Question 1

Persons in the civilian labor force fall into one of two categories: ____________ or ___________.

Accepted Answer

A)  job leaver; job loser 
B)  entrant; reentrant 
C)  employed; unemployed 
D)  discouraged workers; encouraged workers 
A)  job leaver; job loser 
B)  entrant; reentrant 
C)  employed; unemployed 
D)  discouraged workers; encouraged workers

Question 2

Suppose that in an economy the frictional unemployment rate is 3.1 percent,the natural unemployment rate is 4.5 percent,and the cyclical unemployment rate is -1 percent.The structural unemployment rate is _________ percent and the actual unemployment rate (in this economy)is ___________ percent.

Accepted Answer

A)  1.4; 5.5 
B)  1.4; 3.5 
C)  7.6; 6.6 
D)  3.5; 1.4 
A)  1.4; 5.5 
B)  1.4; 3.5 
C)  7.6; 6.6 
D)  3.5; 1.4

Question 3

In many large retail stores,price markdowns are now determined by computer.The "middle managers" who used to make these decisions personally became __________ unemployed.

Accepted Answer

A)  frictionally 
B)  structurally 
C)  naturally 
D)  cyclically 
A)  frictionally 
B)  structurally 
C)  naturally 
D)  cyclically

Question 4

If we subtract the number of persons not in the labor force from the civilian noninstitutional population,we get the number of people in the

Accepted Answer

A)  ranks of the unemployed. 
B)  civilian labor force. 
C)  ranks of the employed. 
D)  ranks of discouraged workers. 
E)  none of the above 
A)  ranks of the unemployed. 
B)  civilian labor force. 
C)  ranks of the employed. 
D)  ranks of discouraged workers. 
E)  none of the above

Question 5

Good X sold for $40 in 1957.The CPI in 1957 was 27.6 and the CPI in 2014 was 244.537.What was the price of good X in 2014 dollars?

Accepted Answer

A)  $514.60 
B)  $270.92 
C)  $1,201.60 
D)  $310.92 
E)  ​$354.40 
A)  $514.60 
B)  $270.92 
C)  $1,201.60 
D)  $310.92 
E)  ​$354.40

Question 6

Structural unemployment results primarily from automation and long-lasting changes in demand.

Accepted Answer

A) True 
 B)False

Question 7

Suppose that in an economy the structural unemployment rate is 1.1 percent,the frictional unemployment rate is 3.3 percent,and the unemployment rate is 3.1 percent.The natural unemployment rate is _________ percent and the cyclical unemployment rate is ___________ percent.

Accepted Answer

A)  7.5; 4.4 
B)  0.2; 9.9 
C)  4.4; -1.3 
D)  2.2; 3.1 
A)  7.5; 4.4 
B)  0.2; 9.9 
C)  4.4; -1.3 
D)  2.2; 3.1

Question 8

Look at the following data: Employed persons = 110 million; civilian labor force = 135 million persons; civilian noninstitutional population = 190 million.The unemployment rate is __________ percent and the employment rate is __________ percent.

Accepted Answer

A)  10; 69 
B)  8; 57.9 
C)  18.5; 57.9 
D)  18.5; 81.5 
E)  12; 88 
A)  10; 69 
B)  8; 57.9 
C)  18.5; 57.9 
D)  18.5; 81.5 
E)  12; 88

Question 9

In year 1 the CPI is 140,and in year 2 the CPI is 154.From year 1 to year 2,Marcy's salary rises from $43,000 to $48,000,and Daphne's salary rises from $65,000 to $70,000.Who is "more than keeping up with inflation"?

Accepted Answer

A)  Marcy 
B)  Daphne 
C)  both Marcy and Daphne 
D)  neither Marcy nor Daphne 
A)  Marcy 
B)  Daphne 
C)  both Marcy and Daphne 
D)  neither Marcy nor Daphne

Question 10

Describe what the term "full employment" means to an economist.

Accepted Answer

Full employment exists when the economy

Question 11

In automobile manufacturing,many parts of the production process that were once completed by people are now completed using robotics.Workers who lost their jobs as a result of the use of robotics became __________ unemployed.

Accepted Answer

A)  frictionally 
B)  structurally 
C)  naturally 
D)  cyclically 
A)  frictionally 
B)  structurally 
C)  naturally 
D)  cyclically

Question 12

-Refer to Exhibit 6-2.How many persons are not participating in the labor force in year 2?

Accepted Answer

A)  200 million 
B)  50 million 
C)  75 million 
D)  175 million 
E)  100 million 
A)  200 million 
B)  50 million 
C)  75 million 
D)  175 million 
E)  100 million

Question 13

-Refer to Exhibit 6-2.How many persons are not participating in the labor force in year 4?

Accepted Answer

A)  80 million 
B)  100 million 
C)  150 million 
D)  350 million 
E)  200 million 
A)  80 million 
B)  100 million 
C)  150 million 
D)  350 million 
E)  200 million

Question 14

The sum of the unemployment rate and the employment rate always equals 100 percent.

