Question 1

The working-age population is divided between those people in the labor force and those people unemployed.

Accepted Answer

A) True 
 B)False

Question 2

From September 2013 to September 2014, the employment-to-population ratio increased from 58.6 percent to 59.0 percent. This change could have been the result of

Accepted Answer

A)  a decrease in the working-age population. 
B)  unemployed workers becoming part-time workers. 
C)  unemployed workers becoming discouraged workers. 
D)  discouraged workers starting to look for jobs again. 
A)  a decrease in the working-age population. 
B)  unemployed workers becoming part-time workers. 
C)  unemployed workers becoming discouraged workers. 
D)  discouraged workers starting to look for jobs again.

Question 3

The unemployment rate is found by dividing the number of unemployed people by the

Accepted Answer

A)  number of working individuals, and multiplying by 100. 
B)  number of the working-age population, and multiplying by 100. 
C)  sum of working individuals plus unemployed workers, and multiplying by 100. 
D)  number in the labor force, and dividing by 100. 
A)  number of working individuals, and multiplying by 100. 
B)  number of the working-age population, and multiplying by 100. 
C)  sum of working individuals plus unemployed workers, and multiplying by 100. 
D)  number in the labor force, and dividing by 100.

Question 4

Catherine quit her job in order to look for a new one; therefore, she is best considered as

Accepted Answer

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

Question 5

The unemployment rate equals

Accepted Answer

A)  (number of people employed/working age population) × 100. 
B)  (number of people unemployed/labor force) × 100. 
C)  (labor force/working age population) × 100. 
D)  (number of people employed/number of people age 16 and over) × 100. 
A)  (number of people employed/working age population) × 100. 
B)  (number of people unemployed/labor force) × 100. 
C)  (labor force/working age population) × 100. 
D)  (number of people employed/number of people age 16 and over) × 100.

Question 6

The labor force is defined as people

Accepted Answer

A)  who have a job or are looking for a job. 
B)  in the working-age population who have a job. 
C)  in the working-age population who have a full time job. 
D)  who are 16 years of age or older. 
A)  who have a job or are looking for a job. 
B)  in the working-age population who have a job. 
C)  in the working-age population who have a full time job. 
D)  who are 16 years of age or older.

Question 7

Suppose there are 100 million in the labor force, and 6 million unemployed people. During the next month, 200,000 people lose their jobs and 300,000 find jobs. The new total of employed persons is ________ and the new unemployment rate is ________.

Accepted Answer

A)  100.1 million; 5.8 percent 
B)  100 million; 6.1 percent 
C)  94.1 million; 5.9 percent 
D)  93.9 million; 6.1 percent 
A)  100.1 million; 5.8 percent 
B)  100 million; 6.1 percent 
C)  94.1 million; 5.9 percent 
D)  93.9 million; 6.1 percent

Question 8

The unemployment rate measures the percentage of the working-age population who can't find a job.

Accepted Answer

A) True 
 B)False

Question 9

If this year's price level is 126 and last year's price level was 120, the inflation rate is

Accepted Answer

A)  0.95 percent a year. 
B)  5 percent a year. 
C)  6 percent a year. 
D)  1.05 percent a year. 
A)  0.95 percent a year. 
B)  5 percent a year. 
C)  6 percent a year. 
D)  1.05 percent a year.

Question 10

One way to be considered unemployed is to be without a job and looking for work.

Accepted Answer

A) True 
 B)False

Question 11

-Based on the information in the above table, what is the unemployment rate? What is the labor force participation rate?

Accepted Answer

The unemployment rate equals (6 million

Question 12

What is the relationship over the business cycle of potential GDP and real GDP?

Accepted Answer

The level of output that the economy wou

Question 13

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

Accepted Answer

A)  66 percent. 
B)  58.1 percent. 
C)  75.7 percent. 
D)  96.0 percent. 
A)  66 percent. 
B)  58.1 percent. 
C)  75.7 percent. 
D)  96.0 percent.

Question 14

A major characteristic of structural unemployment that differentiates it from frictional unemployment is that structural unemployment

Accepted Answer

A)  exists only during a recession. 
B)  exists in an expansion whereas there is no frictional unemployment in an expansion. 
C)  is a short-term problem. 
D)  usually lasts longer than frictional unemployment. 
A)  exists only during a recession. 
B)  exists in an expansion whereas there is no frictional unemployment in an expansion. 
C)  is a short-term problem. 
D)  usually lasts longer than frictional unemployment.

Question 15

-In the above table, the inflation rate between 2014 and 2015 is approximately

Accepted Answer

A)  10 percent. 
B)  11 percent. 
C)  121 percent. 
D)  None of the above answers is correct. 
A)  10 percent. 
B)  11 percent. 
C)  121 percent. 
D)  None of the above answers is correct.

Question 16

Suppose the economy is experiencing frictional unemployment of 1 percent, structural unemployment of 3 percent and cyclical unemployment of 4 percent. What is the natural unemployment rate?

