Question 1

Jesse just graduated from university,and is looking for her first job.Jesse 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. A

Question 2

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) none of the above. 
A) frictionally unemployed. 
B) structurally unemployed. 
C) not unemployed. 
D) cyclically unemployed. 
E) none of the above. D

Question 3

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 unemployment rate is

Accepted Answer

A) 10 percent. 
B) 9.1 percent. 
C) 14.3 percent. 
D) 11.1 percent. 
E) none of the above. 
A) 10 percent. 
B) 9.1 percent. 
C) 14.3 percent. 
D) 11.1 percent. 
E) none of the above. A

Question 4

If the economy is operating at full employment,then

Accepted Answer

A) everyone who wants a job has one. 
B) the entire labour force is employed. 
C) the unemployment rate is approximately 3 percent. 
D) the unemployment rate is zero. 
E) none of the above. 
A) everyone who wants a job has one. 
B) the entire labour force is employed. 
C) the unemployment rate is approximately 3 percent. 
D) the unemployment rate is zero. 
E) none of the above.

Question 5

The cost of the CPI basket in base-period prices is $200 and the cost of the CPI basket in current-period prices is $450.The CPI in the current year is

Accepted Answer

A) 450. 
B) 225. 
C) 300. 
D) 250. 
E) 44.44. 
A) 450. 
B) 225. 
C) 300. 
D) 250. 
E) 44.44.

Question 6

The employment-to-population ratio 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 unemployed or employed. 
D) the percentage of the labour force who are employed. 
E) none of the above. 
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 unemployed or employed. 
D) the percentage of the labour force who are employed. 
E) none of the above.

Question 7

Suppose that the natural unemployment rate is 4.5 percent and the actual unemployment rate is 3.5 percent.Then cyclical unemployment is

Accepted Answer

A) 1 percent. 
B) -1 percent. 
C) 8 percent. 
D) 0 percent. 
E) 3.5 percent. 
A) 1 percent. 
B) -1 percent. 
C) 8 percent. 
D) 0 percent. 
E) 3.5 percent.

Question 8

Which of the following reflects an increase in unemployment?

Accepted Answer

A) an increase in the employment-to-population ratio 
B) a decrease in the unemployment rate 
C) an increase in the labour force participation rate 
D) an increase in the involuntary part-time rate 
E) none of the above 
A) an increase in the employment-to-population ratio 
B) a decrease in the unemployment rate 
C) an increase in the labour force participation rate 
D) an increase in the involuntary part-time rate 
E) none of the above

Question 9

People become unemployed when they

Accepted Answer

A) retire. 
B) are on maternity leave. 
C) quit working to go to university. 
D) leave university and start seeking work. 
E) all of the above. 
A) retire. 
B) are on maternity leave. 
C) quit working to go to university. 
D) leave university and start seeking work. 
E) all of the above.

Question 10

If prices at Wendy's rise,more consumers buy their meals at McDonald's and fewer consumers buy their meals at Wendy's.This is an example of

Accepted Answer

A) consumers' action to boycott Wendy's. 
B) outlet substitution. 
C) commodity substitution. 
D) both A and B. 
E) both B and C. 
A) consumers' action to boycott Wendy's. 
B) outlet substitution. 
C) commodity substitution. 
D) both A and B. 
E) both B and C.

Question 11

The price indexes that are alternatives to the CPI are ________.

Accepted Answer

A) the GDP deflator and the chained price index for consumption 
B) the chained price index for consumption and the CPI deflator 
C) the core GDP deflator and the CPI deflator 
D) the GDP deflator and the CPI deflator 
E) the unbiased CPI and the unbiased GDP deflator 
A) the GDP deflator and the chained price index for consumption 
B) the chained price index for consumption and the CPI deflator 
C) the core GDP deflator and the CPI deflator 
D) the GDP deflator and the CPI deflator 
E) the unbiased CPI and the unbiased GDP deflator

Question 12

The unemployment rate is supposed to measure ________.It is an imperfect measure because ________.

Accepted Answer

A) the number of unemployed plus the number of marginally attached workers expressed as a percentage of the labour force; it excludes the marginally attached workers because Statistics Canada considers them as employed 
B) the percentage of the working-age population who are unemployed; it is impossible to count everyone in the working-age population 
C) the percentage of the labour force who are unemployed; it is impossible to count everyone in the labour force 
D) the underutilization of labour resources; it excludes some underutilized labour and some unemployment is unavoidable 
E) the underutilization of labour resources; it includes part-time workers and excludes discouraged workers 
A) the number of unemployed plus the number of marginally attached workers expressed as a percentage of the labour force; it excludes the marginally attached workers because Statistics Canada considers them as employed 
B) the percentage of the working-age population who are unemployed; it is impossible to count everyone in the working-age population 
C) the percentage of the labour force who are unemployed; it is impossible to count everyone in the labour force 
D) the underutilization of labour resources; it excludes some underutilized labour and some unemployment is unavoidable 
E) the underutilization of labour resources; it includes part-time workers and excludes discouraged workers

Question 13

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 14

The natural unemployment rate is

Accepted Answer

A) equal to 0 percent. 
B) the same as the cyclical unemployment rate. 
C) the rate at which cyclical unemployment is equal to 6 percent. 
D) the rate at which cyclical unemployment is equal to 0 percent. 
E) none of the above. 
A) equal to 0 percent. 
B) the same as the cyclical unemployment rate. 
C) the rate at which cyclical unemployment is equal to 6 percent. 
D) the rate at which cyclical unemployment is equal to 0 percent. 
E) none of the above.

