Question 1

When real GDP is ________ potential GDP, the unemployment rate is ________ the natural unemployment rate.

Accepted Answer

A)  greater than; less than 
B)  less than; equal to 
C)  equal to; greater than 
D)  greater than; greater than 
A)  greater than; less than 
B)  less than; equal to 
C)  equal to; greater than 
D)  greater than; greater than

Question 2

Full employment occurs

Accepted Answer

A)  only if the unemployment rate is zero. 
B)  only if the unemployment rate is equal to the natural unemployment rate. 
C)  only if unemployment is equal to structural unemployment plus cyclical unemployment. 
D)  None of the above answers are correct. 
A)  only if the unemployment rate is zero. 
B)  only if the unemployment rate is equal to the natural unemployment rate. 
C)  only if unemployment is equal to structural unemployment plus cyclical unemployment. 
D)  None of the above answers are correct.

Question 3

-The above table shows answers given by people interviewed in a government survey of households. Which individuals are considered unemployed using the official U-3 unemployment rate?

Accepted Answer

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

Question 4

When the automobile replaced horse-drawn carriages as the principal means of transportation, firms producing horse-drawn carriages went bankrupt and permanently laid off all their workers, thereby increasing

Accepted Answer

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

Question 5

The natural unemployment rate

Accepted Answer

A)  estimated to be close to 9 percent in recent years in the United States. 
B)  has been estimated to range between 4 percent and 6 percent in the United States in recent years. 
C)  is attained whenever the unemployment rate is less than 5 percent because 95 percent employment is considered full employment. 
D)  occurs when 100 percent of the labor force is employed. 
A)  estimated to be close to 9 percent in recent years in the United States. 
B)  has been estimated to range between 4 percent and 6 percent in the United States in recent years. 
C)  is attained whenever the unemployment rate is less than 5 percent because 95 percent employment is considered full employment. 
D)  occurs when 100 percent of the labor force is employed.

Question 6

Unemployment that is the result of recessions is called

Accepted Answer

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

Question 7

Suppose the working age population in Tiny Town is 100 people. If 25 of these people are NOT in the labor force, the ________ equals ________.

Accepted Answer

A)  unemployment rate; 25/100 × 100 
B)  unemployment rate; 25/75 × 100 
C)  labor force; 75 
D)  labor force; 25/100 × 100 
A)  unemployment rate; 25/100 × 100 
B)  unemployment rate; 25/75 × 100 
C)  labor force; 75 
D)  labor force; 25/100 × 100

Question 8

During a recession, the

Accepted Answer

A)  number of discouraged workers decreases. 
B)  unemployment rate decreases. 
C)  employment-to-population ratio increases. 
D)  number of marginally attached workers increases. 
A)  number of discouraged workers decreases. 
B)  unemployment rate decreases. 
C)  employment-to-population ratio increases. 
D)  number of marginally attached workers increases.

Question 9

The natural unemployment rate

Accepted Answer

A)  is the same from year to year. 
B)  is greater than the actual rate of unemployment. 
C)  is the unemployment rate when there is no cyclical unemployment. 
D)  equals zero. 
A)  is the same from year to year. 
B)  is greater than the actual rate of unemployment. 
C)  is the unemployment rate when there is no cyclical unemployment. 
D)  equals zero.

Question 10

Cyclical unemployment is the result of

Accepted Answer

A)  technological change or foreign competition. 
B)  normal labor market turnover. 
C)  the business cycle. 
D)  irresponsible workers with poor work habits. 
A)  technological change or foreign competition. 
B)  normal labor market turnover. 
C)  the business cycle. 
D)  irresponsible workers with poor work habits.

Question 11

-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 CPI in 2016?

Accepted Answer

A)  320 
B)  1.00 
C)  3.20 
D)  100 
A)  320 
B)  1.00 
C)  3.20 
D)  100

Question 12

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

Accepted Answer

A)  17.0 percent 
B)  6.8 percent 
C)  8.3 percent 
D)  -4.0 percent 
A)  17.0 percent 
B)  6.8 percent 
C)  8.3 percent 
D)  -4.0 percent

Question 13

How would you best describe a manufacturing employee who has been fired because he was replaced by a robot (new technology) and does not have the skills necessary to help operate the robot?

Accepted Answer

A)  job leaver 
B)  entrant/reentrant 
C)  cyclically unemployed 
D)  structurally unemployed 
A)  job leaver 
B)  entrant/reentrant 
C)  cyclically unemployed 
D)  structurally unemployed

Question 14

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

Accepted Answer

A)  17.0 percent 
B)  6.8 percent 
C)  8.3 percent 
D)  -4.0 percent 
A)  17.0 percent 
B)  6.8 percent 
C)  8.3 percent 
D)  -4.0 percent

Question 15

The total number of people aged 16 years and over who are not institutionalized

Accepted Answer

A)  equals the number of employed plus unemployed. 
B)  is the working-age population. 
C)  does not include students. 
D)  is the labor force. 
A)  equals the number of employed plus unemployed. 
B)  is the working-age population. 
C)  does not include students. 
D)  is the labor force.

