Question 1

-If the CPI basket of goods cost $200 in the reference base period and $450 in a later year, the CPI in the later year equals

Accepted Answer

A)  225. 
B)  250. 
C)  300. 
D)  450. 
A)  225. 
B)  250. 
C)  300. 
D)  450.

Question 2

Because of the biases in calculating the CPI, actual inflation is

Accepted Answer

A)  accurately measured. 
B)  less than the measured inflation rate. 
C)  more than the measured inflation rate. 
D)  None of the above because the difference varies from one year to the next. 
A)  accurately measured. 
B)  less than the measured inflation rate. 
C)  more than the measured inflation rate. 
D)  None of the above because the difference varies from one year to the next.

Question 3

The table below shows the price index for China starting in 2000.   www.econstats.com
The inflation rate between 2004 and 2005 was

Accepted Answer

A)  3.9 percent 
B)  2.8 percent 
C)  1.8 percent 
D)  0.7 percent. 
A)  3.9 percent 
B)  2.8 percent 
C)  1.8 percent 
D)  0.7 percent.

Question 4

If the number of people unemployed is 100, the number of people employed is 1,000, and the working-age population is 1,400, then the labor force is

Accepted Answer

A)  1,000. 
B)  1,100. 
C)  1,400. 
D)  1,500. 
A)  1,000. 
B)  1,100. 
C)  1,400. 
D)  1,500.

Question 5

The ________ equals the number of ________.

Accepted Answer

A)  labor force; persons over 16 years old 
B)  labor force; unemployed and employed persons 
C)  working age population; employed persons 
D)  unemployment rate; people unemployed 
A)  labor force; persons over 16 years old 
B)  labor force; unemployed and employed persons 
C)  working age population; employed persons 
D)  unemployment rate; people unemployed

Question 6

The technique currently used to calculate the CPI implicitly assumes that over time consumers buy

Accepted Answer

A)  relatively more of goods whose relative prices are rising. 
B)  relatively less of goods whose relative prices are rising. 
C)  the same relative quantities of goods as in a base year. 
D)  goods and services whose quality improves at the rate of growth of real income. 
A)  relatively more of goods whose relative prices are rising. 
B)  relatively less of goods whose relative prices are rising. 
C)  the same relative quantities of goods as in a base year. 
D)  goods and services whose quality improves at the rate of growth of real income.

Question 7

In the 2000s, video recordings were made primarily on DVDs. However, in the 2010s streaming movies became increasingly popular, leading to a sharp decline in DVDs. As a result, many people who manufactured DVDs lost their jobs and didn't have the skills necessary to work in jobs required to stream movies. This occurrence is best consider an example of

Accepted Answer

A)  frictional unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  underemployment. 
A)  frictional unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  underemployment.

Question 8

Inflation is a problem when

Accepted Answer

A)  it is unpredictable. 
B)  it causes the value of money to vary unpredictably. 
C)  it causes resources to be diverted from productive uses. 
D)  All of the above answers are correct. 
A)  it is unpredictable. 
B)  it causes the value of money to vary unpredictably. 
C)  it causes resources to be diverted from productive uses. 
D)  All of the above answers are correct.

Question 9

-Using the data in the above table, the unemployment rate is

Accepted Answer

A)  4.0 percent. 
B)  4.16 percent. 
C)  5.55 percent. 
D)  28.0 percent. 
A)  4.0 percent. 
B)  4.16 percent. 
C)  5.55 percent. 
D)  28.0 percent.

Question 10

-In the above table, the working age population is

Accepted Answer

A)  225 million. 
B)  100 million. 
C)  140 million. 
D)  155 million. 
A)  225 million. 
B)  100 million. 
C)  140 million. 
D)  155 million.

Question 11

Suppose there are 180 million employed people and 20 million unemployed people.
a) What is the unemployment rate?
b) Suppose that 5 million unemployed people give up their search for jobs and become discouraged workers. What is the new official unemployment rate?

Accepted Answer

a) The unemployment rate is (20 million

Question 12

Using the definition of unemployment, which of the following individuals would be unemployed?

Accepted Answer

A)  A full-time student quits school, enters the labor market for the first time, and searches for employment. 
B)  Because of the increased level of automobile imports, an employee of General Motors is laid off but expects to be called back to work soon. 
C)  Because of a reduction in the military budget, your next door neighbor loses her job in a plant where nuclear warheads are made and must look for a new job. 
D)  All of these individuals are unemployed. 
A)  A full-time student quits school, enters the labor market for the first time, and searches for employment. 
B)  Because of the increased level of automobile imports, an employee of General Motors is laid off but expects to be called back to work soon. 
C)  Because of a reduction in the military budget, your next door neighbor loses her job in a plant where nuclear warheads are made and must look for a new job. 
D)  All of these individuals are unemployed.

Question 13

Consider the following statement: "Real GDP and potential GDP are always equal." Is this statement true or false? Explain your answer.

