$\begin{array}{|l|l|l|l|l|}\hline &2010&&2011\\ \hline \text { Item } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \\ \hline \text { Books } & 10 & \$ 30 & 8 & \$ 50 \\ \hline \text { Pens } & 20 & \$ 1 & 15 & \$ 2 \\ \hline \end{array}$ -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 2010?

A) 1.00 B) 320 C) 100 D) 3.20 A) 1.00 B) 320 C) 100 D) 3.20

The table below shows Vietnam?s price index between 2004 and 2007. \[\begin{array} { | l | l | } \hline \text { Year } & \text { Price Index } \\ \hline 2004 & 115.15 \\ \hline 2005 & 124.65 \\ \hline 2006 & 134 \\ \hline 2007 & 145.12 \\ \hline \end{array}\] From the data, we can conclude that

A) the inflation rate 2005 and 2006 was 7.5 percent. B) commodity substitution bias occurred over the four years. C) food and energy prices in Vietnam were increasing between 2004 and 2007. D) deflation occurred between 2005 and 2006 as price increased more slowly than in 2004. A) the inflation rate 2005 and 2006 was 7.5 percent. B) commodity substitution bias occurred over the four years. C) food and energy prices in Vietnam were increasing between 2004 and 2007. D) deflation occurred between 2005 and 2006 as price increased more slowly than in 2004.

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

A) 10 percent. B) 110 percent. C) 9 percent. D) 100 percent. A) 10 percent. B) 110 percent. C) 9 percent. D) 100 percent.

$\begin{array}{|l|l|} \hline \text { Year } & \text { CPI } \\ \hline 1997 & 1525 \\ \hline 1998 & 157.0 \\ \hline 1999 & 160.6 \\ \hline 2000 & 163.1 \\ \hline 2001 & 166.7 \\ \hline 2002 & 1723 \\ \hline \end{array}$ -The table above gives the U.S. CPI for six years. Calculate the inflation rates between 1997 to 1998, 1998 to 1999, 1999 to 2000, 2000 to 2001, and 2001 to 2002.

Between 1997 to 1998, the inflation rate

\[\begin{array} { | c | l | l | l | } \hline \begin{array} { l } \text { Total } \\ \text { population } \\ \text { (millions) } \end{array} & \begin{array} { c } \text { Currently } \\ \text { employed } \\ \text { (millions) } \end{array} & \begin{array} { c } \text { Not working } \\ \text { and looking for } \\ \text { work (millions) } \end{array} & \begin{array} { c } \text { Want to work but } \\ \text { no longer looking } \\ \text { for work } \\ \text { (millions) } \end{array} \\ \hline 80 & 40 & 2 & 4 \\ \hline \end{array}\] -The labor force participation rate shows the percentage of

A) people not working, but who want to work. B) non-institutionalized working-age people who are actually working or seeking employment. C) people who are not actively participating in meaningful economic activity. D) new entrants into the labor force. A) people not working, but who want to work. B) non-institutionalized working-age people who are actually working or seeking employment. C) people who are not actively participating in meaningful economic activity. D) new entrants into the labor force.

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

A) 18 percent. B) 29 percent. C) 6 percent. D) 24 percent. A) 18 percent. B) 29 percent. C) 6 percent. D) 24 percent.

Exam 5: Monitoring Jobs and Inflation

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 2010?

(Multiple Choice)

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Question 161

The table below shows Vietnam?s price index between 2004 and 2007. Year Price Index 2004 115.15 2005 124.65 2006 134 2007 145.12 From the data, we can conclude that

(Multiple Choice)

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Question 162

Which of the following means that the CPI overstates the actual inflation rate?

(Multiple Choice)

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Question 163

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

(Multiple Choice)

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Question 164

When economists speak of full employment, they refer to the case in which the sum of frictional and structural unemployment is

(Multiple Choice)

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Question 165

Is the CPI a biased measure of the inflation rate? Explain your answer.

(Essay)

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Question 166

When a worker quits a job to look for a better job,

(Multiple Choice)

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Question 167

Year CPI 1997 1525 1998 157.0 1999 160.6 2000 163.1 2001 166.7 2002 1723 -The table above gives the U.S. CPI for six years. Calculate the inflation rates between 1997 to 1998, 1998 to 1999, 1999 to 2000, 2000 to 2001, and 2001 to 2002.

(Essay)

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Question 168

The labor force is defined as people

(Multiple Choice)

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Question 169

Suppose that the U.S. population is 275 million. Also assume that the labor force is 135 million and that 130 million people are employed. Calculate the unemployment rate.

(Essay)

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Question 170

If the Consumer Price Index last year was 110 and 115 this year, the inflation rate is approximately

(Multiple Choice)

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Question 171

If the people who take early retirement are not counted in the working -age population, then

(Multiple Choice)

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Question 172

Define and give an example of how a spell of frictional unemployment can begin.

(Essay)

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Question 173

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 -The labor force participation rate shows the percentage of

(Multiple Choice)

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Question 174

When the economy is operating at full employment, the natural unemployment rate consists of only

(Multiple Choice)

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Question 175

When cyclical unemployment is zero,

(Multiple Choice)

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Question 176

Define the unemployment rate and labor -force participation rate. Discuss the differences between these two rates.

(Essay)

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Question 177

An individual with good job prospects who is between jobs is best considered as

(Multiple Choice)

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Question 178

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

(Multiple Choice)

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Question 179

Catherine quit her job in order to look for a new one; therefore, she is best considered as

(Multiple Choice)

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Question 180

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 2010?

The table below shows Vietnam?s price index between 2004 and 2007. Year Price Index 2004 115.15 2005 124.65 2006 134 2007 145.12 From the data, we can conclude that

Which of the following means that the CPI overstates the actual inflation rate?

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

When economists speak of full employment, they refer to the case in which the sum of frictional and structural unemployment is

Is the CPI a biased measure of the inflation rate? Explain your answer.

When a worker quits a job to look for a better job,

Year CPI 1997 1525 1998 157.0 1999 160.6 2000 163.1 2001 166.7 2002 1723 -The table above gives the U.S. CPI for six years. Calculate the inflation rates between 1997 to 1998, 1998 to 1999, 1999 to 2000, 2000 to 2001, and 2001 to 2002.

The labor force is defined as people

Suppose that the U.S. population is 275 million. Also assume that the labor force is 135 million and that 130 million people are employed. Calculate the unemployment rate.

If the Consumer Price Index last year was 110 and 115 this year, the inflation rate is approximately

If the people who take early retirement are not counted in the working -age population, then

Define and give an example of how a spell of frictional unemployment can begin.

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 -The labor force participation rate shows the percentage of

When the economy is operating at full employment, the natural unemployment rate consists of only

When cyclical unemployment is zero,

Define the unemployment rate and labor -force participation rate. Discuss the differences between these two rates.

An individual with good job prospects who is between jobs is best considered as

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

Catherine quit her job in order to look for a new one; therefore, she is best considered as

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

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