Question 1

The labor force is defined as people

Accepted Answer

A)  in the working- age population who have a full time job. 
B)  who are 16 years of age or older. 
C)  who have a job or are looking for a job. 
D)  in the working- age population who have a job. 
A)  in the working- age population who have a full time job. 
B)  who are 16 years of age or older. 
C)  who have a job or are looking for a job. 
D)  in the working- age population who have a job.

Question 2

A discouraged worker

Accepted Answer

A)  is not counted as unemployed, but is considered in the labor force. 
B)  is counted as unemployed, but not in the labor force. 
C)  is counted as unemployed and in the labor force. 
D)  is not counted as unemployed and is not in the labor force. 
A)  is not counted as unemployed, but is considered in the labor force. 
B)  is counted as unemployed, but not in the labor force. 
C)  is counted as unemployed and in the labor force. 
D)  is not counted as unemployed and is not in the labor force.

Question 3

A major characteristic of structural unemployment that differentiates it from frictional unemployment is that structural unemployment

Accepted Answer

A)  usually lasts longer than frictional unemployment. 
B)  exists only during a recession. 
C)  exists in an expansion whereas there is no frictional unemployment in an expansion. 
D)  is a short- term problem. 
A)  usually lasts longer than frictional unemployment. 
B)  exists only during a recession. 
C)  exists in an expansion whereas there is no frictional unemployment in an expansion. 
D)  is a short- term problem.

Question 4

The table below shows data regarding Germany's labor market.   The data show that Germany's unemployment rate between 2007 and 2008

Accepted Answer

A)  cannot be determined because the population decreased. 
B)  stayed the same. 
C)  decreased 
D)  increased. 
A)  cannot be determined because the population decreased. 
B)  stayed the same. 
C)  decreased 
D)  increased.

Question 5

When cyclical unemployment increases and other things remain the same, .

Accepted Answer

A)  the natural unemployment rate increases 
B)  the amount of structural unemployment decreases 
C)  the amount of frictional unemployment increases 
D)  the natural unemployment rate does not change 
A)  the natural unemployment rate increases 
B)  the amount of structural unemployment decreases 
C)  the amount of frictional unemployment increases 
D)  the natural unemployment rate does not change

Question 6

The cost of inflation to society includes
I. the opportunity costs of resources used by people to protect themselves against inflation.
II. the diversion of productive resources to forecasting inflation.

Accepted Answer

A)  I only 
B)  II only 
C)  neither I nor II 
D)  both I and II 
A)  I only 
B)  II only 
C)  neither I nor II 
D)  both I and II

Question 7

Job leavers are people who

Accepted Answer

A)  reenter the labor force after many years. 
B)  enter the labor force for the first time. 
C)  quit a job to look for something better. 
D)  are laid off permanently or temporarily. 
A)  reenter the labor force after many years. 
B)  enter the labor force for the first time. 
C)  quit a job to look for something better. 
D)  are laid off permanently or temporarily.

Question 8

The currently used method for calculating the CPI

Accepted Answer

A)  probably overstates inflation by about 1 percentage point. 
B)  has no effect on government expenditures. 
C)  accounts for people increasing consumption of a good that falls in relative price. 
D)  None of the above answers are correct. 
A)  probably overstates inflation by about 1 percentage point. 
B)  has no effect on government expenditures. 
C)  accounts for people increasing consumption of a good that falls in relative price. 
D)  None of the above answers are correct.

Question 9

What is the definition of the unemployment rate? How are part- time workers and discouraged workers treated when calculating the unemployment rate?

Accepted Answer

The definition of the unemployment rate

Question 10

Cyclical unemployment

Accepted Answer

A)  is always present in an economy. 
B)  decreases during a recession. 
C)  fluctuates over the business cycle. 
D)  is higher during an expansion. 
A)  is always present in an economy. 
B)  decreases during a recession. 
C)  fluctuates over the business cycle. 
D)  is higher during an expansion.

Question 11

When an individual who has not been working but has been looking for work decides to terminate the search process, the official unemployment rate

Accepted Answer

A)  will fall. 
B)  will remain unchanged. 
C)  will rise. 
D)  may fall or rise depending on whether or not the individual resumes his education. 
A)  will fall. 
B)  will remain unchanged. 
C)  will rise. 
D)  may fall or rise depending on whether or not the individual resumes his education.

Question 12

Unemployment caused by people voluntarily leaving their jobs is classified as

Accepted Answer

A)  seasonal unemployment. 
B)  cyclical unemployment. 
C)  part- time unemployment. 
D)  frictional unemployment. 
A)  seasonal unemployment. 
B)  cyclical unemployment. 
C)  part- time unemployment. 
D)  frictional unemployment.

Question 13

Is the CPI a biased measure of the inflation rate? Explain your answer.

