Question 1

The civilian non-institutional population consists of everyone in the population who is

Accepted Answer

A) at least 16 years of age, in the armed forces, or institutionalized. 
B) at least 16 years of age. 
C) not in the armed forces. 
D) not institutionalized. 
E) b, c, and d 
A) at least 16 years of age, in the armed forces, or institutionalized. 
B) at least 16 years of age. 
C) not in the armed forces. 
D) not institutionalized. 
E) b, c, and d

Question 2

Unemployment that arises as a result of the time it takes for unemployed people to locate a job utilizing their transferable skills is called __________ unemployment.

Accepted Answer

A) structural 
B) cyclical 
C) natural 
D) frictional 
A) structural 
B) cyclical 
C) natural 
D) frictional

Question 3

If a person is waiting to be called back to a job from which she has been laid off, 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 4

​
Exhibit 6-3
​
​
  
-Refer to Exhibit 6-3. Prices changed by ___________ percent between year 1 and year 2.

Accepted Answer

A) -1.6 
B) -1.7 
C) 1.6 
D) -2.3 
E) 2.3 
A) -1.6 
B) -1.7 
C) 1.6 
D) -2.3 
E) 2.3

Question 5

Persons who are retired or engaged in own-home housework are considered to be in which of the following categories?

Accepted Answer

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

Question 6

One measure of the inflation rate is the

Accepted Answer

A) sum of the CPIs of adjacent years. 
B) percentage change in the CPI of adjacent years. 
C) percentage change in the Real GDP of adjacent years. 
D) GDP minus the Real GDP in a year. 
A) sum of the CPIs of adjacent years. 
B) percentage change in the CPI of adjacent years. 
C) percentage change in the Real GDP of adjacent years. 
D) GDP minus the Real GDP in a year.

Question 7

Exhibit 6-1
  
-Refer to Exhibit 6-1. Prices rose by __________ percent from Year 2 to Year 3.

Accepted Answer

A) 3.39 
B) 0.023 
C) 3.28 
D) 2.22 
E) 2.27 
A) 3.39 
B) 0.023 
C) 3.28 
D) 2.22 
E) 2.27

Question 8

Describe what the term "full employment" means to an economist.

Accepted Answer

Full employment exists when the economy

Question 9

The cyclical unemployment rate can never be negative.

Accepted Answer

A) True 
 B)False

Question 10

Assume that Ms. Sawyer's salary is $35,000, up from $31,000 last year, while the CPI is 187.5 this year, up from 180 last year. This means that Ms. Sawyer's real income has ____________ since last year.

Accepted Answer

A) increased 
B) decreased 
C) stayed the same 
D) There is not enough information provided to answer this question. 
A) increased 
B) decreased 
C) stayed the same 
D) There is not enough information provided to answer this question.

Question 11

Juan lost his job as a nuclear physicist working for a defense contractor. He can not find a job because no firms in the defense industry or any other industry are hiring people with his skills. Juan is ______________ unemployed.

Accepted Answer

A) frictionally 
B) cyclically 
C) structurally 
D) naturally 
A) frictionally 
B) cyclically 
C) structurally 
D) naturally

Question 12

A seamstress who quits her job in Houston and moves to New York where additional seamstresses are needed is said to be frictionally unemployed.

Accepted Answer

A) True 
 B)False

Question 13

The base year is the year

Accepted Answer

A) in which prices are unstable. 
B) in which prices are lowest. 
C) in which prices are highest. 
D) that serves as a reference point or benchmark. 
E) in which nominal output is largest. 
A) in which prices are unstable. 
B) in which prices are lowest. 
C) in which prices are highest. 
D) that serves as a reference point or benchmark. 
E) in which nominal output is largest.

Question 14

Look at the following data: Total population = 230 million; employed persons = 80 million; unemployed persons = 8 million. The unemployment rate is approximately __________ and the employment rate __________.

Accepted Answer

A) 9.1 percent; cannot be determined 
B) 10 percent; is 90 percent 
C) 8.2 percent; is 34 percent 
D) 11 percent; is 38 percent 
E) 9.1 percent; 90.9 percent 
A) 9.1 percent; cannot be determined 
B) 10 percent; is 90 percent 
C) 8.2 percent; is 34 percent 
D) 11 percent; is 38 percent 
E) 9.1 percent; 90.9 percent

Question 15

The labor force participation rate (LFPR) equals the number of

Accepted Answer

A) employed persons divided by the number of unemployed persons. 
B) unemployed persons divided by the civilian noninstitutional population. 
C) employed persons divided by the civilian labor force. 
D) employed persons divided by the civilian noninstitutional population. 
E) none of the above 
A) employed persons divided by the number of unemployed persons. 
B) unemployed persons divided by the civilian noninstitutional population. 
C) employed persons divided by the civilian labor force. 
D) employed persons divided by the civilian noninstitutional population. 
E) none of the above

Question 16

If a person did any work as a paid employee during the Bureau of Labor Statistics survey reference week, how is she classified?

