Question 1

Suppose Percy was laid off from his job at the pickle factory and he decides to look for another job. Percy is considered

Accepted Answer

A)  a discouraged worker. 
B)  not in the labor force. 
C)  a job leaver. 
D)  a job loser. 
A)  a discouraged worker. 
B)  not in the labor force. 
C)  a job leaver. 
D)  a job loser.

Question 2

Full employment occurs

Accepted Answer

A)  only if the unemployment rate is equal to the natural unemployment rate. 
B)  only if unemployment is equal to structural unemployment plus cyclical unemployment. 
C)  only if the unemployment rate is zero. 
D)  None of the above answers are correct. 
A)  only if the unemployment rate is equal to the natural unemployment rate. 
B)  only if unemployment is equal to structural unemployment plus cyclical unemployment. 
C)  only if the unemployment rate is zero. 
D)  None of the above answers are correct.

Question 3

Bob inherits a large sum of money from his dead uncle's estate. Bob decides to retire young, so he quits his job and heads to the Bahamas. Bob is an example of

Accepted Answer

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

Question 4

-In 2008, consumers in Dexter consumed only books and pens. The prices and quantities for 2008 and 2009 are listed in the table above. The reference base period for Dexter's CPI is 2008. What is the inflation rate in 2009?

Accepted Answer

A)  zero 
B)  31 percent 
C)  2 percent 
D)  69 percent 
A)  zero 
B)  31 percent 
C)  2 percent 
D)  69 percent

Question 5

-In the above table, the employment- to- population ratio is

Accepted Answer

A)  42 percent. 
B)  62 percent. 
C)  44 percent. 
D)  51 percent. 
A)  42 percent. 
B)  62 percent. 
C)  44 percent. 
D)  51 percent.

Question 6

Since 1961, the U.S. labor force participation rate has and the unemployment rate has
)

Accepted Answer

A)  trended higher; varied over the business cycle 
B)  trended higher; trended higher 
C)  varied over the business cycle; trended higher 
D)  trended lower; varied over the business cycle 
A)  trended higher; varied over the business cycle 
B)  trended higher; trended higher 
C)  varied over the business cycle; trended higher 
D)  trended lower; varied over the business cycle

Question 7

-Using the information in the above table, the unemployment rate is

Accepted Answer

A)  4.5 percent. 
B)  4.3 percent. 
C)  6.0 percent. 
D)  2.8 percent. 
A)  4.5 percent. 
B)  4.3 percent. 
C)  6.0 percent. 
D)  2.8 percent.

Question 8

The natural unemployment rate increased significantly during the 1980s and the 1990s.

Accepted Answer

A) True 
 B)False

Question 9

Explain what type of unemployment changes with the business cycle and how it changes.

Accepted Answer

Cyclical unemployment is the unemploymen

Question 10

What is a "discouraged worker"?

Accepted Answer

A discouraged worker is a person without

Question 11

The unemployment rate is the _ _ who are unemployed.

Accepted Answer

A)  number of people in the labor force 
B)  percentage of people in the country 
C)  percentage of people in the labor force 
D)  percentage of the working- age population 
A)  number of people in the labor force 
B)  percentage of people in the country 
C)  percentage of people in the labor force 
D)  percentage of the working- age population

Question 12

Suppose the Consumer Price Index for the year 2007 is 143.6. What does that number mean?

Accepted Answer

A)  On average, goods cost $243.60 each in 2007. 
B)  Prices rose 143.6 percent over the reference base period, on average. 
C)  On average, goods cost $143.60 each in 2007. 
D)  Prices rose 43.6 percent over the reference base period, on average. 
A)  On average, goods cost $243.60 each in 2007. 
B)  Prices rose 143.6 percent over the reference base period, on average. 
C)  On average, goods cost $143.60 each in 2007. 
D)  Prices rose 43.6 percent over the reference base period, on average.

Question 13

Which of the following decreases the unemployment rate?

Accepted Answer

A)  Young people graduate from college and start to look for their first full- time job. 
B)  More women enter the labor force and seek jobs. 
C)  Workers leave the labor force. 
D)  None of the above because they all increase or do not change the unemployment rate. 
A)  Young people graduate from college and start to look for their first full- time job. 
B)  More women enter the labor force and seek jobs. 
C)  Workers leave the labor force. 
D)  None of the above because they all increase or do not change the unemployment rate.

Question 14

Because of a bank merger, Ms. Davis lost her position as Vice President and had to seek work with other banks. Ms. Davis has the skills necessary to find a new job, thus she is best considered as

Accepted Answer

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

Question 15

Frictional unemployment includes

Accepted Answer

A)  unemployment caused by a lack of education so that workers do not possess necessary job skills. 
B)  unemployment caused by industries moving overseas to better meet foreign competition. 
C)  unemployment caused by normal labor turnover associated with people leaving and entering the labor force. 
D)  unemployment caused by automation of the work place that displaces unskilled workers. 
A)  unemployment caused by a lack of education so that workers do not possess necessary job skills. 
B)  unemployment caused by industries moving overseas to better meet foreign competition. 
C)  unemployment caused by normal labor turnover associated with people leaving and entering the labor force. 
D)  unemployment caused by automation of the work place that displaces unskilled workers.

