Question 1

How does the unemployment rate change in a recession and in an expansion?

Accepted Answer

During a recession, the unempl

Question 2

The unemployment rate generally falls during __________in the business cycle.

Accepted Answer

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

Question 3

The official U-3 unemployment rate

Accepted Answer

A)  counts discouraged workers as unemployed. 
B)  counts people with part-time jobs who want full-time jobs as unemployed. 
C)  includes persons without a job, whether they are actively searching for work or not. 
D)  includes persons without a job who have made efforts in the last week to find a job. 
A)  counts discouraged workers as unemployed. 
B)  counts people with part-time jobs who want full-time jobs as unemployed. 
C)  includes persons without a job, whether they are actively searching for work or not. 
D)  includes persons without a job who have made efforts in the last week to find a job.

Question 4

In a country with a working-age population of 300 million, 230 million workers are employed and 40 million workers are unemployed. What is the labor force participation rate?

Accepted Answer

A)  5 percent 
B)  90 percent 
C)  65 percent 
D)  100 percent 
A)  5 percent 
B)  90 percent 
C)  65 percent 
D)  100 percent

Question 5

Full employment occurs when

Accepted Answer

A)  structural unemployment is zero. 
B)  frictional unemployment is zero. 
C)  cyclical and frictional unemployment are zero. 
D)  cyclical unemployment is zero. 
A)  structural unemployment is zero. 
B)  frictional unemployment is zero. 
C)  cyclical and frictional unemployment are zero. 
D)  cyclical unemployment is zero.

Question 6

The unemployment rate is at the natural unemployment rate when

Accepted Answer

A)  frictional unemployment equals zero. 
B)  cyclical unemployment equals zero. 
C)  structural unemployment equals zero. 
D)  all types of unemployment equal zero. 
A)  frictional unemployment equals zero. 
B)  cyclical unemployment equals zero. 
C)  structural unemployment equals zero. 
D)  all types of unemployment equal zero.

Question 7

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

Question 8

The labor force is defined as

Accepted Answer

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

Question 9

Suppose the current unemployment rate is 5 percent, the labor force is 400 million people, the labor force participation rate is 80 percent and the working-age population is 500 million people. What number of people are unemployed?

Accepted Answer

A)  25 million people 
B)  100 million people 
C)  20 million people 
D)  5 million people 
A)  25 million people 
B)  100 million people 
C)  20 million people 
D)  5 million people

Question 10

The labor force is defined as the number of people who

Accepted Answer

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

Question 11

If unemployment is at the natural rate, then there

Accepted Answer

A)  will be only cyclical unemployment. 
B)  is no frictional unemployment. 
C)  is no cyclical unemployment. 
D)  will be cyclical and frictional unemployment but not structural unemployment. 
A)  will be only cyclical unemployment. 
B)  is no frictional unemployment. 
C)  is no cyclical unemployment. 
D)  will be cyclical and frictional unemployment but not structural unemployment.

Question 12

Frictional unemployment comes about because of

Accepted Answer

A)  a mismatch between skills and available jobs. 
B)  friction between labor and management. 
C)  a general economic slowdown. 
D)  normal labor market turnover. 
A)  a mismatch between skills and available jobs. 
B)  friction between labor and management. 
C)  a general economic slowdown. 
D)  normal labor market turnover.

Question 13

The working-age population is defined as the number of

Accepted Answer

A)  people looking for work. 
B)  people over the age of 16 who are not in jail, hospital, or other institution. 
C)  people working full-time jobs who are over the age of 16. 
D)  people who have a job. 
A)  people looking for work. 
B)  people over the age of 16 who are not in jail, hospital, or other institution. 
C)  people working full-time jobs who are over the age of 16. 
D)  people who have a job.

