Question 1

Unemployment rates differ little by education, age, or ethnic group.

Accepted Answer

A) True 
 B)False

Question 2

If a product becomes obsolete and the workers who produced that product will need additional training to find new jobs, they are experiencing _____ unemployment.

Accepted Answer

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

Question 3

When the economy is operating at full employment _____ unemployment is zero.

Accepted Answer

A)  cyclical 
B)  the sum of cyclical unemployment and structural 
C)  the sum of frictional unemployment and structural 
D)  the sum of frictional unemployment and cyclical 
A)  cyclical 
B)  the sum of cyclical unemployment and structural 
C)  the sum of frictional unemployment and structural 
D)  the sum of frictional unemployment and cyclical

Question 4

Which of the following is NOT generally considered a problem with using the consumer price index to measure consumer prices?

Accepted Answer

A)  Only private goods are included, and public goods are excluded. 
B)  Many federal benefits and income tax rates are indexed to the consumer price index. 
C)  Quality improvements are difficult to account for. 
D)  New products are often overlooked. 
A)  Only private goods are included, and public goods are excluded. 
B)  Many federal benefits and income tax rates are indexed to the consumer price index. 
C)  Quality improvements are difficult to account for. 
D)  New products are often overlooked.

Question 5

The consumer price index measures private goods as well as public goods.

Accepted Answer

A) True 
 B)False

Question 6

(Table) Suppose the Bureau of Labor Statistics collects the data presented in the following table   If 2010 is the base year, then the consumer price index for 2012 is

Accepted Answer

A)  100. 
B)  114. 
C)  115. 
D)  125. 
A)  100. 
B)  114. 
C)  115. 
D)  125.

Question 7

A glut of oil in the world market would likely result in _____ in the United States.

Accepted Answer

A)  inflation 
B)  disinflation 
C)  core inflation 
D)  hyperinflation 
A)  inflation 
B)  disinflation 
C)  core inflation 
D)  hyperinflation

Question 8

Which statement describes a difference between the consumer price index (CPI) and the producer price index (PPI)?

Accepted Answer

A)  Only the CPI is associated with the problem of quality changes. 
B)  Only the PPI is associated with the problem of eliminating goods and services from the basket. 
C)  Only the PPI measures net revenues received by firms. 
D)  Only the PPI has a fixed market basket. 
A)  Only the CPI is associated with the problem of quality changes. 
B)  Only the PPI is associated with the problem of eliminating goods and services from the basket. 
C)  Only the PPI measures net revenues received by firms. 
D)  Only the PPI has a fixed market basket.

Question 9

The producer price index measures the average changes in the prices received by domestic producers for their output.

Accepted Answer

A) True 
 B)False

Question 10

Inflation hurts individuals with fixed interest rate mortgages.

Accepted Answer

A) True 
 B)False

Question 11

Tom is living with his parents. He looks at the help-wanted ads but has not replied to any in the past four weeks. Tom is

Accepted Answer

A)  unemployed. 
B)  not in the labor force. 
C)  temporarily in the labor force. 
D)  near-employed. 
A)  unemployed. 
B)  not in the labor force. 
C)  temporarily in the labor force. 
D)  near-employed.

Question 12

(Table) According to the table, the number of people in the labor force is

Accepted Answer

A)  110. 
B)  115. 
C)  120. 
D)  130. 
A)  110. 
B)  115. 
C)  120. 
D)  130.

Question 13

A politician who categorizes an inflation rate of 15% as hyperinflation would be criticized by an economist for using inaccurate terminology.

Accepted Answer

A) True 
 B)False

Question 14

Inflation can be caused by an increase in consumers' wealth.

Accepted Answer

A) True 
 B)False

Question 15

Suppose a market basket of goods costs $10,000 in 2009, the base period, and that same basket of goods now costs $11,200. What is the consumer price index for the current period?

Accepted Answer

A)  89.3 
B)  112.0 
C)  120.0 
D)  132.0 
A)  89.3 
B)  112.0 
C)  120.0 
D)  132.0

Question 16

Suppose the market basket of goods costs $10,000 in 2009, the base period, and that same basket of goods now costs $11,200. What is the percentage change in the cost of goods between the base period and the current period?

Accepted Answer

A)  -20% 
B)  -10.7% 
C)  11.2% 
D)  20% 
A)  -20% 
B)  -10.7% 
C)  11.2% 
D)  20%

Question 17

Escalator clauses are important in times of rising inflation because they protect the real value of wages.

