Question 1

An increase in the price level is defined as

Accepted Answer

A)  a recession. 
B)  inflation. 
C)  a growth boom. 
D)  an expansion. 
A)  a recession. 
B)  inflation. 
C)  a growth boom. 
D)  an expansion.

Question 2

Frictional unemployment is the result of

Accepted Answer

A)  irresponsible workers with poor work habits. 
B)  normal labor market turnover. 
C)  technological change or foreign competition. 
D)  a slowdown in the rate of economic expansion. 
A)  irresponsible workers with poor work habits. 
B)  normal labor market turnover. 
C)  technological change or foreign competition. 
D)  a slowdown in the rate of economic expansion.

Question 3

$$\begin{array} { | l | l | l | l | } 
\hline \begin{array} { l } 
\text { Total } \
\text { population } \
\text { (millions) }
\end{array} & \begin{array} { l } 
\text { Currently } \
\text { employed } \
\text { (millions) }
\end{array} & \begin{array} { l } 
\text { Not working } \
\text { and looking } \
\text { for work } \
\text { (millions) }
\end{array} & \begin{array} { l } 
\text { Want to work but } \
\text { no longer looking } \
\text { for work } \
\text { (millions) }
\end{array} \
\hline 80 & 40 & 2 & 4 \
\hline
\end{array}$$
-In the table above, the number of marginally attached workers is __________.

Accepted Answer

A)  4 million 
B)  40 million 
C)  2 million 
D)  6 million 
A)  4 million 
B)  40 million 
C)  2 million 
D)  6 million

Question 4

If the CPI at the end of last year was 100 and the CPI at the end of this year was 115, the inflation rate was

Accepted Answer

A)  115 percent. 
B)  100 percent. 
C)  15 percent. 
D)  1.5 percent. 
A)  115 percent. 
B)  100 percent. 
C)  15 percent. 
D)  1.5 percent.

Question 5

$\begin{array}{|l|l|}
\hline \text { Category } & \begin{array}{l}
\text { Number } \
\text { (millions) }
\end{array} \\hline \text { Discouraged workers } & 15 \
\hline \text { Unemployed workers } & 40 \
\hline \text { Employed workers } & 100 \
\hline \text { Population (16 years and over) } & 225 \
\hline
\end{array}$
-In the above table, the size of the labor force is

Accepted Answer

A)  140 million. 
B)  100 million. 
C)  210 million. 
D)  155 million. 
A)  140 million. 
B)  100 million. 
C)  210 million. 
D)  155 million.

Question 6

Assume that after you graduate, you move to a simple economy in which only three goods are produced and consumed: fish, fruit, and meat. Suppose that on January 1, fish sold for $2.50 per pound, meat was $3.00 per pound, and fruit was $1.50 per pound. At the end of the year, you discover that the catch was low and that fish prices had increased to $5.00 per pound, but fruit prices stayed at $1.50 per pound, and meat prices had actually fallen to $2.00. Can you say what happened to the overall CPI, in terms of whether it increased, decreased, or stayed the same? Do you have enough information to calculate the inflation rate? Note, this problem requires no calculation; just state and explain your answers.

Accepted Answer

You cannot say what happened to the CPI

Question 7

If the population is 300 million, with 70 million under the age of 16 and institutionalized, another 70 million not in the labor force, 10 million unemployed and 150 million employed, the unemployment rate is

Accepted Answer

A)  23.3 percent. 
B)  26.7 percent. 
C)  6.25 percent. 
D)  6.7 percent. 
A)  23.3 percent. 
B)  26.7 percent. 
C)  6.25 percent. 
D)  6.7 percent.

Question 8

How is the GDP deflator is calculated.

Accepted Answer

The GDP deflator equals 100 ti

Question 9

$\begin{array}{|l|l|l|l|l|}\hline &2010&&2011\
\hline \text { Item } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \
\hline \text { Books } & 10 & \$ 30 & 8 & \$ 50 \
\hline \text { Pens } & 20 & \$ 1 & 15 & \$ 2 \
\hline
\end{array}$
-In 2010, consumers in Dexter consumed only books and pens. The prices and quantities for 2010 and 2011 are listed in the table above. The reference base period for Dexter?s CPI is 2010. What is the cost of the CPI basket in 2010?

Accepted Answer

A)  $320 
B)  $540 
C)  $430 
D)  $335 
A)  $320 
B)  $540 
C)  $430 
D)  $335

Question 10

Marginally attached workers fall into which of the following population categories?

