Question 1

Looking at inflation rates in the United States since the 1970s we see that

Accepted Answer

A)  the inflation rate increased with the increased growth of the 1990s. 
B)  the highest inflation rates were the double digits during the 1990s. 
C)  inflation fell the most during the 1970s productivity slowdown. 
D)  the 1970s experienced the highest inflation rates. 
A)  the inflation rate increased with the increased growth of the 1990s. 
B)  the highest inflation rates were the double digits during the 1990s. 
C)  inflation fell the most during the 1970s productivity slowdown. 
D)  the 1970s experienced the highest inflation rates.

Question 2

Suppose the economy is experiencing frictional unemployment of 1 percent, structural unemployment of 3 percent and cyclical unemployment of 4 percent. What is the natural unemployment rate?

Accepted Answer

A)  7 percent. 
B)  4 percent. 
C)  5 percent. 
D)  3 percent. 
A)  7 percent. 
B)  4 percent. 
C)  5 percent. 
D)  3 percent.

Question 3

All people in the working-age population can be divided into

Accepted Answer

A)  potential employees. 
B)  either over-employed or under-employed. 
C)  labor force participants. 
D)  employed, unemployed, or not in the labor force. 
A)  potential employees. 
B)  either over-employed or under-employed. 
C)  labor force participants. 
D)  employed, unemployed, or not in the labor force.

Question 4

What are the three types of unemployment and how do they change over the business cycle?

Accepted Answer

The three types of unemployment are fric

Question 5

In an economy, 23 million people are employed and 2 million are unemployed, but 5 million part-time workers would prefer full-time work. What is the unemployment rate?

Accepted Answer

A)  6.7 percent 
B)  8 percent 
C)  23.2 percent 
D)  25 percent 
A)  6.7 percent 
B)  8 percent 
C)  23.2 percent 
D)  25 percent

Question 6

In a country with a working-age population of 150 million, 120 million workers are employed and 10 million workers are unemployed. What is the size of the labor force?

Accepted Answer

A)  150 million 
B)  10 million 
C)  120 million 
D)  130 million 
A)  150 million 
B)  10 million 
C)  120 million 
D)  130 million

Question 7

The ________is calculated as the number of people ________divided by the labor force multiplied by 100.

Accepted Answer

A)  employment rate; employed 
B)  unemployment rate; unemployed 
C)  employment-to-population ratio; unemployed 
D)  employment-to-population ratio; in the working age population 
A)  employment rate; employed 
B)  unemployment rate; unemployed 
C)  employment-to-population ratio; unemployed 
D)  employment-to-population ratio; in the working age population

Question 8

The unemployment rate equals

Accepted Answer

A)  labor force/working age population) × 100. 
B)  number of people employed/working age population) × 100. 
C)  number of people unemployed/labor force) × 100. 
D)  number of people employed/number of people age 16 and over) × 100. 
A)  labor force/working age population) × 100. 
B)  number of people employed/working age population) × 100. 
C)  number of people unemployed/labor force) × 100. 
D)  number of people employed/number of people age 16 and over) × 100.

Question 9

If the number of people unemployed is 100, the number of people employed is 1000, and the working-age population is 1400, then the labor force participation rate is

Accepted Answer

A)  71.4 percent. 
B)  64.3 percent. 
C)  78.6 percent. 
D)  66.6 percent. 
A)  71.4 percent. 
B)  64.3 percent. 
C)  78.6 percent. 
D)  66.6 percent.

Question 10

To calculate the unemployment rate, which of the following are necessary pieces of information?
I. the number of unemployed persons
II. the population
III. the number of people in the labor force
IV. the working age population

Accepted Answer

A)  I and IV 
B)  I and III 
C)  I and II 
D)  I, II III and IV 
A)  I and IV 
B)  I and III 
C)  I and II 
D)  I, II III and IV

Question 11

The unemployment rate equals the number of

Accepted Answer

A)  unemployed workers divided by the population then multiplied by 100. 
B)  unemployed workers multiplied by 100. 
C)  unemployed workers divided by the number of employed workers then multiplied by 100. 
D)  unemployed workers divided by the labor force then multiplied by 100. 
A)  unemployed workers divided by the population then multiplied by 100. 
B)  unemployed workers multiplied by 100. 
C)  unemployed workers divided by the number of employed workers then multiplied by 100. 
D)  unemployed workers divided by the labor force then multiplied by 100.