Accepted Answer

A) as an employed person 
B) as not in the labor force 
C) as an unemployed person 
D) as part of the labor force 
E) ​a and d 
A) as an employed person 
B) as not in the labor force 
C) as an unemployed person 
D) as part of the labor force 
E) ​a and d

Question 17

Suppose that 1982 is the base year for the Consumer Price Index (CPI) and in 2019 the CPI is 270. What does this "270" mean?

Accepted Answer

A) What cost $100 in 1982 on average cost 270 times as much in 2019. 
B) What cost $100 in 1982 on average cost $270 in 2019. 
C) What cost $100 in 1982 on average cost 0.27 times as much in 2019. 
D) What cost $100 in 1982 on average cost $27 more in 2019 
A) What cost $100 in 1982 on average cost 270 times as much in 2019. 
B) What cost $100 in 1982 on average cost $270 in 2019. 
C) What cost $100 in 1982 on average cost 0.27 times as much in 2019. 
D) What cost $100 in 1982 on average cost $27 more in 2019

Question 18

The sum of the unemployment rate and the labor force participation rate always equals 100 percent.

Accepted Answer

A) True 
 B)False

Question 19

Valerie works 23 unpaid hours per week at her parent's restaurant, therefore the Bureau of Labor Statistics would count her as employed.

Accepted Answer

A) True 
 B)False

Question 20

Suppose that in an economy the frictional unemployment rate is 3.1 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) 1.4; 5.5 
B) 1.4; 3.5 
C) 7.6; 6.6 
D) 3.5; 1.4 
A) 1.4; 5.5 
B) 1.4; 3.5 
C) 7.6; 6.6 
D) 3.5; 1.4

Exam 6: Macroeconomic Measurements Part I Prices and Unemployment

The civilian non-institutional population consists of everyone in the population who is

Unemployment that arises as a result of the time it takes for unemployed people to locate a job utilizing their transferable skills is called __________ unemployment.

If a person is waiting to be called back to a job from which she has been laid off, how is she classified by the Bureau of Labor Statistics?

​ Exhibit 6-3 ​ ​ -Refer to Exhibit 6-3. Prices changed by ___________ percent between year 1 and year 2.

Persons who are retired or engaged in own-home housework are considered to be in which of the following categories?

One measure of the inflation rate is the

Exhibit 6-1 -Refer to Exhibit 6-1. Prices rose by __________ percent from Year 2 to Year 3.

Describe what the term "full employment" means to an economist.

The cyclical unemployment rate can never be negative.

Assume that Ms. Sawyer's salary is $35,000, up from $31,000 last year, while the CPI is 187.5 this year, up from 180 last year. This means that Ms. Sawyer's real income has ____________ since last year.

Juan lost his job as a nuclear physicist working for a defense contractor. He can not find a job because no firms in the defense industry or any other industry are hiring people with his skills. Juan is ______________ unemployed.

A seamstress who quits her job in Houston and moves to New York where additional seamstresses are needed is said to be frictionally unemployed.

The base year is the year

Look at the following data: Total population = 230 million; employed persons = 80 million; unemployed persons = 8 million. The unemployment rate is approximately __________ and the employment rate __________.

The labor force participation rate (LFPR) equals the number of

If a person did any work as a paid employee during the Bureau of Labor Statistics survey reference week, how is she classified?

Suppose that 1982 is the base year for the Consumer Price Index (CPI) and in 2019 the CPI is 270. What does this "270" mean?

The sum of the unemployment rate and the labor force participation rate always equals 100 percent.

Valerie works 23 unpaid hours per week at her parent's restaurant, therefore the Bureau of Labor Statistics would count her as employed.

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

Exhibit 6-3 -Refer to Exhibit 6-3. Prices changed by ___________ percent between year 1 and year 2.

Look at the following data: Total population = 230 million; employed persons = 80 million; unemployed persons = 8 million. The unemployment rate is approximately and the employment rate .