Question 1

The natural unemployment rate

Accepted Answer

A)  is a constant figure of about 4 percent. 
B)  fluctuates with the rate of inflation. 
C)  is the unemployment rate that occurs when the economy is at full employment. 
D)  is equal to cyclical unemployment. 
A)  is a constant figure of about 4 percent. 
B)  fluctuates with the rate of inflation. 
C)  is the unemployment rate that occurs when the economy is at full employment. 
D)  is equal to cyclical unemployment.

Question 2

Which of the following is NOT included in the working-age population?

Accepted Answer

A)  discouraged workers 
B)  people waiting to be called back to a job after being laid off 
C)  retirees under the age of 55 
D)  people in prison 
A)  discouraged workers 
B)  people waiting to be called back to a job after being laid off 
C)  retirees under the age of 55 
D)  people in prison

Question 3

Based on the following data for the country of Tiny Town, the unemployment rate equals Population = 100
Labor force = 80
Number of employed persons = 70
Number of discouraged workers = 5

Accepted Answer

A)  10/100 × 100. 
B)  10/80 × 100. 
C)  15/80 × 100. 
D)  5/70 × 100. 
A)  10/100 × 100. 
B)  10/80 × 100. 
C)  15/80 × 100. 
D)  5/70 × 100.

Question 4

The employment-to-population ratio equals

Accepted Answer

A)  (labor force)/(working-age population) × 100. 
B)  (number of people employed)/(labor force) × 100. 
C)  (number of people with full-time jobs)/(labor force) × 100. 
D)  (number of people employed)/(working-age population) × 100. 
A)  (labor force)/(working-age population) × 100. 
B)  (number of people employed)/(labor force) × 100. 
C)  (number of people with full-time jobs)/(labor force) × 100. 
D)  (number of people employed)/(working-age population) × 100.

Question 5

When a person reenters the labor force and looks for a job after spending time at home raising a child

Accepted Answer

A)  cyclical unemployment increases. 
B)  structural unemployment decreases. 
C)  frictional and cyclical unemployment increase. 
D)  frictional unemployment increases. 
A)  cyclical unemployment increases. 
B)  structural unemployment decreases. 
C)  frictional and cyclical unemployment increase. 
D)  frictional unemployment increases.

Question 6

In an economy, 42 million people are in the labor force, 38 million are employed, and 47 million are of working age. How many people are not in the labor force?

Accepted Answer

A)  19 percent 
B)  9 million 
C)  5 million 
D)  4 million 
A)  19 percent 
B)  9 million 
C)  5 million 
D)  4 million

Question 7

-In the above table, the number of marginally attached workers is

Accepted Answer

A)  40 million. 
B)  55 million. 
C)  15 million. 
D)  100 million. 
A)  40 million. 
B)  55 million. 
C)  15 million. 
D)  100 million.

Question 8

What are the three stages of constructing the CPI?

Accepted Answer

The first stage is to select the CPI bas

Question 9

Which of the following pieces of information do you need to calculate the labor force participation rate?
I. the number of employed persons
II. the number of unemployed persons
III. the population
IV. the working age population

Accepted Answer

A)  I and II 
B)  I and III 
C)  I, II and III 
D)  I, II and IV 
A)  I and II 
B)  I and III 
C)  I, II and III 
D)  I, II and IV

Question 10

Explain how the labor force participation rate and the unemployment rate change in a recession.

Accepted Answer

The labor force participation

Question 11

Frictional unemployment is the result of

Accepted Answer

A)  technological change or foreign competition. 
B)  normal labor market turnover. 
C)  a slowdown in the rate of economic expansion. 
D)  irresponsible workers with poor work habits. 
A)  technological change or foreign competition. 
B)  normal labor market turnover. 
C)  a slowdown in the rate of economic expansion. 
D)  irresponsible workers with poor work habits.

Question 12

-In the table above, the number of marginally attached workers is

Accepted Answer

A)  40 million. 
B)  6 million. 
C)  2 million. 
D)  4 million. 
A)  40 million. 
B)  6 million. 
C)  2 million. 
D)  4 million.

Question 13

The three types of unemployment are

Accepted Answer

A)  voluntary, involuntary, and structural. 
B)  voluntary, part-time, and cyclical. 
C)  frictional, part-time, and involuntary. 
D)  frictional, structural, and cyclical. 
A)  voluntary, involuntary, and structural. 
B)  voluntary, part-time, and cyclical. 
C)  frictional, part-time, and involuntary. 
D)  frictional, structural, and cyclical.

Question 14

Bill loses his job as a loan officer when the bank he works for is bought up by a larger financial institution. Bill has the skills necessary to find a new job, so as Bill searches for work he is best considered an example of

Accepted Answer

A)  frictional unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  a discouraged worker. 
A)  frictional unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  a discouraged worker.

Question 15

-Using the information in the above table, the labor force participation rate is

Accepted Answer

A)  67.1 percent. 
B)  64.0 percent. 
C)  95.7 percent. 
D)  56 percent. 
A)  67.1 percent. 
B)  64.0 percent. 
C)  95.7 percent. 
D)  56 percent.

