Question 1

If the cyclical unemployment rate is negative,then the

Accepted Answer

A)  natural unemployment rate is less than the actual unemployment rate in the economy. 
B)  natural unemployment rate is greater than the actual unemployment rate in the economy. 
C)  structural unemployment rate is greater than the frictional unemployment rate. 
D)  structural unemployment rate is less than the frictional unemployment rate. 
E)  a and d 
A)  natural unemployment rate is less than the actual unemployment rate in the economy. 
B)  natural unemployment rate is greater than the actual unemployment rate in the economy. 
C)  structural unemployment rate is greater than the frictional unemployment rate. 
D)  structural unemployment rate is less than the frictional unemployment rate. 
E)  a and d

Question 2

If a person is waiting to be called back to a job from which she has been laid off,how is she classified?

Accepted Answer

A)  as not in the labor force 
B)  as an unemployed person 
C)  as an employed person 
D)  none of the above 
A)  as not in the labor force 
B)  as an unemployed person 
C)  as an employed person 
D)  none of the above

Question 3

The base year is always the year in which prices were the lowest.

Accepted Answer

A) True 
 B)False

Question 4

Suppose that the price index in 1999 was 170 and your salary was $44,000.Suppose in 2016 the consumer price index will be 290.What salary will you have to earn in 2016 in order to equal your 1999 real income?

Accepted Answer

A)  $66,000 
B)  $77,647 
C)  $75,059 
D)  $83,209 
A)  $66,000 
B)  $77,647 
C)  $75,059 
D)  $83,209

Question 5

Exhibit 6-2
  
-Refer to Exhibit 6-2.The unemployment rate in year 2 is

Accepted Answer

A)  75 percent. 
B)  33 1/3 percent. 
C)  50 percent. 
D)  66 2/3 percent. 
E)  25 percent. 
A)  75 percent. 
B)  33 1/3 percent. 
C)  50 percent. 
D)  66 2/3 percent. 
E)  25 percent.

Question 6

When making historical comparison's of one's income,is it better to use real income or nominal income for the basis of your comparison? Explain why one makes a better comparison than the other.

Accepted Answer

Real income should be used when making h

Question 7

When news reports state that the cost of living has changed they are usually referring to a change in the CPI.

Accepted Answer

A) True 
 B)False

Question 8

A market basket is made up of three goods,10X,12Y,and 18Z.The prices in the base year are $1.20,$2.10,and $3.25,respectively.The prices in the current year are $1.44,$2.23,and $3.88.What is the approximate consumer price index in the current year?

Accepted Answer

A)  103 
B)  111 
C)  116 
D)  110 
E)  96 
A)  103 
B)  111 
C)  116 
D)  110 
E)  96

Question 9

Exhibit 6-2
  
-Refer to Exhibit 6-2.How many unemployed persons are there in year 4?

Accepted Answer

A)  80 million 
B)  100 million 
C)  150 million 
D)  350 million 
E)  400 million 
A)  80 million 
B)  100 million 
C)  150 million 
D)  350 million 
E)  400 million

Question 10

According to the text,the top grossing movie in the US for all time,in today's dollars,is

Accepted Answer

A)  Star Wars 
B)  Titanic 
C)  Avatar 
D)  Gone With the Wind 
E)  Snow White and the Seven Dwarfs 
A)  Star Wars 
B)  Titanic 
C)  Avatar 
D)  Gone With the Wind 
E)  Snow White and the Seven Dwarfs

Question 11

Suppose there are 50 million persons in the population,25 million persons in the civilian labor force,and 20 million persons are employed. The number of people unemployed is _______ million and the unemployment rate is ___________ percent.

Accepted Answer

A)  25; 50 
B)  5; 10 
C)  5; 20 
D)  10; 10 
A)  25; 50 
B)  5; 10 
C)  5; 20 
D)  10; 10

Question 12

Most unemployed persons fall into the category of job loser.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements is false?

Accepted Answer

A)  A discouraged worker is counted as an unemployed worker. 
B)  The frictional unemployment rate is greater than the natural unemployment rate. 
C)  The natural unemployment rate is greater than the structural unemployment rate. 
D)  The natural unemployment rate is equal to the sum of the frictional unemployment rate and the structural unemployment rate. 
E)  a and b 
A)  A discouraged worker is counted as an unemployed worker. 
B)  The frictional unemployment rate is greater than the natural unemployment rate. 
C)  The natural unemployment rate is greater than the structural unemployment rate. 
D)  The natural unemployment rate is equal to the sum of the frictional unemployment rate and the structural unemployment rate. 
E)  a and b

Question 14

Look at the following data: The frictional unemployment rate is 1.5 percent,the natural unemployment rate is 4.5 percent,and the cyclical unemployment rate is -1 percent. The structural unemployment rate is _________ percent and the actual unemployment rate (in this economy)is ___________ percent.

Accepted Answer

A)  6; 3.5 
B)  3; 5.5 
C)  3; 3.5 
D)  6; 5.5 
A)  6; 3.5 
B)  3; 5.5 
C)  3; 3.5 
D)  6; 5.5

Question 15

Exhibit 6-2
  
-Refer to Exhibit 6-2.The employment rate in year 3 is

Accepted Answer

A)  12 1/2 percent. 
B)  33 1/3 percent. 
C)  70 percent. 
D)  66 2/3 percent. 
E)  25 percent. 
A)  12 1/2 percent. 
B)  33 1/3 percent. 
C)  70 percent. 
D)  66 2/3 percent. 
E)  25 percent.

