Question 1

-Refer to Exhibit 6-2.How many unemployed persons are there in year 1?

Accepted Answer

A)  25 million 
B)  50 million 
C)  75 million 
D)  175 million 
E)  200 million 
A)  25 million 
B)  50 million 
C)  75 million 
D)  175 million 
E)  200 million

Question 2

Because discouraged workers are not considered unemployed,the unemployment rate may be biased downward.

Accepted Answer

A) True 
 B)False

Question 3

If the cyclical unemployment rate is negative,then the

Accepted Answer

A)  natural unemployment rate is less than the actual unemployment rate in the economy. 
B)  natural unemployment rate is greater than the actual unemployment rate in the economy. 
C)  structural unemployment rate is greater than the frictional unemployment rate. 
D)  structural unemployment rate is less than the frictional unemployment rate. 
E)  a and d 
A)  natural unemployment rate is less than the actual unemployment rate in the economy. 
B)  natural unemployment rate is greater than the actual unemployment rate in the economy. 
C)  structural unemployment rate is greater than the frictional unemployment rate. 
D)  structural unemployment rate is less than the frictional unemployment rate. 
E)  a and d

Question 4

When the unemployment rate is equal to the natural unemployment rate,full employment exists.

Accepted Answer

A) True 
 B)False

Question 5

Suppose there are 65 million employed persons,5 million unemployed persons,and 35 million persons not in the labor force.What does the civilian noninstitutional population equal?

Accepted Answer

A)  70 million 
B)  110 million 
C)  65 million 
D)  105 million 
A)  70 million 
B)  110 million 
C)  65 million 
D)  105 million

Question 6

-Refer to Exhibit 6-3.Prices changed by ___________ percent between year 1 and year 2.

Accepted Answer

A)  -1.6 
B)  -1.7 
C)  1.6 
D)  -2.3 
E)  2.3 
A)  -1.6 
B)  -1.7 
C)  1.6 
D)  -2.3 
E)  2.3

Question 7

In an economy with a population of 100 million persons,42 million hold civilian jobs and 6 million are not working but are looking for a job.The unemployment rate is

Accepted Answer

A)  12.5%. 
B)  87.5% 
C)  6% 
D)  14.29% 
E)  There is not enough information to answer this question. 
A)  12.5%. 
B)  87.5% 
C)  6% 
D)  14.29% 
E)  There is not enough information to answer this question.

Question 8

Marta,who was previously employed,hasn't worked for some time because she was raising her children.When Marta reenters the labor force,the Bureau of Labor Statistics would categorize her as

Accepted Answer

A)  a discouraged worker. 
B)  an entrant. 
C)  a reentrant. 
D)  a job loser. 
E)  a job leaver. 
A)  a discouraged worker. 
B)  an entrant. 
C)  a reentrant. 
D)  a job loser. 
E)  a job leaver.

Question 9

In an economy with 200 million people,140 million hold civilian jobs and 9 million are not working but are looking for jobs.The unemployment rate is

Accepted Answer

A)  6.4% 
B)  6.0%. 
C)  9.2%. 
D)  27.4%. 
E)  4.5% 
A)  6.4% 
B)  6.0%. 
C)  9.2%. 
D)  27.4%. 
E)  4.5%

Question 10

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

Accepted Answer

A)  12 1/2 percent. 
B)  75 percent. 
C)  87 1/2 percent. 
D)  30 percent. 
E)  50 percent. 
A)  12 1/2 percent. 
B)  75 percent. 
C)  87 1/2 percent. 
D)  30 percent. 
E)  50 percent.

Question 11

In an economy with a population of 100 million persons,40 million hold civilian jobs and 9 million are not working but are looking for a job.The number of persons in the civilian labor force is

Accepted Answer

A)  51 million. 
B)  60 million. 
C)  91 million. 
D)  49 million.. 
A)  51 million. 
B)  60 million. 
C)  91 million. 
D)  49 million..

Question 12

The number of employed persons plus the number of unemployed persons equals the number of persons

Accepted Answer

A)  in the total population. 
B)  in the civilian noninstitutional population. 
C)  in the civilian labor force. 
D)  not in the labor force. 
E)  none of the above 
A)  in the total population. 
B)  in the civilian noninstitutional population. 
C)  in the civilian labor force. 
D)  not in the labor force. 
E)  none of the above

Question 13

Look at the following data: The frictional unemployment rate is 3 percent,the natural unemployment rate is 6.5 percent,and the cyclical unemployment rate is 2.4 percent.The structural unemployment rate is __________ percent and the actual unemployment rate (in this economy)is __________ percent.

Accepted Answer

A)  3; 8.9 
B)  3.5; 8.9 
C)  3.5; 9.5 
D)  5.4; 2.4 
E)  none of the above 
A)  3; 8.9 
B)  3.5; 8.9 
C)  3.5; 9.5 
D)  5.4; 2.4 
E)  none of the above

Question 14

If a person worked at least 15 hours per week as an "unpaid" worker in a restaurant owned by her family,how is she classified by the Bureau of Labor Statistics?

