Question 1

Explain what type of unemployment changes with the business cycle and how it changes.

Accepted Answer

Cyclical unemployment is the unemploymen

Question 2

Define and give an example of how a spell of frictional unemployment can begin.

Accepted Answer

Frictional unemployment is the unemploym

Question 3

Inflation in Vietnam rose to 27 percent in July 2008-the highest inflation rate in Asia. "Squeezed on all sides, people are cutting back on food, limiting travel, looking for second jobs, delaying major purchases and waiting for the cost of a wedding to go down before marrying...Given this slowdown, Vietnam... is scaling back its plans for growth and economic development. ... Some are losing confidence in the ability of the government to manage the economy. And rumors of price increases have caused panic buying of fuel and rice." www.nytimes.com, 8/23/2008
The story provides an example of how inflation

Accepted Answer

A)  redistributes income. 
B)  diverts resources from production. 
C)  leads to increases in the consumer price index. 
D)  can lead to changes in the CPI market basket. 
A)  redistributes income. 
B)  diverts resources from production. 
C)  leads to increases in the consumer price index. 
D)  can lead to changes in the CPI market basket.

Question 4

Using the official measure of unemployment, which of the following people is considered unemployed?

Accepted Answer

A)  a part-time worker who wishes to work full time 
B)  a person who gave up looking for jobs because he or she was discouraged about his or her job prospects 
C)  a person who has been searching for work, but turns down a job paying a lower wage rate than desired 
D)  a person who is working but expects to be laid off at the end of the month 
A)  a part-time worker who wishes to work full time 
B)  a person who gave up looking for jobs because he or she was discouraged about his or her job prospects 
C)  a person who has been searching for work, but turns down a job paying a lower wage rate than desired 
D)  a person who is working but expects to be laid off at the end of the month

Question 5

During a recession, people drop out of the labor force because they are unable to find a job. All else the same, this

Accepted Answer

A)  increases the official U-3 unemployment rate. 
B)  decreases the official U-3 unemployment rate. 
C)  does not change the official U-3 unemployment rate. 
D)  increases the official U-3 unemployment rate and the labor force participation rate. 
A)  increases the official U-3 unemployment rate. 
B)  decreases the official U-3 unemployment rate. 
C)  does not change the official U-3 unemployment rate. 
D)  increases the official U-3 unemployment rate and the labor force participation rate.

Question 6

Which of the following people would be counted as is employed in the Current Population Survey?

Accepted Answer

A)  Rich, who is working 20 hours a week but wants a full-time job 
B)  Misty, who just quit her job to return full-time to school 
C)  April, who just graduated from college and is looking for work 
D)  Jason, who was laid off from work less than 6 months ago but who has stopped looking for work 
A)  Rich, who is working 20 hours a week but wants a full-time job 
B)  Misty, who just quit her job to return full-time to school 
C)  April, who just graduated from college and is looking for work 
D)  Jason, who was laid off from work less than 6 months ago but who has stopped looking for work

Question 7

The population of Tiny Town is 100 people and the labor force is made up of 75 people. If 5 of these people are unemployed, the unemployment rate is

Accepted Answer

A)  5/100 × 100. 
B)  5/80 × 100. 
C)  5/75 × 100. 
D)  There is not enough information provided to calculate the unemployment rate. 
A)  5/100 × 100. 
B)  5/80 × 100. 
C)  5/75 × 100. 
D)  There is not enough information provided to calculate the unemployment rate.

Question 8

The best example of a cyclically unemployed individual is

Accepted Answer

A)  Charles who lost his job as a real estate salesperson when the housing market went soft because of a recession. 
B)  Alice who quit her job to enter college. 
C)  Mary who lost her job in the textile industry following a decrease in the tariff on textiles. 
D)  Bob who has just graduated from college and is entering the labor market. 
A)  Charles who lost his job as a real estate salesperson when the housing market went soft because of a recession. 
B)  Alice who quit her job to enter college. 
C)  Mary who lost her job in the textile industry following a decrease in the tariff on textiles. 
D)  Bob who has just graduated from college and is entering the labor market.

Question 9

The unemployment rate will never equal zero percent because

Accepted Answer

A)  there are some people who do not want to work. 
B)  there will always be discouraged workers. 
C)  some portion of the labor force will always be between jobs. 
D)  cyclical unemployment will always exist. 
A)  there are some people who do not want to work. 
B)  there will always be discouraged workers. 
C)  some portion of the labor force will always be between jobs. 
D)  cyclical unemployment will always exist.

Question 10

-Using the information in the table above, calculate the unemployment rate.

Accepted Answer

A)  53.3 percent 
B)  30.8 percent 
C)  13.3 percent 
D)  7.7 percent 
A)  53.3 percent 
B)  30.8 percent 
C)  13.3 percent 
D)  7.7 percent

Question 11

The official U-3 unemployment rate includes the total number of people who

Accepted Answer

A)  have jobs or are currently looking for jobs. 
B)  are available and looking for work but unable to find employment. 
C)  would like to have a job but have stopped seeking work. 
D)  would like to have a full-time job but are working part-time. 
A)  have jobs or are currently looking for jobs. 
B)  are available and looking for work but unable to find employment. 
C)  would like to have a job but have stopped seeking work. 
D)  would like to have a full-time job but are working part-time.

