Question 1

The working- age population can be divided into two groups:

Accepted Answer

A) those who are over the age of 15 and those who are under the age of 15. 
B) those who are employed and those who are unemployed. 
C) those who work full time and those who work part time. 
D) those in the labour force and those not in the labour force. 
E) those in the labour force and discouraged searchers. 
A) those who are over the age of 15 and those who are under the age of 15. 
B) those who are employed and those who are unemployed. 
C) those who work full time and those who work part time. 
D) those in the labour force and those not in the labour force. 
E) those in the labour force and discouraged searchers.

Question 2

The Consumer Price Index measures inflation by using

Accepted Answer

A) all goods and services that are produced using a base- year basket. 
B) only consumption goods and services purchased using a current- year basket. 
C) all goods and services produced in the base year and all goods and services produced in the current year. 
D) all goods and services that are produced using a current- year basket. 
E) only consumption goods and services purchased using a base- year basket. 
A) all goods and services that are produced using a base- year basket. 
B) only consumption goods and services purchased using a current- year basket. 
C) all goods and services produced in the base year and all goods and services produced in the current year. 
D) all goods and services that are produced using a current- year basket. 
E) only consumption goods and services purchased using a base- year basket.

Question 3

Counting discouraged searchers as unemployed would

Accepted Answer

A) not change the measured unemployment rate. 
B) raise the measured unemployment rate. 
C) raise the natural unemployment rate. 
D) raise the full employment rate. 
E) lower the measured unemployment rate. 
A) not change the measured unemployment rate. 
B) raise the measured unemployment rate. 
C) raise the natural unemployment rate. 
D) raise the full employment rate. 
E) lower the measured unemployment rate.

Question 4

R8 is

Accepted Answer

A) long- term unemployment. 
B) the official unemployment rate. 
C) comparable to the official U.S.rate. 
D) short- term unemployment. 
E) the total underemployment rate. 
A) long- term unemployment. 
B) the official unemployment rate. 
C) comparable to the official U.S.rate. 
D) short- term unemployment. 
E) the total underemployment rate.

Question 5

All of the following are possible sources of bias in using the Consumer Price Index to measure inflation except

Accepted Answer

A) an improvement in the quality of goods. 
B) an increase in the cost of living. 
C) rising prices. 
D) the introduction of new goods. 
E) commodity substitution. 
A) an improvement in the quality of goods. 
B) an increase in the cost of living. 
C) rising prices. 
D) the introduction of new goods. 
E) commodity substitution.

Question 6

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, 115 
C) 95, 100, 105, 110 
D) 100, 105, 110.25, 115.76 
E) 100, 100, 100, 100 
A) 100, 105, 105, 105 
B) 100, 105, 110, 115 
C) 95, 100, 105, 110 
D) 100, 105, 110.25, 115.76 
E) 100, 100, 100, 100

Question 7

In a country with a working- age population of 20 million, 14 million are employed, 1.5 million are unemployed, and 1 million of the employed are working part- time, half of whom wish to work full- time.The size of the labour force is

Accepted Answer

A) 20 million. 
B) 12.5 million. 
C) 14 million. 
D) 15.5 million. 
E) 14.5 million. 
A) 20 million. 
B) 12.5 million. 
C) 14 million. 
D) 15.5 million. 
E) 14.5 million.

Question 8

Nominal consumption expenditure is $1,500 billion and Real consumption expenditure is $1,200 billion.The CPIC is

Accepted Answer

A) 0.80. 
B) 1.25. 
C) 80. 
D) 125. 
E) 150. 
A) 0.80. 
B) 1.25. 
C) 80. 
D) 125. 
E) 150.

Question 9

The unemployment rate is defined as

Accepted Answer

A) 100 minus the employment rate. 
B) the number of unemployed people divided by the number of people in the country. 
C) the number of unemployed people divided by the number of employed people. 
D) the number of unemployed people divided by the working- age population. 
E) the number of unemployed people divided by the sum of the people employed and the people unemployed. 
A) 100 minus the employment rate. 
B) the number of unemployed people divided by the number of people in the country. 
C) the number of unemployed people divided by the number of employed people. 
D) the number of unemployed people divided by the working- age population. 
E) the number of unemployed people divided by the sum of the people employed and the people unemployed.