Question 16

In September 2014, 32 percent of unemployed workers had been unemployed for 6 months or more. This long-term unemployment is of particular concern because

Accepted Answer

A)  long-term unemployment is the most costly type of unemployment. 
B)  the U-3 unemployment rate no longer includes these workers in the measurement since they are long-term unemployed. 
C)  the employment-to-population ratio no longer includes these workers in the measurement since they are long-term unemployed. 
D)  the labor force participation rate no longer includes these workers in the measurement since they are long-term unemployed. 
A)  long-term unemployment is the most costly type of unemployment. 
B)  the U-3 unemployment rate no longer includes these workers in the measurement since they are long-term unemployed. 
C)  the employment-to-population ratio no longer includes these workers in the measurement since they are long-term unemployed. 
D)  the labor force participation rate no longer includes these workers in the measurement since they are long-term unemployed.

Question 17

An individual with good job prospects who is between jobs is best considered as

Accepted Answer

A)  structurally unemployed. 
B)  cyclically unemployed. 
C)  not in the labor force. 
D)  frictionally unemployed. 
A)  structurally unemployed. 
B)  cyclically unemployed. 
C)  not in the labor force. 
D)  frictionally unemployed.

Question 18

-The table above gives the CPI basket for 2015. Suppose that 2015 is the reference base period.
a) What is the cost of the CPI basket in 2015?
b) What is the cost of the CPI basket in 2016?
c) What is the CPI for 2015?
d) What is the CPI for 2016?

Accepted Answer

a) The cost of the CPI basket in 2015 is

Question 19

Frictional unemployment

Accepted Answer

A)  includes discouraged workers. 
B)  is voluntary part-time unemployment. 
C)  is unemployment associated normal labor turnover. 
D)  is unemployment associated with declining industries. 
A)  includes discouraged workers. 
B)  is voluntary part-time unemployment. 
C)  is unemployment associated normal labor turnover. 
D)  is unemployment associated with declining industries.

Question 20

If the CPI this year is 220 and was 200 in last year, the annual inflation rate between the two years is

Accepted Answer

A)  5 percent. 
B)  10 percent. 
C)  20 percent. 
D)  2 percent. 
A)  5 percent. 
B)  10 percent. 
C)  20 percent. 
D)  2 percent.

When real GDP is potential GDP, the unemployment rate is the natural unemployment rate.

Full employment occurs

-The above table shows answers given by people interviewed in a government survey of households. Which individuals are considered unemployed using the official U-3 unemployment rate?

When the automobile replaced horse-drawn carriages as the principal means of transportation, firms producing horse-drawn carriages went bankrupt and permanently laid off all their workers, thereby increasing

The natural unemployment rate

Unemployment that is the result of recessions is called

Suppose the working age population in Tiny Town is 100 people. If 25 of these people are NOT in the labor force, the equals .

During a recession, the

The natural unemployment rate

Cyclical unemployment is the result of

-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 CPI in 2016?

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

How would you best describe a manufacturing employee who has been fired because he was replaced by a robot (new technology) and does not have the skills necessary to help operate the robot?

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

The total number of people aged 16 years and over who are not institutionalized

In September 2014, 32 percent of unemployed workers had been unemployed for 6 months or more. This long-term unemployment is of particular concern because

An individual with good job prospects who is between jobs is best considered as

-The table above gives the CPI basket for 2015. Suppose that 2015 is the reference base period. a) What is the cost of the CPI basket in 2015? b) What is the cost of the CPI basket in 2016? c) What is the CPI for 2015? d) What is the CPI for 2016?

Frictional unemployment

If the CPI this year is 220 and was 200 in last year, the annual inflation rate between the two years is

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

When real GDP is ________ potential GDP, the unemployment rate is ________ the natural unemployment rate.

Full employment occurs

-The above table shows answers given by people interviewed in a government survey of households. Which individuals are considered unemployed using the official U-3 unemployment rate?

When the automobile replaced horse-drawn carriages as the principal means of transportation, firms producing horse-drawn carriages went bankrupt and permanently laid off all their workers, thereby increasing

The natural unemployment rate

Unemployment that is the result of recessions is called

Suppose the working age population in Tiny Town is 100 people. If 25 of these people are NOT in the labor force, the ________ equals ________.

During a recession, the

The natural unemployment rate

Cyclical unemployment is the result of

-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 CPI in 2016?

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

How would you best describe a manufacturing employee who has been fired because he was replaced by a robot (new technology) and does not have the skills necessary to help operate the robot?

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

The total number of people aged 16 years and over who are not institutionalized

In September 2014, 32 percent of unemployed workers had been unemployed for 6 months or more. This long-term unemployment is of particular concern because

An individual with good job prospects who is between jobs is best considered as

-The table above gives the CPI basket for 2015. Suppose that 2015 is the reference base period. a) What is the cost of the CPI basket in 2015? b) What is the cost of the CPI basket in 2016? c) What is the CPI for 2015? d) What is the CPI for 2016?

Frictional unemployment

If the CPI this year is 220 and was 200 in last year, the annual inflation rate between the two years is

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

When real GDP is potential GDP, the unemployment rate is the natural unemployment rate.

Suppose the working age population in Tiny Town is 100 people. If 25 of these people are NOT in the labor force, the equals .