Question 1

Rochelle lost her job as a salesperson when sales fell off during the recession. Now she is looking for a new job. Rochelle is

Accepted Answer

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

Question 2

Use the table below to answer the following questions.
Table 21.2.1
This table shows the answers given by interviewees to the Labour Force Survey.
  
-In Table 21.2.1, which person is a discouraged searcher?

Accepted Answer

A) A 
B) B 
C) C 
D) D 
E) none of them 
A) A 
B) B 
C) C 
D) D 
E) none of them

Question 3

Use the table below to answer the following questions.
Table 21.3.1
Suppose a simple economy produces three goods only.
The price and output data for some selected years are shown below.
  
-Refer to Table 21.3.1. The reference base period is 2014. The CPI in 2002 is

Accepted Answer

A) 100. 
B) 157. 
C) 129. 
D) 63. 
E) 152. 
A) 100. 
B) 157. 
C) 129. 
D) 63. 
E) 152.

Question 4

Which one of the following people is structurally unemployed?

Accepted Answer

A) a Saskatchewan welder who lost her job when her company relocated to B. C. and is currently looking for a job 
B) a Nova Scotia fishery worker who is searching for a better job closer to home 
C) a steel worker who is laid off but who expects to be called back soon 
D) an office worker who has lost her job because of a general slowdown in economic activity 
E) a student who recently graduated and is looking for work 
A) a Saskatchewan welder who lost her job when her company relocated to B. C. and is currently looking for a job 
B) a Nova Scotia fishery worker who is searching for a better job closer to home 
C) a steel worker who is laid off but who expects to be called back soon 
D) an office worker who has lost her job because of a general slowdown in economic activity 
E) a student who recently graduated and is looking for work

Question 5

At full employment, there is no

Accepted Answer

A) natural unemployment. 
B) unemployment. 
C) cyclical unemployment. 
D) structural unemployment. 
E) frictional unemployment. 
A) natural unemployment. 
B) unemployment. 
C) cyclical unemployment. 
D) structural unemployment. 
E) frictional unemployment.

Question 6

With the exception of the real interest rate, all real variables of macroeconomics are calculated by

Accepted Answer

A) subtracting the inflation rate from the nominal value. 
B) dividing a nominal variable by the price level. 
C) adding the inflation rate to the nominal value. 
D) multiplying the nominal variable by the price level. 
E) subtracting off the most volatile components of the variable. 
A) subtracting the inflation rate from the nominal value. 
B) dividing a nominal variable by the price level. 
C) adding the inflation rate to the nominal value. 
D) multiplying the nominal variable by the price level. 
E) subtracting off the most volatile components of the variable.

Question 7

In a country with a working-age population of 30 million, 18 million are employed, 2 million are unemployed, and 2 million of the employed are working part-time, half of whom wish to work full-time. The labour force is

Accepted Answer

A) 30 million. 
B) 18 million. 
C) 20 million. 
D) 22 million. 
E) 16 million. 
A) 30 million. 
B) 18 million. 
C) 20 million. 
D) 22 million. 
E) 16 million.

Question 8

Use the table below to answer the following question.
Table 21.3.2
Data from Southton
  
-Refer to Table 21.3.2. From the data in Table 21.3.2, what is Southton's consumer price index for the current year?

Accepted Answer

A) 112 
B) 105.6 
C) 100.5 
D) 100 
E) 94.7 
A) 112 
B) 105.6 
C) 100.5 
D) 100 
E) 94.7

Question 9

All of the following are possible sources of bias in using the Consumer Price Index to measure inflation except

Accepted Answer

A) the introduction of new goods. 
B) an improvement in the quality of goods. 
C) commodity substitution. 
D) an increase in the cost of living. 
E) rising prices. 
A) the introduction of new goods. 
B) an improvement in the quality of goods. 
C) commodity substitution. 
D) an increase in the cost of living. 
E) rising prices.

Question 10

At full employment, the unemployment rate

Accepted Answer

A) should be zero. 
B) is greater than zero percent due to natural unemployment. 
C) increases as the price level rises. 
D) decreases as the price level falls. 
E) averages 6 percent. 
A) should be zero. 
B) is greater than zero percent due to natural unemployment. 
C) increases as the price level rises. 
D) decreases as the price level falls. 
E) averages 6 percent.

Question 11

Suppose that the unemployment rate equals 4.5 percent and that the natural unemployment rate is 5.5 percent. We can conclude that

Accepted Answer

A) potential GDP is greater than real GDP. 
B) potential GDP equals real GDP. 
C) potential GDP is less than real GDP. 
D) we have mismeasured the natural unemployment rate. 
E) real GDP is greater than nominal GDP. 
A) potential GDP is greater than real GDP. 
B) potential GDP equals real GDP. 
C) potential GDP is less than real GDP. 
D) we have mismeasured the natural unemployment rate. 
E) real GDP is greater than nominal GDP.

Question 12

Between 1972 and 2014, Canada's inflation rate as measured by the CPI

Accepted Answer

A) rose in some years and fell in some years. 
B) consistently rose every year. 
C) consistently fell every year. 
D) was always between 1 and 3 percent a year. 
E) was always positive. 
A) rose in some years and fell in some years. 
B) consistently rose every year. 
C) consistently fell every year. 
D) was always between 1 and 3 percent a year. 
E) was always positive.

Question 13

In a country with a working-age population of 30 million, 18 million are employed, 2 million are unemployed, and 2 million of the employed are working part-time, half of whom wish to work full-time. If 1 million of those unemployed are cyclically unemployed, what is the natural unemployment rate?

