Question 1

If there are 10 job losers,12 job leavers,13 reentrants,and 12 new entrants,then there are __________ unemployed persons.

Accepted Answer

A)  35 
B)  47 
C)  25 
D)  37 
E)  There is not enough information to answer the question. 
A)  35 
B)  47 
C)  25 
D)  37 
E)  There is not enough information to answer the question.

Question 2

The civilian non-institutional population consists of everyone in the population who is

Accepted Answer

A)  at least 16 years of age, in the armed forces, or institutionalized. 
B)  at least 16 years of age. 
C)  not in the armed forces. 
D)  not institutionalized. 
E)  b, c, and d 
A)  at least 16 years of age, in the armed forces, or institutionalized. 
B)  at least 16 years of age. 
C)  not in the armed forces. 
D)  not institutionalized. 
E)  b, c, and d

Question 3

Exhibit 6-1
  
-Refer to Exhibit 6-1.Prices rose by __________ percent from Year 2 to Year 3.

Accepted Answer

A)  3.39 
B)  0.023 
C)  3.28 
D)  2.22 
E)  2.27 
A)  3.39 
B)  0.023 
C)  3.28 
D)  2.22 
E)  2.27

Question 4

Assume that Ms.Sawyer's salary is $22,000,up from $20,000 last year,while the CPI is 165 this year,up from 150 last year.This means that Ms.Sawyer's real income has

Accepted Answer

A)  increased. 
B)  decreased. 
C)  stayed the same. 
D)  It depends on which year is the base year. 
A)  increased. 
B)  decreased. 
C)  stayed the same. 
D)  It depends on which year is the base year.

Question 5

Which of the following statements is true?

Accepted Answer

A)  If the actual unemployment rate is currently 5% and the natural unemployment rate is 5%, then the economy is operating at full-employment. 
B)  The labor force participation rate is equal to the civilian noninstitutional population divided by the civilian labor force. 
C)  A discouraged worker is counted as an unemployed worker. 
D)  a and c 
E)  a, b, and c 
A)  If the actual unemployment rate is currently 5% and the natural unemployment rate is 5%, then the economy is operating at full-employment. 
B)  The labor force participation rate is equal to the civilian noninstitutional population divided by the civilian labor force. 
C)  A discouraged worker is counted as an unemployed worker. 
D)  a and c 
E)  a, b, and c

Question 6

The number of employed persons plus the number of unemployed persons equals the number of persons

Accepted Answer

A)  in the total population. 
B)  in the civilian noninstitutional population. 
C)  in the civilian labor force. 
D)  not in the labor force. 
E)  none of the above 
A)  in the total population. 
B)  in the civilian noninstitutional population. 
C)  in the civilian labor force. 
D)  not in the labor force. 
E)  none of the above

Question 7

At the time of Elise's 20 year high school reunion she was earning $50,000 and the CPI was 80. Now that it is time for her to attend her 25 year high school reunion,Elise's income has risen to $80,000 and the CPI is 150. At her 25 year reunion,can Elise rightfully brag that her real income has risen since the last time she saw her former classmates five years ago?

Accepted Answer

A)  Yes, Elise's real income rose during that 5 year period. 
B)  No, Elise's real income fell during that 5 year period. 
C)  No, Elise's real income remained constant during that 5 year period. 
D)  It is impossible to determine what happened to Elise's real income. 
A)  Yes, Elise's real income rose during that 5 year period. 
B)  No, Elise's real income fell during that 5 year period. 
C)  No, Elise's real income remained constant during that 5 year period. 
D)  It is impossible to determine what happened to Elise's real income.

Question 8

Exhibit 6-2
  
-In an economy with a population of 100 million persons,44 million hold civilian jobs and 6 million are not working but are looking for jobs.The unemployment rate is

Accepted Answer

A)  6.0 percent. 
B)  13.6 percent. 
C)  7.3 percent. 
D)  9.4 percent. 
E)  12.0 percent. 
A)  6.0 percent. 
B)  13.6 percent. 
C)  7.3 percent. 
D)  9.4 percent. 
E)  12.0 percent.

Question 9

A(n)__________ is a person who was previously employed,hasn't worked for some time,and is currently reentering the labor force.

Accepted Answer

A)  discouraged worker 
B)  entrant 
C)  reentrant 
D)  job loser 
E)  job leaver 
A)  discouraged worker 
B)  entrant 
C)  reentrant 
D)  job loser 
E)  job leaver

Question 10

Describe what the term "full employment" means to an economist.

Accepted Answer

Full employment exists when the economy

Question 11

The federal government agency that is responsible for determining the inflation rate and the unemployment rate is the Federal Reserve.

