Question 1

An unemployment rate of zero percent cannot be expected because

Accepted Answer

A)  cyclical unemployment will always exist. 
B)  some portion of the labor force will always be between jobs. 
C)  there are some people who do not want to work. 
D)  there will always be discouraged workers. 
A)  cyclical unemployment will always exist. 
B)  some portion of the labor force will always be between jobs. 
C)  there are some people who do not want to work. 
D)  there will always be discouraged workers.

Question 2

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. As they search for new jobs, these people are 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 3

$$\begin{array} { | l | l | c | } 
\hline  { \text { Year } } & \text { Price index } & \begin{array} { l } 
\text { Inflation rate } \
\text { (percent) }
\end{array} \
\hline 1 & 100 & \
\hline 2 & 117 & \text { A } \
\hline 3 & 125 & \text { B } \
\hline 4 & 120 & \text { C } \
\hline 5 & \mathrm { D } & 8.3 \
\hline 6 & 150 & \text { E } \
\hline
\end{array}$$
-In the table above, what inflation rate belongs in space A?

Accepted Answer

A)  -4.0 percent 
B)  8.3 percent 
C)  6.8 percent 
D)  17.0 percent 
A)  -4.0 percent 
B)  8.3 percent 
C)  6.8 percent 
D)  17.0 percent

Question 4

The table below shows data regarding Germany?s labor market. $$\begin{array} { | l | l | c | l | l | } 
\hline \text { Year } &\begin{array}{c}
\text { Labor Force } \
\text { (millions) }
\end{array} & \begin{array}{c}
\text { Number of } \
\text { Employed } \
\text { (millions) }
\end{array} & \begin{array}{c}
\text { Population } \
\text { (millions) }
\end{array} & \begin{array}{l}
\text { Working-age } \
\text { Population } \
\text { (millions) }
\end{array} \\hline 2006 & 43.7 & 39.01 & 82.3 & 54.9 \
\hline 2007 & 43.7 & 39.06 & 82.2 & 54.7 \
\hline 2008 & 43.6 & 39.8 & 82.1 & 54.6 \
\hline
\end{array}$$ The data show that Germany?s labor force participation rate is in 2007.

Accepted Answer

A)  67 percent 
B)  47.5 percent 
C)  78 percent 
D)  80 percent 
A)  67 percent 
B)  47.5 percent 
C)  78 percent 
D)  80 percent

Question 5

What is a discouraged worker? How do they affect the unemployment rate?

Accepted Answer

A discouraged worker is a person without

Question 6

The labor force is defined as the number of

Accepted Answer

A)  people with jobs, both part-time and full-time. 
B)  people who are employed and unemployed. 
C)  unemployed people. 
D)  people 16 and over. 
A)  people with jobs, both part-time and full-time. 
B)  people who are employed and unemployed. 
C)  unemployed people. 
D)  people 16 and over.

Question 7

Frictional unemployment is

Accepted Answer

A)  unemployment associated with the changing of jobs in a changing economy. 
B)  unemployment associated with business cycle recessions. 
C)  unemployment associated with declining industries. 
D)  long-term unemployment. 
A)  unemployment associated with the changing of jobs in a changing economy. 
B)  unemployment associated with business cycle recessions. 
C)  unemployment associated with declining industries. 
D)  long-term unemployment.

Question 8

When an individual is frictionally unemployed, the unemployment arises in part from

Accepted Answer

A)  the permanent elimination of jobs because of a change in the structure of the economy. 
B)  a reduction in the overall demand for workersʹ skills. 
C)  individuals searching for appropriate employment. 
D)  a short-term elimination of jobs because of a slowdown in business activity. 
A)  the permanent elimination of jobs because of a change in the structure of the economy. 
B)  a reduction in the overall demand for workersʹ skills. 
C)  individuals searching for appropriate employment. 
D)  a short-term elimination of jobs because of a slowdown in business activity.

Question 9

From 1980 to 2000 the trend in the employment-to-population ratio was __________and from 2000 to 2010 the trend was__________ .

