}{9,600\cell
}{b.}{\cell
}{10,600\cell
}{c.}{\cell
}{11,820\cell

}{d.}{\cell
}{13,600\cell
}\row
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\plain \f0
\fs2
\cf1
{\par
}\plain \f0
\fs2
\cf1
\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\sa1{\par
}\plain \f0
\fs2
\cf1
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi-1080
\ql\tqr\tx-180\tx0
\plain \f0
\fs22
\cf1
{____\tab }\plain \f0
\fs22
\cf1
{18.}{\tab }\plain \f0
\fs22
\cf1
\plain \b \f0
\fs22
\cf1
{Refer to Scenario 28-1.}\plain \f0
\fs22
\cf1
{ Using the U.S. Bureau of Labor Statistics definitions, how many people
in this
economy are unemployed?\par
}\plain \f0
\fs22
\cf1
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx2069
\clvertalt

\cellx2429
\clvertalt
\cellx4183
\clvertalt
\cellx4543
\clvertalt
\cellx6297
\clvertalt
\cellx6657
\clvertalt
\cellx8411
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{a.}{\cell
}{1,400\cell
}{b.}{\cell
}{2,180\cell
}{c.}{\cell
}{5,180\cell
}{d.}{\cell
}{9,400\cell
}\row
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\plain \f0
\fs2
\cf1
{\par
}\plain \f0
\fs2
\cf1
\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\sa1{\par
}\plain \f0
\fs2
\cf1
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi-1080
\ql\tqr\tx-180\tx0
\plain \f0
\fs22
\cf1
{____\tab }\plain \f0
\fs22
\cf1
{19.}{\tab }\plain \f0

\fs22
\cf1
\plain \b \f0
\fs22
\cf1
{Refer to Scenario 28-1.}\plain \f0
\fs22
\cf1
{ Using the U.S. Bureau of Labor Statistics definitions, how many people
in this
economy are in the labor force?\par
}\plain \f0
\fs22
\cf1
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx2069
\clvertalt
\cellx2429
\clvertalt
\cellx4183
\clvertalt
\cellx4543
\clvertalt
\cellx6297
\clvertalt
\cellx6657
\clvertalt
\cellx8411
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{a.}{\cell
}{9,600\cell
}{b.}{\cell
}{12,000\cell
}{c.}{\cell
}{12,780\cell
}{d.}{\cell
}{15,780\cell
}\row
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\plain \f0
\fs2
\cf1
{\par
}\plain \f0

\fs2
\cf1
\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\sa1{\par
}\plain \f0
\fs2
\cf1
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi-1080
\ql\tqr\tx-180\tx0
\plain \f0
\fs22
\cf1
{____\tab }\plain \f0
\fs22
\cf1
{20.}{\tab }\plain \f0
\fs22
\cf1
\plain \b \f0
\fs22
\cf1
{Refer to Scenario 28-1.}\plain \f0
\fs22
\cf1
{ Using the U.S. Bureau of Labor Statistics definitions, what is this
economy\'92
s u
nemployment rate?\par
}\plain \f0
\fs22
\cf1
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx2069
\clvertalt
\cellx2429
\clvertalt
\cellx4183
\clvertalt
\cellx4543
\clvertalt
\cellx6297
\clvertalt
\cellx6657
\clvertalt
\cellx8411
\pard
\intbl \widctlpar\keep\hyphpar0

\li0\ri0\fi0
\ql{a.}{\cell
}{7.00 percent\cell
}{b.}{\cell
}{11.67 percent\cell
}{c.}{\cell
}{26.10 percent\cell
}{d.}{\cell
}{40.00 percent\cell
}\row
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\plain \f0
\fs2
\cf1
{\par
}\plain \f0
\fs2
\cf1
\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\sa1{\par
}\plain \f0
\fs2
\cf1
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi-1080
\ql\tqr\tx-180\tx0
\plain \f0
\fs22
\cf1
{____\tab }\plain \f0
\fs22
\cf1
{21.}{\tab }\plain \f0
\fs22
\cf1
\plain \b \f0
\fs22
\cf1
{Refer to Scenario 28-1.}\plain \f0
\fs22
\cf1
{ Using the U.S. Bureau of Labor Statistics definitions, what is this
economy\'92
s l
abor-force participation rate?\par
}\plain \f0