Accepted Answer

A)  as not in the labor force 
B)  as an unemployed person 
C)  as an employed person 
D)  as a discouraged worker 
A)  as not in the labor force 
B)  as an unemployed person 
C)  as an employed person 
D)  as a discouraged worker

Question 15

Which of the following statements is true?

Accepted Answer

A)  If the actual unemployment rate is currently 5% and the natural unemployment rate is 5%,then the economy is operating at full-employment. 
B)  The labor force participation rate is equal to the civilian noninstitutional population divided by the civilian labor force. 
C)  A discouraged worker is counted as an unemployed worker. 
D)  a and c 
E)  a,b,and c 
A)  If the actual unemployment rate is currently 5% and the natural unemployment rate is 5%,then the economy is operating at full-employment. 
B)  The labor force participation rate is equal to the civilian noninstitutional population divided by the civilian labor force. 
C)  A discouraged worker is counted as an unemployed worker. 
D)  a and c 
E)  a,b,and c

Question 16

-Refer to Exhibit 6-2.The labor force participation rate in year 4 is

Accepted Answer

A)  12 1/2 percent. 
B)  72 percent. 
C)  87 1/2 percent. 
D)  30 percent. 
E)  80 percent. 
A)  12 1/2 percent. 
B)  72 percent. 
C)  87 1/2 percent. 
D)  30 percent. 
E)  80 percent.

Question 17

Smith's income was $50,000 in year 1 and $55,600 in year 2.The CPI was 114 in year 1 and 124 in year 2.What was the approximate percentage change in Smith's real income between the two years?

Accepted Answer

A)  -2.2 percent 
B)  +3.4 percent 
C)  -1.7 percent 
D)  +5.6 percent 
E)  +2.2 percent 
A)  -2.2 percent 
B)  +3.4 percent 
C)  -1.7 percent 
D)  +5.6 percent 
E)  +2.2 percent

Question 18

-Refer to Exhibit 6-2.How many persons are unemployed 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 19

A seamstress who quits her job in Houston and moves to New York where additional seamstresses are needed is said to be frictionally unemployed.

Accepted Answer

A) True 
 B)False

Question 20

Of all the categories of unemployment,most unemployed persons fall into the category of

Accepted Answer

A)  reentrant. 
B)  new entrant. 
C)  job leaver. 
D)  job loser. 
E)  none of the above 
A)  reentrant. 
B)  new entrant. 
C)  job leaver. 
D)  job loser. 
E)  none of the above

Exam 6: Elasticity

-Refer to Exhibit 6-2.How many unemployed persons are there in year 1?

Because discouraged workers are not considered unemployed,the unemployment rate may be biased downward.

If the cyclical unemployment rate is negative,then the

When the unemployment rate is equal to the natural unemployment rate,full employment exists.

Suppose there are 65 million employed persons,5 million unemployed persons,and 35 million persons not in the labor force.What does the civilian noninstitutional population equal?

-Refer to Exhibit 6-3.Prices changed by ___________ percent between year 1 and year 2.

In an economy with a population of 100 million persons,42 million hold civilian jobs and 6 million are not working but are looking for a job.The unemployment rate is

Marta,who was previously employed,hasn't worked for some time because she was raising her children.When Marta reenters the labor force,the Bureau of Labor Statistics would categorize her as

In an economy with 200 million people,140 million hold civilian jobs and 9 million are not working but are looking for jobs.The unemployment rate is

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

In an economy with a population of 100 million persons,40 million hold civilian jobs and 9 million are not working but are looking for a job.The number of persons in the civilian labor force is

The number of employed persons plus the number of unemployed persons equals the number of persons

Look at the following data: The frictional unemployment rate is 3 percent,the natural unemployment rate is 6.5 percent,and the cyclical unemployment rate is 2.4 percent.The structural unemployment rate is __________ percent and the actual unemployment rate (in this economy)is __________ percent.

If a person worked at least 15 hours per week as an "unpaid" worker in a restaurant owned by her family,how is she classified by the Bureau of Labor Statistics?

Which of the following statements is true?

-Refer to Exhibit 6-2.The labor force participation rate in year 4 is

Smith's income was $50,000 in year 1 and $55,600 in year 2.The CPI was 114 in year 1 and 124 in year 2.What was the approximate percentage change in Smith's real income between the two years?

-Refer to Exhibit 6-2.How many persons are unemployed in year 2?

A seamstress who quits her job in Houston and moves to New York where additional seamstresses are needed is said to be frictionally unemployed.

Of all the categories of unemployment,most unemployed persons fall into the category of

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

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Look at the following data: The frictional unemployment rate is 3 percent,the natural unemployment rate is 6.5 percent,and the cyclical unemployment rate is 2.4 percent.The structural unemployment rate is percent and the actual unemployment rate (in this economy)is percent.