Question 1

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

Accepted Answer

A)  1.38 
B)  0.14 
C)  1.29 
D)  1.94 
E)  3.00 
A)  1.38 
B)  0.14 
C)  1.29 
D)  1.94 
E)  3.00

Question 2

Suppose there are five goods in the economy,A-E.The current-year quantity of each is 10A,20B,30C,40D,and 50E.Current-year prices are $1 for each unit of A,$2 for each unit of B,$3 for each unit of C,$4 for each unit of D,and $5 for each unit of E.Base-year prices are $1 for each good.Real GDP in the current year equals

Accepted Answer

A)  $100. 
B)  $130. 
C)  $150. 
D)  $180. 
E)  $550. 
A)  $100. 
B)  $130. 
C)  $150. 
D)  $180. 
E)  $550.

Question 3

A person in the civilian labor force falls into one of two categories:

Accepted Answer

A)  a person who works in a service industry or a person who works in a manufacturing industry. 
B)  unemployed or employed. 
C)  disemployed or unemployed. 
D)  a self-employed worker or a non-self-employed worker. 
A)  a person who works in a service industry or a person who works in a manufacturing industry. 
B)  unemployed or employed. 
C)  disemployed or unemployed. 
D)  a self-employed worker or a non-self-employed worker.

Question 4

A plumber who quits his job in Indianapolis and moves to Orlando where additional plumbers are needed is said to be ___________________ unemployed

Accepted Answer

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

Question 5

Buying a one-day ticket at Woodstock in 1969 for $8 was the same as spending $49.03 on a ticket in 2011.

Accepted Answer

A) True 
 B)False

Question 6

Exhibit 6-2
  
-Refer to Exhibit 6-2.How many unemployed persons are there in year 3?

Accepted Answer

A)  50 million 
B)  100 million 
C)  150 million 
D)  350 million 
E)  400 million 
A)  50 million 
B)  100 million 
C)  150 million 
D)  350 million 
E)  400 million

Question 7

At the time of Carol's 10 year high school reunion she was earning $30,000 and the CPI was 90. Now that it is time for her to attend her 20 year high school reunion,Carol's income has risen to $65,000 and the CPI is 200. At her 20 year reunion,can Carol rightfully brag that her real income has risen since the last time she saw her former classmates ten years ago?

Accepted Answer

A)  Yes, Carol's real income rose during that 10 year period. 
B)  No, Carol's real income fell during that 10 year period. 
C)  No, Carol's real income remained constant during that 10 year period. 
D)  It is impossible to determine what happened to Carol's real income. 
A)  Yes, Carol's real income rose during that 10 year period. 
B)  No, Carol's real income fell during that 10 year period. 
C)  No, Carol's real income remained constant during that 10 year period. 
D)  It is impossible to determine what happened to Carol's real income.

Question 8

Exhibit 6-2
  
-Refer to Exhibit 6-2.How many people are not in the labor force in year 3?

Accepted Answer

A)  50 million 
B)  100 million 
C)  150 million 
D)  350 million 
E)  400 million 
A)  50 million 
B)  100 million 
C)  150 million 
D)  350 million 
E)  400 million

Question 9

Structural unemployment results primarily from automation and long-lasting changes in demand.

Accepted Answer

A) True 
 B)False

Exam 6: Macroeconomic Measurements: Prices and Unemployment

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

A person in the civilian labor force falls into one of two categories:

A plumber who quits his job in Indianapolis and moves to Orlando where additional plumbers are needed is said to be ___________________ unemployed

Buying a one-day ticket at Woodstock in 1969 for $8 was the same as spending $49.03 on a ticket in 2011.

Exhibit 6-2 -Refer to Exhibit 6-2.How many unemployed persons are there in year 3?

Exhibit 6-2 -Refer to Exhibit 6-2.How many people are not in the labor force in year 3?

Structural unemployment results primarily from automation and long-lasting changes in demand.

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

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