Question 12

-The information in the table above gives the 2016 reference base period CPI basket and prices used to construct the CPI for a small nation. It also has the 2017 prices. What is the value of the CPI for 2017?

Accepted Answer

A)  140 
B)  133 
C)  100 
D)  75 
A)  140 
B)  133 
C)  100 
D)  75

Question 13

In an economy, 43 million people are employed, 3 million are unemployed, and 4 million are not in the labor force. What is the employment-to-population ratio?

Accepted Answer

A)  86 percent 
B)  92 percent 
C)  93 percent 
D)  6.5 percent 
A)  86 percent 
B)  92 percent 
C)  93 percent 
D)  6.5 percent

Question 14

The unemployment rate equals [(the number of people unemployed)/(the population)] × 100.

Accepted Answer

A) True 
 B)False

Question 15

If unemployment equals the natural unemployment rate, then there

Accepted Answer

A)  is zero unemployment. 
B)  is only frictional or structural unemployment. 
C)  are no job openings existing at the time. 
D)  is less than full employment. 
A)  is zero unemployment. 
B)  is only frictional or structural unemployment. 
C)  are no job openings existing at the time. 
D)  is less than full employment.

Question 16

A person quits her job in order to spend time looking for a better-paying job. This type of unemployment is an example of

Accepted Answer

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

Question 17

The labor force is defined as the number of

Accepted Answer

A)  people 16 and over. 
B)  unemployed people. 
C)  people with jobs, both part-time and full-time. 
D)  people who are employed and unemployed. 
A)  people 16 and over. 
B)  unemployed people. 
C)  people with jobs, both part-time and full-time. 
D)  people who are employed and unemployed.

Question 18

To calculate the unemployment rate, which of the following are necessary pieces of information?
I. the number of unemployed persons
II. the population
III. the number of people in the labor force
IV. the working age population

Accepted Answer

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

Question 19

The current U.S. population is about 300 million yet the current U.S. labor force is only about 150 million. What subtractions are made from the population number to set it equal to the labor force?

Accepted Answer

The population is first reduced by elimi

Question 20

The unemployment rate measures the percentage of people in the labor force who can't find a job.

Accepted Answer

A) True 
 B)False

Explain what type of unemployment changes with the business cycle and how it changes.

Define and give an example of how a spell of frictional unemployment can begin.

Using the official measure of unemployment, which of the following people is considered unemployed?

During a recession, people drop out of the labor force because they are unable to find a job. All else the same, this

Which of the following people would be counted as is employed in the Current Population Survey?

The population of Tiny Town is 100 people and the labor force is made up of 75 people. If 5 of these people are unemployed, the unemployment rate is

The best example of a cyclically unemployed individual is

The unemployment rate will never equal zero percent because

-Using the information in the table above, calculate the unemployment rate.

The official U-3 unemployment rate includes the total number of people who

-The information in the table above gives the 2016 reference base period CPI basket and prices used to construct the CPI for a small nation. It also has the 2017 prices. What is the value of the CPI for 2017?

In an economy, 43 million people are employed, 3 million are unemployed, and 4 million are not in the labor force. What is the employment-to-population ratio?

The unemployment rate equals [(the number of people unemployed)/(the population)] × 100.

If unemployment equals the natural unemployment rate, then there

A person quits her job in order to spend time looking for a better-paying job. This type of unemployment is an example of

The labor force is defined as the number of

To calculate the unemployment rate, which of the following are necessary pieces of information? I. the number of unemployed persons II. the population III. the number of people in the labor force IV. the working age population

The current U.S. population is about 300 million yet the current U.S. labor force is only about 150 million. What subtractions are made from the population number to set it equal to the labor force?

The unemployment rate measures the percentage of people in the labor force who can't find a job.

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

Explain what type of unemployment changes with the business cycle and how it changes.

Define and give an example of how a spell of frictional unemployment can begin.

Using the official measure of unemployment, which of the following people is considered unemployed?

During a recession, people drop out of the labor force because they are unable to find a job. All else the same, this

Which of the following people would be counted as is employed in the Current Population Survey?

The population of Tiny Town is 100 people and the labor force is made up of 75 people. If 5 of these people are unemployed, the unemployment rate is

The best example of a cyclically unemployed individual is

The unemployment rate will never equal zero percent because

-Using the information in the table above, calculate the unemployment rate.

The official U-3 unemployment rate includes the total number of people who

-The information in the table above gives the 2016 reference base period CPI basket and prices used to construct the CPI for a small nation. It also has the 2017 prices. What is the value of the CPI for 2017?

In an economy, 43 million people are employed, 3 million are unemployed, and 4 million are not in the labor force. What is the employment-to-population ratio?

The unemployment rate equals [(the number of people unemployed)/(the population)] × 100.

If unemployment equals the natural unemployment rate, then there

A person quits her job in order to spend time looking for a better-paying job. This type of unemployment is an example of

The labor force is defined as the number of

To calculate the unemployment rate, which of the following are necessary pieces of information? I. the number of unemployed persons II. the population III. the number of people in the labor force IV. the working age population

The current U.S. population is about 300 million yet the current U.S. labor force is only about 150 million. What subtractions are made from the population number to set it equal to the labor force?

The unemployment rate measures the percentage of people in the labor force who can't find a job.

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