Question 16

The primary factor leading to cyclical unemployment is when

Accepted Answer

A)  businesses often discriminate in their hiring practices on the basis of age, sex, and race. 
B)  the level of overall economic activity fluctuates. 
C)  workers quit their jobs in order to look for higher paying employment. 
D)  some workers do not have marketable job skills. 
A)  businesses often discriminate in their hiring practices on the basis of age, sex, and race. 
B)  the level of overall economic activity fluctuates. 
C)  workers quit their jobs in order to look for higher paying employment. 
D)  some workers do not have marketable job skills.

Question 17

As of July 2012, the 12 month CPI inflation rate was 1.4 percent and the 12 month core CPI inflation rate was 2.1 percent. The difference between these two measurements of inflation indicates

Accepted Answer

A)  prices for food and fuel grew less rapidly than prices for other goods. 
B)  prices for food and fuel grew more rapidly than prices for other goods. 
C)  the underlying inflation rate was lower than the overall inflation rate. 
D)  hyperinflation. 
A)  prices for food and fuel grew less rapidly than prices for other goods. 
B)  prices for food and fuel grew more rapidly than prices for other goods. 
C)  the underlying inflation rate was lower than the overall inflation rate. 
D)  hyperinflation.

Question 18

To prevent frictional unemployment, we would have to

Accepted Answer

A)  eliminate recessions. 
B)  eliminate the business cycle. 
C)  prevent people from leaving their jobs. 
D)  make sure everyone goes to college. 
A)  eliminate recessions. 
B)  eliminate the business cycle. 
C)  prevent people from leaving their jobs. 
D)  make sure everyone goes to college.

Question 19

An economy is at full employment when

Accepted Answer

A)  the unemployment rate is zero. 
B)  there is no frictional unemployment. 
C)  the unemployment rate equals the natural unemployment rate. 
D)  there is no structural unemployment. 
A)  the unemployment rate is zero. 
B)  there is no frictional unemployment. 
C)  the unemployment rate equals the natural unemployment rate. 
D)  there is no structural unemployment.

Question 20

The biases in the CPI include the

Accepted Answer

A)  old goods, unemployment, and inflation biases. 
B)  new goods, quality change, and substitution biases. 
C)  old goods, new goods, and quality change biases. 
D)  substitution, new goods, and old goods biases. 
A)  old goods, unemployment, and inflation biases. 
B)  new goods, quality change, and substitution biases. 
C)  old goods, new goods, and quality change biases. 
D)  substitution, new goods, and old goods biases.

The natural unemployment rate

Which of the following is NOT included in the working-age population?

Based on the following data for the country of Tiny Town, the unemployment rate equals Population = 100 Labor force = 80 Number of employed persons = 70 Number of discouraged workers = 5

The employment-to-population ratio equals

When a person reenters the labor force and looks for a job after spending time at home raising a child

In an economy, 42 million people are in the labor force, 38 million are employed, and 47 million are of working age. How many people are not in the labor force?

-In the above table, the number of marginally attached workers is

What are the three stages of constructing the CPI?

Which of the following pieces of information do you need to calculate the labor force participation rate? I. the number of employed persons II. the number of unemployed persons III. the population IV. the working age population

Explain how the labor force participation rate and the unemployment rate change in a recession.

Frictional unemployment is the result of

-In the table above, the number of marginally attached workers is

The three types of unemployment are

Bill loses his job as a loan officer when the bank he works for is bought up by a larger financial institution. Bill has the skills necessary to find a new job, so as Bill searches for work he is best considered an example of

-Using the information in the above table, the labor force participation rate is

The primary factor leading to cyclical unemployment is when

As of July 2012, the 12 month CPI inflation rate was 1.4 percent and the 12 month core CPI inflation rate was 2.1 percent. The difference between these two measurements of inflation indicates

To prevent frictional unemployment, we would have to

An economy is at full employment when

The biases in the CPI include the

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

The natural unemployment rate

Which of the following is NOT included in the working-age population?

Based on the following data for the country of Tiny Town, the unemployment rate equals Population = 100 Labor force = 80 Number of employed persons = 70 Number of discouraged workers = 5

The employment-to-population ratio equals

When a person reenters the labor force and looks for a job after spending time at home raising a child

In an economy, 42 million people are in the labor force, 38 million are employed, and 47 million are of working age. How many people are not in the labor force?

-In the above table, the number of marginally attached workers is

What are the three stages of constructing the CPI?

Which of the following pieces of information do you need to calculate the labor force participation rate? I. the number of employed persons II. the number of unemployed persons III. the population IV. the working age population

Explain how the labor force participation rate and the unemployment rate change in a recession.

Frictional unemployment is the result of

-In the table above, the number of marginally attached workers is

The three types of unemployment are

Bill loses his job as a loan officer when the bank he works for is bought up by a larger financial institution. Bill has the skills necessary to find a new job, so as Bill searches for work he is best considered an example of

-Using the information in the above table, the labor force participation rate is

The primary factor leading to cyclical unemployment is when

As of July 2012, the 12 month CPI inflation rate was 1.4 percent and the 12 month core CPI inflation rate was 2.1 percent. The difference between these two measurements of inflation indicates

To prevent frictional unemployment, we would have to

An economy is at full employment when

The biases in the CPI include the

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