Question 1

The value of the consumer price index (CPI)is always equal to ______________ in the base year.

Accepted Answer

A)  1 
B)  10 
C)  100 
D)  1,000 
E)  There is not enough information given to answer this question. 
A)  1 
B)  10 
C)  100 
D)  1,000 
E)  There is not enough information given to answer this question.

Question 2

Suppose the market basket consists of 100X,200Y,and 300Z.Current-year prices are $5 for each unit of X,$2 for each unit of Y,and $3 for each unit of Z.Base-year prices are $2 for each unit of X,Y,and Z.What is the approximate CPI in the current year?

Accepted Answer

A)  15 
B)  70.20 
C)  1,200 
D)  150 
A)  15 
B)  70.20 
C)  1,200 
D)  150

Question 3

-Refer to Exhibit 6-1.Prices rose by approximately __________ percent from Year 1 to Year 5.

Accepted Answer

A)  10.6 
B)  9.6 
C)  14.3 
D)  4.5 
A)  10.6 
B)  9.6 
C)  14.3 
D)  4.5

Question 4

-Refer to Exhibit 6-2.The employment rate in year 3 is

Accepted Answer

A)  12 1/2 percent. 
B)  33 1/3 percent. 
C)  70 percent. 
D)  66 2/3 percent. 
E)  25 percent. 
A)  12 1/2 percent. 
B)  33 1/3 percent. 
C)  70 percent. 
D)  66 2/3 percent. 
E)  25 percent.

Question 5

Suppose there are 50 million persons in the population,25 million persons in the civilian labor force,and 20 million persons are employed.The number of persons unemployed is _______ million and the unemployment rate is ___________ percent.

Accepted Answer

A)  25; 50 
B)  5; 10 
C)  5; 20 
D)  10; 10 
A)  25; 50 
B)  5; 10 
C)  5; 20 
D)  10; 10

Question 6

-Refer to Exhibit 6-2.The labor force participation rate in year 3 is

Accepted Answer

A)  12 1/2 percent. 
B)  70 percent. 
C)  80 percent. 
D)  30 percent. 
E)  50 percent. 
A)  12 1/2 percent. 
B)  70 percent. 
C)  80 percent. 
D)  30 percent. 
E)  50 percent.

Question 7

Jamaal lost his job when a mechanical device replaced people with his skills.If Jamaal's skills are non-transferable,he would be considered to be structurally unemployed.

Accepted Answer

A) True 
 B)False

Question 8

Unemployment that arises as a result of the time it takes for unemployed people to locate a job utilizing their transferable skills is called __________ unemployment.

Accepted Answer

A)  structural 
B)  cyclical 
C)  natural 
D)  frictional 
A)  structural 
B)  cyclical 
C)  natural 
D)  frictional

Question 9

Suppose there are five goods in the economy,A-E.The current-year quantity of each is 10A,20B,30C,40D,and 50E.Current-year prices are $1 for each unit of A,$2 for each unit of B,$3 for each unit of C,$4 for each unit of D,and $5 for each unit of E.Base-year prices are $1 for each good.Real GDP in the current year equals

Accepted Answer

A)  $100. 
B)  $130. 
C)  $150. 
D)  $180. 
E)  $550. 
A)  $100. 
B)  $130. 
C)  $150. 
D)  $180. 
E)  $550.

Question 10

If Carlos is waiting to be called back to his job from which he has been temporarily laid off,the Bureau of Labor Statistics will classify him as unemployed.

Accepted Answer

A) True 
 B)False

Question 11

Assume that Ms.Sawyer's salary is $35,000,up from $31,000 last year,while the CPI is 187.5 this year,up from 180 last year.This means that Ms.Sawyer's real income has ____________ since last year.

Accepted Answer

A)  increased 
B)  decreased 
C)  stayed the same 
D)  There is not enough information provided to answer this question. 
A)  increased 
B)  decreased 
C)  stayed the same 
D)  There is not enough information provided to answer this question.

Question 12

-Refer to Exhibit 6-2.The employment rate in year 1 is

Accepted Answer

A)  12 1/2 percent. 
B)  70 percent. 
C)  87 1/2 percent. 
D)  30 percent. 
E)  10 percent. 
A)  12 1/2 percent. 
B)  70 percent. 
C)  87 1/2 percent. 
D)  30 percent. 
E)  10 percent.

Question 13

If the Bureau of Labor Statistics considers Jessica to be a discouraged worker,then she is not counted as unemployed for purposes of computing the official unemployment rate.

Accepted Answer

A) True 
 B)False

Question 14

-Refer to Exhibit 6-2.How many unemployed persons are there in year 3?

