Question 1

Which one of the following people is frictionally unemployed? A steel worker who

Accepted Answer

A) is laid off but expects to be called back soon. 
B) loses her job because of technological change. 
C) becomes discouraged and stops looking for a job. 
D) gives up her job because she retires. 
E) decides to leave the labour force and become a full- time student. 
A) is laid off but expects to be called back soon. 
B) loses her job because of technological change. 
C) becomes discouraged and stops looking for a job. 
D) gives up her job because she retires. 
E) decides to leave the labour force and become a full- time student. A

Question 2

The labour force is the total number of

Accepted Answer

A) people aged 15 years and over. 
B) people in the working- age population who are either employed or unemployed. 
C) people employed. 
D) full- time workers. 
E) people in the working- age population who are employed. 
A) people aged 15 years and over. 
B) people in the working- age population who are either employed or unemployed. 
C) people employed. 
D) full- time workers. 
E) people in the working- age population who are employed. B

Question 3

The three types of unemployment are

Accepted Answer

A) frictional, structural, and cyclical. 
B) frictional, structural, and involuntary. 
C) voluntary, involuntary, and natural. 
D) cyclical, maternity leave, and paternity leave. 
E) voluntary, involuntary, and cyclical. 
A) frictional, structural, and cyclical. 
B) frictional, structural, and involuntary. 
C) voluntary, involuntary, and natural. 
D) cyclical, maternity leave, and paternity leave. 
E) voluntary, involuntary, and cyclical. A

Question 4

With the exception of the real interest rate, all real variables of macroeconomics are calculated by

Accepted Answer

A) dividing a nominal variable by the price level. 
B) subtracting the inflation rate from the nominal value. 
C) subtracting off the most volatile components of the variable. 
D) multiplying the nominal variable by the price level. 
E) adding the inflation rate to the nominal value. 
A) dividing a nominal variable by the price level. 
B) subtracting the inflation rate from the nominal value. 
C) subtracting off the most volatile components of the variable. 
D) multiplying the nominal variable by the price level. 
E) adding the inflation rate to the nominal value.

Question 5

Some unemployment is unavoidable because

Accepted Answer

A) many people in the working- age population attend school and are unemployed. 
B) there is always some cyclical unemployment. 
C) many part- time workers would like to have full- time work. 
D) often people become discouraged searchers. 
E) people are making transitions through the stages of life and businesses are making transitions. 
A) many people in the working- age population attend school and are unemployed. 
B) there is always some cyclical unemployment. 
C) many part- time workers would like to have full- time work. 
D) often people become discouraged searchers. 
E) people are making transitions through the stages of life and businesses are making transitions.

Question 6

When the unemployment rate is less than the natural unemployment rate, real GDP is _______ than potential GDP and the output gap is _______.

Accepted Answer

A) greater; positive 
B) greater; equal to zero 
C) smaller; positive 
D) smaller; negative 
E) greater; negative 
A) greater; positive 
B) greater; equal to zero 
C) smaller; positive 
D) smaller; negative 
E) greater; negative

Question 7

The working- age population is the total number of people

Accepted Answer

A) in the labour force, aged 15 years and over, and employed. 
B) aged 15 years and over. 
C) in the labour force, aged 15 years and over. 
D) in the labour force who are employed. 
E) in the labour force. 
A) in the labour force, aged 15 years and over, and employed. 
B) aged 15 years and over. 
C) in the labour force, aged 15 years and over. 
D) in the labour force who are employed. 
E) in the labour force.

Question 8

Structural unemployment arises in part because

Accepted Answer

A) of unrealistic wage expectations. 
B) there are not enough jobs available. 
C) people become discouraged when they cannot find jobs. 
D) people will not quit their present jobs until they can find suitable employment elsewhere. 
E) of technological change. 
A) of unrealistic wage expectations. 
B) there are not enough jobs available. 
C) people become discouraged when they cannot find jobs. 
D) people will not quit their present jobs until they can find suitable employment elsewhere. 
E) of technological change.

Question 9

Use the table below to answer the following questions.
Table 5.2.1
This table shows the answers given by interviewees to the Labour Force Survey.  
-In Table 5.2.1, which person is frictionally unemployed?

Accepted Answer

A) A 
B) B 
C) C 
D) E 
E) A and E 
A) A 
B) B 
C) C 
D) E 
E) A and E

Question 10

When the unemployment rate _______ the natural unemployment rate, real GDP _______ potential GDP.

