1. A foreign governmental statistics agency recently reported that there were 37.6 million people over age 25 who had at least a bachelor's degree. Of this number, 28.0 million were in the labour force and 25.9 million were employed. What was the employment rate in this group?

a.

about 68.9 percent

b.

about 92.5 percent.

c.

about 7.5 percent

d.

about 31.1 percent

e.

None of the above.

2. A government agency provides labour data as presented in the table below.

Population (15 years and over): 34696600

Labour Force Participation Rate: 0.7392

Employed: 22189800

Based on this data, what is number of unemployed individuals:

a.

Approximately 345878

b.

Approximately 345792

c.

Approximately25647727

d.

Approximately 34579267

e.

None of the above

3. How could the Bank of Canada increase the money supply?

a.

by selling government bonds

b.

by decreasing the bank rate

c.

by increasing the reserve requirement

d.

by increasing the bank rate

4. How does the supply of loanable funds curve slope?

a.

upward because an increase in the interest rate induces people to save more

b.

downward because an increase in the interest rate induces people to save less

c.

downward because an increase in the interest rate induces people to invest less

d.

upward because an increase in the interest rate induces people to invest more

5. How is a college student who is not working but looking for a job counted?

a.

as neither employed nor part of the labour force

b.

as unemployed and in the labour force

c.

as unemployed, but not in the labour force

d.

as employed and in the labour force

e.

None of the above.

6. If the central bank lowered the reserve requirement, what happens to the money multiplier and the money supply?

a.

The money multiplier increases, but the money supply decreases.

b.

The money multiplier decreases, but the money supply increases.

c.

The money multiplier and the money supply both increase.

d.

The money multiplier and the money supply both decrease.

7. If the current market interest rate for loanable funds is above the equilibrium level, what would we expect to happen?

a.

Because there is a surplus of loanable funds, the interest rate will rise.

b.

Because there is a shortage of loanable funds, the interest rate will rise.

c.

Because there is a shortage of loanable funds, the interest rate will fall.

d.

Because there is a surplus of loanable funds, the interest rate will fall.

8. If the minimum wage was currently above the equilibrium wage, what would a decrease in the minimum wage do to the quantity demanded and quantity supplied of labour?

a.

It would increase both the quantity demanded and the quantity supplied of labour.

b.

It would decrease both the quantity demanded and the quantity supplied of labour.

c.

It would increase the quantity of labour demanded and decrease the quantity supplied.

d.

It would decrease the quantity of labour demanded and increase the quantity supplied.

9. If the nominal interest rate is 8 percent and the real interest rate is 2 percent, what is the inflation rate?

a.

4 percent

b.

6 percent

c.

10 percent

d.

16 percent

10. If you deposit $100 into a demand deposit at a bank, what does this action do to the money supply?

a.

It increases the money supply by more than $100.

b.

It increases the money supply by less than $100.

c.

It decreases the money supply by more than $100.

d.

It decreases the money supply by less than $100.

e.

None of the above.