Question 1

Figure 20-1
  
-Refer to Figure 20-1.Based on the graph of the labor market above,if a minimum wage is set at $5 per hour,which of the following will occur?

Accepted Answer

A)  The unemployment rate will rise. 
B)  The unemployment rate will fall. 
C)  The level of unemployment will rise, but the percentage of the labor force unemployed will not change. 
D)  None of the above will occur. 
A)  The unemployment rate will rise. 
B)  The unemployment rate will fall. 
C)  The level of unemployment will rise, but the percentage of the labor force unemployed will not change. 
D)  None of the above will occur. D

Question 2

Emma is a road construction worker.During the winter months,emmy finds it more difficult to get work.The unemployment Emma experiences in the winter is

Accepted Answer

A)  structural. 
B)  cyclical. 
C)  seasonal. 
D)  functional. 
A)  structural. 
B)  cyclical. 
C)  seasonal. 
D)  functional. C

Question 3

Table 20-1
  
-Refer to Table 20-1.Suppose that the data in the table above reflect price levels in the economy.What is the inflation rate between 2010 and 2011?

Accepted Answer

A)  2.9% 
B)  3.5% 
C)  4.6% 
D)  5% 
E)  7.5% 
A)  2.9% 
B)  3.5% 
C)  4.6% 
D)  5% 
E)  7.5% A

Question 4

Jack just told his boss that he thinks his boss is an idiot.It is likely that Jack will be experiencing ________ unemployment in the near future.

Accepted Answer

A)  permanent 
B)  cyclical 
C)  frictional 
D)  structural 
A)  permanent 
B)  cyclical 
C)  frictional 
D)  structural

Question 5

If the CPI falls from 142 to 140 between two consecutive years,this implies that prices fell by 2% between those two years.

Accepted Answer

A) True 
 B)False

Question 6

People who lost their jobs as hand-drawn animators because of the popularity of computer-generated 3D animation are examples of persons who are suffering

Accepted Answer

A)  frictional unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  seasonal unemployment. 
E)  unnatural unemployment. 
A)  frictional unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  seasonal unemployment. 
E)  unnatural unemployment.

Question 7

The base period for CPI calculations is generally 1982-84.In 2005,50% of households accessed the Internet through a broadband connection that would not have existed in the 1980s.This potential for bias in the CPI is referred to as ________ bias and results in ________.

Accepted Answer

A)  outlet bias; the CPI underestimating the true change in the cost of living 
B)  new product; the CPI overestimating the true change in the cost of living 
C)  outlet bias; the CPI overestimating the true change in the cost of living 
D)  net product; the CPI underestimating the true change in the cost of living 
A)  outlet bias; the CPI underestimating the true change in the cost of living 
B)  new product; the CPI overestimating the true change in the cost of living 
C)  outlet bias; the CPI overestimating the true change in the cost of living 
D)  net product; the CPI underestimating the true change in the cost of living

Question 8

If consumers purchase fewer of those products that increase most in price and more of those products that decrease in price as compared to the CPI basket,then

Accepted Answer

A)  changes in the CPI accurately reflect the true rate of inflation. 
B)  changes in the CPI understate the true rate of inflation. 
C)  changes in the CPI overstate the true rate of inflation. 
D)  changes in the CPI are unrelated to the true rate of inflation. 
A)  changes in the CPI accurately reflect the true rate of inflation. 
B)  changes in the CPI understate the true rate of inflation. 
C)  changes in the CPI overstate the true rate of inflation. 
D)  changes in the CPI are unrelated to the true rate of inflation.

Question 9

To obtain real average hourly earnings,nominal average hourly earnings are multiplied by the CPI.

Accepted Answer

A) True 
 B)False

Question 10

Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called

Accepted Answer

A)  frictional unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  seasonal unemployment. 
E)  unnatural unemployment. 
A)  frictional unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  seasonal unemployment. 
E)  unnatural unemployment.

