Question 1

Exhibit 6-2
  
-Refer to Exhibit 6-2.How many people are not in the labor force 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 B

Question 2

The unemployment rate equals the

Accepted Answer

A)  number of employed persons divided by the number of unemployed persons. 
B)  number of unemployed persons divided by the civilian non-institutional population. 
C)  number of unemployed persons divided by the civilian labor force. 
D)  sum of unemployed persons and discouraged workers divided by the civilian labor force. 
A)  number of employed persons divided by the number of unemployed persons. 
B)  number of unemployed persons divided by the civilian non-institutional population. 
C)  number of unemployed persons divided by the civilian labor force. 
D)  sum of unemployed persons and discouraged workers divided by the civilian labor force. C

Question 3

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. C

Question 4

Which of the following statements is false?

Accepted Answer

A)  The sum of the unemployment rate and the employment rate always equals 100 percent. 
B)  The sum of the number of employed persons and the number of unemployed persons equals the civilian non-institutional population. 
C)  The labor force participation rate equals the number of persons in the civilian labor force divided by the number of persons in the total population. 
D)  a and b 
E)  a,b and c 
A)  The sum of the unemployment rate and the employment rate always equals 100 percent. 
B)  The sum of the number of employed persons and the number of unemployed persons equals the civilian non-institutional population. 
C)  The labor force participation rate equals the number of persons in the civilian labor force divided by the number of persons in the total population. 
D)  a and b 
E)  a,b and c

Question 5

Describe the difference between the employment rate and the labor force participation rate (LFPR).Under what circumstance would the two be equal to one another?

Accepted Answer

The employment rate is a measure of the

Question 6

At the time of Carol's 10 year high school reunion she was earning $30,000 and the CPI was 90.Now that it is time for her to attend her 20 year high school reunion,Carol's income has risen to $65,000 and the CPI is 200.At her 20 year reunion,can Carol rightfully brag that her real income has risen since the last time she saw her former classmates ten years ago?

Accepted Answer

A)  Yes,Carol's real income rose during that 10 year period. 
B)  No,Carol's real income fell during that 10 year period. 
C)  No,Carol's real income remained constant during that 10 year period. 
D)  It is impossible to determine what happened to Carol's real income. 
A)  Yes,Carol's real income rose during that 10 year period. 
B)  No,Carol's real income fell during that 10 year period. 
C)  No,Carol's real income remained constant during that 10 year period. 
D)  It is impossible to determine what happened to Carol's real income.

Question 7

One measure of the inflation rate is the

Accepted Answer

A)  sum of the CPIs of adjacent years. 
B)  percentage change in the CPI of adjacent years. 
C)  percentage change in the Real GDP of adjacent years. 
D)  GDP minus the Real GDP in a year. 
A)  sum of the CPIs of adjacent years. 
B)  percentage change in the CPI of adjacent years. 
C)  percentage change in the Real GDP of adjacent years. 
D)  GDP minus the Real GDP in a year.

Question 8

Exhibit 6-2
  
-Refer to Exhibit 6-2.How many people are not in the labor force 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 9

Exhibit 6-2
  
-Refer to Exhibit 6-2.The unemployment 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 10

A person is unemployed if he

Accepted Answer

A)  is a member of the civilian labor force,out of work,and actively seeking work. 
B)  is 15 years old and seeking his first job. 
C)  is out of work,available for work,but not actively seeking work. 
D)  all of the above 
A)  is a member of the civilian labor force,out of work,and actively seeking work. 
B)  is 15 years old and seeking his first job. 
C)  is out of work,available for work,but not actively seeking work. 
D)  all of the above

Question 11

According to the text,the top grossing movie in the US for all time in terms of domestic gross receipts as of June 2012 was ______________________,while the movie with the highest receipts in today's dollars is _______________________.

Accepted Answer

A)  Star Wars;Titanic 
B)  Titanic;Star Wars. 
C)  Star Wars;Gone with the Wind 
D)  Avatar;Gone With the Wind 
E)  Avatar;Snow White and the Seven Dwarfs 
A)  Star Wars;Titanic 
B)  Titanic;Star Wars. 
C)  Star Wars;Gone with the Wind 
D)  Avatar;Gone With the Wind 
E)  Avatar;Snow White and the Seven Dwarfs

Question 12

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 13

When news reports state that the cost of living has changed they are usually referring to a change in the CPI.

Accepted Answer

A) True 
 B)False

Question 14

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 jobs.The number counted as unemployed is

Accepted Answer

A)  91 million. 
B)  9 million. 
C)  51 million. 
D)  40 million. 
E)  49 million. 
A)  91 million. 
B)  9 million. 
C)  51 million. 
D)  40 million. 
E)  49 million.

Question 15

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 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 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 16

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.

Accepted Answer

A)  structurally;frictionally 
B)  structurally;structurally 
C)  frictionally;frictionally 
D)  frictionally;structurally 
A)  structurally;frictionally 
B)  structurally;structurally 
C)  frictionally;frictionally 
D)  frictionally;structurally

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

Exhibit 6-2
  
-Refer to Exhibit 6-2.The employment rate in year 4 is

Accepted Answer

A)  12.5 percent. 
B)  7.2 percent. 
C)  72 percent. 
D)  10 percent. 
E)  90 percent. 
A)  12.5 percent. 
B)  7.2 percent. 
C)  72 percent. 
D)  10 percent. 
E)  90 percent.

Question 19

If the Bureau of Labor Statistics considers Jessica to be a discouraged worker,then she is counted as unemployed for purposes of computing the official unemployment rate.

Accepted Answer

A) True 
 B)False

Question 20

According to the text,the top grossing movie in the US for all time,in today's dollars,is

Accepted Answer

A)  Star Wars 
B)  Titanic 
C)  Avatar 
D)  Gone With the Wind 
E)  Snow White and the Seven Dwarfs 
A)  Star Wars 
B)  Titanic 
C)  Avatar 
D)  Gone With the Wind 
E)  Snow White and the Seven Dwarfs

Exam 6: Macroeconomic Measurements, Prices and Unemployment

Exhibit 6-2 -Refer to Exhibit 6-2.How many people are not in the labor force in year 3?

The unemployment rate equals the

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

Which of the following statements is false?

Describe the difference between the employment rate and the labor force participation rate (LFPR).Under what circumstance would the two be equal to one another?

One measure of the inflation rate is the

Exhibit 6-2 -Refer to Exhibit 6-2.How many people are not in the labor force in year 1?

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

A person is unemployed if he

According to the text,the top grossing movie in the US for all time in terms of domestic gross receipts as of June 2012 was ______________________,while the movie with the highest receipts in today's dollars is _______________________.

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

When news reports state that the cost of living has changed they are usually referring to a change in the CPI.

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 jobs.The number counted as unemployed is

Which of the following statements is true?

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.

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?

Exhibit 6-2 -Refer to Exhibit 6-2.The employment rate in year 4 is

If the Bureau of Labor Statistics considers Jessica to be a discouraged worker,then she is counted as unemployed for purposes of computing the official unemployment rate.

According to the text,the top grossing movie in the US for all time,in today's dollars,is

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According to the text,the top grossing movie in the US for all time in terms of domestic gross receipts as of June 2012 was ,while the movie with the highest receipts in today's dollars is _.

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.