Question 1

The method used to calculate the CPI assumes that consumers buy

Accepted Answer

A) relatively more goods with increasing relative prices. 
B) goods at discount stores when prices rise. 
C) relatively more goods with decreasing relative prices. 
D) more computers and fewer black- and- white TVs than in the base year. 
E) the same quantities of goods as in the base year. 
A) relatively more goods with increasing relative prices. 
B) goods at discount stores when prices rise. 
C) relatively more goods with decreasing relative prices. 
D) more computers and fewer black- and- white TVs than in the base year. 
E) the same quantities of goods as in the base year.

Question 2

The cost of the CPI basket in base- period prices is $200 and the cost of the CPI basket in current- period prices is $450.The CPI in the current year is

Accepted Answer

A) 300. 
B) 225. 
C) 44.44. 
D) 250. 
E) 450. 
A) 300. 
B) 225. 
C) 44.44. 
D) 250. 
E) 450.

Question 3

If the economy is operating at full employment, then

Accepted Answer

A) everyone who wants a job has one. 
B) the unemployment rate is approximately 3 percent. 
C) the entire labour force is employed. 
D) the unemployment rate is zero. 
E) the unemployment rate is equal to the frictional unemployment rate plus the structural unemployment rate. 
A) everyone who wants a job has one. 
B) the unemployment rate is approximately 3 percent. 
C) the entire labour force is employed. 
D) the unemployment rate is zero. 
E) the unemployment rate is equal to the frictional unemployment rate plus the structural unemployment rate.

Question 4

If the unemployment rate is 4.5 percent and the natural unemployment rate is 5.5 percent, then

Accepted Answer

A) potential GDP equals real GDP. 
B) real GDP is greater than nominal GDP. 
C) potential GDP is greater than real GDP. 
D) we have mismeasured the natural unemployment rate. 
E) potential GDP is less than real GDP. 
A) potential GDP equals real GDP. 
B) real GDP is greater than nominal GDP. 
C) potential GDP is greater than real GDP. 
D) we have mismeasured the natural unemployment rate. 
E) potential GDP is less than real GDP.

Question 5

Suppose that the price level in China was 100 in 2007, 110 in 2008, 120 in 2009, and 130 in 2011.Over this time period,

Accepted Answer

A) the inflation rate increased. 
B) zero inflation occurred. 
C) the inflation rate was positive. 
D) the inflation rate decreased. 
E) Both C and D are correct. 
A) the inflation rate increased. 
B) zero inflation occurred. 
C) the inflation rate was positive. 
D) the inflation rate decreased. 
E) Both C and D are correct.

Question 6

If the economy is at full employment, then

Accepted Answer

A) all unemployment arises from normal frictions and structural change. 
B) the only unemployment is frictional unemployment plus discouraged searchers. 
C) the entire labour force is employed. 
D) the unemployment rate is less than 3 percent. 
E) the entire population is employed. 
A) all unemployment arises from normal frictions and structural change. 
B) the only unemployment is frictional unemployment plus discouraged searchers. 
C) the entire labour force is employed. 
D) the unemployment rate is less than 3 percent. 
E) the entire population is employed.

Question 7

Which one of the following people is structurally unemployed?

Accepted Answer

A) an office worker who has lost her job because of a general slowdown in economic activity 
B) a steel worker who is laid off but who expects to be called back soon 
C) a Saskatchewan welder who lost her job when her company relocated to B.C.and is currently looking for a job 
D) a student who recently graduated and is looking for work 
E) a Nova Scotia fishery worker who is searching for a better job closer to home 
A) an office worker who has lost her job because of a general slowdown in economic activity 
B) a steel worker who is laid off but who expects to be called back soon 
C) a Saskatchewan welder who lost her job when her company relocated to B.C.and is currently looking for a job 
D) a student who recently graduated and is looking for work 
E) a Nova Scotia fishery worker who is searching for a better job closer to home

Question 8

If the people who take early retirement are not counted in the working- age population, then

Accepted Answer

A) the labour force participation rate would be less. 
B) the labour force participation rate would be higher. 
C) the unemployment rate would be higher. 
D) the number of discouraged searchers would decrease. 
E) the unemployment rate would be lower. 
A) the labour force participation rate would be less. 
B) the labour force participation rate would be higher. 
C) the unemployment rate would be higher. 
D) the number of discouraged searchers would decrease. 
E) the unemployment rate would be lower.

