Question 1

When more labor is unemployed than the amount at the natural unemployment rate, then real GDP ________ potential GDP.

Accepted Answer

A)  is equal to 
B)  is less than 
C)  is greater than 
D)  cannot be compared to 
A)  is equal to 
B)  is less than 
C)  is greater than 
D)  cannot be compared to

Question 2

Suppose the population is 220 million people, the labor force is 150 million people, the number of people employed is 130 million and the working-age population is 175 million people. What is the unemployment rate?

Accepted Answer

A)  9.0 percent 
B)  13.3 percent 
C)  11.4 percent 
D)  15.4 percent 
A)  9.0 percent 
B)  13.3 percent 
C)  11.4 percent 
D)  15.4 percent

Question 3

Suppose the country of Quasiland experienced a decrease in real GDP and people were laid off from their jobs. The people would be considered part of

Accepted Answer

A)  frictional unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  discouraged workers. 
A)  frictional unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  discouraged workers.

Question 4

Give an example of a frictionally unemployed person.

Accepted Answer

A person who is without a job because of

Question 5

Full employment means

Accepted Answer

A)  zero unemployment. 
B)  only cyclical unemployment exists. 
C)  only frictional and structural unemployment exists. 
D)  None of the above answers are correct. 
A)  zero unemployment. 
B)  only cyclical unemployment exists. 
C)  only frictional and structural unemployment exists. 
D)  None of the above answers are correct.

Question 6

When the economy is at full employment the unemployment rate equals the natural unemployment rate.

Accepted Answer

A) True 
 B)False

Question 7

Can frictional unemployment ever be totally eliminated? Explain your answer.

Accepted Answer

Frictional unemployment arises from norm

Question 8

If the CPI was 121.5 at the end of last year and 138.3 at the end of this year, the inflation rate over these two years was

Accepted Answer

A)  10.2 percent. 
B)  13.8 percent. 
C)  12.2 percent. 
D)  16.8 percent. 
A)  10.2 percent. 
B)  13.8 percent. 
C)  12.2 percent. 
D)  16.8 percent.

Question 9

The cost of inflation to society includes
I. the opportunity costs of resources used by people to protect themselves against inflation.
II. the diversion of productive resources to forecasting inflation.

Accepted Answer

A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II 
A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II

Question 10

If the CPI was 122.3 at the end of last year and 124.5 at the end of this year, the inflation rate over these two years was

Accepted Answer

A)  1.8 percent. 
B)  2.5 percent. 
C)  22.5 percent. 
D)  18.0 percent. 
A)  1.8 percent. 
B)  2.5 percent. 
C)  22.5 percent. 
D)  18.0 percent.

Question 11

-In the above table, the unemployment rate is

Accepted Answer

A)  6 percent. 
B)  24 percent. 
C)  18 percent. 
D)  29 percent. 
A)  6 percent. 
B)  24 percent. 
C)  18 percent. 
D)  29 percent.

Question 12

-The Bureau of Labor Statistics reported the data in the table above for October 2003.
a) Calculate the number of people unemployed.
b) Calculate the number of people who are not in the labor force
c) Calculate the unemployment rate.
d) Calculate the labor force participation rate.

Accepted Answer

a) The labor force is the sum of the num

Question 13

Unemployment caused by the normal labor turnover is called ________ unemployment.

Accepted Answer

A)  part-time 
B)  frictional 
C)  involuntary 
D)  cyclical 
A)  part-time 
B)  frictional 
C)  involuntary 
D)  cyclical

Question 14

A recent accounting graduate from a major business school is searching for a place to begin his career as an accountant. This individual is best considered as

Accepted Answer

A)  structurally unemployed. 
B)  seasonally unemployed. 
C)  cyclically unemployed. 
D)  frictionally unemployed. 
A)  structurally unemployed. 
B)  seasonally unemployed. 
C)  cyclically unemployed. 
D)  frictionally unemployed.

Question 15

Which of the following measurements of inflation tracks the rate at which infrequently changed prices are changing?

Accepted Answer

A)  the PCE deflator 
B)  the core PCE 
C)  the chained CPI 
D)  the sticky-price CPI 
A)  the PCE deflator 
B)  the core PCE 
C)  the chained CPI 
D)  the sticky-price CPI

Question 16

Suppose that the unemployment rate equals 4.5 percent and that the natural unemployment rate is 5.5 percent. We can conclude that

Accepted Answer

A)  the output gap is negative. 
B)  the output gap equals zero. 
C)  the output gap is positive. 
D)  we have mismeasured the natural unemployment rate. 
A)  the output gap is negative. 
B)  the output gap equals zero. 
C)  the output gap is positive. 
D)  we have mismeasured the natural unemployment rate.

Question 17

Students who leave school in the spring and look for work are one source of

Accepted Answer

A)  structural unemployment. 
B)  cyclical unemployment. 
C)  frictional unemployment. 
D)  business-cycle fluctuations. 
A)  structural unemployment. 
B)  cyclical unemployment. 
C)  frictional unemployment. 
D)  business-cycle fluctuations.

