Question 1

From 1980 to 2000 the trend in the employment-to-population ratio was ________ and from 2000 to 2012 the trend was ________.

Accepted Answer

A)  upward; downward 
B)  downward; downward 
C)  upward; upward 
D)  downward; upward 
A)  upward; downward 
B)  downward; downward 
C)  upward; upward 
D)  downward; upward A

Question 2

$$\begin{array} { | l | c | } 
\hline { \text { Category } } & \begin{array} { c } 
\text { Number } \
\text { (millions) }
\end{array} \
\hline \text { Discouraged workers } & 15 \
\hline \text { Unemployed workers } & 40 \
\hline \text { Employed workers } & 100 \
\hline \begin{array} { l } 
\text { Population (16years and } \
\text { over) }
\end{array} & 225 \
\hline
\end{array}$$
-In the above table,the unemployment rate is

Accepted Answer

A)  6 percent. 
B)  24 percent. 
C)  18 percent. 
D)  29 percent. 
A)  6 percent. 
B)  24 percent. 
C)  18 percent. 
D)  29 percent. D

Question 3

The economy is at full employment when

Accepted Answer

A)  there are no unemployed workers. 
B)  all unemployment is frictional or structural. 
C)  there are fewer unemployed workers than available jobs. 
D)  all unemployment is cyclical. 
A)  there are no unemployed workers. 
B)  all unemployment is frictional or structural. 
C)  there are fewer unemployed workers than available jobs. 
D)  all unemployment is cyclical. B

Question 4

Marginally attached workers fall into which of the following population categories?

Accepted Answer

A)  employed 
B)  unemployed 
C)  labor force 
D)  not in the labor force 
A)  employed 
B)  unemployed 
C)  labor force 
D)  not in the labor force

Question 5

If a worker is temporarily laid off because the economy is in a recession,frictional unemployment increases.

Accepted Answer

A) True 
 B)False

Question 6

Explain the relationship between real GDP and potential GDP and between the unemployment rate and the natural unemployment rate as the economy moves through a business cycle.

Accepted Answer

Potential GDP is the level of GDP when t

Question 7

Structural unemployment is the result of

Accepted Answer

A)  technological change or foreign competition. 
B)  normal labor market turnover. 
C)  a slowdown in the rate of economic expansion. 
D)  irresponsible workers with poor work habits. 
A)  technological change or foreign competition. 
B)  normal labor market turnover. 
C)  a slowdown in the rate of economic expansion. 
D)  irresponsible workers with poor work habits.

Question 8

The table below shows the price index for China starting in 2000. $$\begin{array} { | c | c | } 
\hline \text { Year } & \text { Price Index } \
\hline 2000 & 100.0 \
\hline 2001 & 100.73 \
\hline 2002 & 99.95 \
\hline 2003 & 101.12 \
\hline 2004 & 105.06 \
\hline 2005 & 106.95 \
\hline 2006 & 108.52 \
\hline
\end{array}$$
Www)econstats.com
Which of the following statements correctly describe the behavior of prices in China?

Accepted Answer

A)  The cost of the CPI basket decreased in 2002. 
B)  China experienced a high price level and high inflation. 
C)  Inflation reached 73% between the base year and 2001. 
D)  The inflation rate between 2005 and 2006 was 14.4 percent. 
A)  The cost of the CPI basket decreased in 2002. 
B)  China experienced a high price level and high inflation. 
C)  Inflation reached 73% between the base year and 2001. 
D)  The inflation rate between 2005 and 2006 was 14.4 percent.

Question 9

Suppose the population is 220 million people,the labor force is 150 million people,the number of people employed is 130 million and the working-age population is 175 million people.What is the unemployment rate?

Accepted Answer

The unemployment rat

Question 10

Suppose the economy is experiencing frictional unemployment of 1 percent,structural unemployment of 3 percent and cyclical unemployment of 4 percent.What is the natural unemployment rate?

