Question 1

Between 1972 and 2012,Canada's inflation rate as measured by the CPI ________.

Accepted Answer

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

Question 2

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 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.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) none of the above 
A) 5.6 percent 
B) 5 percent 
C) 6.7 percent 
D) 11.1 percent 
E) none of the above

Question 4

Which one of the following people would be counted as unemployed in Canada?

Accepted Answer

A) Doris works only 5 hours a week but is looking for a full-time job. 
B) Kanhaya has stopped looking for work since he was unable to find a suitable job during a two-month search. 
C) Sharon recently began looking for work after staying at home for 10 years to look after her children. 
D) Maurice is on a 2 month vacation out of the country but is still looking for a job using the internet. 
E) Taylor is a homemaker. 
A) Doris works only 5 hours a week but is looking for a full-time job. 
B) Kanhaya has stopped looking for work since he was unable to find a suitable job during a two-month search. 
C) Sharon recently began looking for work after staying at home for 10 years to look after her children. 
D) Maurice is on a 2 month vacation out of the country but is still looking for a job using the internet. 
E) Taylor is a homemaker.

Question 5

If the number of discouraged workers increases,everything else remaining the same,then the

Accepted Answer

A) unemployment rate will increase. 
B) employment-to-population ratio will decrease. 
C) labour force participation rate will increase. 
D) labour force participation rate will decrease. 
E) employment-to-population ratio will increase. 
A) unemployment rate will increase. 
B) employment-to-population ratio will decrease. 
C) labour force participation rate will increase. 
D) labour force participation rate will decrease. 
E) employment-to-population ratio will increase.

Question 6

Suppose a trade union and a firm agree to increase the wage rate by the same percentage as the increase in the Consumer Price Index.If the CPI increases by 5 percent,then the real income of workers will

Accepted Answer

A) increase by 5 percent as well. 
B) remain unchanged, accounting for bias in the calculation of the CPI. 
C) decrease by 5 percent, accounting for bias in the calculation of the CPI. 
D) increase by more than 5 percent, accounting for bias in the calculation of the CPI. 
E) increase by less than 5 percent, accounting for bias in the calculation of the CPI. 
A) increase by 5 percent as well. 
B) remain unchanged, accounting for bias in the calculation of the CPI. 
C) decrease by 5 percent, accounting for bias in the calculation of the CPI. 
D) increase by more than 5 percent, accounting for bias in the calculation of the CPI. 
E) increase by less than 5 percent, accounting for bias in the calculation of the CPI.

Question 7

Frictional unemployment ________.

Accepted Answer

A) includes discouraged workers 
B) is voluntary part-time unemployment 
C) includes workers who have lost their jobs due to an economic downturn 
D) is unemployment associated with normal labour turnover 
E) occurs when changes in technology change the skills needed to perform jobs 
A) includes discouraged workers 
B) is voluntary part-time unemployment 
C) includes workers who have lost their jobs due to an economic downturn 
D) is unemployment associated with normal labour turnover 
E) occurs when changes in technology change the skills needed to perform jobs

Question 8

The inflation rate measures

Accepted Answer

A) the annual change in the price level. 
B) the annual percentage change in the price level. 
C) the average price level. 
D) the annual percentage change in the wage rate. 
E) none of the above. 
A) the annual change in the price level. 
B) the annual percentage change in the price level. 
C) the average price level. 
D) the annual percentage change in the wage rate. 
E) none of the above.

Question 9

In a country with a working-age population of 22 million,16 million are employed,2 million are unemployed,and 1 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) 10.3 percent. 
C) 11.1 percent. 
D) 15.4 percent. 
E) none of the above. 
A) 10 percent. 
B) 10.3 percent. 
C) 11.1 percent. 
D) 15.4 percent. 
E) none of the above.

Question 10

In a country with a working-age population of 22 million,16 million are employed,2 million are unemployed,and 1 million of the employed are working part-time,half of whom wish to work full-time.If 500,000 of those unemployed are cyclically unemployed,what is the natural unemployment rate?

Accepted Answer

A) 11.1 percent 
B) 5.6 percent 
C) 8.3 percent 
D) 9.4 percent 
E) none of the above 
A) 11.1 percent 
B) 5.6 percent 
C) 8.3 percent 
D) 9.4 percent 
E) none of the above

Question 11

If the working-age population increases,then

Accepted Answer

A) the size of the labour force will increase. 
B) the number of people employed will increase. 
C) the unemployment rate will increase. 
D) the labour force participation rate will increase. 
E) the total number of people aged 15 years and above will increase. 
A) the size of the labour force will increase. 
B) the number of people employed will increase. 
C) the unemployment rate will increase. 
D) the labour force participation rate will increase. 
E) the total number of people aged 15 years and above will increase.

Question 12

Commodity substitution bias in the CPI refers to the fact that the CPI

Accepted Answer

A) takes into account the substitution of goods by consumers when relative prices change. 
B) takes no account of the substitution of goods by consumers when relative prices change. 
C) substitutes quality changes whenever they occur without taking account of the cost of the quality changes. 
D) substitutes relative prices for absolute prices of goods. 
E) accounts for improved quality in price rises. 
A) takes into account the substitution of goods by consumers when relative prices change. 
B) takes no account of the substitution of goods by consumers when relative prices change. 
C) substitutes quality changes whenever they occur without taking account of the cost of the quality changes. 
D) substitutes relative prices for absolute prices of goods. 
E) accounts for improved quality in price rises.

