Question 1

A recent accounting graduate from a major business school is searching for a place to begin his career as an accountant. This individual is best considered as

Accepted Answer

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

Question 2

If more unemployed workers stop looking for work, the unemployment rate will

Accepted Answer

A)  rise. 
B)  not change. 
C)  fall. 
D)  probably change, but in an unpredictable direction. 
A)  rise. 
B)  not change. 
C)  fall. 
D)  probably change, but in an unpredictable direction.

Question 3

The unemployment rate generally falls during _ in the business cycle.

Accepted Answer

A)  a peak 
B)  a trough 
C)  a recession 
D)  an expansion 
A)  a peak 
B)  a trough 
C)  a recession 
D)  an expansion

Question 4

If the people who take early retirement are not counted in the working- age population, then

Accepted Answer

A)  the unemployment rate would be lower. 
B)  the labor force participation rate would be higher. 
C)  the labor force participation rate would be less. 
D)  the unemployment rate would be higher. 
A)  the unemployment rate would be lower. 
B)  the labor force participation rate would be higher. 
C)  the labor force participation rate would be less. 
D)  the unemployment rate would be higher.

Question 5

If the price level last year was 220 and this year is 250, what is the inflation rate between the two years?

Accepted Answer

A)  12.2 percent 
B)  13.6 percent 
C)  20 percent 
D)  30 percent 
A)  12.2 percent 
B)  13.6 percent 
C)  20 percent 
D)  30 percent

Question 6

If the price level for the last three months has been 112, 125, and 126, we would say

Accepted Answer

A)  inflation was more rapid between the first and second month than between the second and third month. 
B)  inflation has steadily increased over the three months. 
C)  inflation has been constant over the three months. 
D)  inflation was less rapid between the first and second month than between the second and third month. 
A)  inflation was more rapid between the first and second month than between the second and third month. 
B)  inflation has steadily increased over the three months. 
C)  inflation has been constant over the three months. 
D)  inflation was less rapid between the first and second month than between the second and third month.

Question 7

If this year's price level exceeds last year's,

Accepted Answer

A)  the inflation rate between these years has been positive. 
B)  deflation is occurring. 
C)  no relative price changes are occurring. 
D)  the inflation rate is accelerating. 
A)  the inflation rate between these years has been positive. 
B)  deflation is occurring. 
C)  no relative price changes are occurring. 
D)  the inflation rate is accelerating.

Question 8

The natural unemployment rate

Accepted Answer

A)  rises with a decrease in frictional unemployment. 
B)  rises with an increase in cyclical unemployment. 
C)  falls with an increase in cyclical unemployment. 
D)  rises with an increase in structural unemployment. 
A)  rises with a decrease in frictional unemployment. 
B)  rises with an increase in cyclical unemployment. 
C)  falls with an increase in cyclical unemployment. 
D)  rises with an increase in structural unemployment.

Question 9

If the CPI was 132.5 at the end of last year and 140.2 at the end of this year, the inflation rate over these two years was

Accepted Answer

A)  5.4 percent. 
B)  7.7 percent. 
C)  4.4 percent. 
D)  5.8 percent. 
A)  5.4 percent. 
B)  7.7 percent. 
C)  4.4 percent. 
D)  5.8 percent.

Question 10

Which of the following best fits the definition of unemployed?

Accepted Answer

A)  working less than a full work week 
B)  retired and not working 
C)  not working but looking for a job 
D)  not working and not looking for work 
A)  working less than a full work week 
B)  retired and not working 
C)  not working but looking for a job 
D)  not working and not looking for work

Question 11

The equals the number of .

Accepted Answer

A)  labor force; unemployed and employed persons 
B)  unemployment rate; people unemployed 
C)  working age population; employed persons 
D)  labor force; persons over 16 years old 
A)  labor force; unemployed and employed persons 
B)  unemployment rate; people unemployed 
C)  working age population; employed persons 
D)  labor force; persons over 16 years old

Question 12

The relationship between the unemployment rate and the natural unemployment rate is that the unemployment rate

Accepted Answer

A)  fluctuates about the natural rate. 
B)  is always above the natural rate. 
C)  is always below the natural rate. 
D)  equals the natural rate. 
A)  fluctuates about the natural rate. 
B)  is always above the natural rate. 
C)  is always below the natural rate. 
D)  equals the natural rate.

Question 13

The employment- to- population ratio is equal to 100 multiplied by the number of

Accepted Answer

A)  unemployed people divided by the total population. 
B)  employed people divided by the working- age population. 
C)  unemployed people divided by the working age population. 
D)  employed people divided by the total population. 
A)  unemployed people divided by the total population. 
B)  employed people divided by the working- age population. 
C)  unemployed people divided by the working age population. 
D)  employed people divided by the total population.

Question 14

Suppose the country of Tiny Town decided to open its borders to free trade. As a result, a number of its workers lost their jobs to international competition and can't find new jobs because their skills don't match what is required for job openings. The workers who lost their jobs would best be considered part of

Accepted Answer

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

Question 15

Which of the following correctly describes "frictional unemployment"?