Accepted Answer

A)  3 percent. 
B)  4 percent. 
C)  5 percent. 
D)  7 percent. 
A)  3 percent. 
B)  4 percent. 
C)  5 percent. 
D)  7 percent.

Question 11

If the CPI was 122.3 at the end of last year and 124.5 at the end of this year,the inflation rate over these two years was

Accepted Answer

A)  1.8 percent. 
B)  2.5 percent. 
C)  22.5 percent. 
D)  18.0 percent. 
A)  1.8 percent. 
B)  2.5 percent. 
C)  22.5 percent. 
D)  18.0 percent.

Question 12

Suppose that Matt quits a job with the XYZ Corporation in order to look for more rewarding employment.Matt would be best be considered as

Accepted Answer

A)  still being employed. 
B)  included in the economy's "hidden employment." 
C)  frictionally unemployed. 
D)  cyclically unemployed. 
A)  still being employed. 
B)  included in the economy's "hidden employment." 
C)  frictionally unemployed. 
D)  cyclically unemployed.

Question 13

Cyclical unemployment occurs when

Accepted Answer

A)  individuals enter into the labor market making the rounds of potential employers. 
B)  individuals with skills no longer valued in the labor market cannot find employment. 
C)  individuals give up the search for employment. 
D)  a business cycle recession decreases employment. 
A)  individuals enter into the labor market making the rounds of potential employers. 
B)  individuals with skills no longer valued in the labor market cannot find employment. 
C)  individuals give up the search for employment. 
D)  a business cycle recession decreases employment.

Question 14

Catherine quit her job in order to look for a new one; therefore,she is best considered as

Accepted Answer

A)  frictionally unemployed. 
B)  structurally unemployed. 
C)  cyclically unemployed. 
D)  seasonally unemployed. 
A)  frictionally unemployed. 
B)  structurally unemployed. 
C)  cyclically unemployed. 
D)  seasonally unemployed.

Question 15

What are the three stages of constructing the CPI?

Accepted Answer

The first stage is to select the CPI bas

Question 16

When more labor is unemployed than the amount at the natural unemployment rate,then real GDP ________ potential GDP.

Accepted Answer

A)  is equal to 
B)  is less than 
C)  is greater than 
D)  cannot be compared to 
A)  is equal to 
B)  is less than 
C)  is greater than 
D)  cannot be compared to

Question 17

Suppose the population of Tiny Town is 100 people and the working age population is 70.If 10 of these people are unemployed,the unemployment rate in Tiny Town is

Accepted Answer

A)  10 percent. 
B)  10/70 × 100. 
C)  10/80 × 100. 
D)  There is not enough information provided to calculate the unemployment rate. 
A)  10 percent. 
B)  10/70 × 100. 
C)  10/80 × 100. 
D)  There is not enough information provided to calculate the unemployment rate.

Question 18

The best example of a cyclically unemployed individual is

Accepted Answer

A)  Charles who lost his job as a real estate salesperson when the housing market went soft because of a recession. 
B)  Alice who quit her job to enter college. 
C)  Mary who lost her job in the textile industry following a decrease in the tariff on textiles. 
D)  Bob who has just graduated from college and is entering the labor market. 
A)  Charles who lost his job as a real estate salesperson when the housing market went soft because of a recession. 
B)  Alice who quit her job to enter college. 
C)  Mary who lost her job in the textile industry following a decrease in the tariff on textiles. 
D)  Bob who has just graduated from college and is entering the labor market.

Question 19

How is the GDP deflator is calculated.

Accepted Answer

The GDP deflator equals 100 ti

Question 20

Including marginally attached workers in the calculation of the unemployment rate would

Accepted Answer

A)  increase the reported rate. 
B)  lower the reported rate. 
C)  not change the reported rate. 
D)  change the reported rate, but in an unpredictable manner. 
A)  increase the reported rate. 
B)  lower the reported rate. 
C)  not change the reported rate. 
D)  change the reported rate, but in an unpredictable manner.