Question 18

Based on the following data for the country of Tiny Town, the employment-to-population ratio equals ________ multiplied by 100. Population = 200
Working age population = 100
Labor Force = 90
Number of employed persons = 75

Accepted Answer

A)  90/100. 
B)  75/200 
C)  90/200. 
D)  75/100. 
A)  90/100. 
B)  75/200 
C)  90/200. 
D)  75/100.

Question 19

-In the above table, the labor force participation rate is

Accepted Answer

A)  55 percent. 
B)  44 percent. 
C)  62 percent. 
D)  69 percent. 
A)  55 percent. 
B)  44 percent. 
C)  62 percent. 
D)  69 percent.

Question 20

Unemployment caused by people voluntarily leaving their jobs is classified as

Accepted Answer

A)  part-time unemployment. 
B)  cyclical unemployment. 
C)  frictional unemployment. 
D)  seasonal unemployment. 
A)  part-time unemployment. 
B)  cyclical unemployment. 
C)  frictional unemployment. 
D)  seasonal unemployment.

When more labor is unemployed than the amount at the natural unemployment rate, then real GDP ________ potential GDP.

Suppose the population is 220 million people, the labor force is 150 million people, the number of people employed is 130 million and the working-age population is 175 million people. What is the unemployment rate?

Suppose the country of Quasiland experienced a decrease in real GDP and people were laid off from their jobs. The people would be considered part of

Give an example of a frictionally unemployed person.

Full employment means

When the economy is at full employment the unemployment rate equals the natural unemployment rate.

Can frictional unemployment ever be totally eliminated? Explain your answer.

If the CPI was 121.5 at the end of last year and 138.3 at the end of this year, the inflation rate over these two years was

The cost of inflation to society includes I. the opportunity costs of resources used by people to protect themselves against inflation. II. the diversion of productive resources to forecasting inflation.

If the CPI was 122.3 at the end of last year and 124.5 at the end of this year, the inflation rate over these two years was

-In the above table, the unemployment rate is

-The Bureau of Labor Statistics reported the data in the table above for October 2003. a) Calculate the number of people unemployed. b) Calculate the number of people who are not in the labor force c) Calculate the unemployment rate. d) Calculate the labor force participation rate.

Unemployment caused by the normal labor turnover is called ________ unemployment.

A recent accounting graduate from a major business school is searching for a place to begin his career as an accountant. This individual is best considered as

Which of the following measurements of inflation tracks the rate at which infrequently changed prices are changing?

Suppose that the unemployment rate equals 4.5 percent and that the natural unemployment rate is 5.5 percent. We can conclude that

Students who leave school in the spring and look for work are one source of

Based on the following data for the country of Tiny Town, the employment-to-population ratio equals ________ multiplied by 100. Population = 200 Working age population = 100 Labor Force = 90 Number of employed persons = 75

-In the above table, the labor force participation rate is

Unemployment caused by people voluntarily leaving their jobs is classified as

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

When more labor is unemployed than the amount at the natural unemployment rate, then real GDP ________ potential GDP.

Suppose the population is 220 million people, the labor force is 150 million people, the number of people employed is 130 million and the working-age population is 175 million people. What is the unemployment rate?

Suppose the country of Quasiland experienced a decrease in real GDP and people were laid off from their jobs. The people would be considered part of

Give an example of a frictionally unemployed person.

Full employment means

When the economy is at full employment the unemployment rate equals the natural unemployment rate.

Can frictional unemployment ever be totally eliminated? Explain your answer.

If the CPI was 121.5 at the end of last year and 138.3 at the end of this year, the inflation rate over these two years was

The cost of inflation to society includes I. the opportunity costs of resources used by people to protect themselves against inflation. II. the diversion of productive resources to forecasting inflation.

If the CPI was 122.3 at the end of last year and 124.5 at the end of this year, the inflation rate over these two years was

-In the above table, the unemployment rate is

-The Bureau of Labor Statistics reported the data in the table above for October 2003. a) Calculate the number of people unemployed. b) Calculate the number of people who are not in the labor force c) Calculate the unemployment rate. d) Calculate the labor force participation rate.

Unemployment caused by the normal labor turnover is called ________ unemployment.

A recent accounting graduate from a major business school is searching for a place to begin his career as an accountant. This individual is best considered as

Which of the following measurements of inflation tracks the rate at which infrequently changed prices are changing?

Suppose that the unemployment rate equals 4.5 percent and that the natural unemployment rate is 5.5 percent. We can conclude that

Students who leave school in the spring and look for work are one source of

Based on the following data for the country of Tiny Town, the employment-to-population ratio equals ________ multiplied by 100. Population = 200 Working age population = 100 Labor Force = 90 Number of employed persons = 75

-In the above table, the labor force participation rate is

Unemployment caused by people voluntarily leaving their jobs is classified as

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