Question 1

Figure 11-A
Assuming the data in this figure are correct, use the data to answer the following questions. 
-Refer to Figure 11-A.From the data provided, the unemployment rate is approximately ____ percent.

Accepted Answer

A) 4.5 
B) 7.7 
C) 9.2 
D) 5.4

Question 2

The GDP deflator represents a somewhat ____ measure of prices that the CPI and the GDP deflator tends to be ____ volatile than the CPI.

Accepted Answer

A) broader; more 
B) broader; less 
C) narrower; more 
D) narrower; less

Question 3

Fred has lost his factory job, replaced by welding robots, and soon plans to go to technical school to learn computer repair because he cannot find a similar job to the one he lost.The type of unemployment facing Fred is:.

Accepted Answer

A) frictional. 
B) structural. 
C) cyclical. 
D) natural. 
E) seasonal.

Question 4

Why does the term full employment imply an unemployment rate greater than zero? Discuss your answer in terms of the types of unemployment.

Accepted Answer

The answer of Why does the term full employment imply...

Question 5

The Employment Act of 1946 dictated the U.S.goal of maintaining high employment through high economic growth but did not specify any requirements with regard to the price level.

Accepted Answer

A) True 
 B)False

Question 6

Suzie Homemaker works in her home as a full-time caretaker and homemaker.Officially, she is:

Accepted Answer

A) employed. 
B) unemployed. 
C) not in the labor force. 
D) a discouraged worker. 
E) not in the labor force because she is considered a discouraged worker.

Question 7

Discuss the costs associated with high inflation.

Accepted Answer

The answer of Discuss the costs associated with high inflation....

Question 8

The most significant real economic cost of high unemployment is:

Accepted Answer

A) the money cost of unemployment insurance payments to the unemployed. 
B) the lost tax revenue that might have been paid by persons if they had worked. 
C) the money cost of retraining persons to obtain new jobs. 
D) the difference in income between a person's lost job and new job. 
E) the potential goods and services that might have been produced but weren't.

Question 9

Job losers typically account for ____ of the unemployed.

Accepted Answer

A) 80 to 90 percent 
B) 50 to 60 percent 
C) 30 to 40 percent 
D) 10 to 20 percent

Question 10

Which of the following is false?

Accepted Answer

A) People looking for full-time work who grudgingly settle for a part-time job are counted as employed, even though they are only "partly" employed. 
B) Some people working in the underground economy could be counted in labor statistics as unemployed, while others may be counted as not in the labor force. 
C) Unemployment rates can be quite different across different segments of the population, as well as varying substantially over time. 
D) The duration of unemployment tends to be greater when the amount of unemployment is high, and smaller when the amount of unemployment is low. 
E) None of the above are false; all are true.

Question 11

Figure 11-A
Assuming the data in this figure are correct, use the data to answer the following questions. 
-Refer to Figure 11-A.According to the data provided, ____ people constitute the labor force.

Accepted Answer

A) 100 million 
B) 195 million 
C) 85 million 
D) 180 million 
E) 280 million

Question 12

Each person in the population can be classified as employed, unemployed, or not in the labor force.

Accepted Answer

A) True 
 B)False

Question 13

Underemployment occurs when:

Accepted Answer

A) a firm hires fewer than the required number of workers, to save costs. 
B) a firm hires workers who do not possess the required skills that the job demands. 
C) a worker is over qualified and possesses more skills than what his job demands. 
D) a firm hires more than the required number of workers. 
E) a worker who is looking to work full-time has to settle for a part-time job.

Question 14

Which of the following categories account for the smallest fraction of unemployed workers?

Accepted Answer

A) Job leavers 
B) Job losers 
C) Reentrants 
D) New entrants

Question 15

In November 1995 the labor force in Aberdeen, South Dakota, was 14,800.There were 14,483 persons employed.The local unemployment rate:

Accepted Answer

A) was 1.2 percent. 
B) was 2.1 percent. 
C) was 5.6 percent. 
D) was 7.1 percent. 
E) cannot be determined from the information provided.

Question 16

Inflation harms both debtors and individuals who live on fixed incomes.

Accepted Answer

A) True 
 B)False

Question 17

If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals:

Accepted Answer

A) 8 percent. 
B) 20 percent. 
C) 25 percent. 
D) 32 percent. 
E) 40 percent.

Question 18

An unanticipated period of deflation will:

Accepted Answer

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

Question 19

If, over time, a greater proportion of the labor force is comprised of middle-aged individuals, one would expect the natural rate of unemployment to rise.

Accepted Answer

A) True 
 B)False

Question 20

In the 1970s, savings and loan associations primarily earned their income from extending fixed-rate home loans.They extended many of these loans in the early 1970s when inflation was low.Were the savings and loans winners or losers as inflation skyrocketed in the late 1970s?

Accepted Answer

The answer of In the 1970s, savings and loan associations...

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

Figure 11-A Assuming the data in this figure are correct, use the data to answer the following questions. -Refer to Figure 11-A.From the data provided, the unemployment rate is approximately ____ percent.

The GDP deflator represents a somewhat measure of prices that the CPI and the GDP deflator tends to be volatile than the CPI.

Fred has lost his factory job, replaced by welding robots, and soon plans to go to technical school to learn computer repair because he cannot find a similar job to the one he lost.The type of unemployment facing Fred is:.

Why does the term full employment imply an unemployment rate greater than zero? Discuss your answer in terms of the types of unemployment.

The Employment Act of 1946 dictated the U.S.goal of maintaining high employment through high economic growth but did not specify any requirements with regard to the price level.

Suzie Homemaker works in her home as a full-time caretaker and homemaker.Officially, she is:

Discuss the costs associated with high inflation.

The most significant real economic cost of high unemployment is:

Job losers typically account for ____ of the unemployed.

Which of the following is false?

Figure 11-A Assuming the data in this figure are correct, use the data to answer the following questions. -Refer to Figure 11-A.According to the data provided, ____ people constitute the labor force.

Each person in the population can be classified as employed, unemployed, or not in the labor force.

Underemployment occurs when:

Which of the following categories account for the smallest fraction of unemployed workers?

In November 1995 the labor force in Aberdeen, South Dakota, was 14,800.There were 14,483 persons employed.The local unemployment rate:

Inflation harms both debtors and individuals who live on fixed incomes.

If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals:

An unanticipated period of deflation will:

If, over time, a greater proportion of the labor force is comprised of middle-aged individuals, one would expect the natural rate of unemployment to rise.

In the 1970s, savings and loan associations primarily earned their income from extending fixed-rate home loans.They extended many of these loans in the early 1970s when inflation was low.Were the savings and loans winners or losers as inflation skyrocketed in the late 1970s?