Accepted Answer

A) 5.6 percent 
B) 5 percent 
C) 6.7 percent 
D) 11.1 percent 
E) 1 percent 
A) 5.6 percent 
B) 5 percent 
C) 6.7 percent 
D) 11.1 percent 
E) 1 percent

Question 14

R2 is

Accepted Answer

A) long-term unemployment. 
B) the official unemployment rate. 
C) comparable to the official U.S. rate. 
D) short-term unemployment. 
E) the unemployment rate that adds discouraged searchers to the official rate. 
A) long-term unemployment. 
B) the official unemployment rate. 
C) comparable to the official U.S. rate. 
D) short-term unemployment. 
E) the unemployment rate that adds discouraged searchers to the official rate.

Question 15

The labour force participation rate is

Accepted Answer

A) the percentage of the working-age population who are employed. 
B) the percentage of the labour force who are unemployed or employed. 
C) the percentage of the working-age population who are either unemployed or employed. 
D) the percentage of the labour force who are employed. 
E) equal to the employment-to-population ratio plus the unemployment rate. 
A) the percentage of the working-age population who are employed. 
B) the percentage of the labour force who are unemployed or employed. 
C) the percentage of the working-age population who are either unemployed or employed. 
D) the percentage of the labour force who are employed. 
E) equal to the employment-to-population ratio plus the unemployment rate.

Question 16

Hyperinflation is defined as

Accepted Answer

A) declining inflation rates. 
B) rising but low inflation rates. 
C) very high inflation rates. 
D) very low inflation rates. 
E) an increase in the price level. 
A) declining inflation rates. 
B) rising but low inflation rates. 
C) very high inflation rates. 
D) very low inflation rates. 
E) an increase in the price level.

Question 17

A zero percent unemployment rate

Accepted Answer

A) is one of the economic goals of the Canadian government. 
B) would alleviate scarcity. 
C) is not consistent with the notion of full employment. 
D) was last achieved during World War II when everyone was willing to work at the going wage rate to end the war. 
E) is the only efficient unemployment rate. 
A) is one of the economic goals of the Canadian government. 
B) would alleviate scarcity. 
C) is not consistent with the notion of full employment. 
D) was last achieved during World War II when everyone was willing to work at the going wage rate to end the war. 
E) is the only efficient unemployment rate.

Question 18

Use the information below to answer the following questions.
Fact 21.2.3
Oregon's 5.6 percent unemployment rate hovers close the national average of 5.5 percent. A few years ago, Oregon had one of the highest unemployment rates in the nation. To avoid rising unemployment, Oregon Governor Kulongoski introduced a plan that provides public schools and universities with enough state funds to meet growing demand for skilled workers. Also Kulongoski wants to use state and federal money for bridges, roads, and buildings to stimulate more construction jobs.
Source: The Oregonian, July 8, 2008
-Consider Fact 21.2.3. The main type of unemployment that Governor Kulongoski is using policies to avoid is

Accepted Answer

A) structural and natural. 
B) cyclical only. 
C) natural only. 
D) frictional and structural. 
E) cyclical and natural. 
A) structural and natural. 
B) cyclical only. 
C) natural only. 
D) frictional and structural. 
E) cyclical and natural.

Question 19

R4 is

Accepted Answer

A) long-term unemployment. 
B) the official unemployment rate. 
C) comparable to the official U.S. rate. 
D) short-term unemployment. 
E) the unemployment rate that adds discouraged searchers to the official rate. 
A) long-term unemployment. 
B) the official unemployment rate. 
C) comparable to the official U.S. rate. 
D) short-term unemployment. 
E) the unemployment rate that adds discouraged searchers to the official rate.

Question 20

Caitlin is working part-time at the Mr. G store, but wants to work full-time. She is

Accepted Answer

A) frictionally unemployed. 
B) structurally unemployed. 
C) not in the labour force. 
D) cyclically unemployed. 
E) counted as employed. 
A) frictionally unemployed. 
B) structurally unemployed. 
C) not in the labour force. 
D) cyclically unemployed. 
E) counted as employed.

Exam 21: Monitoring Jobs and Inflation

Rochelle lost her job as a salesperson when sales fell off during the recession. Now she is looking for a new job. Rochelle is

Use the table below to answer the following questions. Table 21.2.1 This table shows the answers given by interviewees to the Labour Force Survey. -In Table 21.2.1, which person is a discouraged searcher?

Use the table below to answer the following questions. Table 21.3.1 Suppose a simple economy produces three goods only. The price and output data for some selected years are shown below. -Refer to Table 21.3.1. The reference base period is 2014. The CPI in 2002 is

Which one of the following people is structurally unemployed?

At full employment, there is no

With the exception of the real interest rate, all real variables of macroeconomics are calculated by

In a country with a working-age population of 30 million, 18 million are employed, 2 million are unemployed, and 2 million of the employed are working part-time, half of whom wish to work full-time. The labour force is

Use the table below to answer the following question. Table 21.3.2 Data from Southton -Refer to Table 21.3.2. From the data in Table 21.3.2, what is Southton's consumer price index for the current year?

All of the following are possible sources of bias in using the Consumer Price Index to measure inflation except

At full employment, the unemployment rate

Suppose that the unemployment rate equals 4.5 percent and that the natural unemployment rate is 5.5 percent. We can conclude that

Between 1972 and 2014, Canada's inflation rate as measured by the CPI

In a country with a working-age population of 30 million, 18 million are employed, 2 million are unemployed, and 2 million of the employed are working part-time, half of whom wish to work full-time. If 1 million of those unemployed are cyclically unemployed, what is the natural unemployment rate?

R2 is

The labour force participation rate is

Hyperinflation is defined as

A zero percent unemployment rate

R4 is

Caitlin is working part-time at the Mr. G store, but wants to work full-time. She is

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