Question 11

If the number of unemployed workers is 19 million,the number in the working-age population is 500 million,and the unemployment rate is 4%,what is the labor force participation rate?

Accepted Answer

A)  4.75% 
B)  7.8% 
C)  95% 
D)  96.2% 
A)  4.75% 
B)  7.8% 
C)  95% 
D)  96.2%

Question 12

Table 20-7
  
-Refer to Table 20-7.Looking at the table above,real wages ________ from 2009 to 2010,and real wages ________ from 2010 to 2011.

Accepted Answer

A)  rose; rose 
B)  rose; fell 
C)  fell; rose 
D)  fell; fell 
A)  rose; rose 
B)  rose; fell 
C)  fell; rose 
D)  fell; fell

Question 13

By offering training to workers whose firms laid them off because of competition from foreign firms,the federal government is attempting to reduce

Accepted Answer

A)  frictional unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  seasonal unemployment. 
E)  unnatural unemployment. 
A)  frictional unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  seasonal unemployment. 
E)  unnatural unemployment.

Question 14

How could a growing labor force lead to an increase in the unemployment rate?

Accepted Answer

The labor force is calculated as the sum

Question 15

You borrow $10,000 from a bank for one year at a nominal interest rate of 5%.If inflation over the year is 2%,what is the real interest rate you are paying?

Accepted Answer

A)  2% 
B)  2.5% 
C)  3% 
D)  5% 
A)  2% 
B)  2.5% 
C)  3% 
D)  5%

Question 16

Table 20-10
  
-Refer to Table 20-10.Looking at the table above,what is the approximate rate of growth of real average hourly earnings from 2009 to 2010?

Accepted Answer

A)  15% 
B)  4.4% 
C)  -1.5% 
D)  -4.8% 
A)  15% 
B)  4.4% 
C)  -1.5% 
D)  -4.8%

Question 17

Jack was unemployed two weeks ago but just started a new job.As a result of this increase in the number of employed workers,which of the following occurred?

Accepted Answer

A)  The labor force participation rate increased. 
B)  The unemployment rate increased. 
C)  The labor force participation rate decreased. 
D)  The unemployment rate decreased. 
A)  The labor force participation rate increased. 
B)  The unemployment rate increased. 
C)  The labor force participation rate decreased. 
D)  The unemployment rate decreased.

Question 18

Which of the following would reduce the labor force participation rate,all else equal?

Accepted Answer

A)  an increase in the number of people in the labor force 
B)  an increase in the unemployment rate 
C)  a decrease in the unemployment rate 
D)  an increase in the working-age population 
A)  an increase in the number of people in the labor force 
B)  an increase in the unemployment rate 
C)  a decrease in the unemployment rate 
D)  an increase in the working-age population

Question 19

The household survey asks adults about their employment status and is used to compile the monthly unemployment rate.

Accepted Answer

A) True 
 B)False

Question 20

Suppose 180,000 people are employed,20,000 people are unemployed,and 50,000 people are out of the labor force,then calculate the labor force participation rate.

Accepted Answer

The labor force participation rate is ca

Figure 20-1 -Refer to Figure 20-1.Based on the graph of the labor market above,if a minimum wage is set at $5 per hour,which of the following will occur?

Emma is a road construction worker.During the winter months,emmy finds it more difficult to get work.The unemployment Emma experiences in the winter is

Table 20-1 -Refer to Table 20-1.Suppose that the data in the table above reflect price levels in the economy.What is the inflation rate between 2010 and 2011?

Jack just told his boss that he thinks his boss is an idiot.It is likely that Jack will be experiencing ________ unemployment in the near future.

If the CPI falls from 142 to 140 between two consecutive years,this implies that prices fell by 2% between those two years.

People who lost their jobs as hand-drawn animators because of the popularity of computer-generated 3D animation are examples of persons who are suffering

The base period for CPI calculations is generally 1982-84.In 2005,50% of households accessed the Internet through a broadband connection that would not have existed in the 1980s.This potential for bias in the CPI is referred to as bias and results in .

