Question 1

If the unemployment rate is 6.2% and the number of people employed is 200,000,the labor force is approximately

Accepted Answer

A) 210,970 people. 
B) 212,400 people 
C) 213,220 people. 
D) cannot be determined from this information 
A) 210,970 people. 
B) 212,400 people 
C) 213,220 people. 
D) cannot be determined from this information C

Question 2

Refer to the information provided in Table 7.3 below to answer the questions that follow.
Table 7.3  
-Refer to Table 7.3.If 2010 is the base year,the price index in 2011 is

Accepted Answer

A) 93.9. 
B) 94.2. 
C) 105.8. 
D) 106.1. 
A) 93.9. 
B) 94.2. 
C) 105.8. 
D) 106.1. D

Question 3

The capital per worker ratio is a measure of

Accepted Answer

A) how many tools or machines each worker has to work with. 
B) how productive workers are. 
C) how much GDP is growing. 
D) how much borrowed money is needed per worker. 
A) how many tools or machines each worker has to work with. 
B) how productive workers are. 
C) how much GDP is growing. 
D) how much borrowed money is needed per worker. A

Question 4

In normal times the number of discouraged workers is approximately ________ of the labor force.

Accepted Answer

A) 0.5% 
B) 1% 
C) 3% 
D) 4% 
A) 0.5% 
B) 1% 
C) 3% 
D) 4%

Question 5

Refer to the information provided in Table 7.1 below to answer the questions that follow.
Table 7.1  
-Refer to Table 7.1.The labor force equals

Accepted Answer

A) 14,000 people. 
B) 17,000 people. 
C) 18,000 people. 
D) 21,000 people. 
A) 14,000 people. 
B) 17,000 people. 
C) 18,000 people. 
D) 21,000 people.

Question 6

Jake retired from the police force.He started working an hour or two a day at a paid job in city's courthouse.Jake is

Accepted Answer

A) employed. 
B) in the labor force. 
C) unemployed. 
D) not in the labor force. 
A) employed. 
B) in the labor force. 
C) unemployed. 
D) not in the labor force.

Question 7

The only source of economic growth is growth in the number of workers in the economy.

Accepted Answer

A) True 
 B)False

Question 8

The Humphrey-Hawkins Act formally established a specific unemployment target for the economy of

Accepted Answer

A) 2%. 
B) 4%. 
C) 6%. 
D) 8%. 
A) 2%. 
B) 4%. 
C) 6%. 
D) 8%.

Question 9

Which of the following is a cost of anticipated inflation?

Accepted Answer

A) Debtors are made worse off. 
B) If people are not fully informed about the price level changes,resources will be misallocated. 
C) The degree of risk associated with investments in the economy increases. 
D) Creditors are made worse off. 
A) Debtors are made worse off. 
B) If people are not fully informed about the price level changes,resources will be misallocated. 
C) The degree of risk associated with investments in the economy increases. 
D) Creditors are made worse off.

Question 10

Refer to the information provided in Table 7.1 below to answer the questions that follow.
Table 7.1  
-Refer to Table 7.1.The employment rate is

Accepted Answer

A) 85.7%. 
B) 83.3%. 
C) 82.4%. 
D) 75.0%. 
A) 85.7%. 
B) 83.3%. 
C) 82.4%. 
D) 75.0%.

Question 11

Which of the following groups over the age of 19 had the lowest unemployment rate in the United States in 2010?

Accepted Answer

A) white males 
B) African American males 
C) white females 
D) African American females 
A) white males 
B) African American males 
C) white females 
D) African American females

Question 12

If the inflation rate is smaller than the nominal interest rate,the real interest rate is

Accepted Answer

A) positive. 
B) negative. 
C) zero. 
D) either positive or zero. 
A) positive. 
B) negative. 
C) zero. 
D) either positive or zero.

Question 13

Lola wants to make an 6% real return on a loan that she is planning to make,and the expected inflation rate during the period of the loan is 5%.She should charge an interest rate of

Accepted Answer

A) 1%. 
B) 6%. 
C) 11%. 
D) 16%. 
A) 1%. 
B) 6%. 
C) 11%. 
D) 16%.