Accepted Answer

A)  50 million 
B)  100 million 
C)  150 million 
D)  350 million 
E)  400 million 
A)  50 million 
B)  100 million 
C)  150 million 
D)  350 million 
E)  400 million

Question 15

If Jorge is temporarily absent from his regular job because of an industrial dispute,the Bureau of Labor Statistics will classify him as unemployed.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements is true?

Accepted Answer

A)  Base year prices are necessarily higher than current year prices. 
B)  The CPI in the base year is always 100. 
C)  If the CPI is 112 in year 1 and 123 in year 2,prices have risen by approximately 9.8 percent between the two years. 
D)  b and c 
E)  a,b,and c 
A)  Base year prices are necessarily higher than current year prices. 
B)  The CPI in the base year is always 100. 
C)  If the CPI is 112 in year 1 and 123 in year 2,prices have risen by approximately 9.8 percent between the two years. 
D)  b and c 
E)  a,b,and c

Question 17

The civilian non-institutional population consists of everyone in the population who is

Accepted Answer

A)  at least 16 years of age,in the armed forces,or institutionalized. 
B)  at least 16 years of age. 
C)  not in the armed forces. 
D)  not institutionalized. 
E)  b,c,and d 
A)  at least 16 years of age,in the armed forces,or institutionalized. 
B)  at least 16 years of age. 
C)  not in the armed forces. 
D)  not institutionalized. 
E)  b,c,and d

Question 18

A person in the civilian labor force falls into one of two categories:

Accepted Answer

A)  a person who works in a service industry or a person who works in a manufacturing industry. 
B)  unemployed or employed. 
C)  disemployed or unemployed. 
D)  a self-employed worker or a non-self-employed worker. 
A)  a person who works in a service industry or a person who works in a manufacturing industry. 
B)  unemployed or employed. 
C)  disemployed or unemployed. 
D)  a self-employed worker or a non-self-employed worker.

Question 19

The sum of the unemployment rate and the labor force participation rate always equals 100 percent.

Accepted Answer

A) True 
 B)False

Question 20

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 jobs.The number counted as unemployed is

Accepted Answer

A)  48 million. 
B)  6 million. 
C)  36 million. 
D)  52 million. 
E)  58 million. 
A)  48 million. 
B)  6 million. 
C)  36 million. 
D)  52 million. 
E)  58 million.

Exam 6: Elasticity

The value of the consumer price index (CPI)is always equal to ______________ in the base year.

Suppose the market basket consists of 100X,200Y,and 300Z.Current-year prices are $5 for each unit of X,$2 for each unit of Y,and $3 for each unit of Z.Base-year prices are $2 for each unit of X,Y,and Z.What is the approximate CPI in the current year?

-Refer to Exhibit 6-1.Prices rose by approximately __________ percent from Year 1 to Year 5.

-Refer to Exhibit 6-2.The employment rate in year 3 is

Suppose there are 50 million persons in the population,25 million persons in the civilian labor force,and 20 million persons are employed.The number of persons unemployed is _______ million and the unemployment rate is ___________ percent.

-Refer to Exhibit 6-2.The labor force participation rate in year 3 is

Jamaal lost his job when a mechanical device replaced people with his skills.If Jamaal's skills are non-transferable,he would be considered to be structurally unemployed.

Unemployment that arises as a result of the time it takes for unemployed people to locate a job utilizing their transferable skills is called __________ unemployment.

If Carlos is waiting to be called back to his job from which he has been temporarily laid off,the Bureau of Labor Statistics will classify him as unemployed.

Assume that Ms.Sawyer's salary is $35,000,up from $31,000 last year,while the CPI is 187.5 this year,up from 180 last year.This means that Ms.Sawyer's real income has ____________ since last year.

-Refer to Exhibit 6-2.The employment rate in year 1 is

If the Bureau of Labor Statistics considers Jessica to be a discouraged worker,then she is not counted as unemployed for purposes of computing the official unemployment rate.

-Refer to Exhibit 6-2.How many unemployed persons are there in year 3?

If Jorge is temporarily absent from his regular job because of an industrial dispute,the Bureau of Labor Statistics will classify him as unemployed.

Which of the following statements is true?

The civilian non-institutional population consists of everyone in the population who is

A person in the civilian labor force falls into one of two categories:

The sum of the unemployment rate and the labor force participation rate always equals 100 percent.

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 jobs.The number counted as unemployed 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

Suppose there are 50 million persons in the population,25 million persons in the civilian labor force,and 20 million persons are employed.The number of persons unemployed is _ million and the unemployment rate is _____ percent.