\fs22
\cf1
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx2069
\clvertalt
\cellx2429
\clvertalt
\cellx4183
\clvertalt
\cellx4543
\clvertalt
\cellx6297
\clvertalt
\cellx6657
\clvertalt
\cellx8411
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{a.}{\cell
}{45 percent\cell
}{b.}{\cell
}{53 percent\cell
}{c.}{\cell
}{60 percent\cell
}{d.}{\cell
}{75 percent\cell
}\row
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\plain \f0
\fs2
\cf1
{\par
}\plain \f0
\fs2
\cf1
\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\sa1{\par
}\plain \f0
\fs2
\cf1
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi-1080

\ql\tqr\tx-180\tx0
\plain \f0
\fs22
\cf1
{____\tab }\plain \f0
\fs22
\cf1
{22.}{\tab }\plain \f0
\fs22
\cf1
{In the United States since about 1950, the labor-force participation
rate for wo
men has\par
}\plain \f0
\fs22
\cf1
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{a.}{\cell
}{increased slightly, and for men the labor-force participation rate has
remained
about constant.\cell
}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{b.}{\cell
}{remained about constant, and for men the labor-force participation rate
has dec
reased significantly.\cell
}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{c.}{\cell
}{increased significantly, and for men the labor-force participation rate
has dec
reased slightly.\cell

}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{d.}{\cell
}{increased significantly, as has the labor-force participation rate for
men.\cell
}\row
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\plain \f0
\fs2
\cf1
{\par
}\plain \f0
\fs2
\cf1
\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\sa1{\par
}\plain \f0
\fs2
\cf1
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi-1080
\ql\tqr\tx-180\tx0
\plain \f0
\fs22
\cf1
{____\tab }\plain \f0
\fs22
\cf1
{23.}{\tab }\plain \f0
\fs22
\cf1
{Some individuals would like to have a job, but they have given up
looking for a
job after an unsuccessful search. These individuals are called\par
}\plain \f0
\fs22
\cf1
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt

\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{a.}{\cell
}{structurally-unemployed workers, and they are classified by the Bureau
of Labor
Statistics as unemployed.\cell
}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{b.}{\cell
}{structurally-unemployed workers, and they are not classified by the
Bureau of L
abor Statistics as unemployed.\cell
}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{c.}{\cell
}{discouraged workers, and they are classified by the Bureau of Labor
Statistics
as unemployed.\cell
}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{d.}{\cell
}{discouraged workers, and they are not classified by the Bureau of Labor
Statist
ics as unemployed.\cell
}\row
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql\pard

\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\plain \f0
\fs2
\cf1
{\par
}\plain \f0
\fs2
\cf1
\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\sa1{\par
}\plain \f0
\fs2
\cf1
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi-1080
\ql\tqr\tx-180\tx0
\plain \f0
\fs22
\cf1
{____\tab }\plain \f0
\fs22
\cf1
{24.}{\tab }\plain \f0
\fs22
\cf1
{Minimum-wage laws and unions produce a similar effect in that they
both\par
}\plain \f0
\fs22
\cf1
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{a.}{\cell
}{lend credence to theories of efficiency wages.\cell
}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{b.}{\cell

}{contribute to lowering the natural rate of unemployment.\cell

}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{c.}{\cell
}{affect all workers\'92
wages.\cell
}\row
\trowd \trql\trgaph45\trleft-45\trautofit1
\clvertalt
\cellx315
\clvertalt
\cellx8415
\pard
\intbl \widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql{d.}{\cell
}{prevent firms from lowering wages in the presence of a surplus of
workers.\cell
}\row
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi0
\ql\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\plain \f0
\fs2
\cf1
{\par
}\plain \f0
\fs2
\cf1
\pard
\nowidctlpar\hyphpar0
\li0\ri0\fi0
\ql\sa1{\par
}\plain \f0
\fs2
\cf1
\pard
\widctlpar\keep\hyphpar0
\li0\ri0\fi-1080
\ql\tqr\tx-180\tx0
\plain \f0
\fs22
\cf1
{____\tab }\plain \f0

\fs22
\cf1
{25.}{\tab }\plain \f0
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