Question 12

Suppose that Matt quits a job with the XYZ Corporation in order to look for more rewarding employment. Matt would be best be considered as

Accepted Answer

A)  included in the economyʹs ʺhidden employment.ʺ 
B)  frictionally unemployed. 
C)  cyclically unemployed. 
D)  still being employed. 
A)  included in the economyʹs ʺhidden employment.ʺ 
B)  frictionally unemployed. 
C)  cyclically unemployed. 
D)  still being employed.

Question 13

Reflecting the state of the economy in 2008, the Bureau of Labor Statistics reported in October that over 1000 jobs were lost in the legal services sector. For example, one firm in Chicago stated that it had fired 54 lawyers in 2008. A representative from the firm stated that most had worked in its real estate division.
The lawyers that were fired are an example of unemployment.

Accepted Answer

A)  efficiency wage 
B)  frictional 
C)  cyclical 
D)  structural 
A)  efficiency wage 
B)  frictional 
C)  cyclical 
D)  structural

Question 14

$$\begin{array} { | l | l | l | l | } 
\hline \begin{array} { l } 
\text { Total } \
\text { population } \
\text { (millions) }
\end{array} & \begin{array} { l } 
\text { Currently } \
\text { employed } \
\text { (millions) }
\end{array} & \begin{array} { l } 
\text { Not working } \
\text { and looking } \
\text { for work } \
\text { (millions) }
\end{array} & \begin{array} { l } 
\text { Want to work but } \
\text { no longer looking } \
\text { for work } \
\text { (millions) }
\end{array} \
\hline 80 & 40 & 2 & 4 \
\hline
\end{array}$$
-In the table above, the number of people officially unemployed is__________ .

Accepted Answer

A)  40 million 
B)  2 million 
C)  4 million 
D)  6 million 
A)  40 million 
B)  2 million 
C)  4 million 
D)  6 million

Question 15

The natural unemployment rate__________
i. occurs when only there is no cyclical unemployment present.
ii. is the unemployment rate when the economy is at potential GDP.

Accepted Answer

A)  neither i nor ii. 
B)  ii only 
C)  i only. 
D)  i and ii 
A)  neither i nor ii. 
B)  ii only 
C)  i only. 
D)  i and ii

Question 16

\[\begin{array} { | l | l | } 
\hline \text { Person A } & \begin{array} { l } 
\text { Now that the kids are in school for a full day, this } \
\text { person } \
\text { is looking for work and has interviewed for three jobs } \
\text { during the past two weeks. }
\end{array} \
\hline \text { Person B } & \begin{array} { l } 
\text { This person has been laid off from a job but expects to } \
\text { be } \
\text { called back as soon as the economy improves. }
\end{array} \
\hline \text { Person C } & \begin{array} { l } 
\text { This person has just graduated from college and will } \
\text { start a new job in three weeks. In the meantime this } \
\text { person will tour the great A merican b eaches. }
\end{array} \
\hline \text { Person D } & \begin{array} { l } 
\text { This person was laid off last year when new } \
\text { equipment } \
\text { was installed at the plant, reducing the number of } \
\text { workers needed.Shortly after beinglaid off, this } \
\text { person looked for a new job, w as unable to find one } \
\text { and then stopped looking, even though this person } \
\text { still wants a job and is available for work. }
\end{array} \
\hline
\end{array}\]
-The above table shows answers given by people interviewed in a government survey of households. Which individual or individuals are considered marginally attached?

Accepted Answer

A)  A and D 
B)  B, C, and D 
C)  A 
D)  A and D. 
A)  A and D 
B)  B, C, and D 
C)  A 
D)  A and D.

Question 17

Suppose the population is 220 million people, the labor force is 150 million people, the number of people employed is 130 million and the working-age population is 175 million people. What is the labor force participation rate?

Accepted Answer

A)  0.68 percent 
B)  86.7 percent 
C)  85.7 percent 
D)  68 percent 
A)  0.68 percent 
B)  86.7 percent 
C)  85.7 percent 
D)  68 percent

Question 18

Unemployment caused by the fluctuation of the business cycle is called __________unemployment.

Accepted Answer

A)  frictional 
B)  structural 
C)  cyclical 
D)  recession-related 
A)  frictional 
B)  structural 
C)  cyclical 
D)  recession-related

Question 19

Suppose the population is 220 million people, the labor force is 150 million people, the number of people employed is 130 million and the working-age population is 175 million people. What is the unemployment rate?