Question 16

-The labor force participation rate is calculated as the

Accepted Answer

A)  labor force divided by the unemployment rate then multiplied by 100. 
B)  labor force divided by the number of persons employed then multiplied by 100. 
C)  labor force divided by the working age population then multiplied by 100. 
D)  number of persons unemployed divided by the labor force then multiplied by 100. 
A)  labor force divided by the unemployment rate then multiplied by 100. 
B)  labor force divided by the number of persons employed then multiplied by 100. 
C)  labor force divided by the working age population then multiplied by 100. 
D)  number of persons unemployed divided by the labor force then multiplied by 100.

Question 17

To prevent frictional unemployment, we would have to

Accepted Answer

A)  eliminate recessions. 
B)  make sure everyone goes to college. 
C)  prevent people from leaving their jobs. 
D)  eliminate the business cycle. 
A)  eliminate recessions. 
B)  make sure everyone goes to college. 
C)  prevent people from leaving their jobs. 
D)  eliminate the business cycle.

Question 18

Suppose the population is 220 million people, the labor force is 150 million people, the number of people employed is 130 million and the working- age population is 175 million people. What is the labor force participation rate?

Accepted Answer

A)  0.68 percent 
B)  68 percent 
C)  86.7 percent 
D)  85.7 percent 
A)  0.68 percent 
B)  68 percent 
C)  86.7 percent 
D)  85.7 percent

Question 19

List the four sources of bias in the CPI and briefly explain them.

Accepted Answer

There are four potential biases. First i

Question 20

-Using the data in the above table, what is the measured unemployment rate?

Accepted Answer

A)  3.70 percent 
B)  1.79 percent 
C)  5.26 percent 
D)  3.57 percent 
A)  3.70 percent 
B)  1.79 percent 
C)  5.26 percent 
D)  3.57 percent

Suppose Percy was laid off from his job at the pickle factory and he decides to look for another job. Percy is considered

Full employment occurs

Bob inherits a large sum of money from his dead uncle's estate. Bob decides to retire young, so he quits his job and heads to the Bahamas. Bob is an example of

-In 2008, consumers in Dexter consumed only books and pens. The prices and quantities for 2008 and 2009 are listed in the table above. The reference base period for Dexter's CPI is 2008. What is the inflation rate in 2009?

-In the above table, the employment- to- population ratio is

Since 1961, the U.S. labor force participation rate has and the unemployment rate has )

-Using the information in the above table, the unemployment rate is

The natural unemployment rate increased significantly during the 1980s and the 1990s.

Explain what type of unemployment changes with the business cycle and how it changes.

What is a "discouraged worker"?

The unemployment rate is the _ _ who are unemployed.

Suppose the Consumer Price Index for the year 2007 is 143.6. What does that number mean?

Which of the following decreases the unemployment rate?

Because of a bank merger, Ms. Davis lost her position as Vice President and had to seek work with other banks. Ms. Davis has the skills necessary to find a new job, thus she is best considered as

Frictional unemployment includes

-The labor force participation rate is calculated as the

To prevent frictional unemployment, we would have to

Suppose the population is 220 million people, the labor force is 150 million people, the number of people employed is 130 million and the working- age population is 175 million people. What is the labor force participation rate?

List the four sources of bias in the CPI and briefly explain them.

-Using the data in the above table, what is the measured unemployment 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

Suppose Percy was laid off from his job at the pickle factory and he decides to look for another job. Percy is considered

Full employment occurs

Bob inherits a large sum of money from his dead uncle's estate. Bob decides to retire young, so he quits his job and heads to the Bahamas. Bob is an example of

-In 2008, consumers in Dexter consumed only books and pens. The prices and quantities for 2008 and 2009 are listed in the table above. The reference base period for Dexter's CPI is 2008. What is the inflation rate in 2009?

-In the above table, the employment- to- population ratio is

Since 1961, the U.S. labor force participation rate has and the unemployment rate has )

-Using the information in the above table, the unemployment rate is

The natural unemployment rate increased significantly during the 1980s and the 1990s.

Explain what type of unemployment changes with the business cycle and how it changes.

What is a "discouraged worker"?

The unemployment rate is the _ _ who are unemployed.

Suppose the Consumer Price Index for the year 2007 is 143.6. What does that number mean?

Which of the following decreases the unemployment rate?

Because of a bank merger, Ms. Davis lost her position as Vice President and had to seek work with other banks. Ms. Davis has the skills necessary to find a new job, thus she is best considered as

Frictional unemployment includes

-The labor force participation rate is calculated as the

To prevent frictional unemployment, we would have to

Suppose the population is 220 million people, the labor force is 150 million people, the number of people employed is 130 million and the working- age population is 175 million people. What is the labor force participation rate?

List the four sources of bias in the CPI and briefly explain them.

-Using the data in the above table, what is the measured unemployment 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