Accepted Answer

There are at least four sources of bias

Question 14

Andrew just lost his job as a corkscrew operator since his company has found a machine to perform his work tasks. Andrew did not have the skills needed to operate the machine. Andrew has searched for a new job for 6 months and continues to search. Therefore, Andrew is considered to be

Accepted Answer

A)  frictionally unemployed. 
B)  cyclically unemployed. 
C)  structurally unemployed. 
D)  a discouraged worker. 
A)  frictionally unemployed. 
B)  cyclically unemployed. 
C)  structurally unemployed. 
D)  a discouraged worker.

Question 15

-The labor force participation rate is percentage of the who are in the labor force.

Accepted Answer

A)  population 
B)  people under age 65 
C)  people over age 16 
D)  working- age population 
A)  population 
B)  people under age 65 
C)  people over age 16 
D)  working- age population

Question 16

Give an example of a structurally unemployed person.

Accepted Answer

A person who loses his or her

Question 17

Frictional unemployment

Accepted Answer

A)  includes discouraged workers. 
B)  is unemployment associated normal labor turnover. 
C)  is voluntary part- time unemployment. 
D)  is unemployment associated with declining industries. 
A)  includes discouraged workers. 
B)  is unemployment associated normal labor turnover. 
C)  is voluntary part- time unemployment. 
D)  is unemployment associated with declining industries.

Question 18

If a person voluntarily quits his or her job, the person is considered to be a

Accepted Answer

A)  new entrant. 
B)  reentrant. 
C)  job loser. 
D)  job leaver. 
A)  new entrant. 
B)  reentrant. 
C)  job loser. 
D)  job leaver.

Question 19

-The labor force participation rate is the ratio of

Accepted Answer

A)  (the number of unemployed divided by the labor force) multiplied by 100. 
B)  (the number of unemployed divided by the working- age population) multiplied by 100. 
C)  (the labor force divided by the total population) multiplied by 100. 
D)  (the labor force divided by the working- age population) multiplied by 100. 
A)  (the number of unemployed divided by the labor force) multiplied by 100. 
B)  (the number of unemployed divided by the working- age population) multiplied by 100. 
C)  (the labor force divided by the total population) multiplied by 100. 
D)  (the labor force divided by the working- age population) multiplied by 100.

Question 20

If unemployment equals the natural unemployment rate, then there

Accepted Answer

A)  is less than full employment. 
B)  is only frictional or structural unemployment. 
C)  is zero unemployment. 
D)  are no job openings existing at the time. 
A)  is less than full employment. 
B)  is only frictional or structural unemployment. 
C)  is zero unemployment. 
D)  are no job openings existing at the time.

The labor force is defined as people

A discouraged worker

A major characteristic of structural unemployment that differentiates it from frictional unemployment is that structural unemployment

The table below shows data regarding Germany's labor market. The data show that Germany's unemployment rate between 2007 and 2008

When cyclical unemployment increases and other things remain the same, .

The cost of inflation to society includes I. the opportunity costs of resources used by people to protect themselves against inflation. II. the diversion of productive resources to forecasting inflation.

Job leavers are people who

The currently used method for calculating the CPI

What is the definition of the unemployment rate? How are part- time workers and discouraged workers treated when calculating the unemployment rate?

Cyclical unemployment

When an individual who has not been working but has been looking for work decides to terminate the search process, the official unemployment rate

Unemployment caused by people voluntarily leaving their jobs is classified as

Is the CPI a biased measure of the inflation rate? Explain your answer.

Andrew just lost his job as a corkscrew operator since his company has found a machine to perform his work tasks. Andrew did not have the skills needed to operate the machine. Andrew has searched for a new job for 6 months and continues to search. Therefore, Andrew is considered to be

-The labor force participation rate is percentage of the who are in the labor force.

Give an example of a structurally unemployed person.

Frictional unemployment

If a person voluntarily quits his or her job, the person is considered to be a

-The labor force participation rate is the ratio of

If unemployment equals the natural unemployment rate, then there

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 labor force is defined as people

A discouraged worker

A major characteristic of structural unemployment that differentiates it from frictional unemployment is that structural unemployment

The table below shows data regarding Germany's labor market. The data show that Germany's unemployment rate between 2007 and 2008

When cyclical unemployment increases and other things remain the same, .

The cost of inflation to society includes I. the opportunity costs of resources used by people to protect themselves against inflation. II. the diversion of productive resources to forecasting inflation.

Job leavers are people who

The currently used method for calculating the CPI

What is the definition of the unemployment rate? How are part- time workers and discouraged workers treated when calculating the unemployment rate?

Cyclical unemployment

When an individual who has not been working but has been looking for work decides to terminate the search process, the official unemployment rate

Unemployment caused by people voluntarily leaving their jobs is classified as

Is the CPI a biased measure of the inflation rate? Explain your answer.

Andrew just lost his job as a corkscrew operator since his company has found a machine to perform his work tasks. Andrew did not have the skills needed to operate the machine. Andrew has searched for a new job for 6 months and continues to search. Therefore, Andrew is considered to be

-The labor force participation rate is percentage of the who are in the labor force.

Give an example of a structurally unemployed person.

Frictional unemployment

If a person voluntarily quits his or her job, the person is considered to be a

-The labor force participation rate is the ratio of

If unemployment equals the natural unemployment rate, then there

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