Question 9

If the CPI was 180 at the end of 2016, and 216 at the end of 2017, the inflation rate in 2017 was

Accepted Answer

A) 18 percent. 
B) 216 percent. 
C) 36 percent. 
D) 16.67 percent. 
E) 20 percent. 
A) 18 percent. 
B) 216 percent. 
C) 36 percent. 
D) 16.67 percent. 
E) 20 percent.

Question 10

In an expansion, typically

Accepted Answer

A) unemployment increases. 
B) the employment rate decreases. 
C) the number of discouraged searchers increases. 
D) employment decreases. 
E) the labour force participation rate increases. 
A) unemployment increases. 
B) the employment rate decreases. 
C) the number of discouraged searchers increases. 
D) employment decreases. 
E) the labour force participation rate increases.

Question 11

Jesse just graduated from university, and is looking for her first job.Jesse is

Accepted Answer

A) frictionally unemployed. 
B) structurally unemployed. 
C) not unemployed. 
D) cyclically unemployed. 
E) not in the labour force. 
A) frictionally unemployed. 
B) structurally unemployed. 
C) not unemployed. 
D) cyclically unemployed. 
E) not in the labour force.

Question 12

R1 is

Accepted Answer

A) the official unemployment rate. 
B) the unemployment rate that adds discouraged searchers to the official rate. 
C) long- term unemployment. 
D) short- term unemployment. 
E) comparable to the official U.S.rate. 
A) the official unemployment rate. 
B) the unemployment rate that adds discouraged searchers to the official rate. 
C) long- term unemployment. 
D) short- term unemployment. 
E) comparable to the official U.S.rate.

Question 13

R4 is

Accepted Answer

A) long- term unemployment. 
B) the official unemployment rate. 
C) comparable to the official U.S.rate. 
D) short- term unemployment. 
E) the unemployment rate that adds discouraged searchers to the official rate. 
A) long- term unemployment. 
B) the official unemployment rate. 
C) comparable to the official U.S.rate. 
D) short- term unemployment. 
E) the unemployment rate that adds discouraged searchers to the official rate.

Question 14

Which of the following are not included in the working- age population?

Accepted Answer

A) retired workers 
B) students over the age of 15 
C) children under the age of 15 
D) discouraged searchers 
E) involuntary part- time workers 
A) retired workers 
B) students over the age of 15 
C) children under the age of 15 
D) discouraged searchers 
E) involuntary part- time workers

Question 15

Which one of the following people is cyclically unemployed?

Accepted Answer

A) a Nova Scotia fishery worker who is searching for a better job closer to home 
B) a steel worker who is laid off but who expects to be called back soon 
C) a student who recently graduated and is looking for work 
D) a Saskatchewan welder who lost her job when her company relocated to B.C.and is currently looking for a job 
E) an office worker who has lost her job because of a general slowdown in economic activity 
A) a Nova Scotia fishery worker who is searching for a better job closer to home 
B) a steel worker who is laid off but who expects to be called back soon 
C) a student who recently graduated and is looking for work 
D) a Saskatchewan welder who lost her job when her company relocated to B.C.and is currently looking for a job 
E) an office worker who has lost her job because of a general slowdown in economic activity

Question 16

Counting involuntary part- time workers as unemployed would

Accepted Answer

A) lower the measured unemployment rate. 
B) raise the employment rate. 
C) not change the actual unemployment rate. 
D) raise the natural unemployment rate. 
E) raise the measured unemployment rate. 
A) lower the measured unemployment rate. 
B) raise the employment rate. 
C) not change the actual unemployment rate. 
D) raise the natural unemployment rate. 
E) raise the measured unemployment rate.

Question 17

If the CPI was 95 at the end of 2016 and 105 at the end of 2017, what was the inflation rate in 2017?

