Question 1

Frictional, structural and cyclical unemployment are three classifications of unemployment.)

Accepted Answer

A) True 
 B)False

Question 2

Consider the following scenario. Initially the economy has 90 million people working, 10 million people unemployed, and 20 million people not in the labor force. Then prospects for the economy improve. Five million people who previously were not in the labor force now join the 10 million previously unemployed in looking for work. For now, the economy remains with 90 million workers. What happens to the unemployment rate?

Accepted Answer

The unemployment rate rises fr

Question 3

The New York Times reported in november 2008 that 240,000 additional people lost their jobs which increased the unemployment rate to 6.5 percent. In addition, it was noted that a large number of college graduates were ʺtaking jobs that do not require a college degree.ʺ It was also expected that
ʺteens will be thrown out of the labor market. causing youths to miss experienceʺ that could help
Them prepare for higher-skilled jobs.
The article reflects the idea that unemployment is a problem because it results in

Accepted Answer

A)  a decrease in the labor force. 
B)  fewer discouraged workers. 
C)  a loss of income. 
D)  a loss of human capital. 
A)  a decrease in the labor force. 
B)  fewer discouraged workers. 
C)  a loss of income. 
D)  a loss of human capital.

Question 4

From 1980 to 2000 the trend in the labor force participation rate was__________ and from 2000 to 2010 the trend was __________.

Accepted Answer

A)  upward; upward 
B)  downward; upward 
C)  upward; downward 
D)  downward; downward 
A)  upward; upward 
B)  downward; upward 
C)  upward; downward 
D)  downward; downward

Question 5

In the United States, the inflation rate has

Accepted Answer

A)  risen constantly over the past 30 years. 
B)  remained almost constant over the past 25 years. 
C)  risen and fallen since the 1970s. 
D)  fallen as a result of OPEC oil price hikes. 
A)  risen constantly over the past 30 years. 
B)  remained almost constant over the past 25 years. 
C)  risen and fallen since the 1970s. 
D)  fallen as a result of OPEC oil price hikes.

Question 6

The current U.S. population is about 300 million yet the current U.S. labor force is only about 150 million. What subtractions are made from the population number to set it equal to the labor force?

Accepted Answer

The population is first reduced by elimi

Question 7

If the number of people unemployed is 100, the number of people employed is 1000, and the working-age population is 1400, then the unemployment rate is

Accepted Answer

A)  9.1 percent. 
B)  10 percent. 
C)  6.6 percent. 
D)  7.1 percent. 
A)  9.1 percent. 
B)  10 percent. 
C)  6.6 percent. 
D)  7.1 percent.

Question 8

Why is unemployment a problem?

Accepted Answer

Unemployment is a problem for both the n

Question 9

Suppose the country of Quasiland experienced a decrease in real GDP and people were laid off from their jobs. The people would be considered part of

Accepted Answer

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

Question 10

In late 2006, the unemployment rate increased from 4.4 percent to 4.5 percent. It was reported that new jobs were created in several sectors including accounting, engineering services, computer design and education. These increases offset job losses in the construction and automobile industries. At the
Same time, the natural unemployment rate was estimated to be about 5.5 percent
Based on the story, the labor market reflects

Accepted Answer

A)  a negative output gap. 
B)  cyclical unemployment. 
C)  efficiency wages. 
D)  a positive output gap. 
A)  a negative output gap. 
B)  cyclical unemployment. 
C)  efficiency wages. 
D)  a positive output gap.

Question 11

The employment-to-population ratio is equal to the number of

Accepted Answer

A)  unemployed people divided by the total population then multiplied by 100. 
B)  employed people divided by the total population then multiplied by 100. 
C)  employed people divided by the working-age population then multiplied by 100. 
D)  unemployed people divided by the working age population then multiplied by 100. 
A)  unemployed people divided by the total population then multiplied by 100. 
B)  employed people divided by the total population then multiplied by 100. 
C)  employed people divided by the working-age population then multiplied by 100. 
D)  unemployed people divided by the working age population then multiplied by 100.

Question 12

Cyclical unemployment

Accepted Answer

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

Question 13

A labor force survey in Brownland records the following data: Employed: 189,000
Unemployed: 15,000
Not in the labor force: 84,000
a) Calculate the unemployment rate.
b) Calculate the labor force participation rate.