Accepted Answer

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

Question 10

In the 1990s, video recordings were made primarily on tapes. However, in the 2000s DVDs became increasingly popular, leading to a sharp decline in video tapes. As a result, many people who manufactured tapes lost their jobs and didnʹt have the skills necessary to work making DVDs. This occurrence is best consider an example of

Accepted Answer

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

Question 11

$$\begin{array} { | l | c | l | l | } 
\hline  { \text { Item } } &  { \begin{array} { c } 
\text { Quantity } \
( 2010 )
\end{array} } & \begin{array} { c } 
\text { Price } \
( 2010 )
\end{array} & \begin{array} { c } 
\text { Price } \
( 2011 )
\end{array} \
\hline \text { Oranges } & 50 & \$ 0.90 & \$ 0.75 \
\hline \text { Bananas } & 100 & \$ 0.50 & \$ 0.95 \
\hline \text { Chicken } & 200 & \$ 2.00 & \$ 2.50 \
\hline \text { Beef } & 100 & \$ 5.00 & \$ 4.80 \
\hline \text { Bread } & 300 & \$ 1.75 & \$ 2.00 \
\hline
\end{array}$$
-The table above gives the CPI basket for 2010. Suppose that 2010 is the reference base period.
a) What is the cost of the CPI basket in 2010?
b) What is the cost of the CPI basket in 2011?
c) What is the CPI for 2010?
d) What is the CPI for 2011?

Accepted Answer

a) The cost of the CPI basket in 2010 is

Question 12

$$\begin{array} { | l | l | } 
\hline { \text { Component } } & \begin{array} { l } 
\text { Number of people } \
\text { (millions) }
\end{array} \
\hline \text { Under 16 } & 50 \
\hline \text { Working full-time } & 90 \
\hline \text { Working part-time } & 30 \
\hline \text { Retired } & 40 \
\hline \text { Unemployed } & 5 \
\hline
\end{array}$$
-Using the data in the above table, the labor force participation rate is

Accepted Answer

A)  96.0 percent. 
B)  66 percent. 
C)  75.7 percent. 
D)  58.1 percent. 
A)  96.0 percent. 
B)  66 percent. 
C)  75.7 percent. 
D)  58.1 percent.

Question 13

Last yearʹs price level was 120 and since then there has been a 5 percent inflation. This yearʹs price level is

Accepted Answer

A)  130. 
B)  125. 
C)  126. 
D)  none of the above 
A)  130. 
B)  125. 
C)  126. 
D)  none of the above

Question 14

When a student finishes college and begins looking for work,

Accepted Answer

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

Question 15

Suppose that the number of jobs in the fishing industry decreases but the number of jobs in the travel industry increases. Initially,__________ .

Accepted Answer

A)  cyclical unemployment increases 
B)  the economy remains at full employment 
C)  structural unemployment increases 
D)  there is a shortage of workers in both sectors 
A)  cyclical unemployment increases 
B)  the economy remains at full employment 
C)  structural unemployment increases 
D)  there is a shortage of workers in both sectors

Question 16

$$\begin{array} { | l | l | } 
\hline  { \text { Component } } & \begin{array} { l } 
\text { Number of people } \
\text { (millions) }
\end{array} \
\hline \text { Total population } & 246 \
\hline \text { Working-age population } & 207 \
\hline \text { Labor force } & 139 \
\hline \text { Employed } & 133 \
\hline \text { Unemployed } & 6 \
\hline
\end{array}$$
-Using the information in the above table, the unemployment rate is

Accepted Answer

A)  4.3 percent. 
B)  4.5 percent. 
C)  2.8 percent. 
D)  6.0 percent. 
A)  4.3 percent. 
B)  4.5 percent. 
C)  2.8 percent. 
D)  6.0 percent.

Question 17

The labor force is the sum of the

Accepted Answer

A)  working-age population and the number of unemployed people. 
B)  number of employed people and the number of unemployed people. 
C)  number of employed people and the working-age population. 
D)  total population and the number of unemployed people. 
A)  working-age population and the number of unemployed people. 
B)  number of employed people and the number of unemployed people. 
C)  number of employed people and the working-age population. 
D)  total population and the number of unemployed people.

Question 18

Which of the following individuals is the best example of a structurally unemployed worker?