Accepted Answer

A) True 
 B)False

Question 12

"Full employment" is said to exist when the unemployment rate equals

Accepted Answer

A)  zero. 
B)  the cyclical unemployment rate. 
C)  the structural unemployment rate. 
D)  the natural unemployment rate. 
A)  zero. 
B)  the cyclical unemployment rate. 
C)  the structural unemployment rate. 
D)  the natural unemployment rate.

Question 13

Juan lost his job as a nuclear physicist working for a defense contractor. He can not find a job because no firms in the defense industry or any other industry are hiring people with his skills. Juan is ______________ unemployed.

Accepted Answer

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

Question 14

A common measure of inflation is the percentage change in the CPI of adjacent years.

Accepted Answer

A) True 
 B)False

Question 15

Exhibit 6-2
  
-Refer to Exhibit 6-2.How many people are not in the labor force in year 2?

Accepted Answer

A)  200 million 
B)  50 million 
C)  75 million 
D)  175 million 
E)  100 million 
A)  200 million 
B)  50 million 
C)  75 million 
D)  175 million 
E)  100 million

Question 16

Look at the following data: The frictional unemployment rate is 2 percent,the structural unemployment rate is 3.5 percent,and the actual unemployment rate is 9.5 percent. The natural unemployment rate is ____________ percent and the cyclical unemployment rate is __________ percent.

Accepted Answer

A)  1.5; 4 
B)  5.5; 4 
C)  1.5; 6 
D)  6; 15 
A)  1.5; 4 
B)  5.5; 4 
C)  1.5; 6 
D)  6; 15

Question 17

If the Bureau of Labor Statistics considers Jessica to be a discouraged worker,then she is counted as unemployed for purposes of computing the official unemployment rate.

Accepted Answer

A) True 
 B)False

Question 18

Jamaal lost his job when a mechanical device replaced people with his skills.If Jamaal's skills are non-transferable,he would be considered to be structurally unemployed.

Accepted Answer

A) True 
 B)False

Question 19

The answer is "a person employed in the civilian labor force who quits his or her job." The question is:

Accepted Answer

A)  Who is a job loser? 
B)  Who is an entrant? 
C)  Who is a reentrant? 
D)  Who is a job leaver? 
E)  Who is a discouraged worker? 
A)  Who is a job loser? 
B)  Who is an entrant? 
C)  Who is a reentrant? 
D)  Who is a job leaver? 
E)  Who is a discouraged worker?

Question 20

If a person did at least one hour of work as a paid employee during the survey week,how is she classified?

Accepted Answer

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

Exam 6: Macroeconomic Measurements: Prices and Unemployment

If there are 10 job losers,12 job leavers,13 reentrants,and 12 new entrants,then there are __________ unemployed persons.

The civilian non-institutional population consists of everyone in the population who is

Exhibit 6-1 -Refer to Exhibit 6-1.Prices rose by __________ percent from Year 2 to Year 3.

Assume that Ms.Sawyer's salary is $22,000,up from $20,000 last year,while the CPI is 165 this year,up from 150 last year.This means that Ms.Sawyer's real income has

Which of the following statements is true?

The number of employed persons plus the number of unemployed persons equals the number of persons

Exhibit 6-2 -In an economy with a population of 100 million persons,44 million hold civilian jobs and 6 million are not working but are looking for jobs.The unemployment rate is

A(n)__________ is a person who was previously employed,hasn't worked for some time,and is currently reentering the labor force.

Describe what the term "full employment" means to an economist.

The federal government agency that is responsible for determining the inflation rate and the unemployment rate is the Federal Reserve.

"Full employment" is said to exist when the unemployment rate equals

Juan lost his job as a nuclear physicist working for a defense contractor. He can not find a job because no firms in the defense industry or any other industry are hiring people with his skills. Juan is ______________ unemployed.

A common measure of inflation is the percentage change in the CPI of adjacent years.

Exhibit 6-2 -Refer to Exhibit 6-2.How many people are not in the labor force in year 2?

Look at the following data: The frictional unemployment rate is 2 percent,the structural unemployment rate is 3.5 percent,and the actual unemployment rate is 9.5 percent. The natural unemployment rate is ____________ percent and the cyclical unemployment rate is __________ percent.

If the Bureau of Labor Statistics considers Jessica to be a discouraged worker,then she is counted as unemployed for purposes of computing the official unemployment rate.

Jamaal lost his job when a mechanical device replaced people with his skills.If Jamaal's skills are non-transferable,he would be considered to be structurally unemployed.

The answer is "a person employed in the civilian labor force who quits his or her job." The question is:

If a person did at least one hour of work as a paid employee during the survey week,how is she classified?

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

Look at the following data: The frictional unemployment rate is 2 percent,the structural unemployment rate is 3.5 percent,and the actual unemployment rate is 9.5 percent. The natural unemployment rate is __ percent and the cyclical unemployment rate is percent.