Question 1

Full employment occurs when the

Accepted Answer

A)  unemployment rate equals the natural unemployment rate. 
B)  structural unemployment rate equals the frictional unemployment rate. 
C)  natural unemployment rate equals the frictional unemployment rate. 
D)  cyclical unemployment rate equals the natural unemployment rate. 
A)  unemployment rate equals the natural unemployment rate. 
B)  structural unemployment rate equals the frictional unemployment rate. 
C)  natural unemployment rate equals the frictional unemployment rate. 
D)  cyclical unemployment rate equals the natural unemployment rate.

Question 2

The natural unemployment rate

Accepted Answer

A)  occurs when the unemployment rate is 0 percent. 
B)  is the unemployment rate when there is no structural unemployment. 
C)  is the unemployment rate at full employment. 
D)  is the unemployment rate when there is only cyclical unemployment. 
A)  occurs when the unemployment rate is 0 percent. 
B)  is the unemployment rate when there is no structural unemployment. 
C)  is the unemployment rate at full employment. 
D)  is the unemployment rate when there is only cyclical unemployment.

Question 3

If the CPI this year is 175.2 and next year the CPI is 176.1, what was the inflation rate over the year?

Accepted Answer

The inflation rate e

Question 4

Discouraged workers ________ counted as officially unemployed because they ________.

Accepted Answer

A)  are; are not working 
B)  are; are still in the labor force 
C)  are not; are not qualified to work 
D)  are not; are not actively seeking work 
A)  are; are not working 
B)  are; are still in the labor force 
C)  are not; are not qualified to work 
D)  are not; are not actively seeking work

Question 5

Suppose the population of Tiny Town is 100 people and the working age population is 70. If 10 of these people are unemployed, the unemployment rate in Tiny Town is

Accepted Answer

A)  10 percent. 
B)  10/70 × 100. 
C)  10/80 × 100. 
D)  There is not enough information provided to calculate the unemployment rate. 
A)  10 percent. 
B)  10/70 × 100. 
C)  10/80 × 100. 
D)  There is not enough information provided to calculate the unemployment rate.

Question 6

Cyclical unemployment ________ during expansions and ________ during recessions.

Accepted Answer

A)  increases; increases 
B)  increases; decreases 
C)  decreases; increases 
D)  decreases; decreases 
A)  increases; increases 
B)  increases; decreases 
C)  decreases; increases 
D)  decreases; decreases

Question 7

When the economy is operating at full employment, the natural unemployment rate consists of only

Accepted Answer

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

Question 8

If the CPI for this year is 220 and the CPI for last year was 215, the inflation rate is

Accepted Answer

A)  just over 2 percent. 
B)  5 percent. 
C)  just over 5 percent. 
D)  10 percent. 
A)  just over 2 percent. 
B)  5 percent. 
C)  just over 5 percent. 
D)  10 percent.

Question 9

Suppose the number of people employed is 25 million and the number of people in the labor force is 75 million. What is the employment-to-population ratio?

Accepted Answer

A)  33 percent 
B)  25 percent 
C)  75 percent 
D)  There is not enough information given to answer the question. 
A)  33 percent 
B)  25 percent 
C)  75 percent 
D)  There is not enough information given to answer the question.

Question 10

The labor force is defined as

Accepted Answer

A)  people with full time jobs. 
B)  workers with jobs and unemployed workers. 
C)  all people capable of work. 
D)  All of the above answers are correct. 
A)  people with full time jobs. 
B)  workers with jobs and unemployed workers. 
C)  all people capable of work. 
D)  All of the above answers are correct.

Question 11

-The labor force participation rate is the ratio of

Accepted Answer

A)  (the labor force divided by the working-age population) multiplied by 100. 
B)  (the number of unemployed divided by the working-age population) multiplied by 100. 
C)  (the labor force divided by the total population) multiplied by 100. 
D)  (the number of unemployed divided by the labor force) multiplied by 100. 
A)  (the labor force divided by the working-age population) multiplied by 100. 
B)  (the number of unemployed divided by the working-age population) multiplied by 100. 
C)  (the labor force divided by the total population) multiplied by 100. 
D)  (the number of unemployed divided by the labor force) multiplied by 100.

Question 12

-In the above table, the inflation rate between 2013 and 2014 is approximately

Accepted Answer

A)  9 percent. 
B)  10 percent. 
C)  100 percent. 
D)  110 percent. 
A)  9 percent. 
B)  10 percent. 
C)  100 percent. 
D)  110 percent.

Question 13

If a new and better good replaced an older and less expensive good, then the price level measured by the CPI

Accepted Answer

A)  is lower than the actual price level. 
B)  is higher than the actual price level. 
C)  might be either higher or lower than the actual price. 
D)  is the same as the actual price level because it measures the prices of the actual goods. 
A)  is lower than the actual price level. 
B)  is higher than the actual price level. 
C)  might be either higher or lower than the actual price. 
D)  is the same as the actual price level because it measures the prices of the actual goods.

Question 14

The unemployment rate equals

Accepted Answer

A)  the total number of people without jobs in a given period. 
B)  the percentage of the population not currently employed. 
C)  the rate of change in unemployment figures from one period to another. 
D)  the percentage of the labor force currently unemployed. 
A)  the total number of people without jobs in a given period. 
B)  the percentage of the population not currently employed. 
C)  the rate of change in unemployment figures from one period to another. 
D)  the percentage of the labor force currently unemployed.