Accepted Answer

A)  an individual who quits one job in the hope of finding a better job 
B)  an automobile worker who has lost her job because of an increase in automobile imports and does not have the skills currently needed by businesses 
C)  a recent college graduate who has entered the labor force 
D)  an individual who has been laid off from his job because of a business cycle recession 
A)  an individual who quits one job in the hope of finding a better job 
B)  an automobile worker who has lost her job because of an increase in automobile imports and does not have the skills currently needed by businesses 
C)  a recent college graduate who has entered the labor force 
D)  an individual who has been laid off from his job because of a business cycle recession

Question 19

$$\begin{array} { | l | l | } 
\hline \text { Year } & \text { Price level } \
\hline 2008 & 91 \
\hline 2009 & 100 \
\hline 2010 & 110 \
\hline 2011 & 121 \
\hline
\end{array}$$
-In the above table, the inflation rate between 2010 and 2011 is approximately

Accepted Answer

A)  11 percent. 
B)  121 percent. 
C)  10 percent. 
D)  None of the above answers is correct. 
A)  11 percent. 
B)  121 percent. 
C)  10 percent. 
D)  None of the above answers is correct.

Question 20

Give an example of a frictionally unemployed person.

Accepted Answer

A person who is without a job because of

An unemployment rate of zero percent cannot be expected because

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. As they search for new jobs, these people are part of

Year Price index Inflation rate (percent) 1 100 2 117 A 3 125 B 4 120 C 5 8.3 6 150 E -In the table above, what inflation rate belongs in space A?

What is a discouraged worker? How do they affect the unemployment rate?

The labor force is defined as the number of

Frictional unemployment is

When an individual is frictionally unemployed, the unemployment arises in part from

From 1980 to 2000 the trend in the employment-to-population ratio was and from 2000 to 2010 the trend was .

Component Number of people (millions) Under 16 50 Working full-time 90 Working part-time 30 Retired 40 Unemployed 5 -Using the data in the above table, the labor force participation rate is

Last yearʹs price level was 120 and since then there has been a 5 percent inflation. This yearʹs price level is

When a student finishes college and begins looking for work,

Suppose that the number of jobs in the fishing industry decreases but the number of jobs in the travel industry increases. Initially,__________ .

Component Number of people (millions) Total population 246 Working-age population 207 Labor force 139 Employed 133 Unemployed 6 -Using the information in the above table, the unemployment rate is

The labor force is the sum of the

Which of the following individuals is the best example of a structurally unemployed worker?

Year Price level 2008 91 2009 100 2010 110 2011 121 -In the above table, the inflation rate between 2010 and 2011 is approximately

Give an example of a frictionally unemployed person.

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

An unemployment rate of zero percent cannot be expected because

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. As they search for new jobs, these people are part of

Year Price index Inflation rate (percent) 1 100 2 117 A 3 125 B 4 120 C 5 8.3 6 150 E -In the table above, what inflation rate belongs in space A?

What is a discouraged worker? How do they affect the unemployment rate?

The labor force is defined as the number of

Frictional unemployment is

When an individual is frictionally unemployed, the unemployment arises in part from

From 1980 to 2000 the trend in the employment-to-population ratio was __________and from 2000 to 2010 the trend was__________ .

Component Number of people (millions) Under 16 50 Working full-time 90 Working part-time 30 Retired 40 Unemployed 5 -Using the data in the above table, the labor force participation rate is

Last yearʹs price level was 120 and since then there has been a 5 percent inflation. This yearʹs price level is

When a student finishes college and begins looking for work,

Suppose that the number of jobs in the fishing industry decreases but the number of jobs in the travel industry increases. Initially,__________ .

Component Number of people (millions) Total population 246 Working-age population 207 Labor force 139 Employed 133 Unemployed 6 -Using the information in the above table, the unemployment rate is

The labor force is the sum of the

Which of the following individuals is the best example of a structurally unemployed worker?

Year Price level 2008 91 2009 100 2010 110 2011 121 -In the above table, the inflation rate between 2010 and 2011 is approximately

Give an example of a frictionally unemployed person.

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 employment-to-population ratio was and from 2000 to 2010 the trend was .