Question 1

Which one of the following individuals is not counted as unemployed?

1) A recent college graduate currently without any employment and looking for her first full-time job

2) A 35-year-old woman fired from her prior work because of poor performance and looking for another job

3) A 50-year-old woman laid off from her former job because of a downturn in the company’s sales and looking for another job

4) A 22-year-old aspiring actress currently without any show business employment, but working temporarily as a waitress while she auditions for acting jobs

Question 2

According to the quantity theory of money and prices, a 10 percent increase in the money supply ultimately leads to:

1) a 10 percent increase in real GDP.

2) a 10 percent increase in real national output.

3) a 10 percent increase in the price level.

4) a 10 percent increase in velocity.

Question 3

If a consumer concludes that the marginal utility of the last dollar spent on vegetables exceeds the marginal utility of the last dollar spent on junk food, he will respond by:

1) consuming relatively more junk food and fewer vegetables.

2) consuming relatively more vegetables and less junk food.

3) consuming equal amounts of vegetables and junk food.

4) halting consumption of junk food altogether.

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