Question 1

Exhibit 6-2
  
-Refer to Exhibit 6-2.The employment rate in year 1 is

Accepted Answer

A)  12 1/2 percent. 
B)  70 percent. 
C)  87 1/2 percent. 
D)  30 percent. 
E)  10 percent. 
A)  12 1/2 percent. 
B)  70 percent. 
C)  87 1/2 percent. 
D)  30 percent. 
E)  10 percent.

Question 2

"Full employment" is said to exist when the actual unemployment rate is zero.

Accepted Answer

A) True 
 B)False

Question 3

If Carlos is waiting to be called back to his job from which he has been temporarily laid off,the Bureau of Labor Statistics will classify him as unemployed.

Accepted Answer

A) True 
 B)False

Question 4

A __________ is a person who was employed in the civilian labor force and was either fired or laid off.

Accepted Answer

A)  new entrant 
B)  reentrant 
C)  job leaver 
D)  job fixer 
E)  none of the above 
A)  new entrant 
B)  reentrant 
C)  job leaver 
D)  job fixer 
E)  none of the above

Question 5

The value of the consumer price index (CPI)is always equal to ______________ in the base year.

Accepted Answer

A)  1 
B)  10 
C)  100 
D)  1,000 
E)  There is not enough information given to answer this question. 
A)  1 
B)  10 
C)  100 
D)  1,000 
E)  There is not enough information given to answer this question.

Question 6

The movie "Return of the Jedi" earned $264 million in 1983 when it was released.The CPI in 1983 was 97.8 and the CPI in 2012 was 226.665.Approximately how much did the movie earn in 2012 dollars?

Accepted Answer

A)  $590 million 
B)  $612 million 
C)  $2.12 million 
D)  $123 million 
E)  $150 million 
A)  $590 million 
B)  $612 million 
C)  $2.12 million 
D)  $123 million 
E)  $150 million

Question 7

Look at the following data: Total population = 230 million; employed persons = 80 million; unemployed persons = 8 million.The unemployment rate is approximately __________ and the employment rate __________.

Accepted Answer

A)  9.1 percent; cannot be determined 
B)  10 percent; is 90 percent 
C)  8.2 percent; is 34 percent 
D)  11 percent; is 38 percent 
E)  9.1 percent; 90.9 percent 
A)  9.1 percent; cannot be determined 
B)  10 percent; is 90 percent 
C)  8.2 percent; is 34 percent 
D)  11 percent; is 38 percent 
E)  9.1 percent; 90.9 percent

Question 8

Exhibit 6-2
  
-Refer to Exhibit 6-2.How many people are not in the labor force in year 4?

Accepted Answer

A)  80 million 
B)  100 million 
C)  150 million 
D)  350 million 
E)  200 million 
A)  80 million 
B)  100 million 
C)  150 million 
D)  350 million 
E)  200 million

Question 9

If the CPI was 196.5 in 2005 and 172.2 in 2000,by what percentage did prices rise during the period 2000-2005?

Accepted Answer

A)  0.10 percent 
B)  6.43 percent 
C)  10 percent 
D)  14.1 percent 
A)  0.10 percent 
B)  6.43 percent 
C)  10 percent 
D)  14.1 percent

Question 10

The unemployment due to changes in the types of skills employers require is called __________ unemployment.

Accepted Answer

A)  structural 
B)  cyclical 
C)  natural 
D)  frictional 
A)  structural 
B)  cyclical 
C)  natural 
D)  frictional

Question 11

In year 1 the CPI is 174,and in year 2 the CPI is 190.If Sarah's salary was $49,800 in year 1,what salary in year 2 would cause her to exactly "keep up with inflation"?

Accepted Answer

A)  $34,004 
B)  $42,942 
C)  $40,508 
D)  $54,379 
A)  $34,004 
B)  $42,942 
C)  $40,508 
D)  $54,379

Question 12

In order to be classified as unemployed,a person must

Accepted Answer

A)  not have a job, have been actively looking for work within the past four weeks, and currently be available for work. 
B)  not have a job, and currently be available for work. 
C)  actively have looked for work within the past six weeks. 
D)  not have a job. 
A)  not have a job, have been actively looking for work within the past four weeks, and currently be available for work. 
B)  not have a job, and currently be available for work. 
C)  actively have looked for work within the past six weeks. 
D)  not have a job.

Question 13

Good X sold for $40 in 1957.The CPI in 1957 was 27.6 and the CPI in 2009 was 214.537.What was the price of good X in 2009 dollars?

Accepted Answer

A)  $514.60 
B)  $270.92 
C)  $1,201.60 
D)  $310.92 
A)  $514.60 
B)  $270.92 
C)  $1,201.60 
D)  $310.92

Question 14

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

Accepted Answer

A)  12 1/2 percent. 
B)  33 1/3 percent. 
C)  50 percent. 
D)  66 2/3 percent. 
E)  25 percent. 
A)  12 1/2 percent. 
B)  33 1/3 percent. 
C)  50 percent. 
D)  66 2/3 percent. 
E)  25 percent.

