Question 1

If this year's price level exceeds last year's

Accepted Answer

A)  the inflation rate between these years has been positive. 
B)  the inflation rate is accelerating. 
C)  deflation is occurring. 
D)  no relative price changes are occurring. 
A)  the inflation rate between these years has been positive. 
B)  the inflation rate is accelerating. 
C)  deflation is occurring. 
D)  no relative price changes are occurring.

Question 2

If the population is 300 million, with 70 million under the age of 16 and institutionalized, another 70 million not in the labor force, 10 million unemployed and 150 million employed, the labor force participation rate is

Accepted Answer

A)  69.6 percent. 
B)  23.3 percent. 
C)  6.67 percent. 
D)  50 percent. 
A)  69.6 percent. 
B)  23.3 percent. 
C)  6.67 percent. 
D)  50 percent.

Question 3

If the labor force participation rate is rising and the working-age population is not changing, then the

Accepted Answer

A)  size of the labor force is rising. 
B)  number of unemployed people is rising and the size of the labor force is falling. 
C)  size of the labor force is falling. 
D)  number of unemployed people is falling and the size of the labor force is rising. 
A)  size of the labor force is rising. 
B)  number of unemployed people is rising and the size of the labor force is falling. 
C)  size of the labor force is falling. 
D)  number of unemployed people is falling and the size of the labor force is rising.

Question 4

In July 2014, the CPI inflation rate was 0.3 percent while the core CPI inflation rate was 0.1 percent. The difference between these two measurements of inflation indicates

Accepted Answer

A)  prices for food and fuel were increasing more rapidly than prices for other goods. 
B)  prices for food and fuel were increasing less rapidly than prices for other goods. 
C)  the underlying inflation rate was higher than the overall inflation rate. 
D)  a negative underlying inflation rate. 
A)  prices for food and fuel were increasing more rapidly than prices for other goods. 
B)  prices for food and fuel were increasing less rapidly than prices for other goods. 
C)  the underlying inflation rate was higher than the overall inflation rate. 
D)  a negative underlying inflation rate.

Question 5

The table below shows the price index for Zimbabwe starting in 2000.
 
Www)econstats.com
The data show that

Accepted Answer

A)  the inflation rate between the base year and 2001 is 73.4 percent. 
B)  new goods bias and quality change bias are responsible for most of Zimbabwe's inflation. 
C)  the inflation rate between 2005 and 2006 was 319.2 percent. 
D)  while Zimbabwe experienced a high price level, it did not experience high inflation. 
A)  the inflation rate between the base year and 2001 is 73.4 percent. 
B)  new goods bias and quality change bias are responsible for most of Zimbabwe's inflation. 
C)  the inflation rate between 2005 and 2006 was 319.2 percent. 
D)  while Zimbabwe experienced a high price level, it did not experience high inflation.

Question 6

The unemployment rate is measured as

Accepted Answer

A)  the number of people that want to work but cannot find jobs out of the entire population. 
B)  the percentage of people in the labor force who are unemployed. 
C)  an indicator to determine long-term economic growth. 
D)  an indicator for potential inflation. 
A)  the number of people that want to work but cannot find jobs out of the entire population. 
B)  the percentage of people in the labor force who are unemployed. 
C)  an indicator to determine long-term economic growth. 
D)  an indicator for potential inflation.

Question 7

The biases in the CPI are

Accepted Answer

A)  not important since they are so small. 
B)  important only to economists, not the real world. 
C)  important since they effect nearly 1/3 of federal government spending. 
D)  not important although they are large. 
A)  not important since they are so small. 
B)  important only to economists, not the real world. 
C)  important since they effect nearly 1/3 of federal government spending. 
D)  not important although they are large.

Question 8

Which of the following CORRECTLY describes "frictional unemployment"?

Accepted Answer

A)  Frictional unemployment is due mainly to job losers. 
B)  Frictional unemployment is due mainly to job leavers. 
C)  Frictional unemployment occurs mainly during recessions. 
D)  Frictional unemployment is a normal occurrence in a growing economy. 
A)  Frictional unemployment is due mainly to job losers. 
B)  Frictional unemployment is due mainly to job leavers. 
C)  Frictional unemployment occurs mainly during recessions. 
D)  Frictional unemployment is a normal occurrence in a growing economy.

Question 9

-In the above table, the number of marginally attached workers is

Accepted Answer

A)  40 million. 
B)  55 million. 
C)  15 million. 
D)  100 million. 
A)  40 million. 
B)  55 million. 
C)  15 million. 
D)  100 million.

Question 10

One way to be considered unemployed is to be without a job and looking for work.

Accepted Answer

A) True 
 B)False

Question 11

If this year's price level is 126 and last year's price level was 120, the inflation rate is ________.

Accepted Answer

A)  0.95 percent a year 
B)  5 percent a year 
C)  6 percent a year 
D)  1.05 percent a year 
A)  0.95 percent a year 
B)  5 percent a year 
C)  6 percent a year 
D)  1.05 percent a year

Question 12

2012 2013
  
-In 2012, consumers in Dexter consumed only books and pens. The prices and quantities for 2012 and 2013 are listed in the table above. The reference base period for Dexter's CPI is 2012. What is the inflation rate in 2013?