Accepted Answer

A) True 
 B)False

Question 18

Roughly half of unemployment normally consists of people

Accepted Answer

A)  who lost their job. 
B)  who left their job. 
C)  reentering the job market. 
D)  who are new to the job market. 
A)  who lost their job. 
B)  who left their job. 
C)  reentering the job market. 
D)  who are new to the job market.

Question 19

The labor force consists of all adults in the United States.

Accepted Answer

A) True 
 B)False

Question 20

A person is considered to be unemployed if he or she has been either actively or passively looking for work.

Accepted Answer

A) True 
 B)False

Unemployment rates differ little by education, age, or ethnic group.

If a product becomes obsolete and the workers who produced that product will need additional training to find new jobs, they are experiencing _____ unemployment.

When the economy is operating at full employment _____ unemployment is zero.

Which of the following is NOT generally considered a problem with using the consumer price index to measure consumer prices?

The consumer price index measures private goods as well as public goods.

(Table) Suppose the Bureau of Labor Statistics collects the data presented in the following table If 2010 is the base year, then the consumer price index for 2012 is

A glut of oil in the world market would likely result in _____ in the United States.

Which statement describes a difference between the consumer price index (CPI) and the producer price index (PPI)?

The producer price index measures the average changes in the prices received by domestic producers for their output.

Inflation hurts individuals with fixed interest rate mortgages.

Tom is living with his parents. He looks at the help-wanted ads but has not replied to any in the past four weeks. Tom is

(Table) According to the table, the number of people in the labor force is

A politician who categorizes an inflation rate of 15% as hyperinflation would be criticized by an economist for using inaccurate terminology.

Inflation can be caused by an increase in consumers' wealth.

Suppose a market basket of goods costs $10,000 in 2009, the base period, and that same basket of goods now costs $11,200. What is the consumer price index for the current period?

Suppose the market basket of goods costs $10,000 in 2009, the base period, and that same basket of goods now costs $11,200. What is the percentage change in the cost of goods between the base period and the current period?

Escalator clauses are important in times of rising inflation because they protect the real value of wages.

Roughly half of unemployment normally consists of people

The labor force consists of all adults in the United States.

A person is considered to be unemployed if he or she has been either actively or passively looking for work.

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Introduction to Macroeconomics

Economic Growth

Aggregate Expenditures

Aggregate Demand and Supply

Fiscal Policy and Debt

Saving, Investment, and the Financial System

Money Creation and the Federal Reserve

Monetary Policy

Macroeconomic Policy: Challenges in a Global Economy

International Trade

Open Economy Macroeconomics

Filters

Exam 6: Measuring Inflation and Unemployment

Unemployment rates differ little by education, age, or ethnic group.

If a product becomes obsolete and the workers who produced that product will need additional training to find new jobs, they are experiencing _____ unemployment.

When the economy is operating at full employment _____ unemployment is zero.

Which of the following is NOT generally considered a problem with using the consumer price index to measure consumer prices?

The consumer price index measures private goods as well as public goods.

(Table) Suppose the Bureau of Labor Statistics collects the data presented in the following table If 2010 is the base year, then the consumer price index for 2012 is

A glut of oil in the world market would likely result in _____ in the United States.

Which statement describes a difference between the consumer price index (CPI) and the producer price index (PPI)?

The producer price index measures the average changes in the prices received by domestic producers for their output.

Inflation hurts individuals with fixed interest rate mortgages.

Tom is living with his parents. He looks at the help-wanted ads but has not replied to any in the past four weeks. Tom is

(Table) According to the table, the number of people in the labor force is

A politician who categorizes an inflation rate of 15% as hyperinflation would be criticized by an economist for using inaccurate terminology.

Inflation can be caused by an increase in consumers' wealth.

Suppose a market basket of goods costs $10,000 in 2009, the base period, and that same basket of goods now costs $11,200. What is the consumer price index for the current period?

Suppose the market basket of goods costs $10,000 in 2009, the base period, and that same basket of goods now costs $11,200. What is the percentage change in the cost of goods between the base period and the current period?

Escalator clauses are important in times of rising inflation because they protect the real value of wages.

Roughly half of unemployment normally consists of people

The labor force consists of all adults in the United States.

A person is considered to be unemployed if he or she has been either actively or passively looking for work.

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Introduction to Macroeconomics

Economic Growth

Aggregate Expenditures

Aggregate Demand and Supply

Fiscal Policy and Debt

Saving, Investment, and the Financial System

Money Creation and the Federal Reserve

Monetary Policy

Macroeconomic Policy: Challenges in a Global Economy

International Trade

Open Economy Macroeconomics

Filters