Exam 6: Elasticity

Jones lost his job in industry A,but he has skills that can be transferred to industry B (which is currently hiring).Smith lost a job in industry C,but his skills cannot be transferred to industry B or to any other industry.Jones is __________ unemployed and Smith is __________ unemployed.

A market basket is made up of three goods,10X,12Y,and 18Z.The prices in the base year are $1.20,$2.10,and $3.25,respectively.The prices in the current year are $1.44,$2.23,and $3.88.What is the approximate consumer price index in the current year?

A worker is ​underemployed​ if she is working at a job for which her skills far exceed the requirements for the job.

The base year is the year

-Refer to Exhibit 6-1.Prices rose by __________ percent from Year 4 to Year 5.

The unemployment rate equals the

The CPI in the base year is always equal to 100.

The CPI is based on a representative group of goods called the market basket.

-Refer to Exhibit 6-2.The labor force participation rate in year 1 is

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

A movie star was paid $1 million in 1960 to do a movie.The CPI was 29.3 in 1960 and the CPI in 2014 was 240.Approximately how much did the movie star earn in 2014 dollars?

The cyclical unemployment rate is defined as the __________ unemployment rates.

When flat screen televisions were first introduced in 1997 they were priced at $15,000.If the CPI in 1997 was 160 and the CPI in 2019 is 265,then this price is equivalent to approximately ______________________in 2019 dollars.If the average flat screen TV sells for $550 in 2019,the percentage change between the inflation-adjusted price of a flat screen TV in 1997 and the actual price in 2019 price is ___________.

"Full employment" is said to exist when the unemployment rate equals

Describe what the unemployment rate and the employment rate measure.If we were to sum the unemployment rate and the employment rate,would that sum be equal to one hundred percent? Explain why or why not.

The federal government agency that is responsible for determining the inflation rate and the unemployment rate is the Federal Reserve.

A(n)__________ is a person who was previously employed,hasn't worked for some time,and is currently reentering the labor force.

Which of the following statements is false?

Describe the terms frictional unemployment,structural unemployment,and cyclical unemployment.Give a hypothetical example of each to help support your answer.

-Refer to Exhibit 6-3.Prices changed by ___________ percent between year 3 and year 4.