Question 1

Full employment means

Accepted Answer

A)  zero unemployment. 
B)  only cyclical unemployment exists. 
C)  only frictional and structural unemployment exists. 
D)  None of the above answers are correct. 
A)  zero unemployment. 
B)  only cyclical unemployment exists. 
C)  only frictional and structural unemployment exists. 
D)  None of the above answers are correct. C

Question 2

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

Accepted Answer

A) True 
 B)False  False

Question 3

Cyclical unemployment ________.

Accepted Answer

A)  decreases during an expansion 
B)  grows at the same rate as potential GDP 
C)  is zero at a business-cycle trough 
D)  decreases during a recession 
A)  decreases during an expansion 
B)  grows at the same rate as potential GDP 
C)  is zero at a business-cycle trough 
D)  decreases during a recession A

Question 4

Frictional, structural and cyclical unemployment are three classifications of unemployment.

Accepted Answer

A) True 
 B)False

Question 5

A recent accounting graduate from a major business school is searching for a place to begin his career as an accountant. This individual is best considered as

Accepted Answer

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

Question 6

The first step in measuring the CPI is to

Accepted Answer

A)  select the market basket. 
B)  conduct a monthly survey. 
C)  collect prices for the basket of goods and services. 
D)  interview businesses. 
A)  select the market basket. 
B)  conduct a monthly survey. 
C)  collect prices for the basket of goods and services. 
D)  interview businesses.

Question 7

-If the CPI was 132.5 at the end of last year and 140.2 at the end of this year, the inflation rate over these two years was

Accepted Answer

A)  7.7 percent. 
B)  5.4 percent. 
C)  4.4 percent. 
D)  5.8 percent. 
A)  7.7 percent. 
B)  5.4 percent. 
C)  4.4 percent. 
D)  5.8 percent.

Question 8

If the number of people unemployed is 100, the number of people employed is 1000, and the working-age population is 1400, then the labor force participation rate is

Accepted Answer

A)  78.6 percent. 
B)  71.4 percent. 
C)  64.3 percent. 
D)  66.6 percent. 
A)  78.6 percent. 
B)  71.4 percent. 
C)  64.3 percent. 
D)  66.6 percent.

Question 9

-The labor force participation rate is calculated as the

Accepted Answer

A)  labor force divided by the number of persons employed then multiplied by 100. 
B)  number of persons unemployed divided by the labor force then multiplied by 100. 
C)  labor force divided by the unemployment rate then multiplied by 100. 
D)  labor force divided by the working age population then multiplied by 100. 
A)  labor force divided by the number of persons employed then multiplied by 100. 
B)  number of persons unemployed divided by the labor force then multiplied by 100. 
C)  labor force divided by the unemployment rate then multiplied by 100. 
D)  labor force divided by the working age population then multiplied by 100.

Question 10

-In the table above, what inflation rate belongs in space B?

Accepted Answer

A)  17.0 percent 
B)  6.8 percent 
C)  8.3 percent 
D)  -4.0 percent 
A)  17.0 percent 
B)  6.8 percent 
C)  8.3 percent 
D)  -4.0 percent

Question 11

-In the table above, what inflation rate belongs in space E?

Accepted Answer

A)  17.0 percent 
B)  6.8 percent 
C)  8.3 percent 
D)  15.4 percent 
A)  17.0 percent 
B)  6.8 percent 
C)  8.3 percent 
D)  15.4 percent

Question 12

The bias in the CPI typically

Accepted Answer

A)  overstates inflation. 
B)  understates inflation. 
C)  about half the time overstates and about half the time understates the inflation rate. 
D)  cannot be measured or estimated. 
A)  overstates inflation. 
B)  understates inflation. 
C)  about half the time overstates and about half the time understates the inflation rate. 
D)  cannot be measured or estimated.

Question 13

Using the official measure of unemployment, which of the following would NOT be counted as unemployed?

Accepted Answer

A)  a person who is not working but who has tried to find a job in the past week 
B)  a person who is waiting to be called back to a job after having been laid off 
C)  a person who performs traditional housework and does not work outside the home for pay 
D)  a person who is waiting to start a new job in the next 30 days 
A)  a person who is not working but who has tried to find a job in the past week 
B)  a person who is waiting to be called back to a job after having been laid off 
C)  a person who performs traditional housework and does not work outside the home for pay 
D)  a person who is waiting to start a new job in the next 30 days

Question 14

The ________ equals the number of ________.

Accepted Answer

A)  labor force; persons over 16 years old 
B)  labor force; unemployed and employed persons 
C)  working age population; employed persons 
D)  unemployment rate; people unemployed 
A)  labor force; persons over 16 years old 
B)  labor force; unemployed and employed persons 
C)  working age population; employed persons 
D)  unemployment rate; people unemployed

Question 15

If the CPI this year is 220 and was 200 in last year, the annual inflation rate between the two years is

Accepted Answer

A)  5 percent. 
B)  10 percent. 
C)  20 percent. 
D)  2 percent. 
A)  5 percent. 
B)  10 percent. 
C)  20 percent. 
D)  2 percent.