Accepted Answer

A) 5 percent 
B) 10 percent 
C) 10.5 percent 
D) 105 percent 
E) 9.5 percent 
A) 5 percent 
B) 10 percent 
C) 10.5 percent 
D) 105 percent 
E) 9.5 percent

Question 18

If the number of discouraged searchers increases, everything else remaining the same, then the

Accepted Answer

A) unemployment rate increases. 
B) employment rate decreases. 
C) labour force participation rate decreases. 
D) labour force participation rate increases. 
E) employment rate increases. 
A) unemployment rate increases. 
B) employment rate decreases. 
C) labour force participation rate decreases. 
D) labour force participation rate increases. 
E) employment rate increases.

Question 19

Commodity substitution bias in the CPI refers to the fact that the CPI

Accepted Answer

A) takes into account the substitution of goods by consumers when relative prices change. 
B) takes no account of the substitution of goods by consumers when relative prices change. 
C) substitutes relative prices for absolute prices of goods. 
D) accounts for improved quality in price rises. 
E) substitutes quality changes whenever they occur without taking account of the cost of the quality changes. 
A) takes into account the substitution of goods by consumers when relative prices change. 
B) takes no account of the substitution of goods by consumers when relative prices change. 
C) substitutes relative prices for absolute prices of goods. 
D) accounts for improved quality in price rises. 
E) substitutes quality changes whenever they occur without taking account of the cost of the quality changes.

Question 20

If the working- age population increases, then

Accepted Answer

A) the unemployment rate increases. 
B) the total number of people aged 15 years and above increases. 
C) the size of the labour force increases. 
D) the labour force participation rate increases. 
E) the number of people employed increases. 
A) the unemployment rate increases. 
B) the total number of people aged 15 years and above increases. 
C) the size of the labour force increases. 
D) the labour force participation rate increases. 
E) the number of people employed increases.

The method used to calculate the CPI assumes that consumers buy

The cost of the CPI basket in base- period prices is $200 and the cost of the CPI basket in current- period prices is $450.The CPI in the current year is

If the economy is operating at full employment, then

If the unemployment rate is 4.5 percent and the natural unemployment rate is 5.5 percent, then

Suppose that the price level in China was 100 in 2007, 110 in 2008, 120 in 2009, and 130 in 2011.Over this time period,

If the economy is at full employment, then

Which one of the following people is structurally unemployed?

If the people who take early retirement are not counted in the working- age population, then

If the CPI was 180 at the end of 2016, and 216 at the end of 2017, the inflation rate in 2017 was

In an expansion, typically

Jesse just graduated from university, and is looking for her first job.Jesse is

R1 is

R4 is

Which of the following are not included in the working- age population?

Which one of the following people is cyclically unemployed?

Counting involuntary part- time workers as unemployed would

If the CPI was 95 at the end of 2016 and 105 at the end of 2017, what was the inflation rate in 2017?

If the number of discouraged searchers increases, everything else remaining the same, then the

Commodity substitution bias in the CPI refers to the fact that the CPI

If the working- age population increases, then

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 Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 5: Monitoring Jobs and Inflation

The method used to calculate the CPI assumes that consumers buy

The cost of the CPI basket in base- period prices is $200 and the cost of the CPI basket in current- period prices is $450.The CPI in the current year is

If the economy is operating at full employment, then

If the unemployment rate is 4.5 percent and the natural unemployment rate is 5.5 percent, then

Suppose that the price level in China was 100 in 2007, 110 in 2008, 120 in 2009, and 130 in 2011.Over this time period,

If the economy is at full employment, then

Which one of the following people is structurally unemployed?

If the people who take early retirement are not counted in the working- age population, then

If the CPI was 180 at the end of 2016, and 216 at the end of 2017, the inflation rate in 2017 was

In an expansion, typically

Jesse just graduated from university, and is looking for her first job.Jesse is

R1 is

R4 is

Which of the following are not included in the working- age population?

Which one of the following people is cyclically unemployed?

Counting involuntary part- time workers as unemployed would

If the CPI was 95 at the end of 2016 and 105 at the end of 2017, what was the inflation rate in 2017?

If the number of discouraged searchers increases, everything else remaining the same, then the

Commodity substitution bias in the CPI refers to the fact that the CPI

If the working- age population increases, then

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 Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters