Question 1

The labor force is defined as the number of people who

Accepted Answer

A)  are available and looking for work but are unable to find employment. 
B)  would like to have a job but have stopped seeking work. 
C)  are employed plus the number of people who are unemployed. 
D)  would like to have a full- time job but are working part- time. 
A)  are available and looking for work but are unable to find employment. 
B)  would like to have a job but have stopped seeking work. 
C)  are employed plus the number of people who are unemployed. 
D)  would like to have a full- time job but are working part- time.

Question 2

-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 cost of the CPI basket in 2008?

Accepted Answer

A)  $430 
B)  $335 
C)  $540 
D)  $320 
A)  $430 
B)  $335 
C)  $540 
D)  $320

Question 3

When the unemployment rate is below the natural unemployment rate,

Accepted Answer

A)  real GDP is less than potential GDP. 
B)  real GDP is greater than potential GDP. 
C)  real GDP equals potential GDP. 
D)  None of the above is possible because it is impossible for the unemployment rate to be less than the natural rate. 
A)  real GDP is less than potential GDP. 
B)  real GDP is greater than potential GDP. 
C)  real GDP equals potential GDP. 
D)  None of the above is possible because it is impossible for the unemployment rate to be less than the natural rate.

Question 4

In an economy, 23 million people are employed and 2 million are unemployed, but 5 million part- time workers would prefer full- time work. What is the unemployment rate?

Accepted Answer

A)  23.2 percent 
B)  25 percent 
C)  8 percent 
D)  6.7 percent 
A)  23.2 percent 
B)  25 percent 
C)  8 percent 
D)  6.7 percent

Question 5

Suppose Andy is laid off from the automobile plant because of slow automobile sales. Andy is looking for a new job. Andy is considered

Accepted Answer

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

Question 6

Discouraged workers fall into which of the following population categories?

Accepted Answer

A)  not in the labor force 
B)  labor force 
C)  employed 
D)  unemployed 
A)  not in the labor force 
B)  labor force 
C)  employed 
D)  unemployed

Question 7

-The tables above give the purchases of a typical consumer in a country comprised of one large city. These consu purchase only restaurant meals and parking. The year 2007 is the reference base period.
a) Find the total cost of the CPI basket for 2007 and 2008.
b) What is the CPI in 2007 and in 2008?
c) What is the inflation rate between 2007 and 2008?

Accepted Answer

a) The total cost of the CPI basket in 2

Question 8

The working- age population can be divided into two groups,

Accepted Answer

A)  people looking for work and those in the armed forces. 
B)  people in the labor force and people who are not in the labor force. 
C)  people in the labor force and people with a job. 
D)  people in the labor force and people looking for work. 
A)  people looking for work and those in the armed forces. 
B)  people in the labor force and people who are not in the labor force. 
C)  people in the labor force and people with a job. 
D)  people in the labor force and people looking for work.

Question 9

-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 cost of the CPI basket in 2009?

Accepted Answer

A)  $320 
B)  $540 
C)  $430 
D)  $335 
A)  $320 
B)  $540 
C)  $430 
D)  $335

Question 10

The largest category of the unemployed are

Accepted Answer

A)  new entrants. 
B)  reentrants. 
C)  job losers. 
D)  job leavers. 
A)  new entrants. 
B)  reentrants. 
C)  job losers. 
D)  job leavers.

Question 11

The is the total number of people aged 16 years and older (and not in jail, hospital or institutional care) while the is the number of people employed and the unemployed.

Accepted Answer

A)  labor force; working- age population 
B)  labor force participation rate; labor force 
C)  working- age population; labor force participation rate 
D)  working- age population; labor force 
A)  labor force; working- age population 
B)  labor force participation rate; labor force 
C)  working- age population; labor force participation rate 
D)  working- age population; labor force

Question 12

If the CPI for this year is 220 and the CPI for last year was 215, the inflation rate is

Accepted Answer

A)  5 percent. 
B)  just over 5 percent. 
C)  just over 2 percent. 
D)  10 percent. 
A)  5 percent. 
B)  just over 5 percent. 
C)  just over 2 percent. 
D)  10 percent.

Question 13

At the end of last year the Consumer Price Index was equal to 163.8 and at the end of this year it was equal to 157.5. What is the inflation rate over this time period?