If consumers purchase fewer of those products that increase most in price and more of those products that decrease in price as compared to the CPI basket,then

To obtain real average hourly earnings,nominal average hourly earnings are multiplied by the CPI.

Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called

If the number of unemployed workers is 19 million,the number in the working-age population is 500 million,and the unemployment rate is 4%,what is the labor force participation rate?

Table 20-7 -Refer to Table 20-7.Looking at the table above,real wages from 2009 to 2010,and real wages from 2010 to 2011.

By offering training to workers whose firms laid them off because of competition from foreign firms,the federal government is attempting to reduce

How could a growing labor force lead to an increase in the unemployment rate?

You borrow $10,000 from a bank for one year at a nominal interest rate of 5%.If inflation over the year is 2%,what is the real interest rate you are paying?

Table 20-10 -Refer to Table 20-10.Looking at the table above,what is the approximate rate of growth of real average hourly earnings from 2009 to 2010?

Jack was unemployed two weeks ago but just started a new job.As a result of this increase in the number of employed workers,which of the following occurred?

Which of the following would reduce the labor force participation rate,all else equal?

The household survey asks adults about their employment status and is used to compile the monthly unemployment rate.

Suppose 180,000 people are employed,20,000 people are unemployed,and 50,000 people are out of the labor force,then calculate the labor force participation rate.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 9: Unemployment and Inflation

Figure 20-1 -Refer to Figure 20-1.Based on the graph of the labor market above,if a minimum wage is set at $5 per hour,which of the following will occur?

Emma is a road construction worker.During the winter months,emmy finds it more difficult to get work.The unemployment Emma experiences in the winter is

Table 20-1 -Refer to Table 20-1.Suppose that the data in the table above reflect price levels in the economy.What is the inflation rate between 2010 and 2011?

Jack just told his boss that he thinks his boss is an idiot.It is likely that Jack will be experiencing ________ unemployment in the near future.

If the CPI falls from 142 to 140 between two consecutive years,this implies that prices fell by 2% between those two years.

People who lost their jobs as hand-drawn animators because of the popularity of computer-generated 3D animation are examples of persons who are suffering

The base period for CPI calculations is generally 1982-84.In 2005,50% of households accessed the Internet through a broadband connection that would not have existed in the 1980s.This potential for bias in the CPI is referred to as ________ bias and results in ________.

If consumers purchase fewer of those products that increase most in price and more of those products that decrease in price as compared to the CPI basket,then

To obtain real average hourly earnings,nominal average hourly earnings are multiplied by the CPI.

Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called

If the number of unemployed workers is 19 million,the number in the working-age population is 500 million,and the unemployment rate is 4%,what is the labor force participation rate?

Table 20-7 -Refer to Table 20-7.Looking at the table above,real wages ________ from 2009 to 2010,and real wages ________ from 2010 to 2011.

By offering training to workers whose firms laid them off because of competition from foreign firms,the federal government is attempting to reduce

How could a growing labor force lead to an increase in the unemployment rate?

You borrow $10,000 from a bank for one year at a nominal interest rate of 5%.If inflation over the year is 2%,what is the real interest rate you are paying?

Table 20-10 -Refer to Table 20-10.Looking at the table above,what is the approximate rate of growth of real average hourly earnings from 2009 to 2010?

Jack was unemployed two weeks ago but just started a new job.As a result of this increase in the number of employed workers,which of the following occurred?

Which of the following would reduce the labor force participation rate,all else equal?

The household survey asks adults about their employment status and is used to compile the monthly unemployment rate.

Suppose 180,000 people are employed,20,000 people are unemployed,and 50,000 people are out of the labor force,then calculate the labor force participation rate.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

The base period for CPI calculations is generally 1982-84.In 2005,50% of households accessed the Internet through a broadband connection that would not have existed in the 1980s.This potential for bias in the CPI is referred to as bias and results in .

Table 20-7 -Refer to Table 20-7.Looking at the table above,real wages from 2009 to 2010,and real wages from 2010 to 2011.