Question 15

In a country with a working-age population of 20 million,13 million are employed,1.5 million are unemployed,and 1 million of the employed are working part-time,half of whom wish to work full-time.The labour force participation rate is

Accepted Answer

A) 75.5 percent. 
B) 72.5 percent. 
C) 65 percent. 
D) 57.5 percent. 
E) none of the above. 
A) 75.5 percent. 
B) 72.5 percent. 
C) 65 percent. 
D) 57.5 percent. 
E) none of the above.

Question 16

Choose the incorrect statement.

Accepted Answer

A) The outlet substitution bias injects an upward bias into the CPI. 
B) When the quality of a good improves over time and as a result the price rises, the CPI counts the entire price rise as inflation and so overstates inflation. 
C) When relative prices change and people substitute to the lower priced good, the CPI ignores the substitution and the CPI overstates inflation. 
D) The CPI basket is constantly updated to allow for the introduction of new goods. 
E) All of the above statements are incorrect. 
A) The outlet substitution bias injects an upward bias into the CPI. 
B) When the quality of a good improves over time and as a result the price rises, the CPI counts the entire price rise as inflation and so overstates inflation. 
C) When relative prices change and people substitute to the lower priced good, the CPI ignores the substitution and the CPI overstates inflation. 
D) The CPI basket is constantly updated to allow for the introduction of new goods. 
E) All of the above statements are incorrect.

Question 17

If the CPI was 180 at the end of 2011,and 216 at the end of 2012,the inflation rate in 2012 was

Accepted Answer

A) 216 percent. 
B) 36 percent. 
C) 16.67 percent. 
D) 20 percent. 
E) 18 percent. 
A) 216 percent. 
B) 36 percent. 
C) 16.67 percent. 
D) 20 percent. 
E) 18 percent.

Question 18

In a recession,typically

Accepted Answer

A) unemployment decreases. 
B) the labour force participation rate increases. 
C) the employment-to-population ratio decreases. 
D) the employment-to-population ratio increases. 
E) none of the above. 
A) unemployment decreases. 
B) the labour force participation rate increases. 
C) the employment-to-population ratio decreases. 
D) the employment-to-population ratio increases. 
E) none of the above.

Question 19

If the labour force participation rate is rising and the working-age population is not changing,then the

Accepted Answer

A) size of the labour force is rising. 
B) number of unemployed people is rising and the size of the labour force is falling. 
C) size of the labour force is falling. 
D) number of unemployed people is falling and the size of the labour force is rising. 
E) number of employed people must be increasing. 
A) size of the labour force is rising. 
B) number of unemployed people is rising and the size of the labour force is falling. 
C) size of the labour force is falling. 
D) number of unemployed people is falling and the size of the labour force is rising. 
E) number of employed people must be increasing.

Question 20

The Consumer Price Index measures inflation by using

Accepted Answer

A) all goods and services that are produced using a current-year basket. 
B) all goods and services that are produced using a base-year basket. 
C) only consumption goods and services purchased using a current-year basket. 
D) only consumption goods and services purchased using a base-year basket. 
E) A and D. 
A) all goods and services that are produced using a current-year basket. 
B) all goods and services that are produced using a base-year basket. 
C) only consumption goods and services purchased using a current-year basket. 
D) only consumption goods and services purchased using a base-year basket. 
E) A and D.

Jesse just graduated from university,and is looking for her first job.Jesse is

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

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 unemployment rate is

If the economy is operating at full employment,then

The cost of the CPI basket in base-period prices is $200 and the cost of the CPI basket in current-period prices is $450.The CPI in the current year is

The employment-to-population ratio is

Suppose that the natural unemployment rate is 4.5 percent and the actual unemployment rate is 3.5 percent.Then cyclical unemployment is

Which of the following reflects an increase in unemployment?

People become unemployed when they

If prices at Wendy's rise,more consumers buy their meals at McDonald's and fewer consumers buy their meals at Wendy's.This is an example of

The price indexes that are alternatives to the CPI are ________.

The unemployment rate is supposed to measure .It is an imperfect measure because .

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?

The natural unemployment rate is

In a country with a working-age population of 20 million,13 million are employed,1.5 million are unemployed,and 1 million of the employed are working part-time,half of whom wish to work full-time.The labour force participation rate is

Choose the incorrect statement.

If the CPI was 180 at the end of 2011,and 216 at the end of 2012,the inflation rate in 2012 was

In a recession,typically

If the labour force participation rate is rising and the working-age population is not changing,then the

The Consumer Price Index measures inflation by using

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 Keynesian Model

Canadian Inflation,unemployment,and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 21: Monitoring Jobs and Inflation

Jesse just graduated from university,and is looking for her first job.Jesse is

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

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 unemployment rate is

If the economy is operating at full employment,then

The cost of the CPI basket in base-period prices is $200 and the cost of the CPI basket in current-period prices is $450.The CPI in the current year is

The employment-to-population ratio is

Suppose that the natural unemployment rate is 4.5 percent and the actual unemployment rate is 3.5 percent.Then cyclical unemployment is

Which of the following reflects an increase in unemployment?

People become unemployed when they

If prices at Wendy's rise,more consumers buy their meals at McDonald's and fewer consumers buy their meals at Wendy's.This is an example of

The price indexes that are alternatives to the CPI are ________.

The unemployment rate is supposed to measure ________.It is an imperfect measure because ________.

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?

The natural unemployment rate is

In a country with a working-age population of 20 million,13 million are employed,1.5 million are unemployed,and 1 million of the employed are working part-time,half of whom wish to work full-time.The labour force participation rate is

Choose the incorrect statement.

If the CPI was 180 at the end of 2011,and 216 at the end of 2012,the inflation rate in 2012 was

In a recession,typically

If the labour force participation rate is rising and the working-age population is not changing,then the

The Consumer Price Index measures inflation by using

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 Keynesian Model

Canadian Inflation,unemployment,and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

The unemployment rate is supposed to measure .It is an imperfect measure because .