Accepted Answer

A) is less than; is less than 
B) is greater than; is less than 
C) equals; is greater than 
D) is greater than; equals 
E) equals; is less than 
A) is less than; is less than 
B) is greater than; is less than 
C) equals; is greater than 
D) is greater than; equals 
E) equals; is less than

Question 11

A zero percent unemployment rate

Accepted Answer

A) would alleviate scarcity. 
B) is one of the economic goals of the Canadian government. 
C) is the only efficient unemployment rate. 
D) was last achieved during World War II when everyone was willing to work at the going wage rate to end the war. 
E) is not consistent with the notion of full employment. 
A) would alleviate scarcity. 
B) is one of the economic goals of the Canadian government. 
C) is the only efficient unemployment rate. 
D) was last achieved during World War II when everyone was willing to work at the going wage rate to end the war. 
E) is not consistent with the notion of full employment.

Question 12

In a country with a working- age population of 30 million, 20 million are employed, 2 million are unemployed, and 2 million of the employed are working part- time, half of whom wish to work full- time.The labour force is

Accepted Answer

A) 16 million. 
B) 30 million. 
C) 18 million. 
D) 20 million. 
E) 22 million. 
A) 16 million. 
B) 30 million. 
C) 18 million. 
D) 20 million. 
E) 22 million.

Question 13

Use the table below to answer the following questions.
Table 5.3.1
Suppose a simple economy produces three goods only.The price and output data for two years are shown below.
  
-Refer to Table 5.3.1.The reference base period is 2002.The CPI in 2002 is

Accepted Answer

A) 158. 
B) 96. 
C) 63. 
D) 100. 
E) 1,340. 
A) 158. 
B) 96. 
C) 63. 
D) 100. 
E) 1,340.

Question 14

In a country with a working- age population of 30 million, 18 million are employed, 2 million are unemployed, and 2 million of the employed are working part- time, half of whom wish to work full- time.If 1 million of the unemployed are cyclically unemployed, what is the natural unemployment rate?

Accepted Answer

A) 6.7 percent 
B) 5 percent 
C) 5.6 percent 
D) 1 percent 
E) 11.1 percent 
A) 6.7 percent 
B) 5 percent 
C) 5.6 percent 
D) 1 percent 
E) 11.1 percent

Question 15

Full employment does not mean that there is zero unemployment because

Accepted Answer

A) business fluctuations are inevitable. 
B) of the existence of discouraged searchers. 
C) some cyclical unemployment is always present. 
D) of unrealistic wage expectations. 
E) some frictional and structural unemployment is always present. 
A) business fluctuations are inevitable. 
B) of the existence of discouraged searchers. 
C) some cyclical unemployment is always present. 
D) of unrealistic wage expectations. 
E) some frictional and structural unemployment is always present.

Question 16

Henelyn lost her job as a factory worker when she was replaced by a robotic machine.Now she is looking for a new job.Henelyn is

Accepted Answer

A) frictionally unemployed. 
B) structurally unemployed. 
C) not unemployed. 
D) cyclically unemployed. 
E) not in the labour force. 
A) frictionally unemployed. 
B) structurally unemployed. 
C) not unemployed. 
D) cyclically unemployed. 
E) not in the labour force.

Question 17

The CPIC

Accepted Answer

A) overcomes the sources of bias in the CPI by giving extra weight to the measures of the goods and services with the most volatile prices. 
B) overcomes the sources of bias in the CPI by eliminating measures of the goods and services with the most volatile prices. 
C) overcomes the sources of bias in the CPI by always using discount store prices. 
D) overcomes the sources of bias in the CPI by incorporating substitutions and using current and previous period quantities. 
E) does not overcome the source of bias in the CPI. 
A) overcomes the sources of bias in the CPI by giving extra weight to the measures of the goods and services with the most volatile prices. 
B) overcomes the sources of bias in the CPI by eliminating measures of the goods and services with the most volatile prices. 
C) overcomes the sources of bias in the CPI by always using discount store prices. 
D) overcomes the sources of bias in the CPI by incorporating substitutions and using current and previous period quantities. 
E) does not overcome the source of bias in the CPI.

Question 18

Who of the following would be counted as unemployed in Canada?

Accepted Answer

A) Sharon is a university student with no job. 
B) Doris only works five hours a week but is looking for a full- time job. 
C) Maurice has been laid off from his job for 5 weeks but expects to be called back soon. 
D) Kanhaya has stopped looking for work since he was unable to find a suitable job during a two- month search. 
E) Bogdan has been laid off from his job but does not expect to be called back, and is not looking. 
A) Sharon is a university student with no job. 
B) Doris only works five hours a week but is looking for a full- time job. 
C) Maurice has been laid off from his job for 5 weeks but expects to be called back soon. 
D) Kanhaya has stopped looking for work since he was unable to find a suitable job during a two- month search. 
E) Bogdan has been laid off from his job but does not expect to be called back, and is not looking.