Question 10

The reference base period is 2002.A consumer price index of 122 in 2018 means that

Accepted Answer

A) prices of consumer goods have more than doubled. 
B) the average of the prices paid by urban consumers for a fixed market basket of consumer goods and services was 22 percent higher in 2018 than it was on average during 2002. 
C) the market basket of consumer goods that cost $122 in 2002 can be purchased for $100 in 2018. 
D) if the price of a good was $100 in 2002, its price in 2018 is $122. 
E) prices of consumer goods have gone up by a factor of 12.2. 
A) prices of consumer goods have more than doubled. 
B) the average of the prices paid by urban consumers for a fixed market basket of consumer goods and services was 22 percent higher in 2018 than it was on average during 2002. 
C) the market basket of consumer goods that cost $122 in 2002 can be purchased for $100 in 2018. 
D) if the price of a good was $100 in 2002, its price in 2018 is $122. 
E) prices of consumer goods have gone up by a factor of 12.2.

Question 11

Frictional unemployment

Accepted Answer

A) is unemployment associated with normal labour turnover. 
B) includes workers who have lost their jobs due to an economic downturn. 
C) occurs when changes in technology change the skills needed to perform jobs. 
D) includes discouraged searchers. 
E) is voluntary part- time unemployment. 
A) is unemployment associated with normal labour turnover. 
B) includes workers who have lost their jobs due to an economic downturn. 
C) occurs when changes in technology change the skills needed to perform jobs. 
D) includes discouraged searchers. 
E) is voluntary part- time unemployment.

Question 12

If the number of discouraged searchers decreases because many of them start to look for work, everything else remaining the same, then the

Accepted Answer

A) unemployment rate increases. 
B) labour force participation rate decreases. 
C) labour force participation rate increases. 
D) employment rate decreases. 
E) both A and C 
A) unemployment rate increases. 
B) labour force participation rate decreases. 
C) labour force participation rate increases. 
D) employment rate decreases. 
E) both A and C

Question 13

Choose the incorrect statement.

Accepted Answer

A) When the quality of a good improves over time and as a result the price rises, the CPI counts the entire price rise as inflation and so overstates inflation. 
B) The outlet substitution bias injects an upward bias into the CPI. 
C) When relative prices change and people substitute to the lower priced good, the CPI ignores the substitution and the CPI overstates inflation. 
D) The CPI basket is updated monthly to allow for the introduction of new goods. 
E) All of the above statements are incorrect. 
A) When the quality of a good improves over time and as a result the price rises, the CPI counts the entire price rise as inflation and so overstates inflation. 
B) The outlet substitution bias injects an upward bias into the CPI. 
C) When relative prices change and people substitute to the lower priced good, the CPI ignores the substitution and the CPI overstates inflation. 
D) The CPI basket is updated monthly to allow for the introduction of new goods. 
E) All of the above statements are incorrect.

Question 14

Which one of the following people would be counted as unemployed in Canada?

Accepted Answer

A) a person who will be starting a new job in 6 months 
B) a person who expects to be laid off by the end of the month before next month's survey can be completed 
C) a person who has been laid off for 4 weeks and is not looking for a job because he is waiting to be called back to his old job 
D) a person who has been seeking a job for the last six months, but recently gave up looking because he was discouraged by his job prospects 
E) a part- time worker who repeatedly expresses a desire to become a full- time worker 
A) a person who will be starting a new job in 6 months 
B) a person who expects to be laid off by the end of the month before next month's survey can be completed 
C) a person who has been laid off for 4 weeks and is not looking for a job because he is waiting to be called back to his old job 
D) a person who has been seeking a job for the last six months, but recently gave up looking because he was discouraged by his job prospects 
E) a part- time worker who repeatedly expresses a desire to become a full- time worker

Question 15

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

Accepted Answer

A) Vik, who has been staying at home watching reruns of "Hockey Night in Canada" and not searching since he was laid off at the flour mill. 
B) Youngmin, who is a part- time hamburger flipper looking for a full- time job. 
C) Caitlin, who is 14 years old and looking for a babysitting job. 
D) Emmanuel, who lost his job at the steel plant when an automated assembly line was introduced six months ago, and has been job searching every day. 
E) James, who is a full- time student looking for a part- time job. 
A) Vik, who has been staying at home watching reruns of "Hockey Night in Canada" and not searching since he was laid off at the flour mill. 
B) Youngmin, who is a part- time hamburger flipper looking for a full- time job. 
C) Caitlin, who is 14 years old and looking for a babysitting job. 
D) Emmanuel, who lost his job at the steel plant when an automated assembly line was introduced six months ago, and has been job searching every day. 
E) James, who is a full- time student looking for a part- time job.

