Question 1

The unemployment rate equals [(the number of people unemployed)/(the population)] × 100.

Accepted Answer

A) True 
 B)False  False

Question 2

In an economy, 42 million people are in the labor force, 38 million are employed, and 47 million are of working age. How many people are not in the labor force?

Accepted Answer

A)  4 million 
B)  9 million 
C)  5 million 
D)  19 percent 
A)  4 million 
B)  9 million 
C)  5 million 
D)  19 percent C

Question 3

Explain the different labor market flows.

Accepted Answer

The number employed decreases due to job leavers, job losers, and retirees. The number of employed increases due to hires, recalls, and entrants and reentrants. As long they don't withdraw, those who leave employment are unemployed. All who aren't employed but are not actively searching for a job are out of the labor force.

Question 4

Define the GDP deflator and demonstrate how the GDP deflator is calculated.

Accepted Answer

The GDP deflator reveals the average cha

Question 5

-The information in the table above gives the 2008 reference base period CPI basket and prices used to construct the CPI for a small nation. It also has the 2009 prices. What is the value of the CPI for 2009?

Accepted Answer

A)  140 
B)  75 
C)  100 
D)  133 
A)  140 
B)  75 
C)  100 
D)  133

Question 6

To calculate the unemployment rate, which of the following are necessary pieces of information?
I. the number of unemployed persons
II. the population
III. the number of people in the labor force
IV. the working age population

Accepted Answer

A)  I and III 
B)  I and IV 
C)  I, II III and IV 
D)  I and II 
A)  I and III 
B)  I and IV 
C)  I, II III and IV 
D)  I and II

Question 7

If the number of people unemployed is 100, the number of people employed is 1000, and the working- age population is 1400, then the unemployment rate is

Accepted Answer

A)  10 percent. 
B)  7.1 percent. 
C)  6.6 percent. 
D)  9.1 percent. 
A)  10 percent. 
B)  7.1 percent. 
C)  6.6 percent. 
D)  9.1 percent.

Question 8

Of the following sequences of price levels, which correctly represents a 5 percent inflation rate?

Accepted Answer

A)  100, 105, 105, 105 
B)  100, 100, 100, 100 
C)  100, 105, 110.25, 115.76 
D)  100, 105, 110, 115 
A)  100, 105, 105, 105 
B)  100, 100, 100, 100 
C)  100, 105, 110.25, 115.76 
D)  100, 105, 110, 115

Question 9

-In the above table, the inflation rate between 2007 and 2008 is approximately

Accepted Answer

A)  100 percent. 
B)  10 percent. 
C)  9 percent. 
D)  110 percent. 
A)  100 percent. 
B)  10 percent. 
C)  9 percent. 
D)  110 percent.

Question 10

A person quits her job in order to spend time looking for a better- paying job. This is an example of

Accepted Answer

A)  frictional unemployment. 
B)  cyclical unemployment. 
C)  structural unemployment. 
D)  seasonal unemployment. 
A)  frictional unemployment. 
B)  cyclical unemployment. 
C)  structural unemployment. 
D)  seasonal unemployment.

Question 11

During a recession, the .

Accepted Answer

A)  number of discouraged workers increases 
B)  unemployment rate decreases 
C)  employment- to- population ratio increases 
D)  number of aggregate hours worked increases 
A)  number of discouraged workers increases 
B)  unemployment rate decreases 
C)  employment- to- population ratio increases 
D)  number of aggregate hours worked increases

Question 12

Unemployment caused by the normal labor turnover is called unemployment.

Accepted Answer

A)  part- time 
B)  involuntary 
C)  cyclical 
D)  frictional 
A)  part- time 
B)  involuntary 
C)  cyclical 
D)  frictional

Question 13

The biases in the CPI include the

Accepted Answer

A)  old goods, new goods, and quality change biases. 
B)  substitution, new goods, and old goods biases. 
C)  old goods, unemployment, and inflation biases. 
D)  new goods, quality change, and substitution biases. 
A)  old goods, new goods, and quality change biases. 
B)  substitution, new goods, and old goods biases. 
C)  old goods, unemployment, and inflation biases. 
D)  new goods, quality change, and substitution biases.

Question 14

Suppose the labor force in Tiny Town is 100 people. If the in Tiny Town is 150 people, the labor force participation rate equals _ multiplied by 100.

Accepted Answer

A)  working age population; 100/150 
B)  number of employed persons; 100/250 
C)  number of employed persons; 100/150 
D)  working age population; 100/250 
A)  working age population; 100/150 
B)  number of employed persons; 100/250 
C)  number of employed persons; 100/150 
D)  working age population; 100/250

Question 15

At the end of last year, the CPI equaled 120. At the end of this year, the CPI equals 132. What is the inflation rate over this year?

Accepted Answer

A)  10 percent 
B)  6 percent 
C)  12 percent 
D)  None of the above answers are correct because more information is needed to calculate the inflation rate. 
A)  10 percent 
B)  6 percent 
C)  12 percent 
D)  None of the above answers are correct because more information is needed to calculate the inflation rate.

Question 16

This type of unemployment reflects the normal amount of unemployed workers who possess skills that will enable them to find another job.

Accepted Answer

A)  structural unemployment 
B)  frictional unemployment 
C)  cyclical unemployment 
D)  None of the above answers is correct. 
A)  structural unemployment 
B)  frictional unemployment 
C)  cyclical unemployment 
D)  None of the above answers is correct.

Question 17

-The table above gives the CPI basket for 2007 and 2008. Suppose that 2007 is the reference base period.
a) What is the cost of the CPI basket in 2007?
b) What is the cost of the CPI basket in 2008?
c) What is the CPI for 2007?
d) What is the CPI for 2008?

