Two Americans win Nobel economics prize for research on boom-and-bust cycles

Study the questions and tasks

Work through the material below, or start the interactive practice above to complete an attempt. Try the exercises before opening any answer or transcript sections, then use them to review your work.

Practice level

B2. Try this level if you can follow the instructions and understand most of the language; choose an earlier level if you need more support.

Question formats

Single choice

How to approach this practice

Read the questions, then listen before opening the transcript. Notice names, numbers and any corrections the speaker makes.

1. Question 1 · Single choice

   Choose one answer.

   Where were Hall and Woodford announced as prize winners?

   Return to the passage, recording or visual
   1. At Stanford University in California
   2. At Columbia University in New York
   3. At the Royal Swedish Academy in Stockholm
   4. At a central bank headquarters
   Check answers and explanations

   Answer

   At the Royal Swedish Academy in Stockholm

   The announcement took place at Stockholm’s Royal Swedish Academy of Sciences.

   Robert E. Hall of Stanford University and Michael Woodford of Columbia University were announced as the winners at the Royal Swedish Academy of Sciences in Stockholm on Monday.

2. Question 2 · Single choice

   Choose one answer.

   What happened after the pandemic’s employment shock, according to the recording?

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   1. Businesses stopped setting prices
   2. Supply problems increased the cost of living
   3. Consumers immediately increased purchasing
   4. Governments ended economic research
   Check answers and explanations

   Answer

   Supply problems increased the cost of living

   Later supply problems increased living costs after the pandemic’s job losses.

   The pandemic forced millions of people out of work, while later supply problems pushed up the cost of living.

3. Question 3 · Single choice

   Choose one answer.

   What kind of decisions are specifically associated with households and businesses?

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   1. Decisions about elections and education
   2. Decisions about purchases and prices
   3. Decisions about prizes and ceremonies
   4. Decisions about universities and employment
   Check answers and explanations

   Answer

   Decisions about purchases and prices

   The recording identifies purchases and prices as examples of their choices.

   Their work focuses on the choices made by individual households and businesses, including decisions about purchases and prices.

4. Question 4 · Single choice

   Choose one answer.

   Why might consumers cut spending before economic problems fully appear?

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   1. They expect future economic conditions to worsen
   2. They receive instructions from the Nobel committee
   3. They want companies to change prices more often
   4. They believe purchasing power will certainly rise
   Check answers and explanations

   Answer

   They expect future economic conditions to worsen

   They may react to expectations that future conditions will deteriorate.

   If consumers believe that economic conditions may worsen, they may reduce their spending before problems fully appear.

5. Question 5 · Single choice

   Choose one answer.

   What does Woodford’s research focus on?

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   1. The supply side and business pricing
   2. Household demand and personal consumption
   3. The history of Alfred Nobel’s original prizes
   4. The effects of unemployment on universities
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   Answer

   The supply side and business pricing

   His work examines supply and the way businesses establish prices.

   Woodford examined the supply side and how businesses set prices.

6. Question 6 · Single choice

   Choose one answer.

   What may companies do because changing prices is traditionally expensive?

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   1. Set prices without considering costs
   2. Predict conditions and plan longer-term prices
   3. Avoid selling products during inflation
   4. Ask consumers to determine all prices
   Check answers and explanations

   Answer

   Predict conditions and plan longer-term prices

   They may forecast conditions and choose prices covering longer-term costs.

   Changing prices has traditionally been costly, so companies often try to predict future conditions and set prices that will cover their costs over a longer period.

7. Question 7 · Single choice

   Choose one answer.

   What distinction does the speaker make about the Nobel economics prize?

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   1. It is a memorial award, not an original prize
   2. It is awarded only during economic crises
   3. It was created by the two winning economists
   4. It recognizes only household purchasing decisions
   Check answers and explanations

   Answer

   It is a memorial award, not an original prize

   The award honors Nobel but belongs outside the five original prizes.

   The prize is a memorial award honoring Alfred Nobel rather than one of the five original Nobel Prizes.

What to review next

Listen again to difficult sections, then open the transcript to check what you heard. Repeat a useful phrase aloud and try the recording once more without the text.

A focused practice result shows how you did on these tasks. Use several activities across skills to decide what to study next; one practice score does not certify an overall CEFR level.

Before you practise: a worked example

Listen for the final information, especially when a speaker corrects or changes an earlier statement.

Example transcript: “Let’s meet at five — actually, half past five would be better.” What is the final suggested time?

The final suggested time is 5:30. Actually signals a correction; the first time is replaced by the later suggestion.

This teaching example is separate from the scored questions. After your test, compare any mistakes with the explanation and revisit the topic before trying again.