Question 1

In order to be classified as unemployed,a person must

Accepted Answer

A)  not have a job,have been actively looking for work within the past four weeks,and currently be available for work. 
B)  not have a job,and currently be available for work. 
C)  actively have looked for work within the past six weeks. 
D)  not have a job. 
A)  not have a job,have been actively looking for work within the past four weeks,and currently be available for work. 
B)  not have a job,and currently be available for work. 
C)  actively have looked for work within the past six weeks. 
D)  not have a job.

Question 2

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 3

Most unemployed persons fall into the category of job loser.

Accepted Answer

A) True 
 B)False

Question 4

Buying a one-day ticket at Woodstock in 1969 for $8 was the same as spending $49.03 on a ticket in 2011.

Accepted Answer

A) True 
 B)False

Question 5

Exhibit 6-2
  
-Refer to Exhibit 6-2.How many people are unemployed in year 2?

Accepted Answer

A)  200 million 
B)  50 million 
C)  75 million 
D)  175 million 
E)  100 million 
A)  200 million 
B)  50 million 
C)  75 million 
D)  175 million 
E)  100 million

Question 6

A seamstress who quits her job in Houston and moves to New York where additional seamstresses are needed is said to be frictionally unemployed.

Accepted Answer

A) True 
 B)False

Question 7

Suppose that 1982 is the base year for the Consumer Price Index (CPI)and in 2007 the CPI was 190.What does this "190" mean?

Accepted Answer

A)  What cost $100 in 1982 on average cost 190 times as much in 2007. 
B)  What cost $100 in 1982 on average cost $190 in 2007. 
C)  What cost $100 in 1982 on average cost 0.19 times as much in 2007 (that is,it cost $19 in 2007). 
D)  What cost $100 in 1982 on average cost $19 more in 2007. 
A)  What cost $100 in 1982 on average cost 190 times as much in 2007. 
B)  What cost $100 in 1982 on average cost $190 in 2007. 
C)  What cost $100 in 1982 on average cost 0.19 times as much in 2007 (that is,it cost $19 in 2007). 
D)  What cost $100 in 1982 on average cost $19 more in 2007.

Question 8

A __________ is a person who was employed in the civilian labor force and was either fired or laid off.

Accepted Answer

A)  new entrant 
B)  reentrant 
C)  job leaver 
D)  job fixer 
E)  none of the above 
A)  new entrant 
B)  reentrant 
C)  job leaver 
D)  job fixer 
E)  none of the above

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

Suppose the civilian non-institutional population equals 100,000 persons;the civilian labor force equals 75,000 persons;there are 70,000 employed persons and 5,000 unemployed persons.If 5,000 persons who are currently "not in the labor force" decide to join the civilian labor force,and 3,000 pf them are unemployed,then

Accepted Answer

A)  both the unemployment and the employment rate rise. 
B)  both the unemployment and the employment rate fall. 
C)  the unemployment rate rises and the employment rate falls. 
D)  the unemployment rate falls and the employment rate rises. 
A)  both the unemployment and the employment rate rise. 
B)  both the unemployment and the employment rate fall. 
C)  the unemployment rate rises and the employment rate falls. 
D)  the unemployment rate falls and the employment rate rises.

Question 11

If the CPI is 143 in year 1 and 149 in year 2,what is the approximate percentage change in prices between the two years?

Accepted Answer

A)  3.9 percent 
B)  4.2 percent 
C)  15.7 percent 
D)  11.4 percent 
E)  6.0 percent 
A)  3.9 percent 
B)  4.2 percent 
C)  15.7 percent 
D)  11.4 percent 
E)  6.0 percent

Question 12

Every ____________ the U.S.government surveys ______________ of households to gather information about the number of Americans unemployed.

Accepted Answer

A)  month;millions 
B)  week;millions 
C)  week;thousands 
D)  month;thousands 
A)  month;millions 
B)  week;millions 
C)  week;thousands 
D)  month;thousands

Question 13

In an economy with a population of 100 million persons,50 million hold civilian jobs and 20 million are not working but are looking for a job.The unemployment rate is

Accepted Answer

A)  28.6%. 
B)  20% 
C)  25% 
D)  13.33% 
E)  There is not enough information to answer this question. 
A)  28.6%. 
B)  20% 
C)  25% 
D)  13.33% 
E)  There is not enough information to answer this question.

Question 14

The base year is always the year in which prices were the lowest.

Accepted Answer

A) True 
 B)False

Question 15

If the CPI is 100 in the base year and 112 in the current year,how much did prices rise between the base year and the current year?