Question 19

In a country with a working- age population of 22 million, 18 million are employed, 2 million are unemployed, and 1 million of the employed are working part- time, half of whom wish to work full- time.The employment rate is

Accepted Answer

A) 81.8 percent. 
B) 75.5 percent. 
C) 72.7 percent. 
D) 90.0 percent. 
E) 90.9 percent. 
A) 81.8 percent. 
B) 75.5 percent. 
C) 72.7 percent. 
D) 90.0 percent. 
E) 90.9 percent.

Question 20

The annual inflation rate measures

Accepted Answer

A) the annual change in the price level. 
B) the annual percentage change in the wage rate. 
C) the annual percentage change in production. 
D) the annual percentage change in the price level. 
E) the average price level. 
A) the annual change in the price level. 
B) the annual percentage change in the wage rate. 
C) the annual percentage change in production. 
D) the annual percentage change in the price level. 
E) the average price level.

Which one of the following people is frictionally unemployed? A steel worker who

The labour force is the total number of

The three types of unemployment are

With the exception of the real interest rate, all real variables of macroeconomics are calculated by

Some unemployment is unavoidable because

When the unemployment rate is less than the natural unemployment rate, real GDP is _ than potential GDP and the output gap is _.

The working- age population is the total number of people

Structural unemployment arises in part because

Use the table below to answer the following questions. Table 5.2.1 This table shows the answers given by interviewees to the Labour Force Survey. -In Table 5.2.1, which person is frictionally unemployed?

When the unemployment rate _ the natural unemployment rate, real GDP _ potential GDP.

A zero percent unemployment rate

In a country with a working- age population of 30 million, 20 million are employed, 2 million are unemployed, and 2 million of the employed are working part- time, half of whom wish to work full- time.The labour force is

Use the table below to answer the following questions. Table 5.3.1 Suppose a simple economy produces three goods only.The price and output data for two years are shown below. -Refer to Table 5.3.1.The reference base period is 2002.The CPI in 2002 is

In a country with a working- age population of 30 million, 18 million are employed, 2 million are unemployed, and 2 million of the employed are working part- time, half of whom wish to work full- time.If 1 million of the unemployed are cyclically unemployed, what is the natural unemployment rate?

Full employment does not mean that there is zero unemployment because

Henelyn lost her job as a factory worker when she was replaced by a robotic machine.Now she is looking for a new job.Henelyn is

The CPIC

Who of the following would be counted as unemployed in Canada?

In a country with a working- age population of 22 million, 18 million are employed, 2 million are unemployed, and 1 million of the employed are working part- time, half of whom wish to work full- time.The employment rate is

The annual inflation rate measures

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 Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 5: Monitoring Jobs and Inflation

Which one of the following people is frictionally unemployed? A steel worker who

The labour force is the total number of

The three types of unemployment are

With the exception of the real interest rate, all real variables of macroeconomics are calculated by

Some unemployment is unavoidable because

When the unemployment rate is less than the natural unemployment rate, real GDP is _______ than potential GDP and the output gap is _______.

The working- age population is the total number of people

Structural unemployment arises in part because

Use the table below to answer the following questions. Table 5.2.1 This table shows the answers given by interviewees to the Labour Force Survey. -In Table 5.2.1, which person is frictionally unemployed?

When the unemployment rate _______ the natural unemployment rate, real GDP _______ potential GDP.

A zero percent unemployment rate

In a country with a working- age population of 30 million, 20 million are employed, 2 million are unemployed, and 2 million of the employed are working part- time, half of whom wish to work full- time.The labour force is

Use the table below to answer the following questions. Table 5.3.1 Suppose a simple economy produces three goods only.The price and output data for two years are shown below. -Refer to Table 5.3.1.The reference base period is 2002.The CPI in 2002 is

In a country with a working- age population of 30 million, 18 million are employed, 2 million are unemployed, and 2 million of the employed are working part- time, half of whom wish to work full- time.If 1 million of the unemployed are cyclically unemployed, what is the natural unemployment rate?

Full employment does not mean that there is zero unemployment because

Henelyn lost her job as a factory worker when she was replaced by a robotic machine.Now she is looking for a new job.Henelyn is

The CPIC

Who of the following would be counted as unemployed in Canada?

In a country with a working- age population of 22 million, 18 million are employed, 2 million are unemployed, and 1 million of the employed are working part- time, half of whom wish to work full- time.The employment rate is

The annual inflation rate measures

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 Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

When the unemployment rate is less than the natural unemployment rate, real GDP is _ than potential GDP and the output gap is _.

When the unemployment rate _ the natural unemployment rate, real GDP _ potential GDP.