Question 15

The labor force is the sum of the working-age population and the number of unemployed people.

Accepted Answer

A) True 
 B)False

Question 16

The table below shows data regarding Germany's labor market.   The data show that Germany's employment-to-population ratio is ________ in 2007.

Accepted Answer

A)  92 percent 
B)  47.5 percent 
C)  67 percent 
D)  80 percent 
A)  92 percent 
B)  47.5 percent 
C)  67 percent 
D)  80 percent

Question 17

Ms. Krupsky has shorthand and typing skills and still finds herself unemployed. In today's economy, Ms. Krupsky is an example of what type of unemployment?

Accepted Answer

A)  cyclical unemployment 
B)  frictional unemployment 
C)  structural unemployment 
D)  None of the above answers is correct. 
A)  cyclical unemployment 
B)  frictional unemployment 
C)  structural unemployment 
D)  None of the above answers is correct.

Question 18

The labor force is defined as the

Accepted Answer

A)  number of people over 16 years of age. 
B)  number of people who are working. 
C)  sum of employed and unemployed people. 
D)  number of people in blue-collar jobs. 
A)  number of people over 16 years of age. 
B)  number of people who are working. 
C)  sum of employed and unemployed people. 
D)  number of people in blue-collar jobs.

Question 19

Full employment means that

Accepted Answer

A)  no one is unemployed. 
B)  there is no cyclical unemployment. 
C)  there is no cyclical or frictional unemployment. 
D)  there is no structural or frictional unemployment. 
A)  no one is unemployed. 
B)  there is no cyclical unemployment. 
C)  there is no cyclical or frictional unemployment. 
D)  there is no structural or frictional unemployment.

Question 20

The consumer price index (CPI)

Accepted Answer

A)  compares the cost of the typical basket of goods consumed in period 1 to the cost of a basket of goods typically consumed in period 2. 
B)  compares the cost in the current period to the cost in a reference base period of a basket of goods typically consumed in the base period. 
C)  measures the increase in the prices of the goods included in GDP. 
D)  is the ratio of the average price of a typical basket of goods to the cost of producing those goods. 
A)  compares the cost of the typical basket of goods consumed in period 1 to the cost of a basket of goods typically consumed in period 2. 
B)  compares the cost in the current period to the cost in a reference base period of a basket of goods typically consumed in the base period. 
C)  measures the increase in the prices of the goods included in GDP. 
D)  is the ratio of the average price of a typical basket of goods to the cost of producing those goods.

Full employment occurs when the

The natural unemployment rate

If the CPI this year is 175.2 and next year the CPI is 176.1, what was the inflation rate over the year?

Discouraged workers counted as officially unemployed because they .

Suppose the population of Tiny Town is 100 people and the working age population is 70. If 10 of these people are unemployed, the unemployment rate in Tiny Town is

Cyclical unemployment during expansions and during recessions.

When the economy is operating at full employment, the natural unemployment rate consists of only

If the CPI for this year is 220 and the CPI for last year was 215, the inflation rate is

Suppose the number of people employed is 25 million and the number of people in the labor force is 75 million. What is the employment-to-population ratio?

The labor force is defined as

-The labor force participation rate is the ratio of

-In the above table, the inflation rate between 2013 and 2014 is approximately

If a new and better good replaced an older and less expensive good, then the price level measured by the CPI

The unemployment rate equals

The labor force is the sum of the working-age population and the number of unemployed people.

The table below shows data regarding Germany's labor market. The data show that Germany's employment-to-population ratio is ________ in 2007.

Ms. Krupsky has shorthand and typing skills and still finds herself unemployed. In today's economy, Ms. Krupsky is an example of what type of unemployment?

The labor force is defined as the

Full employment means that

The consumer price index (CPI)

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

Full employment occurs when the

The natural unemployment rate

If the CPI this year is 175.2 and next year the CPI is 176.1, what was the inflation rate over the year?

Discouraged workers ________ counted as officially unemployed because they ________.

Suppose the population of Tiny Town is 100 people and the working age population is 70. If 10 of these people are unemployed, the unemployment rate in Tiny Town is

Cyclical unemployment ________ during expansions and ________ during recessions.

When the economy is operating at full employment, the natural unemployment rate consists of only

If the CPI for this year is 220 and the CPI for last year was 215, the inflation rate is

Suppose the number of people employed is 25 million and the number of people in the labor force is 75 million. What is the employment-to-population ratio?

The labor force is defined as

-The labor force participation rate is the ratio of

-In the above table, the inflation rate between 2013 and 2014 is approximately

If a new and better good replaced an older and less expensive good, then the price level measured by the CPI

The unemployment rate equals

The labor force is the sum of the working-age population and the number of unemployed people.

The table below shows data regarding Germany's labor market. The data show that Germany's employment-to-population ratio is ________ in 2007.

Ms. Krupsky has shorthand and typing skills and still finds herself unemployed. In today's economy, Ms. Krupsky is an example of what type of unemployment?

The labor force is defined as the

Full employment means that

The consumer price index (CPI)

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

Discouraged workers counted as officially unemployed because they .

Cyclical unemployment during expansions and during recessions.