Accepted Answer

A)  3 percent 
B)  4 percent 
C)  5 percent 
D)  7 percent 
A)  3 percent 
B)  4 percent 
C)  5 percent 
D)  7 percent

Question 17

Structural unemployment is

Accepted Answer

A)  associated with the normal changing of jobs in a dynamic economy. 
B)  associated with the general downturns in the economy. 
C)  associated with the general decline of specific industries. 
D)  almost always short-term in nature. 
A)  associated with the normal changing of jobs in a dynamic economy. 
B)  associated with the general downturns in the economy. 
C)  associated with the general decline of specific industries. 
D)  almost always short-term in nature.

Question 18

Assume the inflation rate falls from 4 percent to 2 percent. This means that

Accepted Answer

A)  the price level has fallen. 
B)  the price level is increasing more slowly. 
C)  the economy is experiencing deflation. 
D)  real GDP is decreasing. 
A)  the price level has fallen. 
B)  the price level is increasing more slowly. 
C)  the economy is experiencing deflation. 
D)  real GDP is decreasing.

Question 19

Andrew just lost his job as a corkscrew operator since his company has found a machine to perform his work tasks. Andrew did not have the skills needed to operate the machine. Andrew has searched for a new job for 6 months and continues to search. Therefore, Andrew is considered to be

Accepted Answer

A)  frictionally unemployed. 
B)  a discouraged worker. 
C)  cyclically unemployed. 
D)  structurally unemployed. 
A)  frictionally unemployed. 
B)  a discouraged worker. 
C)  cyclically unemployed. 
D)  structurally unemployed.

Question 20

-In the table above, what inflation rate belongs in space E?

Accepted Answer

A)  17.0 percent 
B)  6.8 percent 
C)  8.3 percent 
D)  15.4 percent 
A)  17.0 percent 
B)  6.8 percent 
C)  8.3 percent 
D)  15.4 percent

The working-age population is divided between those people in the labor force and those people unemployed.

From September 2013 to September 2014, the employment-to-population ratio increased from 58.6 percent to 59.0 percent. This change could have been the result of

The unemployment rate is found by dividing the number of unemployed people by the

Catherine quit her job in order to look for a new one; therefore, she is best considered as

The unemployment rate equals

The labor force is defined as people

Suppose there are 100 million in the labor force, and 6 million unemployed people. During the next month, 200,000 people lose their jobs and 300,000 find jobs. The new total of employed persons is and the new unemployment rate is .

The unemployment rate measures the percentage of the working-age population who can't find a job.

If this year's price level is 126 and last year's price level was 120, the inflation rate is

One way to be considered unemployed is to be without a job and looking for work.

-Based on the information in the above table, what is the unemployment rate? What is the labor force participation rate?

What is the relationship over the business cycle of potential GDP and real GDP?

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

A major characteristic of structural unemployment that differentiates it from frictional unemployment is that structural unemployment

-In the above table, the inflation rate between 2014 and 2015 is approximately

Suppose the economy is experiencing frictional unemployment of 1 percent, structural unemployment of 3 percent and cyclical unemployment of 4 percent. What is the natural unemployment rate?

Structural unemployment is

Assume the inflation rate falls from 4 percent to 2 percent. This means that

Andrew just lost his job as a corkscrew operator since his company has found a machine to perform his work tasks. Andrew did not have the skills needed to operate the machine. Andrew has searched for a new job for 6 months and continues to search. Therefore, Andrew is considered to be

-In the table above, what inflation rate belongs in space E?

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 working-age population is divided between those people in the labor force and those people unemployed.

From September 2013 to September 2014, the employment-to-population ratio increased from 58.6 percent to 59.0 percent. This change could have been the result of

The unemployment rate is found by dividing the number of unemployed people by the

Catherine quit her job in order to look for a new one; therefore, she is best considered as

The unemployment rate equals

The labor force is defined as people

Suppose there are 100 million in the labor force, and 6 million unemployed people. During the next month, 200,000 people lose their jobs and 300,000 find jobs. The new total of employed persons is ________ and the new unemployment rate is ________.

The unemployment rate measures the percentage of the working-age population who can't find a job.

If this year's price level is 126 and last year's price level was 120, the inflation rate is

One way to be considered unemployed is to be without a job and looking for work.

-Based on the information in the above table, what is the unemployment rate? What is the labor force participation rate?

What is the relationship over the business cycle of potential GDP and real GDP?

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

A major characteristic of structural unemployment that differentiates it from frictional unemployment is that structural unemployment

-In the above table, the inflation rate between 2014 and 2015 is approximately

Suppose the economy is experiencing frictional unemployment of 1 percent, structural unemployment of 3 percent and cyclical unemployment of 4 percent. What is the natural unemployment rate?

Structural unemployment is

Assume the inflation rate falls from 4 percent to 2 percent. This means that

Andrew just lost his job as a corkscrew operator since his company has found a machine to perform his work tasks. Andrew did not have the skills needed to operate the machine. Andrew has searched for a new job for 6 months and continues to search. Therefore, Andrew is considered to be

-In the table above, what inflation rate belongs in space E?

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

Suppose there are 100 million in the labor force, and 6 million unemployed people. During the next month, 200,000 people lose their jobs and 300,000 find jobs. The new total of employed persons is and the new unemployment rate is .