Accepted Answer

The unemployment rat

Question 20

$$\begin{array} { | l | c | } 
\hline  { \text { Component } } & \begin{array} { l } 
\text { Number of } \
\text { people }
\end{array} \
\hline \text { Total population } & 2600 \
\hline \text { Working-age population } & 2000 \
\hline \text { Not in labor force } & 500 \
\hline \text { Employed } & 1300 \
\hline
\end{array}$$
-Using the information in the table above, calculate the employment -to-population ratio.

Accepted Answer

A)  23.2 percent 
B)  50 percent 
C)  75 percent 
D)  65 percent 
A)  23.2 percent 
B)  50 percent 
C)  75 percent 
D)  65 percent

Looking at inflation rates in the United States since the 1970s we see that

Suppose the economy is experiencing frictional unemployment of 1 percent, structural unemployment of 3 percent and cyclical unemployment of 4 percent. What is the natural unemployment rate?

All people in the working-age population can be divided into

What are the three types of unemployment and how do they change over the business cycle?

In an economy, 23 million people are employed and 2 million are unemployed, but 5 million part-time workers would prefer full-time work. What is the unemployment rate?

In a country with a working-age population of 150 million, 120 million workers are employed and 10 million workers are unemployed. What is the size of the labor force?

The is calculated as the number of people divided by the labor force multiplied by 100.

The unemployment rate equals

If the number of people unemployed is 100, the number of people employed is 1000, and the working-age population is 1400, then the labor force participation rate is

To calculate the unemployment rate, which of the following are necessary pieces of information? I. the number of unemployed persons II. the population III. the number of people in the labor force IV. the working age population

The unemployment rate equals the number of

Suppose that Matt quits a job with the XYZ Corporation in order to look for more rewarding employment. Matt would be best be considered as

Total population (millions) Currently employed (millions) Not working and looking for work (millions) Want to work but no longer looking for work (millions) 80 40 2 4 -In the table above, the number of people officially unemployed is__________ .

The natural unemployment rate__________ i. occurs when only there is no cyclical unemployment present. ii. is the unemployment rate when the economy is at potential GDP.

Suppose the population is 220 million people, the labor force is 150 million people, the number of people employed is 130 million and the working-age population is 175 million people. What is the labor force participation rate?

Unemployment caused by the fluctuation of the business cycle is called __________unemployment.

Suppose the population is 220 million people, the labor force is 150 million people, the number of people employed is 130 million and the working-age population is 175 million people. What is the unemployment rate?

Component Number of people Total population 2600 Working-age population 2000 Not in labor force 500 Employed 1300 -Using the information in the table above, calculate the employment -to-population ratio.

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters

Exam 5: Monitoring Jobs and Inflation

Looking at inflation rates in the United States since the 1970s we see that

Suppose the economy is experiencing frictional unemployment of 1 percent, structural unemployment of 3 percent and cyclical unemployment of 4 percent. What is the natural unemployment rate?

All people in the working-age population can be divided into

What are the three types of unemployment and how do they change over the business cycle?

In an economy, 23 million people are employed and 2 million are unemployed, but 5 million part-time workers would prefer full-time work. What is the unemployment rate?

In a country with a working-age population of 150 million, 120 million workers are employed and 10 million workers are unemployed. What is the size of the labor force?

The ________is calculated as the number of people ________divided by the labor force multiplied by 100.

The unemployment rate equals

If the number of people unemployed is 100, the number of people employed is 1000, and the working-age population is 1400, then the labor force participation rate is

To calculate the unemployment rate, which of the following are necessary pieces of information? I. the number of unemployed persons II. the population III. the number of people in the labor force IV. the working age population

The unemployment rate equals the number of

Suppose that Matt quits a job with the XYZ Corporation in order to look for more rewarding employment. Matt would be best be considered as

Total population (millions) Currently employed (millions) Not working and looking for work (millions) Want to work but no longer looking for work (millions) 80 40 2 4 -In the table above, the number of people officially unemployed is__________ .

The natural unemployment rate__________ i. occurs when only there is no cyclical unemployment present. ii. is the unemployment rate when the economy is at potential GDP.

Suppose the population is 220 million people, the labor force is 150 million people, the number of people employed is 130 million and the working-age population is 175 million people. What is the labor force participation rate?

Unemployment caused by the fluctuation of the business cycle is called __________unemployment.

Suppose the population is 220 million people, the labor force is 150 million people, the number of people employed is 130 million and the working-age population is 175 million people. What is the unemployment rate?

Component Number of people Total population 2600 Working-age population 2000 Not in labor force 500 Employed 1300 -Using the information in the table above, calculate the employment -to-population ratio.

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters

The is calculated as the number of people divided by the labor force multiplied by 100.