Question 16

The price indexes that are alternatives to the CPI include

Accepted Answer

A) the core GDP deflator and the CPI deflator. 
B) the chained price index for consumption and the CPI deflator. 
C) the unbiased CPI and the unbiased GDP deflator. 
D) the GDP deflator and the chained price index for consumption. 
E) the GDP deflator and the CPI deflator. 
A) the core GDP deflator and the CPI deflator. 
B) the chained price index for consumption and the CPI deflator. 
C) the unbiased CPI and the unbiased GDP deflator. 
D) the GDP deflator and the chained price index for consumption. 
E) the GDP deflator and the CPI deflator.

Question 17

The CPI basket of Econoland consists of 10 units of A, 20 units of B, and 30 units of C.Current prices are $1 per unit of A, $2 per unit of B, and $3 per unit of C.Base- year prices are $1 for each unit of A, B, and C.What is the CPI in the current year?

Accepted Answer

A) 430 
B) 43 
C) 140 
D) 233 
E) 100 
A) 430 
B) 43 
C) 140 
D) 233 
E) 100

Question 18

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 involuntary part- time rate is

Accepted Answer

A) 4.8 percent. 
B) 4.5 percent. 
C) 10 percent. 
D) 0.5 percent. 
E) 5 percent. 
A) 4.8 percent. 
B) 4.5 percent. 
C) 10 percent. 
D) 0.5 percent. 
E) 5 percent.

Question 19

If the economy is at full employment,

Accepted Answer

A) the entire labour force is employed. 
B) the only unemployment is frictional unemployment plus discouraged searchers. 
C) real GDP equals potential GDP. 
D) the entire population is employed. 
E) all unemployment is cyclical and structural. 
A) the entire labour force is employed. 
B) the only unemployment is frictional unemployment plus discouraged searchers. 
C) real GDP equals potential GDP. 
D) the entire population is employed. 
E) all unemployment is cyclical and structural.

Question 20

Caitlin is working part- time at the Mr.G store, but wants to work full- time.She is

Accepted Answer

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

The working- age population can be divided into two groups:

The Consumer Price Index measures inflation by using

Counting discouraged searchers as unemployed would

R8 is

All of the following are possible sources of bias in using the Consumer Price Index to measure inflation except

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

In a country with a working- age population of 20 million, 14 million are employed, 1.5 million are unemployed, and 1 million of the employed are working part- time, half of whom wish to work full- time.The size of the labour force is

Nominal consumption expenditure is $1,500 billion and Real consumption expenditure is $1,200 billion.The CPIC is

The unemployment rate is defined as

The reference base period is 2002.A consumer price index of 122 in 2018 means that

Frictional unemployment

If the number of discouraged searchers decreases because many of them start to look for work, everything else remaining the same, then the

Choose the incorrect statement.

Which one of the following people would be counted as unemployed in Canada?

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

The price indexes that are alternatives to the CPI include

The CPI basket of Econoland consists of 10 units of A, 20 units of B, and 30 units of C.Current prices are $1 per unit of A, $2 per unit of B, and $3 per unit of C.Base- year prices are $1 for each unit of A, B, and C.What is the CPI in the current year?

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 involuntary part- time rate is

If the economy is at full employment,

Caitlin is working part- time at the Mr.G store, but wants to work full- time.She is

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

The working- age population can be divided into two groups:

The Consumer Price Index measures inflation by using

Counting discouraged searchers as unemployed would

R8 is

All of the following are possible sources of bias in using the Consumer Price Index to measure inflation except

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

In a country with a working- age population of 20 million, 14 million are employed, 1.5 million are unemployed, and 1 million of the employed are working part- time, half of whom wish to work full- time.The size of the labour force is

Nominal consumption expenditure is $1,500 billion and Real consumption expenditure is $1,200 billion.The CPIC is

The unemployment rate is defined as

The reference base period is 2002.A consumer price index of 122 in 2018 means that

Frictional unemployment

If the number of discouraged searchers decreases because many of them start to look for work, everything else remaining the same, then the

Choose the incorrect statement.

Which one of the following people would be counted as unemployed in Canada?

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

The price indexes that are alternatives to the CPI include

The CPI basket of Econoland consists of 10 units of A, 20 units of B, and 30 units of C.Current prices are $1 per unit of A, $2 per unit of B, and $3 per unit of C.Base- year prices are $1 for each unit of A, B, and C.What is the CPI in the current year?

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 involuntary part- time rate is

If the economy is at full employment,

Caitlin is working part- time at the Mr.G store, but wants to work full- time.She is

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