Question 15

Jones lost his job in industry A,but he has skills that can be transferred to industry B (which is currently hiring).Smith lost a job in industry C,but his skills cannot be transferred to industry B or to any other industry.Jones is __________ unemployed and Smith is __________ unemployed.

Accepted Answer

A)  structurally; frictionally 
B)  structurally; structurally 
C)  frictionally; frictionally 
D)  frictionally; structurally 
A)  structurally; frictionally 
B)  structurally; structurally 
C)  frictionally; frictionally 
D)  frictionally; structurally

Question 16

Unemployment that arises as a result of the time it takes for unemployed people to locate a job utilizing their transferable skills is called __________ unemployment.

Accepted Answer

A)  structural 
B)  cyclical 
C)  natural 
D)  frictional 
A)  structural 
B)  cyclical 
C)  natural 
D)  frictional

Question 17

The cyclical unemployment rate can never be negative.

Accepted Answer

A) True 
 B)False

Question 18

Every ____________ the U.S.government surveys ______________ of households to gather information about the number of Americans unemployed.

Accepted Answer

A)  month; millions 
B)  week; millions 
C)  week; thousands 
D)  month; thousands 
A)  month; millions 
B)  week; millions 
C)  week; thousands 
D)  month; thousands

Question 19

The base year is the year

Accepted Answer

A)  in which prices are unstable. 
B)  in which prices are lowest. 
C)  in which prices are highest. 
D)  that serves as a reference point or benchmark. 
E)  in which nominal output is largest. 
A)  in which prices are unstable. 
B)  in which prices are lowest. 
C)  in which prices are highest. 
D)  that serves as a reference point or benchmark. 
E)  in which nominal output is largest.

Question 20

Exhibit 6-2
  
-Refer to Exhibit 6-2.The labor force participation rate in year 4 is

Accepted Answer

A)  12 1/2 percent. 
B)  72 percent. 
C)  87 1/2 percent. 
D)  30 percent. 
E)  80 percent. 
A)  12 1/2 percent. 
B)  72 percent. 
C)  87 1/2 percent. 
D)  30 percent. 
E)  80 percent.

Exam 6: Macroeconomic Measurements: Prices and Unemployment

Exhibit 6-2 -Refer to Exhibit 6-2.The employment rate in year 1 is

"Full employment" is said to exist when the actual unemployment rate is zero.

If Carlos is waiting to be called back to his job from which he has been temporarily laid off,the Bureau of Labor Statistics will classify him as unemployed.

A __________ is a person who was employed in the civilian labor force and was either fired or laid off.

The value of the consumer price index (CPI)is always equal to ______________ in the base year.

The movie "Return of the Jedi" earned $264 million in 1983 when it was released.The CPI in 1983 was 97.8 and the CPI in 2012 was 226.665.Approximately how much did the movie earn in 2012 dollars?

Look at the following data: Total population = 230 million; employed persons = 80 million; unemployed persons = 8 million.The unemployment rate is approximately __________ and the employment rate __________.

Exhibit 6-2 -Refer to Exhibit 6-2.How many people are not in the labor force in year 4?

If the CPI was 196.5 in 2005 and 172.2 in 2000,by what percentage did prices rise during the period 2000-2005?

The unemployment due to changes in the types of skills employers require is called __________ unemployment.

In year 1 the CPI is 174,and in year 2 the CPI is 190.If Sarah's salary was $49,800 in year 1,what salary in year 2 would cause her to exactly "keep up with inflation"?

In order to be classified as unemployed,a person must

Good X sold for $40 in 1957.The CPI in 1957 was 27.6 and the CPI in 2009 was 214.537.What was the price of good X in 2009 dollars?

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

Jones lost his job in industry A,but he has skills that can be transferred to industry B (which is currently hiring).Smith lost a job in industry C,but his skills cannot be transferred to industry B or to any other industry.Jones is __________ unemployed and Smith is __________ unemployed.

Unemployment that arises as a result of the time it takes for unemployed people to locate a job utilizing their transferable skills is called __________ unemployment.

The cyclical unemployment rate can never be negative.

Every ____________ the U.S.government surveys ______________ of households to gather information about the number of Americans unemployed.

The base year is the year

Exhibit 6-2 -Refer to Exhibit 6-2.The labor force participation rate in year 4 is

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: Total population = 230 million; employed persons = 80 million; unemployed persons = 8 million.The unemployment rate is approximately and the employment rate .

Jones lost his job in industry A,but he has skills that can be transferred to industry B (which is currently hiring).Smith lost a job in industry C,but his skills cannot be transferred to industry B or to any other industry.Jones is unemployed and Smith is unemployed.

Every the U.S.government surveys __ of households to gather information about the number of Americans unemployed.