Question 16

If the price level last year was 220 and this year is 250, what is the inflation rate between the two years?

Accepted Answer

A)  30 percent 
B)  13.6 percent 
C)  12.2 percent 
D)  20 percent 
A)  30 percent 
B)  13.6 percent 
C)  12.2 percent 
D)  20 percent

Question 17

Suppose that the total labor force is 100 individuals with 10 unemployed. The unemployment rate is ________. Now assume that 10 people drop out of the labor force and that 10 remain unemployed. The new unemployment rate is ________.

Accepted Answer

A)  9 percent; 10 percent 
B)  10 percent; 9 percent 
C)  10 percent; 11 percent 
D)  11 percent; 10 percent 
A)  9 percent; 10 percent 
B)  10 percent; 9 percent 
C)  10 percent; 11 percent 
D)  11 percent; 10 percent

Question 18

Suppose the number of people employed is 25 million and the number of people in the labor force is 75 million. What is the employment-to-population ratio?

Accepted Answer

A)  33 percent 
B)  25 percent 
C)  75 percent 
D)  There is not enough information given to answer the question. 
A)  33 percent 
B)  25 percent 
C)  75 percent 
D)  There is not enough information given to answer the question.

Question 19

The labor force is defined as the

Accepted Answer

A)  number of people over 16 years of age. 
B)  number of people who are working. 
C)  sum of employed and unemployed people. 
D)  number of people in blue-collar jobs. 
A)  number of people over 16 years of age. 
B)  number of people who are working. 
C)  sum of employed and unemployed people. 
D)  number of people in blue-collar jobs.

Question 20

The total number of people aged 16 years and over who are not institutionalized ________.

Accepted Answer

A)  equals the number of employed plus unemployed 
B)  is the working-age population 
C)  does not include students 
D)  is the labor force 
A)  equals the number of employed plus unemployed 
B)  is the working-age population 
C)  does not include students 
D)  is the labor force

Full employment means

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

Cyclical unemployment ________.

Frictional, structural and cyclical unemployment are three classifications of unemployment.

A recent accounting graduate from a major business school is searching for a place to begin his career as an accountant. This individual is best considered as

The first step in measuring the CPI is to

-If the CPI was 132.5 at the end of last year and 140.2 at the end of this year, the inflation rate over these two years was

If the number of people unemployed is 100, the number of people employed is 1000, and the working-age population is 1400, then the labor force participation rate is

-The labor force participation rate is calculated as the

-In the table above, what inflation rate belongs in space B?

-In the table above, what inflation rate belongs in space E?

The bias in the CPI typically

Using the official measure of unemployment, which of the following would NOT be counted as unemployed?

The equals the number of .

If the CPI this year is 220 and was 200 in last year, the annual inflation rate between the two years is

If the price level last year was 220 and this year is 250, what is the inflation rate between the two years?

Suppose that the total labor force is 100 individuals with 10 unemployed. The unemployment rate is . Now assume that 10 people drop out of the labor force and that 10 remain unemployed. The new unemployment rate is .

Suppose the number of people employed is 25 million and the number of people in the labor force is 75 million. What is the employment-to-population ratio?

The labor force is defined as the

The total number of people aged 16 years and over who are not institutionalized ________.

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 Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 5: Monitoring Jobs and Inflation

Full employment means

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

Cyclical unemployment ________.

Frictional, structural and cyclical unemployment are three classifications of unemployment.

A recent accounting graduate from a major business school is searching for a place to begin his career as an accountant. This individual is best considered as

The first step in measuring the CPI is to

-If the CPI was 132.5 at the end of last year and 140.2 at the end of this year, the inflation rate over these two years was

If the number of people unemployed is 100, the number of people employed is 1000, and the working-age population is 1400, then the labor force participation rate is

-The labor force participation rate is calculated as the

-In the table above, what inflation rate belongs in space B?

-In the table above, what inflation rate belongs in space E?

The bias in the CPI typically

Using the official measure of unemployment, which of the following would NOT be counted as unemployed?

The ________ equals the number of ________.

If the CPI this year is 220 and was 200 in last year, the annual inflation rate between the two years is

If the price level last year was 220 and this year is 250, what is the inflation rate between the two years?

Suppose that the total labor force is 100 individuals with 10 unemployed. The unemployment rate is ________. Now assume that 10 people drop out of the labor force and that 10 remain unemployed. The new unemployment rate is ________.

Suppose the number of people employed is 25 million and the number of people in the labor force is 75 million. What is the employment-to-population ratio?

The labor force is defined as the

The total number of people aged 16 years and over who are not institutionalized ________.

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 Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

The equals the number of .

Suppose that the total labor force is 100 individuals with 10 unemployed. The unemployment rate is . Now assume that 10 people drop out of the labor force and that 10 remain unemployed. The new unemployment rate is .