1. Last year the country of Barboo had its inflation increase by 200%. You work for the Barboo government as an economist and have been given the task to identify the sectors of Barboo’s population that are affected by this inflation the worst. Which of the following group is probably the worst affected by inflation?

homeowners in Barboo with a 15 year fixed mortgage

retirees getting distributions from a "defined contribution" retirement plan

veterans existing on fixed (non-adjustable) government payments

2. An increase in education and training for the workforce would

have no impact on the aggregate production function.

increase Gross Domestic Product but not the aggregate production function.

increase the aggregate production function.

3. A way to increase economic transactions,

includes reducing the number of patents (exclusive rights to a product or process).

Includes higher taxes to fund local government.

includes enforcing contractual laws that protect parties involved in contacts.

4. Joseph is an unemployed yard landscaping worker who is trying to find employment as he last had work seven months ago. He is now at a point where he will take any wage even if low to get money to pay the bills. He talks to businesses and landscaping companies on a daily basis but continues to be unable to find work. How would you describe his experience with the correct economic term?

out of the labor force

labor shortage

cyclical unemployment

5. Which of the following inflation rates is most likely to affect consumer behavior?

1.5%

2.5%

5%

15%