Question 16

If the CPI is 100 in the base year and 112 in the current year,how much did prices rise between the base year and the current year?

Accepted Answer

A)  12 percent 
B)  112 percent 
C)  1.2 percent 
D)  0.12 percent 
A)  12 percent 
B)  112 percent 
C)  1.2 percent 
D)  0.12 percent

Question 17

Persons who are retired or engaged in own-home housework are considered to be in which of the following categories?

Accepted Answer

A)  in the civilian labor force 
B)  not in the labor force 
C)  employed 
D)  unemployed 
A)  in the civilian labor force 
B)  not in the labor force 
C)  employed 
D)  unemployed

Question 18

Discouraged workers are not counted as unemployed because they are working.

Accepted Answer

A) True 
 B)False

Question 19

In many large retail stores,price markdowns are now determined by computer.The "middle managers" who used to make these decisions personally became __________ unemployed.

Accepted Answer

A)  frictionally 
B)  structurally 
C)  naturally 
D)  cyclically 
A)  frictionally 
B)  structurally 
C)  naturally 
D)  cyclically

Question 20

The unemployment rate equals the

Accepted Answer

A)  number of employed persons divided by the number of unemployed persons. 
B)  number of unemployed persons divided by the civilian non-institutional population. 
C)  number of unemployed persons divided by the civilian labor force. 
D)  sum of unemployed persons and discouraged workers divided by the civilian labor force. 
A)  number of employed persons divided by the number of unemployed persons. 
B)  number of unemployed persons divided by the civilian non-institutional population. 
C)  number of unemployed persons divided by the civilian labor force. 
D)  sum of unemployed persons and discouraged workers divided by the civilian labor force.

Exam 6: Macroeconomic Measurements: Prices and Unemployment

If the cyclical unemployment rate is negative,then the

If a person is waiting to be called back to a job from which she has been laid off,how is she classified?

The base year is always the year in which prices were the lowest.

Suppose that the price index in 1999 was 170 and your salary was $44,000.Suppose in 2016 the consumer price index will be 290.What salary will you have to earn in 2016 in order to equal your 1999 real income?

Exhibit 6-2 -Refer to Exhibit 6-2.The unemployment rate in year 2 is

When making historical comparison's of one's income,is it better to use real income or nominal income for the basis of your comparison? Explain why one makes a better comparison than the other.

When news reports state that the cost of living has changed they are usually referring to a change in the CPI.

A market basket is made up of three goods,10X,12Y,and 18Z.The prices in the base year are $1.20,$2.10,and $3.25,respectively.The prices in the current year are $1.44,$2.23,and $3.88.What is the approximate consumer price index in the current year?

Exhibit 6-2 -Refer to Exhibit 6-2.How many unemployed persons are there in year 4?

According to the text,the top grossing movie in the US for all time,in today's dollars,is

Suppose there are 50 million persons in the population,25 million persons in the civilian labor force,and 20 million persons are employed. The number of people unemployed is _______ million and the unemployment rate is ___________ percent.

Most unemployed persons fall into the category of job loser.

Which of the following statements is false?

Look at the following data: The frictional unemployment rate is 1.5 percent,the natural unemployment rate is 4.5 percent,and the cyclical unemployment rate is -1 percent. The structural unemployment rate is _________ percent and the actual unemployment rate (in this economy)is ___________ percent.

Exhibit 6-2 -Refer to Exhibit 6-2.The employment rate in year 3 is

If the CPI is 100 in the base year and 112 in the current year,how much did prices rise between the base year and the current year?

Persons who are retired or engaged in own-home housework are considered to be in which of the following categories?

Discouraged workers are not counted as unemployed because they are working.

In many large retail stores,price markdowns are now determined by computer.The "middle managers" who used to make these decisions personally became __________ unemployed.

The unemployment rate equals the

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free, Controlled, and Relative

Supply, Demand, and Price: Applications

Macroeconomic Measurements: GDP and Real GDP

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self Regulating Economy

Keynesian Macroeconomics and Economic Instability: A Critique of the Self-Regulating Economy

Fiscal Policy and the Federal Budget

Money, Banking,and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth: Resources, Technology, Ideas, and Institutions

The Financial Crisis of 2007-2009

Debates in Macroeconomics Over the Role and Effects of Government

Elasticity

Consumer Choice: Maximizing Utility and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, Oligopoly, and Game Theory

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

Wages,Unions,and Labor

The Distribution of Income and Poverty

Interest, Rent, and Profit

Market Failure: Externalities, Public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

International Finance

Globalization and International Impacts on the Economy

The Economic Case For and Against Government: Five Topics Considered

Stocks, Bonds, Futures, and Options

Agriculture: Problems, Policies, and Unintended Effects

Filters

Suppose there are 50 million persons in the population,25 million persons in the civilian labor force,and 20 million persons are employed. The number of people unemployed is _ million and the unemployment rate is _____ percent.

Look at the following data: The frictional unemployment rate is 1.5 percent,the natural unemployment rate is 4.5 percent,and the cyclical unemployment rate is -1 percent. The structural unemployment rate is _ percent and the actual unemployment rate (in this economy)is ___ percent.