UNEMPLOYMENT AND INFLATION
UNEMPLOYMENT AND INFLATIONUNEMPLOYMENT AND INFLATION
Student: ___________________________________________________________________________
1. Inflation caused by a rise in per unit production costs is referred to as:
A. Cost-push inflation
B. Demand-pull inflation
C. Unanticipated inflation
D. Hyperinflation 2. The view that unions may be a source of inflation would be best associated with the:
A. Supply-shock view of inflation
B. Cost-push view of inflation
C. Wage-push view of inflation
D. Demand-pull view of inflation 3. Only two resources, capital and labor, are used in an economy to produce an output of 400 million units. If the total cost of capital resources is $200 million and the total cost of labor resources is $100 million, then the per unit production costs in this economy are:
A. $0.75 million
B. $1.33 million
C. $2.00 million
D. $3.50 million 4. In an economy, only two resources, capital and labor, are used to produce 50 units of output. If the total cost of capital resources is $125 and the total cost of labor resources is $25, then the per unit production costs are:
A. $150
B. $100
C. $9
D. $3 5. Which is a correct statement?
A. It is relatively easy to distinguish between cost-push and demand-pull inflation even if you don't know the source of the inflation
B. A supply shock will cause a variation of demand-pull inflation that can lead to hyperinflation
C. Demand-pull inflation will continue so long as there is excess total spending in the economy
D. Cost-push inflation will continue because increased per unit cost will lead to a reduced supply 6. If you knew that per unit production costs were $8 and that the total cost of inputs was $1,000, then the number of units of output would be:
A. 75
B. 100
C. 125
D. 150 7. Only two resources, capital and labor, are used in an economy to produce an output of 600 million units. If the total cost of capital resources is $300 million and the total cost
Student: ___________________________________________________________________________
1. Inflation caused by a rise in per unit production costs is referred to as:
A. Cost-push inflation
B. Demand-pull inflation
C. Unanticipated inflation
D. Hyperinflation 2. The view that unions may be a source of inflation would be best associated with the:
A. Supply-shock view of inflation
B. Cost-push view of inflation
C. Wage-push view of inflation
D. Demand-pull view of inflation 3. Only two resources, capital and labor, are used in an economy to produce an output of 400 million units. If the total cost of capital resources is $200 million and the total cost of labor resources is $100 million, then the per unit production costs in this economy are:
A. $0.75 million
B. $1.33 million
C. $2.00 million
D. $3.50 million 4. In an economy, only two resources, capital and labor, are used to produce 50 units of output. If the total cost of capital resources is $125 and the total cost of labor resources is $25, then the per unit production costs are:
A. $150
B. $100
C. $9
D. $3 5. Which is a correct statement?
A. It is relatively easy to distinguish between cost-push and demand-pull inflation even if you don't know the source of the inflation
B. A supply shock will cause a variation of demand-pull inflation that can lead to hyperinflation
C. Demand-pull inflation will continue so long as there is excess total spending in the economy
D. Cost-push inflation will continue because increased per unit cost will lead to a reduced supply 6. If you knew that per unit production costs were $8 and that the total cost of inputs was $1,000, then the number of units of output would be:
A. 75
B. 100
C. 125
D. 150 7. Only two resources, capital and labor, are used in an economy to produce an output of 600 million units. If the total cost of capital resources is $300 million and the total cost