Question 14

$$\begin{array} { | c | l | l | l | } 
\hline && { 2008 } & 2009 \
\hline \text { Item } & \text { Quantity } & \text { Frice } & \text { Price } \
\hline \text { Movie tickets } & 4 & \$ 5.00 & \$ 7.50 \
\hline \begin{array} { c } 
\text { Bags of } \
\text { popcorn }
\end{array} & 2 & \$ 3.00 & \$ 3.00 \
\hline \text { Drinks of soda } & 4 & \$ 1.00 & \$ 1.50 \
\hline
\end{array}$$
-The CPI basket contains 400 oranges and 800 pens. In the base year, the price of an orange is $1.00 and the price of a pen is $0.75. This year, urban consumers each buy 300 oranges at $2.00 each and 850 pens at $1.00 each. The CPI this year is__________ .

Accepted Answer

A)  140 
B)  160 
C)  1.60 
D)  62.5 
A)  140 
B)  160 
C)  1.60 
D)  62.5

Question 15

If last yearʹs price level was 100 and this yearʹs price level is 114, over the year the inflation rate has been

Accepted Answer

A)  100 percent. 
B)  14 percent. 
C)  12 percent 
D)  114 percent. 
A)  100 percent. 
B)  14 percent. 
C)  12 percent 
D)  114 percent.

Question 16

Suppose that last year the Consumer Price Index was 124; this year it is 130.7. What was the inflation rate between these years?

Accepted Answer

A)  5.4 percent 
B)  30.7 percent 
C)  5.1 percent 
D)  6.7 percent 
A)  5.4 percent 
B)  30.7 percent 
C)  5.1 percent 
D)  6.7 percent

Question 17

Consider the following statement: ʺReal GDP and potential GDP are always equal.ʺ Is this statement true or false? Explain your answer.

Accepted Answer

Real GDP often differs from potential GD

Question 18

If the CPI was 122.3 at the end of last year and 124.5 at the end of this year, the inflation rate over these two years was

Accepted Answer

A)  22.5 percent. 
B)  18.0 percent. 
C)  2.5 percent. 
D)  1.8 percent. 
A)  22.5 percent. 
B)  18.0 percent. 
C)  2.5 percent. 
D)  1.8 percent.

How does the unemployment rate change in a recession and in an expansion?

The unemployment rate generally falls during __________in the business cycle.

The official U-3 unemployment rate

In a country with a working-age population of 300 million, 230 million workers are employed and 40 million workers are unemployed. What is the labor force participation rate?

Full employment occurs when

The unemployment rate is at the natural unemployment rate when

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

The labor force is defined as

Suppose the current unemployment rate is 5 percent, the labor force is 400 million people, the labor force participation rate is 80 percent and the working-age population is 500 million people. What number of people are unemployed?

The labor force is defined as the number of people who

If unemployment is at the natural rate, then there

Frictional unemployment comes about because of

The working-age population is defined as the number of

If last yearʹs price level was 100 and this yearʹs price level is 114, over the year the inflation rate has been

Suppose that last year the Consumer Price Index was 124; this year it is 130.7. What was the inflation rate between these years?

Consider the following statement: ʺReal GDP and potential GDP are always equal.ʺ Is this statement true or false? Explain your answer.

If the CPI was 122.3 at the end of last year and 124.5 at the end of this year, the inflation rate over these two years was

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

How does the unemployment rate change in a recession and in an expansion?

The unemployment rate generally falls during __________in the business cycle.

The official U-3 unemployment rate

In a country with a working-age population of 300 million, 230 million workers are employed and 40 million workers are unemployed. What is the labor force participation rate?

Full employment occurs when

The unemployment rate is at the natural unemployment rate when

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

The labor force is defined as

Suppose the current unemployment rate is 5 percent, the labor force is 400 million people, the labor force participation rate is 80 percent and the working-age population is 500 million people. What number of people are unemployed?

The labor force is defined as the number of people who

If unemployment is at the natural rate, then there

Frictional unemployment comes about because of

The working-age population is defined as the number of

If last yearʹs price level was 100 and this yearʹs price level is 114, over the year the inflation rate has been

Suppose that last year the Consumer Price Index was 124; this year it is 130.7. What was the inflation rate between these years?

Consider the following statement: ʺReal GDP and potential GDP are always equal.ʺ Is this statement true or false? Explain your answer.

If the CPI was 122.3 at the end of last year and 124.5 at the end of this year, the inflation rate over these two years was

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