Question 1

The total labor force equals:

Accepted Answer

A) the number of employed persons. 
B) the number of unemployed persons. 
C) the number of employed plus unemployed persons. 
D) the number of persons aged sixteen and over in the population. 
A) the number of employed persons. 
B) the number of unemployed persons. 
C) the number of employed plus unemployed persons. 
D) the number of persons aged sixteen and over in the population.

Question 2

Suppose that everyone who has looked for a job for more than six months gave up in despair and stopped looking.What would happen to the unemployment rate?

Accepted Answer

A) It would increase. 
B) It would fall. 
C) It would change, but the effect cannot be predicted. 
D) It would not change. 
A) It would increase. 
B) It would fall. 
C) It would change, but the effect cannot be predicted. 
D) It would not change.

Question 3

Persons who do not hold a job, but are actively seeking work are considered:

Accepted Answer

A) out of the labor force. 
B) unemployed. 
C) unemployable, and not counted in official statistics. 
D) underemployed. 
A) out of the labor force. 
B) unemployed. 
C) unemployable, and not counted in official statistics. 
D) underemployed.

Question 4

When an office worker loses his job because he lacks the computer skills the employer requires, he becomes frictionally unemployed.

Accepted Answer

A) True 
 B)False

Question 5

Based on the following table for stadium concession, what would the price index equal in 2011? $$\begin{array} { c c c } 
&\text { HOt Dog } & \text { Soft DrinK } & \text { Pragram } \
2010&\$ 5.00 & \$ 4.00 & \$ 8.00 \
2011&\$ 5.50 & \$ 4.75 & \$ 9.00 \
2012&\$ 6.00 & \$ 5.50 & \$ 10.00
\end{array}$$

Accepted Answer

A) 88.3 
B) 101.1 
C) 113.2 
D) 126.5 
A) 88.3 
B) 101.1 
C) 113.2 
D) 126.5

Question 6

High rates of unemployment are undesirable because:

Accepted Answer

A) they cause increased levels of societal tension. 
B) society loses potential production of goods and services. 
C) families of the unemployed may find it difficult to survive. 
D) of all of the above. 
A) they cause increased levels of societal tension. 
B) society loses potential production of goods and services. 
C) families of the unemployed may find it difficult to survive. 
D) of all of the above.

Question 7

An unanticipated increase in inflation will:

Accepted Answer

A) redistribute income from employers to workers. 
B) redistribute income from lenders to borrowers. 
C) redistribute income from borrowers to lenders. 
D) do none of the above. 
A) redistribute income from employers to workers. 
B) redistribute income from lenders to borrowers. 
C) redistribute income from borrowers to lenders. 
D) do none of the above.

Question 8

If the number of employed persons equals 180 million, the number of unemployed persons equals 15 million, and the number of persons over age 16 in the population equals 210 million, the unemployment rate equals ____ and the labor force participation rate equals ____.

Accepted Answer

A) 7.1%; 85.7% 
B) 7.7%; 85.7% 
C) 7.1%; 92.9% 
D) 7.7%; 92.9% 
A) 7.1%; 85.7% 
B) 7.7%; 85.7% 
C) 7.1%; 92.9% 
D) 7.7%; 92.9%

Question 9

Inflation exists whenever:

Accepted Answer

A) the price of a good increases. 
B) the price of a good decreases. 
C) the economy experiences a contraction. 
D) the overall price level is rising. 
E) the overall price level is falling. 
A) the price of a good increases. 
B) the price of a good decreases. 
C) the economy experiences a contraction. 
D) the overall price level is rising. 
E) the overall price level is falling.

Question 10

Structural unemployment includes:

Accepted Answer

A) unemployment caused by workers who leave positions to seek better jobs. 
B) unemployment caused by automation that displaces workers from their jobs. 
C) unemployment caused by a decline in the economy's total production. 
D) unemployment caused by the geographical and occupational mobility of the labor force. 
E) all of the above. 
A) unemployment caused by workers who leave positions to seek better jobs. 
B) unemployment caused by automation that displaces workers from their jobs. 
C) unemployment caused by a decline in the economy's total production. 
D) unemployment caused by the geographical and occupational mobility of the labor force. 
E) all of the above.

Question 11

Which of the following is true?

Accepted Answer

A) At the natural rate of unemployment, the economy is considered to be at full employment. 
B) At full employment, the economy is producing at its potential output. 
C) If unemployment is greater than its natural rate, the economy is producing at less than its potential output. 
D) If we are at less than full employment, some cyclical unemployment exists. 
E) All of the above are true. 
A) At the natural rate of unemployment, the economy is considered to be at full employment. 
B) At full employment, the economy is producing at its potential output. 
C) If unemployment is greater than its natural rate, the economy is producing at less than its potential output. 
D) If we are at less than full employment, some cyclical unemployment exists. 
E) All of the above are true.

The total labor force equals:

Suppose that everyone who has looked for a job for more than six months gave up in despair and stopped looking.What would happen to the unemployment rate?

Persons who do not hold a job, but are actively seeking work are considered:

When an office worker loses his job because he lacks the computer skills the employer requires, he becomes frictionally unemployed.

Based on the following table for stadium concession, what would the price index equal in 2011? HOt Dog Soft DrinK Pragram 2010 \ 5.00 \ 4.00 \ 8.00 2011 \ 5.50 \ 4.75 \ 9.00 2012 \ 6.00 \ 5.50 \ 10.00

High rates of unemployment are undesirable because:

An unanticipated increase in inflation will:

If the number of employed persons equals 180 million, the number of unemployed persons equals 15 million, and the number of persons over age 16 in the population equals 210 million, the unemployment rate equals and the labor force participation rate equals .

Inflation exists whenever:

Structural unemployment includes:

Which of the following is true?

The Role and Method of Economics

The Economic Way of Thinking

Supply and Demand

Using Supply and Demand

Market Failure and Public Choice

Production and Costs

Firms in Competitive Markets

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets, Income Distribution, and Poverty

Economic Growth

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Economics

Filters

Exam 11: Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

The total labor force equals:

Suppose that everyone who has looked for a job for more than six months gave up in despair and stopped looking.What would happen to the unemployment rate?

Persons who do not hold a job, but are actively seeking work are considered:

When an office worker loses his job because he lacks the computer skills the employer requires, he becomes frictionally unemployed.

Based on the following table for stadium concession, what would the price index equal in 2011? HOt Dog Soft DrinK Pragram 2010 \ 5.00 \ 4.00 \ 8.00 2011 \ 5.50 \ 4.75 \ 9.00 2012 \ 6.00 \ 5.50 \ 10.00

High rates of unemployment are undesirable because:

An unanticipated increase in inflation will:

If the number of employed persons equals 180 million, the number of unemployed persons equals 15 million, and the number of persons over age 16 in the population equals 210 million, the unemployment rate equals ____ and the labor force participation rate equals ____.

Inflation exists whenever:

Structural unemployment includes:

Which of the following is true?

The Role and Method of Economics

The Economic Way of Thinking

Supply and Demand

Using Supply and Demand

Market Failure and Public Choice

Production and Costs

Firms in Competitive Markets

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets, Income Distribution, and Poverty

Economic Growth

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Economics

Filters

If the number of employed persons equals 180 million, the number of unemployed persons equals 15 million, and the number of persons over age 16 in the population equals 210 million, the unemployment rate equals and the labor force participation rate equals .