Accepted Answer

A)  12 percent 
B)  112 percent 
C)  1.2 percent 
D)  0.12 percent 
A)  12 percent 
B)  112 percent 
C)  1.2 percent 
D)  0.12 percent

Question 16

The base year is the year

Accepted Answer

A)  in which prices are unstable. 
B)  in which prices are lowest. 
C)  in which prices are highest. 
D)  that serves as a reference point or benchmark. 
E)  in which nominal output is largest. 
A)  in which prices are unstable. 
B)  in which prices are lowest. 
C)  in which prices are highest. 
D)  that serves as a reference point or benchmark. 
E)  in which nominal output is largest.

Question 17

If the CPI was 196.5 in 2005 and 172.2 in 2000,by what percentage did prices rise during the period 2000-2005?

Accepted Answer

A)  0.10 percent 
B)  6.43 percent 
C)  10 percent 
D)  14.1 percent 
A)  0.10 percent 
B)  6.43 percent 
C)  10 percent 
D)  14.1 percent

Question 18

Discouraged workers are not counted as unemployed because they are working.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)  75 percent. 
B)  33 1/3 percent. 
C)  50 percent. 
D)  66 2/3 percent. 
E)  25 percent. 
A)  75 percent. 
B)  33 1/3 percent. 
C)  50 percent. 
D)  66 2/3 percent. 
E)  25 percent.

Question 20

Look at the following data: The frictional unemployment rate is 1.5 percent,the natural unemployment rate is 4.5 percent,and the cyclical unemployment rate is -1 percent.The structural unemployment rate is _________ percent and the actual unemployment rate (in this economy)is ___________ percent.

Accepted Answer

A)  6;3.5 
B)  3;5.5 
C)  3;3.5 
D)  6;5.5 
A)  6;3.5 
B)  3;5.5 
C)  3;3.5 
D)  6;5.5

Exam 6: Macroeconomic Measurements, Prices and Unemployment

In order to be classified as unemployed,a person must

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

Most unemployed persons fall into the category of job loser.

Buying a one-day ticket at Woodstock in 1969 for $8 was the same as spending $49.03 on a ticket in 2011.

Exhibit 6-2 -Refer to Exhibit 6-2.How many people are unemployed in year 2?

A seamstress who quits her job in Houston and moves to New York where additional seamstresses are needed is said to be frictionally unemployed.

Suppose that 1982 is the base year for the Consumer Price Index (CPI)and in 2007 the CPI was 190.What does this "190" mean?

A __________ is a person who was employed in the civilian labor force and was either fired or laid off.

If the CPI is 143 in year 1 and 149 in year 2,what is the approximate percentage change in prices between the two years?

Every ____________ the U.S.government surveys ______________ of households to gather information about the number of Americans unemployed.

In an economy with a population of 100 million persons,50 million hold civilian jobs and 20 million are not working but are looking for a job.The unemployment rate is

The base year is always the year in which prices were the lowest.

If the CPI is 100 in the base year and 112 in the current year,how much did prices rise between the base year and the current year?

The base year is the year

If the CPI was 196.5 in 2005 and 172.2 in 2000,by what percentage did prices rise during the period 2000-2005?

Discouraged workers are not counted as unemployed because they are working.

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

Look at the following data: The frictional unemployment rate is 1.5 percent,the natural unemployment rate is 4.5 percent,and the cyclical unemployment rate is -1 percent.The structural unemployment rate is _________ percent and the actual unemployment rate (in this economy)is ___________ percent.

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free, controlled, and Relative

Supply,demand,and Price: Applications

Macroeconomic Measurements, Gdp and Real Gdp

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self-Regulating Economy

Keynesian Macroeconomics and Economic Instability: a Critique of the Self-Regulating Economy

Fiscal Policy and the Federal Budget

Money,banking,and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth: Resources, technology, ideas, and Institutions

The Financial Crisis of 2007-2009

Debates in Macroeconomics Over the Role and Effects of Government

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

Globalization and International Impacts on the Economy

The Economic Case for and Against Government: Five Topics Considered

Stocks, bonds, futures, and Options

Agriculture: Problems, policies, and Unintended Effects

Filters

Every the U.S.government surveys __ of households to gather information about the number of Americans unemployed.

Look at the following data: The frictional unemployment rate is 1.5 percent,the natural unemployment rate is 4.5 percent,and the cyclical unemployment rate is -1 percent.The structural unemployment rate is _ percent and the actual unemployment rate (in this economy)is ___ percent.