Question 1

Of the following sequences of price levels,which correctly represents a 5 percent inflation rate?

Accepted Answer

A) 100, 100, 100, 100 
B) 100, 105, 105, 105 
C) 100, 105, 110, 115 
D) 100, 105, 110.25, 115.76 
E) 95, 100, 105, 110 
A) 100, 100, 100, 100 
B) 100, 105, 105, 105 
C) 100, 105, 110, 115 
D) 100, 105, 110.25, 115.76 
E) 95, 100, 105, 110

Question 2

The unemployment rate is defined as the number of

Accepted Answer

A) unemployed people divided by the number of employed people. 
B) employed people divided by the number of people in the country. 
C) unemployed people divided by the number of people in the country. 
D) unemployed people divided by the sum of the people employed and the people unemployed. 
E) unemployed people divided by the number of people in the country who are employed. 
A) unemployed people divided by the number of employed people. 
B) employed people divided by the number of people in the country. 
C) unemployed people divided by the number of people in the country. 
D) unemployed people divided by the sum of the people employed and the people unemployed. 
E) unemployed people divided by the number of people in the country who are employed.

Question 3

Structural unemployment arises in part because

Accepted Answer

A) there are not enough jobs available. 
B) of technological change. 
C) people become discouraged when they cannot find jobs. 
D) people will not quit their present jobs until they can find suitable employment elsewhere. 
E) of unrealistic wage expectations. 
A) there are not enough jobs available. 
B) of technological change. 
C) people become discouraged when they cannot find jobs. 
D) people will not quit their present jobs until they can find suitable employment elsewhere. 
E) of unrealistic wage expectations.

Question 4

The consumer price index is a measure of

Accepted Answer

A) the average of the prices paid by urban consumers for a fixed basket of consumer goods and services. 
B) the commodity prices paid by urban consumers for a fixed basket of consumer goods and services. 
C) the consumer prices paid by average households for a fixed basket of goods and services. 
D) the average of the prices paid by rural consumers for a fixed basket of consumer goods and services. 
E) the lowest prices paid by urban consumers for a fixed basket of consumer goods and services. 
A) the average of the prices paid by urban consumers for a fixed basket of consumer goods and services. 
B) the commodity prices paid by urban consumers for a fixed basket of consumer goods and services. 
C) the consumer prices paid by average households for a fixed basket of goods and services. 
D) the average of the prices paid by rural consumers for a fixed basket of consumer goods and services. 
E) the lowest prices paid by urban consumers for a fixed basket of consumer goods and services.

Question 5

If the economy is at full employment,then

Accepted Answer

A) the entire population is employed. 
B) the entire labour force is employed. 
C) the only unemployment is frictional unemployment plus discouraged workers. 
D) the unemployment rate is less than 3 percent. 
E) all unemployment arises from normal frictions and structural change. 
A) the entire population is employed. 
B) the entire labour force is employed. 
C) the only unemployment is frictional unemployment plus discouraged workers. 
D) the unemployment rate is less than 3 percent. 
E) all unemployment arises from normal frictions and structural change.

Question 6

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 7

The official unemployment rate might underestimate the underutilization of labour resources for all of the following reasons except ________.

Accepted Answer

A) it excludes part-time workers who want full-time jobs 
B) it excludes discouraged workers 
C) it excludes marginally attached workers 
D) it excludes people who are waiting to be called back to jobs from which they have been laid off 
E) the official unemployment rate excludes all of the above 
A) it excludes part-time workers who want full-time jobs 
B) it excludes discouraged workers 
C) it excludes marginally attached workers 
D) it excludes people who are waiting to be called back to jobs from which they have been laid off 
E) the official unemployment rate excludes all of the above

Question 8

If the number of discouraged workers decreases because many of them start to look for work,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) both A and C. 
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) both A and C.

Question 9

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 2012.The CPI in 2012 is

Accepted Answer

A) 100. 
B) 157. 
C) 129. 
D) 64. 
E) 153. 
A) 100. 
B) 157. 
C) 129. 
D) 64. 
E) 153.