Accepted Answer

A) True 
 B)False

Question 15

Suppose the civilian non-institutional population equals 100,000 persons; the civilian labor force equals 75,000 persons; there are 70,000 employed persons and 5,000 unemployed persons.If 5,000 persons who are currently "not in the labor force" decide to join the civilian labor force,and 3,000 of them are unemployed,then

Accepted Answer

A)  both the unemployment and the employment rate rise. 
B)  both the unemployment and the employment rate fall. 
C)  the unemployment rate rises and the employment rate falls. 
D)  the unemployment rate falls and the employment rate rises. 
A)  both the unemployment and the employment rate rise. 
B)  both the unemployment and the employment rate fall. 
C)  the unemployment rate rises and the employment rate falls. 
D)  the unemployment rate falls and the employment rate rises.

Question 16

Natural unemployment is caused by frictional and structural factors in the economy.

Accepted Answer

A) True 
 B)False

Question 17

The civilian non-institutional population can be broken down into two groups:

Accepted Answer

A)  employed persons and unemployed persons. 
B)  persons working and persons not working. 
C)  persons working in service jobs and persons working in manufacturing jobs. 
D)  persons not in the labor force and persons in the labor force. 
A)  employed persons and unemployed persons. 
B)  persons working and persons not working. 
C)  persons working in service jobs and persons working in manufacturing jobs. 
D)  persons not in the labor force and persons in the labor force.

Question 18

The base year is always the year in which prices were the lowest.

Accepted Answer

A) True 
 B)False

Question 19

If a person did any work as a paid employee during the Bureau of Labor Statistics survey reference week,how is she classified?

Accepted Answer

A)  as an employed person 
B)  as not in the labor force 
C)  as an unemployed person 
D)  as part of the labor force 
E)  ​a and d 
A)  as an employed person 
B)  as not in the labor force 
C)  as an unemployed person 
D)  as part of the labor force 
E)  ​a and d

Question 20

-Refer to Exhibit 6-2.The unemployment rate in year 4 is

Accepted Answer

A)  12 1/2 percent. 
B)  72 percent. 
C)  87 1/2 percent. 
D)  10 percent. 
E)  90 percent. 
A)  12 1/2 percent. 
B)  72 percent. 
C)  87 1/2 percent. 
D)  10 percent. 
E)  90 percent.

Exam 6: Elasticity

Persons in the civilian labor force fall into one of two categories: ____________ or ___________.

Suppose that in an economy the frictional unemployment rate is 3.1 percent,the natural unemployment rate is 4.5 percent,and the cyclical unemployment rate is -1 percent.The structural unemployment rate is _________ percent and the actual unemployment rate (in this economy)is ___________ percent.

In many large retail stores,price markdowns are now determined by computer.The "middle managers" who used to make these decisions personally became __________ unemployed.

If we subtract the number of persons not in the labor force from the civilian noninstitutional population,we get the number of people in the

Good X sold for $40 in 1957.The CPI in 1957 was 27.6 and the CPI in 2014 was 244.537.What was the price of good X in 2014 dollars?

Structural unemployment results primarily from automation and long-lasting changes in demand.

Suppose that in an economy the structural unemployment rate is 1.1 percent,the frictional unemployment rate is 3.3 percent,and the unemployment rate is 3.1 percent.The natural unemployment rate is _________ percent and the cyclical unemployment rate is ___________ percent.

Look at the following data: Employed persons = 110 million; civilian labor force = 135 million persons; civilian noninstitutional population = 190 million.The unemployment rate is __________ percent and the employment rate is __________ percent.

In year 1 the CPI is 140,and in year 2 the CPI is 154.From year 1 to year 2,Marcy's salary rises from $43,000 to $48,000,and Daphne's salary rises from $65,000 to $70,000.Who is "more than keeping up with inflation"?

Describe what the term "full employment" means to an economist.

In automobile manufacturing,many parts of the production process that were once completed by people are now completed using robotics.Workers who lost their jobs as a result of the use of robotics became __________ unemployed.

-Refer to Exhibit 6-2.How many persons are not participating in the labor force in year 2?

-Refer to Exhibit 6-2.How many persons are not participating in the labor force in year 4?

The sum of the unemployment rate and the employment rate always equals 100 percent.

Natural unemployment is caused by frictional and structural factors in the economy.

The civilian non-institutional population can be broken down into two groups:

The base year is always the year in which prices were the lowest.

If a person did any work as a paid employee during the Bureau of Labor Statistics survey reference week,how is she classified?

-Refer to Exhibit 6-2.The unemployment rate in year 4 is

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free,controlled,and Relative

Supply,demand,and Price: Applications

Consumer Choice: Maximizing Utility and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, oligopoly, and Game Theory

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

Wages,union,and Labor

The Distribution of Income and Poverty

Interest,rent,and Profit

Market Failure: Externalities, public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

International Finance

The Economic Case for and Against Government: Five Topics Considered

Stocks,bonds,futures,and Options

Stocks,bonds,futures,and Options

Filters

Persons in the civilian labor force fall into one of two categories: __ or _.

Suppose that in an economy the frictional unemployment rate is 3.1 percent,the natural unemployment rate is 4.5 percent,and the cyclical unemployment rate is -1 percent.The structural unemployment rate is _ percent and the actual unemployment rate (in this economy)is ___ percent.

Suppose that in an economy the structural unemployment rate is 1.1 percent,the frictional unemployment rate is 3.3 percent,and the unemployment rate is 3.1 percent.The natural unemployment rate is _ percent and the cyclical unemployment rate is ___ percent.

Look at the following data: Employed persons = 110 million; civilian labor force = 135 million persons; civilian noninstitutional population = 190 million.The unemployment rate is percent and the employment rate is percent.