Question 14

When 100 people who were previously looking for jobs stop looking for jobs,the

Accepted Answer

A) unemployment rate increases. 
B) size of the labor force decreases. 
C) labor-force participation rate does not change. 
D) unemployment rate does not change. 
A) unemployment rate increases. 
B) size of the labor force decreases. 
C) labor-force participation rate does not change. 
D) unemployment rate does not change.

Question 15

If the number of people classified as unemployed is 20,000 and the number of people classified as employed is 620,000,what is the unemployment rate?

Accepted Answer

A) 1.6% 
B) 3.1% 
C) 10.6% 
D) 6.32% 
A) 1.6% 
B) 3.1% 
C) 10.6% 
D) 6.32%

Question 16

The broadest-based price index available is the

Accepted Answer

A) GDP deflator. 
B) producer price index. 
C) consumer price index. 
D) wholesale price index. 
A) GDP deflator. 
B) producer price index. 
C) consumer price index. 
D) wholesale price index.

Question 17

Inflation is an increase in

Accepted Answer

A) the price of one item. 
B) the overall price level. 
C) the average income level. 
D) real gross national product. 
A) the price of one item. 
B) the overall price level. 
C) the average income level. 
D) real gross national product.

Question 18

Which of the following statements is TRUE?

Accepted Answer

A) The unemployment rate does not tell us anything about the duration of unemployment. 
B) The duration of unemployment decreases during recessions. 
C) The duration of unemployment increases during economic expansions. 
D) The median duration of unemployment is usually greater than the average duration. 
A) The unemployment rate does not tell us anything about the duration of unemployment. 
B) The duration of unemployment decreases during recessions. 
C) The duration of unemployment increases during economic expansions. 
D) The median duration of unemployment is usually greater than the average duration.

Question 19

If the price index in period 2 is 109 and the price index in period 3 is 125,the rate of inflation between period 2 and period 3 is

Accepted Answer

A) 16.0%. 
B) 14.7%. 
C) 9.0%. 
D) 8.7%. 
A) 16.0%. 
B) 14.7%. 
C) 9.0%. 
D) 8.7%.

Question 20

If the number of unemployed equals 240,000 and the number of employed equals 300,000,the labor-force participation rate

Accepted Answer

A) is 80%. 
B) is 55.6%. 
C) is 24%. 
D) cannot be determined from this information. 
A) is 80%. 
B) is 55.6%. 
C) is 24%. 
D) cannot be determined from this information.

Exam 7: Unemployment, inflation, and Long-Run Growth

If the unemployment rate is 6.2% and the number of people employed is 200,000,the labor force is approximately

Refer to the information provided in Table 7.3 below to answer the questions that follow. Table 7.3 -Refer to Table 7.3.If 2010 is the base year,the price index in 2011 is

The capital per worker ratio is a measure of

In normal times the number of discouraged workers is approximately ________ of the labor force.

Refer to the information provided in Table 7.1 below to answer the questions that follow. Table 7.1 -Refer to Table 7.1.The labor force equals

Jake retired from the police force.He started working an hour or two a day at a paid job in city's courthouse.Jake is

The only source of economic growth is growth in the number of workers in the economy.

The Humphrey-Hawkins Act formally established a specific unemployment target for the economy of

Which of the following is a cost of anticipated inflation?

Refer to the information provided in Table 7.1 below to answer the questions that follow. Table 7.1 -Refer to Table 7.1.The employment rate is

Which of the following groups over the age of 19 had the lowest unemployment rate in the United States in 2010?

If the inflation rate is smaller than the nominal interest rate,the real interest rate is

Lola wants to make an 6% real return on a loan that she is planning to make,and the expected inflation rate during the period of the loan is 5%.She should charge an interest rate of

When 100 people who were previously looking for jobs stop looking for jobs,the

If the number of people classified as unemployed is 20,000 and the number of people classified as employed is 620,000,what is the unemployment rate?

The broadest-based price index available is the

Inflation is an increase in

Which of the following statements is TRUE?

If the price index in period 2 is 109 and the price index in period 3 is 125,the rate of inflation between period 2 and period 3 is

If the number of unemployed equals 240,000 and the number of employed equals 300,000,the labor-force participation rate

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand,supply,and Market Equilibrium

Demand and Supply Applications

Introduction to Macroeconomics

Measuring National Output and National Income

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

The Money Supply and the Federal Reserve System

Money Demand and the Equilibrium Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Costs Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade,comparative Advantage,and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing and Transitional Economies

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