Question 10

If the economy is at full employment,

Accepted Answer

A) the entire population is employed. 
B) the entire labour force is employed. 
C) the only unemployment is frictional unemployment plus discouraged workers. 
D) real GDP equals potential GDP. 
E) all unemployment is cyclical and structural. 
A) the entire population is employed. 
B) the entire labour force is employed. 
C) the only unemployment is frictional unemployment plus discouraged workers. 
D) real GDP equals potential GDP. 
E) all unemployment is cyclical and structural.

Question 11

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

Accepted Answer

A) Simone is currently working but expects to be laid off by the end of the month, before next month's survey can be completed. 
B) Ruth is a 14-year-old student and has been looking for an after-school job every day for the past month. 
C) Sarah has been looking for a job but is taking a month-long break from the job-seeking effort due to her lack of skills. 
D) Rebekah is a recent graduate looking for work. 
E) Ron has quit looking because he believes that there is no work available for him. 
A) Simone is currently working but expects to be laid off by the end of the month, before next month's survey can be completed. 
B) Ruth is a 14-year-old student and has been looking for an after-school job every day for the past month. 
C) Sarah has been looking for a job but is taking a month-long break from the job-seeking effort due to her lack of skills. 
D) Rebekah is a recent graduate looking for work. 
E) Ron has quit looking because he believes that there is no work available for him.

Question 12

When the unemployment rate is less than the natural unemployment rate,real GDP is ________ than potential GDP and the output gap is ________.

Accepted Answer

A) greater; positive 
B) smaller; positive 
C) greater; negative 
D) smaller; negative 
E) greater; equal to zero 
A) greater; positive 
B) smaller; positive 
C) greater; negative 
D) smaller; negative 
E) greater; equal to zero

Question 13

Which of the following statements is incorrect?

Accepted Answer

A) The labour force is equal to the number of people employed plus the number of people unemployed. 
B) The unemployment rate is the number of persons who are unemployed divided by the labour force, all multiplied by 100. 
C) The labour-force participation rate is the labour force divided by the working-age population, all multiplied by 100. 
D) The employment-to-population ratio is the number of people employed divided by the working-age population, all multiplied by 100. 
E) The involuntary part-time rate is the number of involuntary part-time workers divided by the number employed, all multiplied by 100. 
A) The labour force is equal to the number of people employed plus the number of people unemployed. 
B) The unemployment rate is the number of persons who are unemployed divided by the labour force, all multiplied by 100. 
C) The labour-force participation rate is the labour force divided by the working-age population, all multiplied by 100. 
D) The employment-to-population ratio is the number of people employed divided by the working-age population, all multiplied by 100. 
E) The involuntary part-time rate is the number of involuntary part-time workers divided by the number employed, all multiplied by 100.

Question 14

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

Accepted Answer

A) Veena is not working, but she is looking for a full-time job. 
B) Kathy has stopped looking for work since she was unable to find a suitable job during a one-month search. 
C) Sharon is a college student with a job. 
D) Christos has been laid off from his job a month ago, and has not been looking for a new job as he is waiting for a severance package from his former employer. 
E) Benoit who was laid off when his firm closed down 2 months ago and has not been looking for work as he is going back to school. 
A) Veena is not working, but she is looking for a full-time job. 
B) Kathy has stopped looking for work since she was unable to find a suitable job during a one-month search. 
C) Sharon is a college student with a job. 
D) Christos has been laid off from his job a month ago, and has not been looking for a new job as he is waiting for a severance package from his former employer. 
E) Benoit who was laid off when his firm closed down 2 months ago and has not been looking for work as he is going back to school.

Question 15

In China,suppose that the price level was 100 in 2007,110 in 2008,120 in 2009,and 130 in 2011.Over this time period,

Accepted Answer

A) zero inflation occurred. 
B) the inflation rate increased. 
C) the inflation rate was positive. 
D) the inflation rate decreased. 
E) Both C and D are correct. 
A) zero inflation occurred. 
B) the inflation rate increased. 
C) the inflation rate was positive. 
D) the inflation rate decreased. 
E) Both C and D are correct.

