Question 1

Exhibit 6-2
  
-Refer to Exhibit 6-2. The unemployment rate in year 1 is

Accepted Answer

A) 12 1/2 percent. 
B) 70 percent. 
C) 87 1/2 percent. 
D) 30 percent. 
E) 10 percent. 
A) 12 1/2 percent. 
B) 70 percent. 
C) 87 1/2 percent. 
D) 30 percent. 
E) 10 percent.

Question 2

The CPI was 154 in one year and 165 the following year. How much did prices rise between these two years?

Accepted Answer

A) 5.46 percent 
B) 6.67 percent 
C) 7.14 percent 
D) 0.07 percent 
A) 5.46 percent 
B) 6.67 percent 
C) 7.14 percent 
D) 0.07 percent

Question 3

The movie "Return of the Jedi" earned $264 million in 1983 when it was released. The CPI in 1983 was 97.8 and the CPI in 2012 was 226.665. Approximately how much did the movie earn in 2012 dollars?

Accepted Answer

A) $590 million 
B) $612 million 
C) $2.12 million 
D) $123 million 
E) $150 million 
A) $590 million 
B) $612 million 
C) $2.12 million 
D) $123 million 
E) $150 million

Question 4

Exhibit 6-2
  
-Refer to Exhibit 6-2. How many persons are not participating in the labor force in year 4?

Accepted Answer

A) 80 million 
B) 100 million 
C) 150 million 
D) 350 million 
E) 200 million 
A) 80 million 
B) 100 million 
C) 150 million 
D) 350 million 
E) 200 million

Question 5

Suppose the civilian non-institutional population equals 250,000; there are 132,500 employed persons and 10,000 unemployed persons. How many persons are not in the labor force?

Accepted Answer

A) 122,500 
B) 77,500 
C) 63,500 
D) 107,500 
A) 122,500 
B) 77,500 
C) 63,500 
D) 107,500

Question 6

If a person worked at least 15 hours per week as an "unpaid" worker in a restaurant owned by her family, how is she classified by the Bureau of Labor Statistics?

Accepted Answer

A) as not in the labor force 
B) as an unemployed person 
C) as an employed person 
D) as a discouraged worker 
A) as not in the labor force 
B) as an unemployed person 
C) as an employed person 
D) as a discouraged worker

Question 7

In year 1 the CPI is 140, and in year 2 the CPI is 154. From year 1 to year 2, Marcy's salary rises from $43,000 to $48,000, and Daphne's salary rises from $65,000 to $70,000. Who is "more than keeping up with inflation"?

Accepted Answer

A) Marcy 
B) Daphne 
C) both Marcy and Daphne 
D) neither Marcy nor Daphne 
A) Marcy 
B) Daphne 
C) both Marcy and Daphne 
D) neither Marcy nor Daphne

Question 8

Exhibit 6-2
  
-Refer to Exhibit 6-2. How many persons are not participating in the labor force in year 1?

Accepted Answer

A) 25 million 
B) 50 million 
C) 75 million 
D) 175 million 
E) 200 million 
A) 25 million 
B) 50 million 
C) 75 million 
D) 175 million 
E) 200 million

Question 9

Exhibit 6-2
  
-Refer to Exhibit 6-2. The unemployment rate in year 4 is

Accepted Answer

A) 12 1/2 percent. 
B) 72 percent. 
C) 87 1/2 percent. 
D) 10 percent. 
E) 90 percent. 
A) 12 1/2 percent. 
B) 72 percent. 
C) 87 1/2 percent. 
D) 10 percent. 
E) 90 percent.

Question 10

Exhibit 6-2
  
-Refer to Exhibit 6-2. The unemployment rate in year 3 is

Accepted Answer

A) 12 1/2 percent. 
B) 33 1/3 percent. 
C) 50 percent. 
D) 66 2/3 percent. 
E) 25 percent. 
A) 12 1/2 percent. 
B) 33 1/3 percent. 
C) 50 percent. 
D) 66 2/3 percent. 
E) 25 percent.

Question 11

Exhibit 6-1
  
-Refer to Exhibit 6-1. Prices rose by __________ percent from Year 1 to Year 2.

Accepted Answer

A) 1.38 
B) 0.14 
C) 1.29 
D) 1.94 
E) 3.00 
A) 1.38 
B) 0.14 
C) 1.29 
D) 1.94 
E) 3.00

Question 12

Look at the following data: The frictional unemployment rate is 1.5 percent, the natural unemployment rate is 4.5 percent, and the cyclical unemployment rate is -1 percent. The structural unemployment rate is _________ percent and the actual unemployment rate (in this economy) is ___________ percent.

Accepted Answer

A) 6; 3.5 
B) 3; 5.5 
C) 3; 3.5 
D) 6; 5.5 
A) 6; 3.5 
B) 3; 5.5 
C) 3; 3.5 
D) 6; 5.5

Question 13

Suppose the market basket consists of 100X, 200Y, and 300Z. Current-year prices are $5 for each unit of X, $2 for each unit of Y, and $3 for each unit of Z. Base-year prices are $2 for each unit of X, Y, and Z. What is the approximate CPI in the current year?

Accepted Answer

A) 15 
B) 70.20 
C) 1,200 
D) 150 
A) 15 
B) 70.20 
C) 1,200 
D) 150

Question 14

Suppose there are 50 million persons in the population, 25 million persons in the civilian labor force, and 20 million persons are employed. The number of persons unemployed is _______ million and the unemployment rate is ___________ percent.