Accepted Answer

Real GDP often differs from potential GD

Question 14

Structural unemployment

Accepted Answer

A)  falls during the expansion phase of the business cycle. 
B)  falls as the pace of technological progress increases. 
C)  generally lasts longer than frictional unemployment. 
D)  falls when the government provides more generous unemployment compensation benefits. 
A)  falls during the expansion phase of the business cycle. 
B)  falls as the pace of technological progress increases. 
C)  generally lasts longer than frictional unemployment. 
D)  falls when the government provides more generous unemployment compensation benefits.

Question 15

A recession causes a decrease in the demand for housing, resulting in substantial layoffs in the construction industry. The people laid off are considered

Accepted Answer

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

Question 16

The labor force includes

Accepted Answer

A)  only the number of people employed. 
B)  discouraged workers. 
C)  only the number of people unemployed. 
D)  both employed and unemployed workers. 
A)  only the number of people employed. 
B)  discouraged workers. 
C)  only the number of people unemployed. 
D)  both employed and unemployed workers.

Question 17

The ________ is the total number of people aged 16 years and older (and not in jail, hospital or institutional care) while the ________ is the number of people employed and the unemployed.

Accepted Answer

A)  labor force; working-age population 
B)  labor force participation rate; labor force 
C)  working-age population; labor force 
D)  working-age population; labor force participation rate 
A)  labor force; working-age population 
B)  labor force participation rate; labor force 
C)  working-age population; labor force 
D)  working-age population; labor force participation rate

Question 18

The percentage of people employed aged 16 years and older divided by the working-age population is known as the

Accepted Answer

A)  employment rate. 
B)  employment-to-population ratio. 
C)  labor force participation rate. 
D)  working-age population ratio. 
A)  employment rate. 
B)  employment-to-population ratio. 
C)  labor force participation rate. 
D)  working-age population ratio.

Question 19

The labor force is the sum of the

Accepted Answer

A)  working-age population and the number of unemployed people. 
B)  number of employed people and the working-age population. 
C)  number of employed people and the number of unemployed people. 
D)  total population and the number of unemployed people. 
A)  working-age population and the number of unemployed people. 
B)  number of employed people and the working-age population. 
C)  number of employed people and the number of unemployed people. 
D)  total population and the number of unemployed people.

Question 20

How does the unemployment rate change in a recession and in an expansion?

Accepted Answer

During a recession, the unempl

-If the CPI basket of goods cost $200 in the reference base period and $450 in a later year, the CPI in the later year equals

Because of the biases in calculating the CPI, actual inflation is

The table below shows the price index for China starting in 2000. www.econstats.com The inflation rate between 2004 and 2005 was

If the number of people unemployed is 100, the number of people employed is 1,000, and the working-age population is 1,400, then the labor force is

The equals the number of .

The technique currently used to calculate the CPI implicitly assumes that over time consumers buy

Inflation is a problem when

-Using the data in the above table, the unemployment rate is

-In the above table, the working age population is

Suppose there are 180 million employed people and 20 million unemployed people. a) What is the unemployment rate? b) Suppose that 5 million unemployed people give up their search for jobs and become discouraged workers. What is the new official unemployment rate?

Using the definition of unemployment, which of the following individuals would be unemployed?

Consider the following statement: "Real GDP and potential GDP are always equal." Is this statement true or false? Explain your answer.

Structural unemployment

A recession causes a decrease in the demand for housing, resulting in substantial layoffs in the construction industry. The people laid off are considered

The labor force includes

The is the total number of people aged 16 years and older (and not in jail, hospital or institutional care) while the is the number of people employed and the unemployed.

The percentage of people employed aged 16 years and older divided by the working-age population is known as the

The labor force is the sum of the

How does the unemployment rate change in a recession and in an expansion?

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

-If the CPI basket of goods cost $200 in the reference base period and $450 in a later year, the CPI in the later year equals

Because of the biases in calculating the CPI, actual inflation is

The table below shows the price index for China starting in 2000. www.econstats.com The inflation rate between 2004 and 2005 was

If the number of people unemployed is 100, the number of people employed is 1,000, and the working-age population is 1,400, then the labor force is

The ________ equals the number of ________.

The technique currently used to calculate the CPI implicitly assumes that over time consumers buy

Inflation is a problem when

-Using the data in the above table, the unemployment rate is

-In the above table, the working age population is

Suppose there are 180 million employed people and 20 million unemployed people. a) What is the unemployment rate? b) Suppose that 5 million unemployed people give up their search for jobs and become discouraged workers. What is the new official unemployment rate?

Using the definition of unemployment, which of the following individuals would be unemployed?

Consider the following statement: "Real GDP and potential GDP are always equal." Is this statement true or false? Explain your answer.

Structural unemployment

A recession causes a decrease in the demand for housing, resulting in substantial layoffs in the construction industry. The people laid off are considered

The labor force includes

The ________ is the total number of people aged 16 years and older (and not in jail, hospital or institutional care) while the ________ is the number of people employed and the unemployed.

The percentage of people employed aged 16 years and older divided by the working-age population is known as the

The labor force is the sum of the

How does the unemployment rate change in a recession and in an expansion?

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

The equals the number of .

The is the total number of people aged 16 years and older (and not in jail, hospital or institutional care) while the is the number of people employed and the unemployed.