Accepted Answer

a) The unemployment rate is the number o

Question 14

The consumer price index CPI)

Accepted Answer

A)  measures the increase in the prices of the goods included in GDP. 
B)  is the ratio of the average price of a typical basket of goods to the cost of producing those goods. 
C)  compares the cost in the current period to the cost in a reference base period of a basket of goods typically consumed in the base period. 
D)  compares the cost of the typical basket of goods consumed in period 1 to the cost of a basket of goods typically consumed in period 2. 
A)  measures the increase in the prices of the goods included in GDP. 
B)  is the ratio of the average price of a typical basket of goods to the cost of producing those goods. 
C)  compares the cost in the current period to the cost in a reference base period of a basket of goods typically consumed in the base period. 
D)  compares the cost of the typical basket of goods consumed in period 1 to the cost of a basket of goods typically consumed in period 2.

Question 15

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

Accepted Answer

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

Question 16

The cost of inflation to society includes

Accepted Answer

A)  higher interest rates paid by borrowers. 
B)  the lost spending when people do not have enough money. 
C)  higher interest rates paid by the government on its debt. 
D)  unpredictable changes in the value of money. 
A)  higher interest rates paid by borrowers. 
B)  the lost spending when people do not have enough money. 
C)  higher interest rates paid by the government on its debt. 
D)  unpredictable changes in the value of money.

Question 17

Which of the following statements is incorrect?

Accepted Answer

A)  The working age population includes everyone over the age of 16. 
B)  The labor force is equal to the number of people employed plus the number of people unemployed. 
C)  The unemployment rate is the number of persons who are unemployed divided by the labor force then times 100. 
D)  The labor-force participation rate is the labor force divided by the working-age population then times 100. 
A)  The working age population includes everyone over the age of 16. 
B)  The labor force is equal to the number of people employed plus the number of people unemployed. 
C)  The unemployment rate is the number of persons who are unemployed divided by the labor force then times 100. 
D)  The labor-force participation rate is the labor force divided by the working-age population then times 100.

Question 18

Unemployment caused by people voluntarily leaving their jobs is classified as

Accepted Answer

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

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

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

Frictional, structural and cyclical unemployment are three classifications of unemployment.)

From 1980 to 2000 the trend in the labor force participation rate was and from 2000 to 2010 the trend was .

In the United States, the inflation rate has

The current U.S. population is about 300 million yet the current U.S. labor force is only about 150 million. What subtractions are made from the population number to set it equal to the labor force?

If the number of people unemployed is 100, the number of people employed is 1000, and the working-age population is 1400, then the unemployment rate is

Why is unemployment a problem?

Suppose the country of Quasiland experienced a decrease in real GDP and people were laid off from their jobs. The people would be considered part of

The employment-to-population ratio is equal to the number of

Cyclical unemployment

A labor force survey in Brownland records the following data: Employed: 189,000 Unemployed: 15,000 Not in the labor force: 84,000 a) Calculate the unemployment rate. b) Calculate the labor force participation rate.

The consumer price index CPI)

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

The cost of inflation to society includes

Which of the following statements is incorrect?

Unemployment caused by people voluntarily leaving their jobs is classified as

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

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

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: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters

Exam 5: Monitoring Jobs and Inflation

Frictional, structural and cyclical unemployment are three classifications of unemployment.)

From 1980 to 2000 the trend in the labor force participation rate was__________ and from 2000 to 2010 the trend was __________.

In the United States, the inflation rate has

The current U.S. population is about 300 million yet the current U.S. labor force is only about 150 million. What subtractions are made from the population number to set it equal to the labor force?

If the number of people unemployed is 100, the number of people employed is 1000, and the working-age population is 1400, then the unemployment rate is

Why is unemployment a problem?

Suppose the country of Quasiland experienced a decrease in real GDP and people were laid off from their jobs. The people would be considered part of

The employment-to-population ratio is equal to the number of

Cyclical unemployment

A labor force survey in Brownland records the following data: Employed: 189,000 Unemployed: 15,000 Not in the labor force: 84,000 a) Calculate the unemployment rate. b) Calculate the labor force participation rate.

The consumer price index CPI)

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

The cost of inflation to society includes

Which of the following statements is incorrect?

Unemployment caused by people voluntarily leaving their jobs is classified as

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

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

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: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters

From 1980 to 2000 the trend in the labor force participation rate was and from 2000 to 2010 the trend was .