From 1980 to 2000 the trend in the employment-to-population ratio was and from 2000 to 2012 the trend was .

Category Number (millions) Discouraged workers 15 Unemployed workers 40 Employed workers 100 Population (16years and over) 225 -In the above table,the unemployment rate is

The economy is at full employment when

Marginally attached workers fall into which of the following population categories?

If a worker is temporarily laid off because the economy is in a recession,frictional unemployment increases.

Explain the relationship between real GDP and potential GDP and between the unemployment rate and the natural unemployment rate as the economy moves through a business cycle.

Structural unemployment is the result of

The table below shows the price index for China starting in 2000. Year Price Index 2000 100.0 2001 100.73 2002 99.95 2003 101.12 2004 105.06 2005 106.95 2006 108.52 Www)econstats.com Which of the following statements correctly describe the behavior of prices in China?

Suppose the population is 220 million people,the labor force is 150 million people,the number of people employed is 130 million and the working-age population is 175 million people.What is the unemployment rate?

Suppose the economy is experiencing frictional unemployment of 1 percent,structural unemployment of 3 percent and cyclical unemployment of 4 percent.What is the natural unemployment rate?

If the CPI was 122.3 at the end of last year and 124.5 at the end of this year,the inflation rate over these two years was

Suppose that Matt quits a job with the XYZ Corporation in order to look for more rewarding employment.Matt would be best be considered as

Cyclical unemployment occurs when

Catherine quit her job in order to look for a new one; therefore,she is best considered as

What are the three stages of constructing the CPI?

When more labor is unemployed than the amount at the natural unemployment rate,then real GDP ________ potential GDP.

Suppose the population of Tiny Town is 100 people and the working age population is 70.If 10 of these people are unemployed,the unemployment rate in Tiny Town is

The best example of a cyclically unemployed individual is

How is the GDP deflator is calculated.

Including marginally attached workers in the calculation of the unemployment rate would

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

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

Exam 5: Monitoring Jobs and Inflation

From 1980 to 2000 the trend in the employment-to-population ratio was ________ and from 2000 to 2012 the trend was ________.

Category Number (millions) Discouraged workers 15 Unemployed workers 40 Employed workers 100 Population (16years and over) 225 -In the above table,the unemployment rate is

The economy is at full employment when

Marginally attached workers fall into which of the following population categories?

If a worker is temporarily laid off because the economy is in a recession,frictional unemployment increases.

Explain the relationship between real GDP and potential GDP and between the unemployment rate and the natural unemployment rate as the economy moves through a business cycle.

Structural unemployment is the result of

The table below shows the price index for China starting in 2000. Year Price Index 2000 100.0 2001 100.73 2002 99.95 2003 101.12 2004 105.06 2005 106.95 2006 108.52 Www)econstats.com Which of the following statements correctly describe the behavior of prices in China?

Suppose the population is 220 million people,the labor force is 150 million people,the number of people employed is 130 million and the working-age population is 175 million people.What is the unemployment rate?

Suppose the economy is experiencing frictional unemployment of 1 percent,structural unemployment of 3 percent and cyclical unemployment of 4 percent.What is the natural unemployment rate?

If the CPI was 122.3 at the end of last year and 124.5 at the end of this year,the inflation rate over these two years was

Suppose that Matt quits a job with the XYZ Corporation in order to look for more rewarding employment.Matt would be best be considered as

Cyclical unemployment occurs when

Catherine quit her job in order to look for a new one; therefore,she is best considered as

What are the three stages of constructing the CPI?

When more labor is unemployed than the amount at the natural unemployment rate,then real GDP ________ potential GDP.

Suppose the population of Tiny Town is 100 people and the working age population is 70.If 10 of these people are unemployed,the unemployment rate in Tiny Town is

The best example of a cyclically unemployed individual is

How is the GDP deflator is calculated.

Including marginally attached workers in the calculation of the unemployment rate would

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

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

From 1980 to 2000 the trend in the employment-to-population ratio was and from 2000 to 2012 the trend was .