Question 1

The population of Tiny Town is 100 people and the labor force is made up of 75 people. If 5 of these people are unemployed, the unemployment rate is

Accepted Answer

A)  5/75 × 100. 
B)  5/100 × 100. 
C)  5/80 × 100. 
D)  There is not enough information provided to calculate the unemployment rate. 
A)  5/75 × 100. 
B)  5/100 × 100. 
C)  5/80 × 100. 
D)  There is not enough information provided to calculate the unemployment rate.

Question 2

As currently calculated, the CPI tends to overstate the true inflation rate because

Accepted Answer

A)  the market basket fails to weigh housing costs sufficiently. 
B)  the market basket selected is inappropriate. 
C)  it fails to correctly measure quality changes for some products. 
D)  we cannot know what the true inflation rate is. 
A)  the market basket fails to weigh housing costs sufficiently. 
B)  the market basket selected is inappropriate. 
C)  it fails to correctly measure quality changes for some products. 
D)  we cannot know what the true inflation rate is.

Question 3

If the labor force participation rate is rising and the working- age population is not changing, then the

Accepted Answer

A)  number of unemployed people is falling and the size of the labor force is rising. 
B)  size of the labor force is rising. 
C)  number of unemployed people is rising and the size of the labor force is falling. 
D)  size of the labor force is falling. 
A)  number of unemployed people is falling and the size of the labor force is rising. 
B)  size of the labor force is rising. 
C)  number of unemployed people is rising and the size of the labor force is falling. 
D)  size of the labor force is falling.

Question 4

The labor force is defined as

Accepted Answer

A)  workers with jobs and unemployed workers. 
B)  all people capable of work. 
C)  people with full time jobs. 
D)  All of the above answers are correct. 
A)  workers with jobs and unemployed workers. 
B)  all people capable of work. 
C)  people with full time jobs. 
D)  All of the above answers are correct.

Question 5

List and define the three types of unemployment.

Accepted Answer

The three types are frictional, structur

Question 6

Which statement correctly describes "structural unemployment?"

Accepted Answer

A)  Structural unemployment is also called "frictional unemployment." 
B)  Structural unemployment occurs even when the economy is at the natural unemployment rate. 
C)  Structural unemployment occurs mainly during recessions. 
D)  The amount of structural unemployment depends on normal labor turnover. 
A)  Structural unemployment is also called "frictional unemployment." 
B)  Structural unemployment occurs even when the economy is at the natural unemployment rate. 
C)  Structural unemployment occurs mainly during recessions. 
D)  The amount of structural unemployment depends on normal labor turnover.

Question 7

-In the above table, the size of the labor force is

Accepted Answer

A)  100 million. 
B)  155 million. 
C)  140 million. 
D)  210 million. 
A)  100 million. 
B)  155 million. 
C)  140 million. 
D)  210 million.

Question 8

-Using the information in the table above, calculate the employment- to- population ratio.

Accepted Answer

A)  75 percent 
B)  50 percent 
C)  23.2 percent 
D)  65 percent 
A)  75 percent 
B)  50 percent 
C)  23.2 percent 
D)  65 percent

Question 9

Which of the following people would NOT be counted as unemployed in the Current Population Survey?

Accepted Answer

A)  The person is without a job and is making no effort to find work. 
B)  The person is waiting to start a new job in thirty days. 
C)  The person is awaiting recall to a job after being laid off. 
D)  The person has no job and has made an effort to find work in the last four weeks. 
A)  The person is without a job and is making no effort to find work. 
B)  The person is waiting to start a new job in thirty days. 
C)  The person is awaiting recall to a job after being laid off. 
D)  The person has no job and has made an effort to find work in the last four weeks.

Question 10

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 unemployment rate?

Accepted Answer

A)  15.4 percent 
B)  11.4 percent 
C)  9.0 percent 
D)  13.3 percent 
A)  15.4 percent 
B)  11.4 percent 
C)  9.0 percent 
D)  13.3 percent

Question 11

Suppose that over a period of years the country of Quasiland switched from being an agriculturally- based economy to a technologically- based economy. As a result, many people lost jobs because they lacked the correct skills. These people would be considered part of

Accepted Answer

A)  discouraged workers. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  frictional unemployment. 
A)  discouraged workers. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  frictional unemployment.

Question 12

How does the Current Population Survey determine if a person should be counted in the labor force?

Accepted Answer

To be in the labor force, a person must

Question 13

A typical household in Orangeland consumes only orange juice and shorts. Last year, which was the base year, t household spent $400 on juice and $120 on shorts. In the base year, juice was $2 a bottle and shorts were $10 a pa year, juice is $3 a bottle, shorts are $12 a pair, and a typical household has bought 180 bottles of juice and 14 pair shorts.
a) What is the basket used in the CPI?
b) Calculate the CPI in the current year.
c) Calculate the inflation rate in the current year.
d) Is the inflation rate that you've calculated likely to be biased? Why or why not?

Accepted Answer

a) The CPI basket is the quantities boug

Question 14

-The labor force participation rate shows the percentage of

Accepted Answer

A)  non- institutionalized working- age people who are actually working or seeking employment. 
B)  people not working, but who want to work. 
C)  people who are not actively participating in meaningful economic activity. 
D)  new entrants into the labor force. 
A)  non- institutionalized working- age people who are actually working or seeking employment. 
B)  people not working, but who want to work. 
C)  people who are not actively participating in meaningful economic activity. 
D)  new entrants into the labor force.