Accepted Answer

A)  4.0 percent 
B)  6.3 percent 
C)  10.1 percent 
D)  3.85 percent 
A)  4.0 percent 
B)  6.3 percent 
C)  10.1 percent 
D)  3.85 percent

Question 14

Because of the biases in calculating the CPI, actual inflation is

Accepted Answer

A)  more than the measured inflation rate by about 1 percent per month. 
B)  less than the measured inflation rate by about 1 percent per year. 
C)  accurately measured. 
D)  more than the measured inflation rate by about 1 percent per year. 
A)  more than the measured inflation rate by about 1 percent per month. 
B)  less than the measured inflation rate by about 1 percent per year. 
C)  accurately measured. 
D)  more than the measured inflation rate by about 1 percent per year.

Question 15

In a country with a working- age population of 100 million, 70 million workers are employed and 5 million workers are unemployed. What is the labor force participation rate?

Accepted Answer

A)  5 percent 
B)  75 percent 
C)  7 percent 
D)  70 percent 
A)  5 percent 
B)  75 percent 
C)  7 percent 
D)  70 percent

Question 16

Structural unemployment is the result of

Accepted Answer

A)  normal labor market turnover. 
B)  irresponsible workers with poor work habits. 
C)  technological change or foreign competition. 
D)  a slowdown in the rate of economic expansion. 
A)  normal labor market turnover. 
B)  irresponsible workers with poor work habits. 
C)  technological change or foreign competition. 
D)  a slowdown in the rate of economic expansion.

Question 17

What is potential GDP and what is the relationship between actual and potential real GDP?

Accepted Answer

The quantity of GDP at full employment i

Question 18

Which type of unemployment increases during a recession?

Accepted Answer

A)  structural unemployment 
B)  the natural unemployment rate 
C)  frictional unemployment 
D)  cyclical unemployment 
A)  structural unemployment 
B)  the natural unemployment rate 
C)  frictional unemployment 
D)  cyclical unemployment

Question 19

Hyperinflation is defined as

Accepted Answer

A)  very low inflation rates. 
B)  rising but low inflation rates. 
C)  very high inflation rates. 
D)  declining inflation rates. 
A)  very low inflation rates. 
B)  rising but low inflation rates. 
C)  very high inflation rates. 
D)  declining inflation rates.

Question 20

What are the three types of unemployment and how do they change over the business cycle?

Accepted Answer

The three types of unemployment are fric

The labor force is defined as the number of people who

-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 cost of the CPI basket in 2008?

When the unemployment rate is below the natural unemployment rate,

In an economy, 23 million people are employed and 2 million are unemployed, but 5 million part- time workers would prefer full- time work. What is the unemployment rate?

Suppose Andy is laid off from the automobile plant because of slow automobile sales. Andy is looking for a new job. Andy is considered

Discouraged workers fall into which of the following population categories?

The working- age population can be divided into two groups,

-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 cost of the CPI basket in 2009?

The largest category of the unemployed are

The is the total number of people aged 16 years and older (and not in jail, hospital or institutional care) while the is the number of people employed and the unemployed.

If the CPI for this year is 220 and the CPI for last year was 215, the inflation rate is

At the end of last year the Consumer Price Index was equal to 163.8 and at the end of this year it was equal to 157.5. What is the inflation rate over this time period?

Because of the biases in calculating the CPI, actual inflation is

In a country with a working- age population of 100 million, 70 million workers are employed and 5 million workers are unemployed. What is the labor force participation rate?

Structural unemployment is the result of

What is potential GDP and what is the relationship between actual and potential real GDP?

Which type of unemployment increases during a recession?

Hyperinflation is defined as

What are the three types of unemployment and how do they change over the business cycle?

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 the number of people who

-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 cost of the CPI basket in 2008?

When the unemployment rate is below the natural unemployment rate,

In an economy, 23 million people are employed and 2 million are unemployed, but 5 million part- time workers would prefer full- time work. What is the unemployment rate?

Suppose Andy is laid off from the automobile plant because of slow automobile sales. Andy is looking for a new job. Andy is considered

Discouraged workers fall into which of the following population categories?

The working- age population can be divided into two groups,

-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 cost of the CPI basket in 2009?

The largest category of the unemployed are

The is the total number of people aged 16 years and older (and not in jail, hospital or institutional care) while the is the number of people employed and the unemployed.

If the CPI for this year is 220 and the CPI for last year was 215, the inflation rate is

At the end of last year the Consumer Price Index was equal to 163.8 and at the end of this year it was equal to 157.5. What is the inflation rate over this time period?

Because of the biases in calculating the CPI, actual inflation is

In a country with a working- age population of 100 million, 70 million workers are employed and 5 million workers are unemployed. What is the labor force participation rate?

Structural unemployment is the result of

What is potential GDP and what is the relationship between actual and potential real GDP?

Which type of unemployment increases during a recession?

Hyperinflation is defined as

What are the three types of unemployment and how do they change over the business cycle?

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