Accepted Answer

a) The cost of the CPI basket in 2007 is

Question 18

The table below shows the price index for Zimbabwe starting in 2000.   .econstats.com The data show that

Accepted Answer

A)  the inflation rate between 2005 and 2006 was 319.2 percent. 
B)  new goods bias and quality change bias are responsible for most of Zimbabwe's inflation. 
C)  the inflation rate between the base year and 2001 is 73.4 percent. 
D)  while Zimbabwe experienced a high price level, it did not experience high inflation. 
A)  the inflation rate between 2005 and 2006 was 319.2 percent. 
B)  new goods bias and quality change bias are responsible for most of Zimbabwe's inflation. 
C)  the inflation rate between the base year and 2001 is 73.4 percent. 
D)  while Zimbabwe experienced a high price level, it did not experience high inflation.

Question 19

Which of the following is NOT considered to be in the labor force?

Accepted Answer

A)  a person who is waiting to start a new job in the next 30 days 
B)  a person who is not working but who has tried to find a job in the past week 
C)  a student who works part- time 
D)  a person who is not working and who has not tried to find a job 
A)  a person who is waiting to start a new job in the next 30 days 
B)  a person who is not working but who has tried to find a job in the past week 
C)  a student who works part- time 
D)  a person who is not working and who has not tried to find a job

Question 20

In a country with a working- age population of 300 million, 230 million workers are employed and 40 million workers are unemployed. What is the labor force participation rate?

Accepted Answer

A)  90 percent 
B)  65 percent 
C)  5 percent 
D)  100 percent 
A)  90 percent 
B)  65 percent 
C)  5 percent 
D)  100 percent

The unemployment rate equals [(the number of people unemployed)/(the population)] × 100.

In an economy, 42 million people are in the labor force, 38 million are employed, and 47 million are of working age. How many people are not in the labor force?

Explain the different labor market flows.

Define the GDP deflator and demonstrate how the GDP deflator is calculated.

-The information in the table above gives the 2008 reference base period CPI basket and prices used to construct the CPI for a small nation. It also has the 2009 prices. What is the value of the CPI for 2009?

To calculate the unemployment rate, which of the following are necessary pieces of information? I. the number of unemployed persons II. the population III. the number of people in the labor force IV. the working age population

If the number of people unemployed is 100, the number of people employed is 1000, and the working- age population is 1400, then the unemployment rate is

Of the following sequences of price levels, which correctly represents a 5 percent inflation rate?

-In the above table, the inflation rate between 2007 and 2008 is approximately

A person quits her job in order to spend time looking for a better- paying job. This is an example of

During a recession, the .

Unemployment caused by the normal labor turnover is called unemployment.

The biases in the CPI include the

Suppose the labor force in Tiny Town is 100 people. If the in Tiny Town is 150 people, the labor force participation rate equals _ multiplied by 100.

At the end of last year, the CPI equaled 120. At the end of this year, the CPI equals 132. What is the inflation rate over this year?

This type of unemployment reflects the normal amount of unemployed workers who possess skills that will enable them to find another job.

-The table above gives the CPI basket for 2007 and 2008. Suppose that 2007 is the reference base period. a) What is the cost of the CPI basket in 2007? b) What is the cost of the CPI basket in 2008? c) What is the CPI for 2007? d) What is the CPI for 2008?

The table below shows the price index for Zimbabwe starting in 2000. .econstats.com The data show that

Which of the following is NOT considered to be in the labor force?

In a country with a working- age population of 300 million, 230 million workers are employed and 40 million workers are unemployed. What is the labor force participation rate?

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: They Keynesian Model

U.S. Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 5: Monitoring Jobs and Inflation

The unemployment rate equals [(the number of people unemployed)/(the population)] × 100.

In an economy, 42 million people are in the labor force, 38 million are employed, and 47 million are of working age. How many people are not in the labor force?

Explain the different labor market flows.

Define the GDP deflator and demonstrate how the GDP deflator is calculated.

-The information in the table above gives the 2008 reference base period CPI basket and prices used to construct the CPI for a small nation. It also has the 2009 prices. What is the value of the CPI for 2009?

To calculate the unemployment rate, which of the following are necessary pieces of information? I. the number of unemployed persons II. the population III. the number of people in the labor force IV. the working age population

If the number of people unemployed is 100, the number of people employed is 1000, and the working- age population is 1400, then the unemployment rate is

Of the following sequences of price levels, which correctly represents a 5 percent inflation rate?

-In the above table, the inflation rate between 2007 and 2008 is approximately

A person quits her job in order to spend time looking for a better- paying job. This is an example of

During a recession, the .

Unemployment caused by the normal labor turnover is called unemployment.

The biases in the CPI include the

Suppose the labor force in Tiny Town is 100 people. If the in Tiny Town is 150 people, the labor force participation rate equals _ multiplied by 100.

At the end of last year, the CPI equaled 120. At the end of this year, the CPI equals 132. What is the inflation rate over this year?

This type of unemployment reflects the normal amount of unemployed workers who possess skills that will enable them to find another job.

-The table above gives the CPI basket for 2007 and 2008. Suppose that 2007 is the reference base period. a) What is the cost of the CPI basket in 2007? b) What is the cost of the CPI basket in 2008? c) What is the CPI for 2007? d) What is the CPI for 2008?

The table below shows the price index for Zimbabwe starting in 2000. .econstats.com The data show that

Which of the following is NOT considered to be in the labor force?

In a country with a working- age population of 300 million, 230 million workers are employed and 40 million workers are unemployed. What is the labor force participation rate?

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: They Keynesian Model

U.S. Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters