Question 1

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

Accepted Answer

A) 12 1/2 percent. 
B) 75 percent. 
C) 87 1/2 percent. 
D) 30 percent. 
E) 50 percent. 
A) 12 1/2 percent. 
B) 75 percent. 
C) 87 1/2 percent. 
D) 30 percent. 
E) 50 percent.

Question 2

A __________ is a person who was employed in the civilian labor force and was either fired or laid off.

Accepted Answer

A) new entrant 
B) reentrant 
C) job leaver 
D) job fixer 
E) none of the above 
A) new entrant 
B) reentrant 
C) job leaver 
D) job fixer 
E) none of the above

Question 3

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

Accepted Answer

A) 1.6 
B) 2.2 
C) 1.9 
D) 2.3 
E) 2.7 
A) 1.6 
B) 2.2 
C) 1.9 
D) 2.3 
E) 2.7

Question 4

Is it possible for the economy to be at full employment and still have some people who are unemployed?

Accepted Answer

A) No, full employment means that no one is unemployed. 
B) Yes, since full employment exists if the economy is operating at the natural unemployment rate and there is always some natural unemployment. 
C) Yes, since full employment exists if the economy is operating at the frictional unemployment rate and there is always some frictional unemployment. 
D) Yes, since full employment equals the sum of the cyclical unemployment rate and the natural unemployment rate, and there is always some cyclical unemployment. 
E) none of the above 
A) No, full employment means that no one is unemployed. 
B) Yes, since full employment exists if the economy is operating at the natural unemployment rate and there is always some natural unemployment. 
C) Yes, since full employment exists if the economy is operating at the frictional unemployment rate and there is always some frictional unemployment. 
D) Yes, since full employment equals the sum of the cyclical unemployment rate and the natural unemployment rate, and there is always some cyclical unemployment. 
E) none of the above

Question 5

A common measure of inflation is the percentage change in the CPI of adjacent years.

Accepted Answer

A) True 
 B)False

Question 6

Suppose that in an economy the structural unemployment rate is 2.2 percent, the natural unemployment rate is 5.3 percent, and the cyclical unemployment rate is 2 percent. The frictional unemployment rate is _________ percent and the actual unemployment rate (in this economy) is ___________ percent.

Accepted Answer

A) 7.5; 3.3 
B) 4.2; 11.7 
C) 7.3; 3.1 
D) 3.1; 7.3 
A) 7.5; 3.3 
B) 4.2; 11.7 
C) 7.3; 3.1 
D) 3.1; 7.3

Question 7

Exhibit 6-1
  
-Refer to Exhibit 6-1. Prices rose by approximately __________ percent from Year 1 to Year 5.

Accepted Answer

A) 10.6 
B) 9.6 
C) 14.3 
D) 4.5 
A) 10.6 
B) 9.6 
C) 14.3 
D) 4.5

Question 8

A market basket is made up of three goods, 10X, 12Y, and 18Z. The prices in the base year are $1.20, $2.10, and $3.25, respectively. The prices in the current year are $1.44, $2.23, and $3.88. What is the approximate consumer price index in the current year?

Accepted Answer

A) 103 
B) 111 
C) 116 
D) 110 
E) 96 
A) 103 
B) 111 
C) 116 
D) 110 
E) 96

Question 9

Which of the following statements is false?

Accepted Answer

A) Changes in technology can lead to changes in the ways in which people are employed. 
B) Cultural differences may help to explain why some men have difficulty finding jobs in some sectors of the modern economy. 
C) In recent years, the demand for workers in the manufacturing sector has grown dramatically compared to the demand for workers in the service sector. 
D) Some people may be at a loss as to what skills are required of them in the current labor market. 
A) Changes in technology can lead to changes in the ways in which people are employed. 
B) Cultural differences may help to explain why some men have difficulty finding jobs in some sectors of the modern economy. 
C) In recent years, the demand for workers in the manufacturing sector has grown dramatically compared to the demand for workers in the service sector. 
D) Some people may be at a loss as to what skills are required of them in the current labor market.

Question 10

If the unemployment rate drops, then it necessarily follows that some of the people who were once unemployed are now employed.

Accepted Answer

A) True 
 B)False

Question 11

In automobile manufacturing, many parts of the production process that were once completed by people are now completed using robotics. Workers who lost their jobs as a result of the use of robotics became __________ unemployed.

Accepted Answer

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

Exam 6: Macroeconomic Measurements Part I Prices and Unemployment

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

A __________ is a person who was employed in the civilian labor force and was either fired or laid off.

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

Is it possible for the economy to be at full employment and still have some people who are unemployed?

A common measure of inflation is the percentage change in the CPI of adjacent years.

Suppose that in an economy the structural unemployment rate is 2.2 percent, the natural unemployment rate is 5.3 percent, and the cyclical unemployment rate is 2 percent. The frictional unemployment rate is _________ percent and the actual unemployment rate (in this economy) is ___________ percent.

Exhibit 6-1 -Refer to Exhibit 6-1. Prices rose by approximately __________ percent from Year 1 to Year 5.

A market basket is made up of three goods, 10X, 12Y, and 18Z. The prices in the base year are $1.20, $2.10, and $3.25, respectively. The prices in the current year are $1.44, $2.23, and $3.88. What is the approximate consumer price index in the current year?

Which of the following statements is false?

If the unemployment rate drops, then it necessarily follows that some of the people who were once unemployed are now employed.

In automobile manufacturing, many parts of the production process that were once completed by people are now completed using robotics. Workers who lost their jobs as a result of the use of robotics became __________ unemployed.

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 2 and year 3.

Suppose that in an economy the structural unemployment rate is 2.2 percent, the natural unemployment rate is 5.3 percent, and the cyclical unemployment rate is 2 percent. The frictional unemployment rate is _ percent and the actual unemployment rate (in this economy) is ___ percent.