Question 13

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 14

In a country with a working-age population of 22 million,16 million are employed,2 million are unemployed,and 1 million of the employed are working part-time,half of whom wish to work full-time.The involuntary part-time rate is

Accepted Answer

A) 6.3 percent. 
B) 12.5 percent. 
C) 2.8 percent. 
D) 5 percent. 
E) none of the above. 
A) 6.3 percent. 
B) 12.5 percent. 
C) 2.8 percent. 
D) 5 percent. 
E) none of the above.

Question 15

Which of the following pieces of information do you need to calculate the labour force participation rate?
I. the number of employed persons
II. the number of unemployed persons
III. the population
IV. the working age population

Accepted Answer

A) I and II 
B) I and III 
C) I, II and III 
D) I, II and IV 
E) all of the above 
A) I and II 
B) I and III 
C) I, II and III 
D) I, II and IV 
E) all of the above

Question 16

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) Both C and D are exceptions. 
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) Both C and D are exceptions.

Question 17

Counting discouraged workers as unemployed would

Accepted Answer

A) not change the measured unemployment rate. 
B) lower the measured unemployment rate. 
C) raise the natural unemployment rate. 
D) raise the full employment rate. 
E) raise the measured unemployment rate. 
A) not change the measured unemployment rate. 
B) lower the measured unemployment rate. 
C) raise the natural unemployment rate. 
D) raise the full employment rate. 
E) raise the measured unemployment rate.

Question 18

Comparing the core inflation rate to the Consumer Price Index,the core inflation rate

Accepted Answer

A) controls for the biases of the CPI. 
B) measures all goods produced, not just consumer goods. 
C) uses current period quantities, not base period quantities. 
D) excludes the volatile elements of the CPI. 
E) includes volatile elements not in the CPI. 
A) controls for the biases of the CPI. 
B) measures all goods produced, not just consumer goods. 
C) uses current period quantities, not base period quantities. 
D) excludes the volatile elements of the CPI. 
E) includes volatile elements not in the CPI.

Question 19

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 2002.the CPI in 2002 is

Accepted Answer

A) 1,340. 
B) 158. 
C) 100. 
D) 96. 
E) 63. 
A) 1,340. 
B) 158. 
C) 100. 
D) 96. 
E) 63.

Question 20

If the people who take early retirement are not counted in the working-age population,then

Accepted Answer

A) the unemployment rate would be lower. 
B) the labour force participation rate would be less. 
C) the unemployment rate would be higher. 
D) the labour force participation rate would be higher. 
E) none of the above. 
A) the unemployment rate would be lower. 
B) the labour force participation rate would be less. 
C) the unemployment rate would be higher. 
D) the labour force participation rate would be higher. 
E) none of the above.

Between 1972 and 2012,Canada's inflation rate as measured by the CPI ________.

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

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?

Which one of the following people would be counted as unemployed in Canada?

If the number of discouraged workers increases,everything else remaining the same,then the

Suppose a trade union and a firm agree to increase the wage rate by the same percentage as the increase in the Consumer Price Index.If the CPI increases by 5 percent,then the real income of workers will

Frictional unemployment ________.

The inflation rate measures

In a country with a working-age population of 22 million,16 million are employed,2 million are unemployed,and 1 million of the employed are working part-time,half of whom wish to work full-time.The unemployment rate is

In a country with a working-age population of 22 million,16 million are employed,2 million are unemployed,and 1 million of the employed are working part-time,half of whom wish to work full-time.If 500,000 of those unemployed are cyclically unemployed,what is the natural unemployment rate?

If the working-age population increases,then

Commodity substitution bias in the CPI refers to the fact that the CPI

At full employment,there is no

In a country with a working-age population of 22 million,16 million are employed,2 million are unemployed,and 1 million of the employed are working part-time,half of whom wish to work full-time.The involuntary part-time rate is

Which of the following pieces of information do you need to calculate the labour force participation rate? I. the number of employed persons II. the number of unemployed persons III. the population IV. the working age population

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

Counting discouraged workers as unemployed would

Comparing the core inflation rate to the Consumer Price Index,the core inflation rate

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 2002.the CPI in 2002 is

If the people who take early retirement are not counted in the working-age population,then

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

Between 1972 and 2012,Canada's inflation rate as measured by the CPI ________.

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

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?

Which one of the following people would be counted as unemployed in Canada?

If the number of discouraged workers increases,everything else remaining the same,then the

Suppose a trade union and a firm agree to increase the wage rate by the same percentage as the increase in the Consumer Price Index.If the CPI increases by 5 percent,then the real income of workers will

Frictional unemployment ________.

The inflation rate measures

In a country with a working-age population of 22 million,16 million are employed,2 million are unemployed,and 1 million of the employed are working part-time,half of whom wish to work full-time.The unemployment rate is

In a country with a working-age population of 22 million,16 million are employed,2 million are unemployed,and 1 million of the employed are working part-time,half of whom wish to work full-time.If 500,000 of those unemployed are cyclically unemployed,what is the natural unemployment rate?

If the working-age population increases,then

Commodity substitution bias in the CPI refers to the fact that the CPI

At full employment,there is no

In a country with a working-age population of 22 million,16 million are employed,2 million are unemployed,and 1 million of the employed are working part-time,half of whom wish to work full-time.The involuntary part-time rate is

Which of the following pieces of information do you need to calculate the labour force participation rate? I. the number of employed persons II. the number of unemployed persons III. the population IV. the working age population

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

Counting discouraged workers as unemployed would

Comparing the core inflation rate to the Consumer Price Index,the core inflation rate

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 2002.the CPI in 2002 is

If the people who take early retirement are not counted in the working-age population,then

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