Accepted Answer

A)  Frictional unemployment is due mainly to job leavers. 
B)  Frictional unemployment is due mainly to job losers. 
C)  Frictional unemployment is a normal occurrence in a growing economy. 
D)  Frictional unemployment occurs mainly during recessions. 
A)  Frictional unemployment is due mainly to job leavers. 
B)  Frictional unemployment is due mainly to job losers. 
C)  Frictional unemployment is a normal occurrence in a growing economy. 
D)  Frictional unemployment occurs mainly during recessions.

Question 16

Which labor market statistic tends rise during recessions and fall during expansions?

Accepted Answer

A)  the employment- to- population ratio 
B)  aggregate hours 
C)  the labor- force participation rate 
D)  the unemployment rate 
A)  the employment- to- population ratio 
B)  aggregate hours 
C)  the labor- force participation rate 
D)  the unemployment rate

Question 17

-If 2003 is the reference base period, what is the price index for the CPI basket of goods for 2009 in the above table?

Accepted Answer

A)  97.3 
B)  128.0 
C)  102.8 
D)  zero because the price of CDs fell and the price of gasoline increased 
A)  97.3 
B)  128.0 
C)  102.8 
D)  zero because the price of CDs fell and the price of gasoline increased

Question 18

-The table above gives the U.S. CPI for six years. Calculate the inflation rates between 1997 to 1998, 1998 to 1999, 1999 to 2000, 2000 to 2001, and 2001 to 2002.

Accepted Answer

Between 1997 to 1998, the inflation rate

Question 19

Suppose the working- age population is 220 million, the labor force is 150 million, and the unemployment rate is 10 percent. The number of unemployed people is

Accepted Answer

A)  37 million. 
B)  7 million. 
C)  22 million. 
D)  15 million. 
A)  37 million. 
B)  7 million. 
C)  22 million. 
D)  15 million.

Question 20

Which of the following means that the CPI overstates the actual inflation rate?

Accepted Answer

A)  outlet substitution bias 
B)  quality change bias 
C)  new goods bias 
D)  All of the above cause the CPI to overstate inflation 
A)  outlet substitution bias 
B)  quality change bias 
C)  new goods bias 
D)  All of the above cause the CPI to overstate inflation

A recent accounting graduate from a major business school is searching for a place to begin his career as an accountant. This individual is best considered as

If more unemployed workers stop looking for work, the unemployment rate will

The unemployment rate generally falls during _ in the business cycle.

If the people who take early retirement are not counted in the working- age population, then

If the price level last year was 220 and this year is 250, what is the inflation rate between the two years?

If the price level for the last three months has been 112, 125, and 126, we would say

If this year's price level exceeds last year's,

The natural unemployment rate

If the CPI was 132.5 at the end of last year and 140.2 at the end of this year, the inflation rate over these two years was

Which of the following best fits the definition of unemployed?

The equals the number of .

The relationship between the unemployment rate and the natural unemployment rate is that the unemployment rate

The employment- to- population ratio is equal to 100 multiplied by the number of

Which of the following correctly describes "frictional unemployment"?

Which labor market statistic tends rise during recessions and fall during expansions?

-If 2003 is the reference base period, what is the price index for the CPI basket of goods for 2009 in the above table?

-The table above gives the U.S. CPI for six years. Calculate the inflation rates between 1997 to 1998, 1998 to 1999, 1999 to 2000, 2000 to 2001, and 2001 to 2002.

Suppose the working- age population is 220 million, the labor force is 150 million, and the unemployment rate is 10 percent. The number of unemployed people is

Which of the following means that the CPI overstates the actual inflation 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

A recent accounting graduate from a major business school is searching for a place to begin his career as an accountant. This individual is best considered as

If more unemployed workers stop looking for work, the unemployment rate will

The unemployment rate generally falls during _ in the business cycle.

If the people who take early retirement are not counted in the working- age population, then

If the price level last year was 220 and this year is 250, what is the inflation rate between the two years?

If the price level for the last three months has been 112, 125, and 126, we would say

If this year's price level exceeds last year's,

The natural unemployment rate

If the CPI was 132.5 at the end of last year and 140.2 at the end of this year, the inflation rate over these two years was

Which of the following best fits the definition of unemployed?

The equals the number of .

The relationship between the unemployment rate and the natural unemployment rate is that the unemployment rate

The employment- to- population ratio is equal to 100 multiplied by the number of

Which of the following correctly describes "frictional unemployment"?

Which labor market statistic tends rise during recessions and fall during expansions?

-If 2003 is the reference base period, what is the price index for the CPI basket of goods for 2009 in the above table?

-The table above gives the U.S. CPI for six years. Calculate the inflation rates between 1997 to 1998, 1998 to 1999, 1999 to 2000, 2000 to 2001, and 2001 to 2002.

Suppose the working- age population is 220 million, the labor force is 150 million, and the unemployment rate is 10 percent. The number of unemployed people is

Which of the following means that the CPI overstates the actual inflation 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