Accepted Answer

A)  69 percent 
B)  zero 
C)  31 percent 
D)  2 percent 
A)  69 percent 
B)  zero 
C)  31 percent 
D)  2 percent

Question 13

Cyclical unemployment exists when

Accepted Answer

A)  frictional and structural unemployment is zero. 
B)  real national income exceeds potential income. 
C)  real GDP exceeds potential GDP. 
D)  real GDP is less than potential GDP. 
A)  frictional and structural unemployment is zero. 
B)  real national income exceeds potential income. 
C)  real GDP exceeds potential GDP. 
D)  real GDP is less than potential GDP.

Question 14

Is the CPI a biased measure of the inflation rate? Explain your answer.

Accepted Answer

There are at least four sources of bias

Question 15

If the number of people unemployed is 100, the number of people employed is 1000, and the working-age population is 1400, then the employment-to-population ratio is

Accepted Answer

A)  78.6 percent. 
B)  75 percent. 
C)  71.4 percent. 
D)  66.6 percent. 
A)  78.6 percent. 
B)  75 percent. 
C)  71.4 percent. 
D)  66.6 percent.

Question 16

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. 
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.

Question 17

An individual who has stopped looking for a job but has looked in the past and still wants a job is referred to as

Accepted Answer

A)  a contingent worker. 
B)  a productive worker. 
C)  a marginally attached worker. 
D)  an unemployed worker. 
A)  a contingent worker. 
B)  a productive worker. 
C)  a marginally attached worker. 
D)  an unemployed worker.

Question 18

Full-time students and prisoners are ________.

Accepted Answer

A)  not in the labor force 
B)  in the labor force 
C)  counted as discouraged workers 
D)  counted as unemployed 
A)  not in the labor force 
B)  in the labor force 
C)  counted as discouraged workers 
D)  counted as unemployed

Question 19

The unemployment rate generally falls during ________ in the business cycle.

Accepted Answer

A)  a peak 
B)  a recession 
C)  a trough 
D)  an expansion 
A)  a peak 
B)  a recession 
C)  a trough 
D)  an expansion

Question 20

The commodity substitution bias is that consumers substitute high-quality goods for low-quality goods.

Accepted Answer

A) True 
 B)False

If this year's price level exceeds last year's

If the population is 300 million, with 70 million under the age of 16 and institutionalized, another 70 million not in the labor force, 10 million unemployed and 150 million employed, the labor force participation rate is

If the labor force participation rate is rising and the working-age population is not changing, then the

In July 2014, the CPI inflation rate was 0.3 percent while the core CPI inflation rate was 0.1 percent. The difference between these two measurements of inflation indicates

The table below shows the price index for Zimbabwe starting in 2000. Www)econstats.com The data show that

The unemployment rate is measured as

The biases in the CPI are

Which of the following CORRECTLY describes "frictional unemployment"?

-In the above table, the number of marginally attached workers is

One way to be considered unemployed is to be without a job and looking for work.

If this year's price level is 126 and last year's price level was 120, the inflation rate is ________.

2012 2013 -In 2012, consumers in Dexter consumed only books and pens. The prices and quantities for 2012 and 2013 are listed in the table above. The reference base period for Dexter's CPI is 2012. What is the inflation rate in 2013?

Cyclical unemployment exists when

Is the CPI a biased measure of the inflation rate? Explain your answer.

If the number of people unemployed is 100, the number of people employed is 1000, and the working-age population is 1400, then the employment-to-population ratio is

Substitution bias in the CPI refers to the fact that the CPI

An individual who has stopped looking for a job but has looked in the past and still wants a job is referred to as

Full-time students and prisoners are ________.

The unemployment rate generally falls during ________ in the business cycle.

The commodity substitution bias is that consumers substitute high-quality goods for low-quality goods.

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

If this year's price level exceeds last year's

If the population is 300 million, with 70 million under the age of 16 and institutionalized, another 70 million not in the labor force, 10 million unemployed and 150 million employed, the labor force participation rate is

If the labor force participation rate is rising and the working-age population is not changing, then the

In July 2014, the CPI inflation rate was 0.3 percent while the core CPI inflation rate was 0.1 percent. The difference between these two measurements of inflation indicates

The table below shows the price index for Zimbabwe starting in 2000. Www)econstats.com The data show that

The unemployment rate is measured as

The biases in the CPI are

Which of the following CORRECTLY describes "frictional unemployment"?

-In the above table, the number of marginally attached workers is

One way to be considered unemployed is to be without a job and looking for work.

If this year's price level is 126 and last year's price level was 120, the inflation rate is ________.

2012 2013 -In 2012, consumers in Dexter consumed only books and pens. The prices and quantities for 2012 and 2013 are listed in the table above. The reference base period for Dexter's CPI is 2012. What is the inflation rate in 2013?

Cyclical unemployment exists when

Is the CPI a biased measure of the inflation rate? Explain your answer.

If the number of people unemployed is 100, the number of people employed is 1000, and the working-age population is 1400, then the employment-to-population ratio is

Substitution bias in the CPI refers to the fact that the CPI

An individual who has stopped looking for a job but has looked in the past and still wants a job is referred to as

Full-time students and prisoners are ________.

The unemployment rate generally falls during ________ in the business cycle.

The commodity substitution bias is that consumers substitute high-quality goods for low-quality goods.

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