Question 15

The natural unemployment rate is

Accepted Answer

A)  the unemployment rate when the economy is at potential GDP. 
B)  not a fixed percentage of the labor force. 
C)  occurs when only there is no cyclical unemployment present. 
D)  All of the above answers are correct. 
A)  the unemployment rate when the economy is at potential GDP. 
B)  not a fixed percentage of the labor force. 
C)  occurs when only there is no cyclical unemployment present. 
D)  All of the above answers are correct.

Question 16

All people in the working- age population can be divided into

Accepted Answer

A)  labor force participants. 
B)  potential employees. 
C)  either over- employed or under- employed. 
D)  employed, unemployed, or not in the labor force. 
A)  labor force participants. 
B)  potential employees. 
C)  either over- employed or under- employed. 
D)  employed, unemployed, or not in the labor force.

Question 17

Who of the following is counted as unemployed?

Accepted Answer

A)  Homer, a full- time student at a vocational school 
B)  Kim, a worker on strike from her company for a week 
C)  Rene, a retired chemist 
D)  Glenn, a student who just graduated from college last week and is currently looking for a job 
A)  Homer, a full- time student at a vocational school 
B)  Kim, a worker on strike from her company for a week 
C)  Rene, a retired chemist 
D)  Glenn, a student who just graduated from college last week and is currently looking for a job

Question 18

Based on the following data for the country of Tiny Town, the unemployment rate equals: Population = 100
Labor force = 80
Number of employed persons = 70 Number of discouraged workers = 5

Accepted Answer

A)  15/80 × 100. 
B)  10/80 × 100. 
C)  10/100 × 100. 
D)  5/70 × 100. 
A)  15/80 × 100. 
B)  10/80 × 100. 
C)  10/100 × 100. 
D)  5/70 × 100.

Question 19

Unemployment that is the result of recessions is called

Accepted Answer

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

Question 20

Using the notation Pt to designate this period's price level and Pt- 1 to designate last period's price level, the formula for measuring the inflation rate from last period to this period is

Accepted Answer

A)  [(Pt- 1 - Pt) / Pt- 1] × 100. 
B)  [(Pt - Pt- 1) / Pt- 1] × 100. 
C)  [(Pt- 1 - Pt) / Pt] × 100. 
D)  [(Pt - Pt- 1) / Pt] × 100. 
A)  [(Pt- 1 - Pt) / Pt- 1] × 100. 
B)  [(Pt - Pt- 1) / Pt- 1] × 100. 
C)  [(Pt- 1 - Pt) / Pt] × 100. 
D)  [(Pt - Pt- 1) / Pt] × 100.

The population of Tiny Town is 100 people and the labor force is made up of 75 people. If 5 of these people are unemployed, the unemployment rate is

As currently calculated, the CPI tends to overstate the true inflation rate because

If the labor force participation rate is rising and the working- age population is not changing, then the

The labor force is defined as

List and define the three types of unemployment.

Which statement correctly describes "structural unemployment?"

-In the above table, the size of the labor force is

-Using the information in the table above, calculate the employment- to- population ratio.

Which of the following people would NOT be counted as unemployed in the Current Population Survey?

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 unemployment rate?

Suppose that over a period of years the country of Quasiland switched from being an agriculturally- based economy to a technologically- based economy. As a result, many people lost jobs because they lacked the correct skills. These people would be considered part of

How does the Current Population Survey determine if a person should be counted in the labor force?

-The labor force participation rate shows the percentage of

The natural unemployment rate is

All people in the working- age population can be divided into

Who of the following is counted as unemployed?

Based on the following data for the country of Tiny Town, the unemployment rate equals: Population = 100 Labor force = 80 Number of employed persons = 70 Number of discouraged workers = 5

Unemployment that is the result of recessions is called

Using the notation P_tto designate this period's price level and P_t_-₁to designate last period's price level, the formula for measuring the inflation rate from last period to this period is

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 population of Tiny Town is 100 people and the labor force is made up of 75 people. If 5 of these people are unemployed, the unemployment rate is

As currently calculated, the CPI tends to overstate the true inflation rate because

If the labor force participation rate is rising and the working- age population is not changing, then the

The labor force is defined as

List and define the three types of unemployment.

Which statement correctly describes "structural unemployment?"

-In the above table, the size of the labor force is

-Using the information in the table above, calculate the employment- to- population ratio.

Which of the following people would NOT be counted as unemployed in the Current Population Survey?

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 unemployment rate?

Suppose that over a period of years the country of Quasiland switched from being an agriculturally- based economy to a technologically- based economy. As a result, many people lost jobs because they lacked the correct skills. These people would be considered part of

How does the Current Population Survey determine if a person should be counted in the labor force?

-The labor force participation rate shows the percentage of

The natural unemployment rate is

All people in the working- age population can be divided into

Who of the following is counted as unemployed?

Based on the following data for the country of Tiny Town, the unemployment rate equals: Population = 100 Labor force = 80 Number of employed persons = 70 Number of discouraged workers = 5

Unemployment that is the result of recessions is called

Using the notation Pt to designate this period's price level and Pt- 1 to designate last period's price level, the formula for measuring the inflation rate from last period to this period is

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

Using the notation P_tto designate this period's price level and P_t_-₁to designate last period's price level, the formula for measuring the inflation rate from last period to this period is