Accepted Answer

A) 25; 50 
B) 5; 10 
C) 5; 20 
D) 10; 10 
A) 25; 50 
B) 5; 10 
C) 5; 20 
D) 10; 10

Question 15

The unemployment rate equals the

Accepted Answer

A) number of employed persons divided by the number of unemployed persons. 
B) number of unemployed persons divided by the civilian non-institutional population. 
C) number of unemployed persons divided by the civilian labor force. 
D) sum of unemployed persons and discouraged workers divided by the civilian labor force. 
A) number of employed persons divided by the number of unemployed persons. 
B) number of unemployed persons divided by the civilian non-institutional population. 
C) number of unemployed persons divided by the civilian labor force. 
D) sum of unemployed persons and discouraged workers divided by the civilian labor force.

Question 16

The base year is always the year in which prices were the lowest.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements is false?

Accepted Answer

A) A discouraged worker is counted as an unemployed worker. 
B) The frictional unemployment rate is greater than the natural unemployment rate. 
C) The natural unemployment rate is greater than the structural unemployment rate. 
D) The natural unemployment rate is equal to the sum of the frictional unemployment rate and the structural unemployment rate. 
E) a and b 
A) A discouraged worker is counted as an unemployed worker. 
B) The frictional unemployment rate is greater than the natural unemployment rate. 
C) The natural unemployment rate is greater than the structural unemployment rate. 
D) The natural unemployment rate is equal to the sum of the frictional unemployment rate and the structural unemployment rate. 
E) a and b

Question 18

Exhibit 6-2
  
-Refer to Exhibit 6-2. How many persons are unemployed in year 2?

Accepted Answer

A) 200 million 
B) 50 million 
C) 75 million 
D) 175 million 
E) 100 million 
A) 200 million 
B) 50 million 
C) 75 million 
D) 175 million 
E) 100 million

Question 19

Because discouraged workers are not considered unemployed, the unemployment rate may be biased downward.

Accepted Answer

A) True 
 B)False

Question 20

Discouraged workers are not counted as unemployed because they are working.

Accepted Answer

A) True 
 B)False

Exam 6: Macroeconomic Measurements Part I Prices and Unemployment

Exhibit 6-2 -Refer to Exhibit 6-2. The unemployment rate in year 1 is

The CPI was 154 in one year and 165 the following year. How much did prices rise between these two years?

The movie "Return of the Jedi" earned $264 million in 1983 when it was released. The CPI in 1983 was 97.8 and the CPI in 2012 was 226.665. Approximately how much did the movie earn in 2012 dollars?

Exhibit 6-2 -Refer to Exhibit 6-2. How many persons are not participating in the labor force in year 4?

Suppose the civilian non-institutional population equals 250,000; there are 132,500 employed persons and 10,000 unemployed persons. How many persons are not in the labor force?

If a person worked at least 15 hours per week as an "unpaid" worker in a restaurant owned by her family, how is she classified by the Bureau of Labor Statistics?

In year 1 the CPI is 140, and in year 2 the CPI is 154. From year 1 to year 2, Marcy's salary rises from $43,000 to $48,000, and Daphne's salary rises from $65,000 to $70,000. Who is "more than keeping up with inflation"?

Exhibit 6-2 -Refer to Exhibit 6-2. How many persons are not participating in the labor force in year 1?

Exhibit 6-2 -Refer to Exhibit 6-2. The unemployment rate in year 4 is

Exhibit 6-2 -Refer to Exhibit 6-2. The unemployment rate in year 3 is

Exhibit 6-1 -Refer to Exhibit 6-1. Prices rose by __________ percent from Year 1 to Year 2.

Suppose the market basket consists of 100X, 200Y, and 300Z. Current-year prices are $5 for each unit of X, $2 for each unit of Y, and $3 for each unit of Z. Base-year prices are $2 for each unit of X, Y, and Z. What is the approximate CPI in the current year?

Suppose there are 50 million persons in the population, 25 million persons in the civilian labor force, and 20 million persons are employed. The number of persons unemployed is _______ million and the unemployment rate is ___________ percent.

The unemployment rate equals the

The base year is always the year in which prices were the lowest.

Which of the following statements is false?

Exhibit 6-2 -Refer to Exhibit 6-2. How many persons are unemployed in year 2?

Because discouraged workers are not considered unemployed, the unemployment rate may be biased downward.

Discouraged workers are not counted as unemployed because they are working.

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand Theory

Prices Free Controlled and Relative

Supply Demand and Price Applications

Macroeconomic Measurements Part II Gdp and Real Gdp

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self Regulating Economy

Keynesian Macroeconomics and Economic Instability a Critique of the Self Regulating Economy

Fiscal Policy and the Federal Budget

Money Banking and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth Resources Technology Ideas and Institutions

Debates in Macroeconomics Over the Role and Effects of Government

Elasticity

Consumer Choice and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition Oligopoly and Game Theory

Government and Product Markets Antitrust and Regulation

Factor Markets With Emphasis on the Labor Market

Wages Unions and Labor

The Distribution of Income and Poverty

Interest Rent and Profit

Market Failure Externalities Public Goods and Asymmetric Information

Public Choice and Special Interest Group Politics

Building Theories to Explain Everyday Life From Observations to Questions to Theories to Predictions

International Trade

International Finance

The Economic Case for and Against Government Five Topics Considered

Stocks Bonds Futures and Options

Filters

Suppose there are 50 million persons in the population, 25 million persons in the civilian labor force, and 20 million persons are employed. The number of persons unemployed is _ million and the unemployment rate is _____ percent.