Accepted Answer

A)  labor force 
B)  not in the labor force 
C)  employed 
D)  unemployed 
A)  labor force 
B)  not in the labor force 
C)  employed 
D)  unemployed

Question 11

If the CPI basket costs $35 in the base period but costs $42, what is the CPI in the next period?

Accepted Answer

A)  $42 
B)  83.3 
C)  120 
D)  20 percent 
A)  $42 
B)  83.3 
C)  120 
D)  20 percent

Question 12

In the United States in 1996, the population was 265.5 million and the working age population was
200)6 million. There were 133.9 million people in the labor force and 126.7 of them were employed. The unemployment rate equaled__________ .

Accepted Answer

A)  3.6 percent 
B)  5.4 percent 
C)  33 percent 
D)  7.2 percent 
A)  3.6 percent 
B)  5.4 percent 
C)  33 percent 
D)  7.2 percent

Question 13

$$\begin{array} { | l | c | } 
\hline  { \text { Component } } & \begin{array} { l } 
\text { Number of } \
\text { people }
\end{array} \
\hline \text { Total population } & 2600 \
\hline \text { Working-age population } & 2000 \
\hline \text { Not in labor force } & 500 \
\hline \text { Employed } & 1300 \
\hline
\end{array}$$
-Using the information in the table above, calculate the unemployment rate.

Accepted Answer

A)  53.3 percent 
B)  30.8 percent 
C)  7.7 percent 
D)  13.3 percent 
A)  53.3 percent 
B)  30.8 percent 
C)  7.7 percent 
D)  13.3 percent

Question 14

$\begin{array}{|l|l|l|l|l|}\hline &2010&&2011\
\hline \text { Item } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \
\hline \text { Books } & 10 & \$ 30 & 8 & \$ 50 \
\hline \text { Pens } & 20 & \$ 1 & 15 & \$ 2 \
\hline
\end{array}$
-In 2010, consumers in Dexter consumed only books and pens. The prices and quantities for 2010 and 2011 are listed in the table above. The reference base period for Dexter?s CPI is 2010. What is the CPI in 2011?

Accepted Answer

A)  102 
B)  169 
C)  129 
D)  59 
A)  102 
B)  169 
C)  129 
D)  59

Question 15

$$\text { 321) The table below shows the price index for Chinastartingin } 2000 .$$ $$\begin{array} { | l | l | } 
\hline \text { Year } & \text { Price Index } \
\hline 2000 & 100.0 \
\hline 2001 & 100.73 \
\hline 2002 & 99.95 \
\hline 2003 & 101.12 \
\hline 2004 & 105.06 \
\hline 2005 & 106.95 \
\hline 2006 & 108.52 \
\hline
\end{array}$$
The inflation rate between 2004 and 2005 was

Accepted Answer

A)  1.8 percent 
B)  2.8 percent 
C)  0.7 percent. 
D)  3.9 percent 
A)  1.8 percent 
B)  2.8 percent 
C)  0.7 percent. 
D)  3.9 percent

Question 16

The unemployment rate equals

Accepted Answer

A)  the number of unemployed workers)/the U.S. population older than 16 years of age) × 100. 
B)  the number of unemployed workers)/the civilian population) × 100. 
C)  the number of unemployed + employed workers)/U.S. population older than 16 years of age) × 100. 
D)  the number of unemployed workers)/the number of employed + unemployed workers) × 100. 
A)  the number of unemployed workers)/the U.S. population older than 16 years of age) × 100. 
B)  the number of unemployed workers)/the civilian population) × 100. 
C)  the number of unemployed + employed workers)/U.S. population older than 16 years of age) × 100. 
D)  the number of unemployed workers)/the number of employed + unemployed workers) × 100.

Question 17

Of the following sequences of price levels, which correctly represents a 5 percent inflation rate?

Accepted Answer

A)  100, 105, 105, 105 
B)  100, 105, 110.25, 115.76 
C)  100, 105, 110, 115 
D)  100, 100, 100, 100 
A)  100, 105, 105, 105 
B)  100, 105, 110.25, 115.76 
C)  100, 105, 110, 115 
D)  100, 100, 100, 100

Question 18

The economy is at full employment when

Accepted Answer

A)  all unemployment is cyclical. 
B)  there are fewer unemployed workers than available jobs. 
C)  there are no unemployed workers. 
D)  all unemployment is frictional or structural. 
A)  all unemployment is cyclical. 
B)  there are fewer unemployed workers than available jobs. 
C)  there are no unemployed workers. 
D)  all unemployment is frictional or structural.

