Question 1

All people in the working-age population can be divided into

Accepted Answer

A)  labor force participants. 
B)  employed, unemployed, or not in the labor force. 
C)  either over-employed or under-employed. 
D)  potential employees. 
A)  labor force participants. 
B)  employed, unemployed, or not in the labor force. 
C)  either over-employed or under-employed. 
D)  potential employees.

Question 2

An example of the new goods bias in the CPI is the

Accepted Answer

A)  introduction of higher quality brakes as standard equipment on new cars. 
B)  introduction of hybrid automobiles, vehicles that were not made until recently. 
C)  decreasing popularity of SUVs as the price of gasoline has risen. 
D)  switch from traditional car dealerships to low-cost Internet car buying services. 
A)  introduction of higher quality brakes as standard equipment on new cars. 
B)  introduction of hybrid automobiles, vehicles that were not made until recently. 
C)  decreasing popularity of SUVs as the price of gasoline has risen. 
D)  switch from traditional car dealerships to low-cost Internet car buying services.

Question 3

Using the notation Pt to designate this period's price level and Pt-1 to designate last period's price level, the formula for measuring the inflation rate from last period to this period is

Accepted Answer

A)  [(Pt - Pt - 1) / Pt] × 100. 
B)  [(Pt -1 - Pt) / Pt - 1] × 100. 
C)  [(Pt - Pt - 1) / Pt - 1] × 100. 
D)  [(Pt -1 - Pt) / Pt] × 100. 
A)  [(Pt - Pt - 1) / Pt] × 100. 
B)  [(Pt -1 - Pt) / Pt - 1] × 100. 
C)  [(Pt - Pt - 1) / Pt - 1] × 100. 
D)  [(Pt -1 - Pt) / Pt] × 100.

Question 4

An individual who has stopped looking for a job but has looked in the past and still wants a job is referred to as

Accepted Answer

A)  a contingent worker. 
B)  a productive worker. 
C)  a marginally attached worker. 
D)  an unemployed worker. 
A)  a contingent worker. 
B)  a productive worker. 
C)  a marginally attached worker. 
D)  an unemployed worker.

Question 5

The best example of a frictionally unemployed individual is

Accepted Answer

A)  Charles who has lost his job as an autoworker because of increased imports and can't find a good job that utilizes his skills. 
B)  Mary who quit her job to find work closer to her home. 
C)  Sam who lost his job as a real estate salesperson when the housing market went soft because of a recession. 
D)  Sandy who has few skills and is no longer looking for work. 
A)  Charles who has lost his job as an autoworker because of increased imports and can't find a good job that utilizes his skills. 
B)  Mary who quit her job to find work closer to her home. 
C)  Sam who lost his job as a real estate salesperson when the housing market went soft because of a recession. 
D)  Sandy who has few skills and is no longer looking for work.

Question 6

When a student finishes college and begins looking for work

Accepted Answer

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

Question 7

If the people who take early retirement are not counted in the working-age population, then

Accepted Answer

A)  the unemployment rate would be lower. 
B)  the labor force participation rate would be less. 
C)  the unemployment rate would be higher. 
D)  the labor force participation rate would be higher. 
A)  the unemployment rate would be lower. 
B)  the labor force participation rate would be less. 
C)  the unemployment rate would be higher. 
D)  the labor force participation rate would be higher.

Question 8

-The CPI basket contains 400 oranges and 800 pens. In the base year, the price of an orange is $1.00 and the price of a pen is $0.75. This year, urban consumers each buy 300 oranges at $2.00 each and 850 pens at $1.00 each. The CPI this year is

Accepted Answer

A)  1.60. 
B)  62.5. 
C)  160. 
D)  140. 
A)  1.60. 
B)  62.5. 
C)  160. 
D)  140.

Question 9

Including marginally attached workers in the calculation of the unemployment rate would

Accepted Answer

A)  increase the reported rate. 
B)  lower the reported rate. 
C)  not change the reported rate. 
D)  change the reported rate, but in an unpredictable manner. 
A)  increase the reported rate. 
B)  lower the reported rate. 
C)  not change the reported rate. 
D)  change the reported rate, but in an unpredictable manner.

Question 10

When economists speak of full employment, they refer to the case in which the sum of frictional and structural unemployment is

Accepted Answer

A)  falling over time. 
B)  equal to zero. 
C)  equal to the actual amount of unemployment. 
D)  greater than the level of deficient demand unemployment. 
A)  falling over time. 
B)  equal to zero. 
C)  equal to the actual amount of unemployment. 
D)  greater than the level of deficient demand unemployment.

Question 11

-The above table shows answers given by people interviewed in a government survey of households. Which individuals are considered to be a part of the labor force?

Accepted Answer

A)  C and D 
B)  B, C, and D 
C)  A, C, and D 
D)  A, B, and C 
A)  C and D 
B)  B, C, and D 
C)  A, C, and D 
D)  A, B, and C

Question 12

-In 2016, consumers in Dexter consumed only books and pens. The prices and quantities for 2016 and 2017 are listed in the table above. The reference base period for Dexter's CPI is 2016. What is the cost of the CPI basket in 2017?

Accepted Answer

A)  $430 
B)  $335 
C)  $320 
D)  $540 
A)  $430 
B)  $335 
C)  $320 
D)  $540

Question 13

The unemployment rate is 6 percent. If the population is 300 million, and the number unemployed is 6 million and the number employed is 94 million, what is the size of the labor force?