Question 16

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 frictionally unemployed?

Accepted Answer

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

Question 17

If the CPI was 228 at the end of 2011 and 236 at the end of 2012,what was the inflation rate in 2012?

Accepted Answer

A) 8 percent 
B) 236 percent 
C) 3.5 percent 
D) 3.4 percent 
E) 4 percent 
A) 8 percent 
B) 236 percent 
C) 3.5 percent 
D) 3.4 percent 
E) 4 percent

Question 18

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 participation rate is

Accepted Answer

A) 73.3 percent. 
B) 66.7 percent. 
C) 60 percent. 
D) 53.3 percent. 
E) none of the above. 
A) 73.3 percent. 
B) 66.7 percent. 
C) 60 percent. 
D) 53.3 percent. 
E) none of the above.

Question 19

The commodity substitution bias is that

Accepted Answer

A) consumers substitute high-quality goods for low-quality goods. 
B) government spending is a good substitute for investment expenditures. 
C) national saving and foreign borrowing are interchangeable. 
D) consumers decrease the quantity they buy of goods whose relative prices rise and increase the quantity of goods whose relative price falls. 
E) consumers substitute more expensive goods for less expensive goods when technology advances. 
A) consumers substitute high-quality goods for low-quality goods. 
B) government spending is a good substitute for investment expenditures. 
C) national saving and foreign borrowing are interchangeable. 
D) consumers decrease the quantity they buy of goods whose relative prices rise and increase the quantity of goods whose relative price falls. 
E) consumers substitute more expensive goods for less expensive goods when technology advances.

Question 20

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) 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 either unemployed or employed. 
D) the percentage of the labour force who are employed. 
E) none of the above.

Of the following sequences of price levels,which correctly represents a 5 percent inflation rate?

The unemployment rate is defined as the number of

Structural unemployment arises in part because

The consumer price index is a measure of

If the economy is at full employment,then

A zero percent unemployment rate

The official unemployment rate might underestimate the underutilization of labour resources for all of the following reasons except ________.

If the number of discouraged workers decreases because many of them start to look for work,everything else remaining the same,then the

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 2012.The CPI in 2012 is

If the economy is at full employment,

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

When the unemployment rate is less than the natural unemployment rate,real GDP is than potential GDP and the output gap is .

Which of the following statements is incorrect?

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

In China,suppose that the price level was 100 in 2007,110 in 2008,120 in 2009,and 130 in 2011.Over this time period,

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 frictionally unemployed?

If the CPI was 228 at the end of 2011 and 236 at the end of 2012,what was the inflation rate in 2012?

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 participation rate is

The commodity substitution bias is that

The labour force participation rate 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 Keynesian Model

Canadian Inflation,unemployment,and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 21: Monitoring Jobs and Inflation

Of the following sequences of price levels,which correctly represents a 5 percent inflation rate?

The unemployment rate is defined as the number of

Structural unemployment arises in part because

The consumer price index is a measure of

If the economy is at full employment,then

A zero percent unemployment rate

The official unemployment rate might underestimate the underutilization of labour resources for all of the following reasons except ________.

If the number of discouraged workers decreases because many of them start to look for work,everything else remaining the same,then the

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 2012.The CPI in 2012 is

If the economy is at full employment,

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

When the unemployment rate is less than the natural unemployment rate,real GDP is ________ than potential GDP and the output gap is ________.

Which of the following statements is incorrect?

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

In China,suppose that the price level was 100 in 2007,110 in 2008,120 in 2009,and 130 in 2011.Over this time period,

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 frictionally unemployed?

If the CPI was 228 at the end of 2011 and 236 at the end of 2012,what was the inflation rate in 2012?

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 participation rate is

The commodity substitution bias is that

The labour force participation rate 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 Keynesian Model

Canadian Inflation,unemployment,and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

When the unemployment rate is less than the natural unemployment rate,real GDP is than potential GDP and the output gap is .