Question 19

A person quits her job in order to spend time looking for a better -paying job. This type of unemployment is an example of

Accepted Answer

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

Question 20

What is the commodity substitution bias? What effect does it have on the CPI?

Accepted Answer

The commodity substitution bias refers t

An increase in the price level is defined as

Frictional unemployment is the result of

Total population (millions) Currently employed (millions) Not working and looking for work (millions) Want to work but no longer looking for work (millions) 80 40 2 4 -In the table above, the number of marginally attached workers is __________.

If the CPI at the end of last year was 100 and the CPI at the end of this year was 115, the inflation rate was

Category Number (millions) Discouraged workers 15 Unemployed workers 40 Employed workers 100 Population (16 years and over) 225 -In the above table, the size of the labor force is

If the population is 300 million, with 70 million under the age of 16 and institutionalized, another 70 million not in the labor force, 10 million unemployed and 150 million employed, the unemployment rate is

How is the GDP deflator is calculated.

Marginally attached workers fall into which of the following population categories?

If the CPI basket costs $35 in the base period but costs $42, what is the CPI in the next period?

In the United States in 1996, the population was 265.5 million and the working age population was 200)6 million. There were 133.9 million people in the labor force and 126.7 of them were employed. The unemployment rate equaled__________ .

Component Number of people Total population 2600 Working-age population 2000 Not in labor force 500 Employed 1300 -Using the information in the table above, calculate the unemployment rate.

2010 2011 Item Quantity Price Quantity Price Books 10 \ 30 8 \ 50 Pens 20 \ 1 15 \ 2 -In 2010, consumers in Dexter consumed only books and pens. The prices and quantities for 2010 and 2011 are listed in the table above. The reference base period for Dexter?s CPI is 2010. What is the CPI in 2011?

$\text { 321) The table below shows the price index for Chinastartingin } 2000 .$ Year Price Index 2000 100.0 2001 100.73 2002 99.95 2003 101.12 2004 105.06 2005 106.95 2006 108.52 The inflation rate between 2004 and 2005 was

The unemployment rate equals

Of the following sequences of price levels, which correctly represents a 5 percent inflation rate?

The economy is at full employment when

A person quits her job in order to spend time looking for a better -paying job. This type of unemployment is an example of

What is the commodity substitution bias? What effect does it have on the CPI?

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 increase in the price level is defined as

Frictional unemployment is the result of

Total population (millions) Currently employed (millions) Not working and looking for work (millions) Want to work but no longer looking for work (millions) 80 40 2 4 -In the table above, the number of marginally attached workers is __________.

If the CPI at the end of last year was 100 and the CPI at the end of this year was 115, the inflation rate was

Category Number (millions) Discouraged workers 15 Unemployed workers 40 Employed workers 100 Population (16 years and over) 225 -In the above table, the size of the labor force is

If the population is 300 million, with 70 million under the age of 16 and institutionalized, another 70 million not in the labor force, 10 million unemployed and 150 million employed, the unemployment rate is

How is the GDP deflator is calculated.

Marginally attached workers fall into which of the following population categories?

If the CPI basket costs $35 in the base period but costs $42, what is the CPI in the next period?

In the United States in 1996, the population was 265.5 million and the working age population was 200)6 million. There were 133.9 million people in the labor force and 126.7 of them were employed. The unemployment rate equaled__________ .

Component Number of people Total population 2600 Working-age population 2000 Not in labor force 500 Employed 1300 -Using the information in the table above, calculate the unemployment rate.

2010 2011 Item Quantity Price Quantity Price Books 10 \ 30 8 \ 50 Pens 20 \ 1 15 \ 2 -In 2010, consumers in Dexter consumed only books and pens. The prices and quantities for 2010 and 2011 are listed in the table above. The reference base period for Dexter?s CPI is 2010. What is the CPI in 2011?

The unemployment rate equals

Of the following sequences of price levels, which correctly represents a 5 percent inflation rate?

The economy is at full employment when

A person quits her job in order to spend time looking for a better -paying job. This type of unemployment is an example of

What is the commodity substitution bias? What effect does it have on the CPI?

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