Question 1

When the economy moves into and out of recessions and expansions, the unemployment rate fluctuates around the

Accepted Answer

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

Question 3

Structural unemployment is

Accepted Answer

A)  associated with the general downturns in the economy. 
B)  almost always short-term in nature. 
C)  associated with the normal changing of jobs in a dynamic economy. 
D)  associated with the general decline of specific industries. 
A)  associated with the general downturns in the economy. 
B)  almost always short-term in nature. 
C)  associated with the normal changing of jobs in a dynamic economy. 
D)  associated with the general decline of specific industries.

Question 4

The unemployment rate equals [the number of people unemployed)/the population)] × 100.

Accepted Answer

A) True 
 B)False

Question 5

In a country with a working-age population of 130 million, 90 million workers are employed and 10 million workers are unemployed. What is the unemployment rate?

Accepted Answer

A)  10.0 percent 
B)  7.1 percent 
C)  7.7 percent 
D)  5.0 percent 
A)  10.0 percent 
B)  7.1 percent 
C)  7.7 percent 
D)  5.0 percent

Question 6

The labor force is the sum of the working-age population and the number of unemployed people.

Accepted Answer

A) True 
 B)False

Question 7

Unemployment caused by changes in technology is called __________unemployment.

Accepted Answer

A)  structural 
B)  frictional 
C)  cyclical 
D)  techno 
A)  structural 
B)  frictional 
C)  cyclical 
D)  techno

Question 8

Ms. Krupsky has shorthand and typing skills and still finds herself unemployed. In todayʹs economy, Ms. Krupsky is an example of what type of unemployment?

Accepted Answer

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

Question 9

When a woman reenters the labor force and looks for a job after spending time at home raising a child,

Accepted Answer

A)  structural unemployment decreases. 
B)  frictional and cyclical unemployment increase. 
C)  cyclical unemployment increases. 
D)  frictional unemployment increases. 
A)  structural unemployment decreases. 
B)  frictional and cyclical unemployment increase. 
C)  cyclical unemployment increases. 
D)  frictional unemployment increases.

Question 10

Frictional unemployment increases when

Accepted Answer

A)  real GDP decreases and the unemployment rate rises. 
B)  discouraged workers drop out of the work force. 
C)  workers are replaced by machines and the unemployed workers do not have the skills to perform new jobs. 
D)  the number of workers who quit one job to find another increases. 
A)  real GDP decreases and the unemployment rate rises. 
B)  discouraged workers drop out of the work force. 
C)  workers are replaced by machines and the unemployed workers do not have the skills to perform new jobs. 
D)  the number of workers who quit one job to find another increases.

Question 11

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

Question 12

Why is there unemployment even when the economy is at ʺfull employmentʺ?

Accepted Answer

There is unemployment even at ʺfull empl

Question 13

The unemployment rate is defined as the

Accepted Answer

A)  percentage of the working-age population not working. 
B)  percentage of the population not working. 
C)  percentage of the labor force not working. 
D)  number of people not working. 
A)  percentage of the working-age population not working. 
B)  percentage of the population not working. 
C)  percentage of the labor force not working. 
D)  number of people not working.

Question 14

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

Accepted Answer

A)  1400. 
B)  1100. 
C)  1500. 
D)  1000. 
A)  1400. 
B)  1100. 
C)  1500. 
D)  1000.

Question 15

Including marginally attached workers in the calculation of the unemployment rate would

Accepted Answer

A)  increase the reported rate. 
B)  not change the reported rate. 
C)  lower the reported rate. 
D)  change the reported rate, but in an unpredictable manner. 
A)  increase the reported rate. 
B)  not change the reported rate. 
C)  lower the reported rate. 
D)  change the reported rate, but in an unpredictable manner.

Question 16

How is the unemployment rate calculated? Include in your answer the process by which the U.S. Census Bureau classifies the data it collects in its Current Population Survey.

Accepted Answer

The U.S. Census Bureau conducts the Curr

Question 17

What is the definition of the unemployment rate? How are part -time workers and discouraged workers treated when calculating the unemployment rate?

Accepted Answer

The definition of the unemployment rate

Question 18

$$\begin{array} { | c | l | l | l | } 
\hline && { 2008 } & 2009 \
\hline \text { Item } & \text { Quantity } & \text { Frice } & \text { Price } \
\hline \text { Movie tickets } & 4 & \$ 5.00 & \$ 7.50 \
\hline \begin{array} { c } 
\text { Bags of } \
\text { popcorn }
\end{array} & 2 & \$ 3.00 & \$ 3.00 \
\hline \text { Drinks of soda } & 4 & \$ 1.00 & \$ 1.50 \
\hline
\end{array}$$
-The information in the table above gives the 2008 reference base period CPI basket and prices used to construct the CPI for a small nation. It also has the 2009 prices. What is the value of the CPI for 2009?

Accepted Answer

A)  133 
B)  100 
C)  140 
D)  75 
A)  133 
B)  100 
C)  140 
D)  75

Question 19

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

Question 20

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

Accepted Answer

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

When the economy moves into and out of recessions and expansions, the unemployment rate fluctuates around the

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

Structural unemployment is

The unemployment rate equals [the number of people unemployed)/the population)] × 100.

In a country with a working-age population of 130 million, 90 million workers are employed and 10 million workers are unemployed. What is the unemployment rate?

The labor force is the sum of the working-age population and the number of unemployed _people.

Unemployment caused by changes in technology is called __________unemployment.

Ms. Krupsky has shorthand and typing skills and still finds herself unemployed. In todayʹs economy, Ms. Krupsky is an example of what type of unemployment?

When a woman reenters the labor force and looks for a job after spending time at home raising a child,

Frictional unemployment increases when

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

Why is there unemployment even when the economy is at ʺfull employmentʺ?

The unemployment rate is defined as the

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

Including marginally attached workers in the calculation of the unemployment rate would

How is the unemployment rate calculated? Include in your answer the process by which the U.S. Census Bureau classifies the data it collects in its Current Population Survey.

What is the definition of the unemployment rate? How are part -time workers and discouraged workers treated when calculating the unemployment rate?

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

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

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

When the economy moves into and out of recessions and expansions, the unemployment rate fluctuates around the

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

Structural unemployment is

The unemployment rate equals [the number of people unemployed)/the population)] × 100.

In a country with a working-age population of 130 million, 90 million workers are employed and 10 million workers are unemployed. What is the unemployment rate?

The labor force is the sum of the working-age population and the number of unemployed people.

Unemployment caused by changes in technology is called __________unemployment.

Ms. Krupsky has shorthand and typing skills and still finds herself unemployed. In todayʹs economy, Ms. Krupsky is an example of what type of unemployment?

When a woman reenters the labor force and looks for a job after spending time at home raising a child,

Frictional unemployment increases when

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

Why is there unemployment even when the economy is at ʺfull employmentʺ?

The unemployment rate is defined as the

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

Including marginally attached workers in the calculation of the unemployment rate would

How is the unemployment rate calculated? Include in your answer the process by which the U.S. Census Bureau classifies the data it collects in its Current Population Survey.

What is the definition of the unemployment rate? How are part -time workers and discouraged workers treated when calculating the unemployment rate?

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

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

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

The labor force is the sum of the working-age population and the number of unemployed _people.