Accepted Answer

The labor force is the sum of

Question 14

Price indexes can overstate inflation because they

Accepted Answer

A)  omit some quality improvements. 
B)  do not contain the prices of any used goods. 
C)  do not contain the prices of foreign goods. 
D)  do not contain the prices of services. 
A)  omit some quality improvements. 
B)  do not contain the prices of any used goods. 
C)  do not contain the prices of foreign goods. 
D)  do not contain the prices of services.

Question 15

The ________ is calculated as the number of people ________ divided by the labor force multiplied by 100.

Accepted Answer

A)  unemployment rate; unemployed 
B)  employment-to-population ratio; unemployed 
C)  employment rate; employed 
D)  employment-to-population ratio; in the working age population 
A)  unemployment rate; unemployed 
B)  employment-to-population ratio; unemployed 
C)  employment rate; employed 
D)  employment-to-population ratio; in the working age population

Question 16

Of the following sequences of price levels, which CORRECTLY represents a 5 percent inflation rate?

Accepted Answer

A)  100, 100, 100, 100 
B)  100, 105, 105, 105 
C)  100, 105, 110, 115 
D)  100, 105, 110.25, 115.76 
A)  100, 100, 100, 100 
B)  100, 105, 105, 105 
C)  100, 105, 110, 115 
D)  100, 105, 110.25, 115.76

Question 17

Structural 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 18

Suppose the working-age population is 220 million, the labor force is 150 million, and the unemployment rate is 10 percent. The number of unemployed people is

Accepted Answer

A)  15 million. 
B)  22 million. 
C)  37 million. 
D)  7 million. 
A)  15 million. 
B)  22 million. 
C)  37 million. 
D)  7 million.

Question 19

When the economy switches production toward services and away from manufacturing and workers in the manufacturing industry are permanently laid off

Accepted Answer

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

Question 20

Structural unemployment usually lasts longer than frictional unemployment.

Accepted Answer

A) True 
 B)False

All people in the working-age population can be divided into

An example of the new goods bias in the CPI is the

Using the notation P_t to designate this period's price level and P_t-1 to designate last period's price level, the formula for measuring the inflation rate from last period to this period is

An individual who has stopped looking for a job but has looked in the past and still wants a job is referred to as

The best example of a frictionally unemployed individual is

When a student finishes college and begins looking for work

If the people who take early retirement are not counted in the working-age population, then

-The CPI basket contains 400 oranges and 800 pens. In the base year, the price of an orange is $1.00 and the price of a pen is $0.75. This year, urban consumers each buy 300 oranges at $2.00 each and 850 pens at $1.00 each. The CPI this year is

Including marginally attached workers in the calculation of the unemployment rate would

When economists speak of full employment, they refer to the case in which the sum of frictional and structural unemployment is

-The above table shows answers given by people interviewed in a government survey of households. Which individuals are considered to be a part of the labor force?

-In 2016, consumers in Dexter consumed only books and pens. The prices and quantities for 2016 and 2017 are listed in the table above. The reference base period for Dexter's CPI is 2016. What is the cost of the CPI basket in 2017?

The unemployment rate is 6 percent. If the population is 300 million, and the number unemployed is 6 million and the number employed is 94 million, what is the size of the labor force?

Price indexes can overstate inflation because they

The is calculated as the number of people divided by the labor force multiplied by 100.

Of the following sequences of price levels, which CORRECTLY represents a 5 percent inflation rate?

Structural unemployment is the result of

Suppose the working-age population is 220 million, the labor force is 150 million, and the unemployment rate is 10 percent. The number of unemployed people is

When the economy switches production toward services and away from manufacturing and workers in the manufacturing industry are permanently laid off

Structural unemployment usually lasts longer than frictional unemployment.

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

All people in the working-age population can be divided into

An example of the new goods bias in the CPI is the

Using the notation Pt to designate this period's price level and Pt-1 to designate last period's price level, the formula for measuring the inflation rate from last period to this period is

An individual who has stopped looking for a job but has looked in the past and still wants a job is referred to as

The best example of a frictionally unemployed individual is

When a student finishes college and begins looking for work

If the people who take early retirement are not counted in the working-age population, then

-The CPI basket contains 400 oranges and 800 pens. In the base year, the price of an orange is $1.00 and the price of a pen is $0.75. This year, urban consumers each buy 300 oranges at $2.00 each and 850 pens at $1.00 each. The CPI this year is

Including marginally attached workers in the calculation of the unemployment rate would

When economists speak of full employment, they refer to the case in which the sum of frictional and structural unemployment is

-The above table shows answers given by people interviewed in a government survey of households. Which individuals are considered to be a part of the labor force?

-In 2016, consumers in Dexter consumed only books and pens. The prices and quantities for 2016 and 2017 are listed in the table above. The reference base period for Dexter's CPI is 2016. What is the cost of the CPI basket in 2017?

The unemployment rate is 6 percent. If the population is 300 million, and the number unemployed is 6 million and the number employed is 94 million, what is the size of the labor force?

Price indexes can overstate inflation because they

The ________ is calculated as the number of people ________ divided by the labor force multiplied by 100.

Of the following sequences of price levels, which CORRECTLY represents a 5 percent inflation rate?

Structural unemployment is the result of

Suppose the working-age population is 220 million, the labor force is 150 million, and the unemployment rate is 10 percent. The number of unemployed people is

When the economy switches production toward services and away from manufacturing and workers in the manufacturing industry are permanently laid off

Structural unemployment usually lasts longer than frictional unemployment.

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

Using the notation P_t to designate this period's price level and P_t-1 to designate last period's price level, the formula for measuring the inflation rate from last period to this period is

The is calculated as the number of people divided by the labor force multiplied by 100.