Question 1

An individual who cannot find a job because his or her job skills have become obsolete is an example of:

Accepted Answer

A)  frictional unemployment. 
B)  seasonal unemployment. 
C)  structural unemployment. 
D)  cyclical unemployment. 
A)  frictional unemployment. 
B)  seasonal unemployment. 
C)  structural unemployment. 
D)  cyclical unemployment. C

Question 2

The statistics on unemployment usually shows that men

Accepted Answer

A)  have lower unemployment rates than women. 
B)  and women have roughly the same unemployment rates. 
C)  have higher unemployment rates than women. 
D)  and women have zero unemployment rates. 
A)  have lower unemployment rates than women. 
B)  and women have roughly the same unemployment rates. 
C)  have higher unemployment rates than women. 
D)  and women have zero unemployment rates. C

Question 3

-Refer to Table 6.2. The total number of people unemployed is:

Accepted Answer

A)  6.83 million. 
B)  7.58 million. 
C)  73.5 million. 
D)  10.5 million. 
A)  6.83 million. 
B)  7.58 million. 
C)  73.5 million. 
D)  10.5 million. A

Question 4

Discouraged workers are workers who leave the labor force because of:

Accepted Answer

A)  their inability to find jobs. 
B)  the difficulty of finding transportation. 
C)  difficulty of finding appropriate childcare. 
D)  All of the above are correct. 
A)  their inability to find jobs. 
B)  the difficulty of finding transportation. 
C)  difficulty of finding appropriate childcare. 
D)  All of the above are correct.

Question 5

Changes in the unemployment that occur as the economy expands and contracts are called _______ unemployment.

Accepted Answer

A)  frictional 
B)  the natural rate of 
C)  structural 
D)  cyclical 
A)  frictional 
B)  the natural rate of 
C)  structural 
D)  cyclical

Question 6

Payments received from the government upon becoming unemployed is called:

Accepted Answer

A)  welfare. 
B)  unemployment salary. 
C)  social security. 
D)  unemployment insurance. 
A)  welfare. 
B)  unemployment salary. 
C)  social security. 
D)  unemployment insurance.

Question 7

If the economy is experiencing 50 percent inflation per month, then a donut that costs $1.50 today will cost about _______ next year.

Accepted Answer

A)  $160 
B)  $2.25 
C)  $75 
D)  $195 
A)  $160 
B)  $2.25 
C)  $75 
D)  $195

Question 8

The index used most often to measure prices paid by households is the:

Accepted Answer

A)  consumer price index. 
B)  wholesale price index. 
C)  GDP deflator. 
D)  producer price index. 
A)  consumer price index. 
B)  wholesale price index. 
C)  GDP deflator. 
D)  producer price index.

Question 9

The component of unemployment that is substantially influenced by calendar- related effects are called:

Accepted Answer

A)  weather unemployment. 
B)  seasonal unemployment. 
C)  holiday unemployment. 
D)  calendar unemployment. 
A)  weather unemployment. 
B)  seasonal unemployment. 
C)  holiday unemployment. 
D)  calendar unemployment.

Question 10

Is seasonal unemployment one of the basic types of unemployment? Explain why or why not.

Accepted Answer

Seasonal unemployment is not one of the

Question 11

An increase in the number of discouraged workers will cause the:

Accepted Answer

A)  unemployment rate to decrease and the labor force to decrease. 
B)  unemployment rate to increase and the labor force to increase. 
C)  unemployment rate to decrease and the labor force to increase. 
D)  unemployment rate to increase and the labor force to decrease. 
A)  unemployment rate to decrease and the labor force to decrease. 
B)  unemployment rate to increase and the labor force to increase. 
C)  unemployment rate to decrease and the labor force to increase. 
D)  unemployment rate to increase and the labor force to decrease.

Question 12

If the labor- force participation rate is 85% and the total population 16 years of age or older is one million people, the labor force is:

Accepted Answer

A)  850,000 people. 
B)  180,000 people. 
C)  280,000 people. 
D)  80,000 people. 
A)  850,000 people. 
B)  180,000 people. 
C)  280,000 people. 
D)  80,000 people.

Question 13

According to the application, as more individuals avail of disability benefits,

Accepted Answer

A)  the unemployment rate increases because they are not part of the labor force. 
B)  the unemployment rate decreases because they are not part of the labor force. 
C)  the unemployment rate decreases because they are now considered employed. 
D)  the unemployment rate increases because they are now considered unemployed. 
A)  the unemployment rate increases because they are not part of the labor force. 
B)  the unemployment rate decreases because they are not part of the labor force. 
C)  the unemployment rate decreases because they are now considered employed. 
D)  the unemployment rate increases because they are now considered unemployed.

Question 14

When the inflation rate exceeds 50 percent per month, the economy is experiencing:

Accepted Answer

A)  unanticipated inflation. 
B)  hyperinflation. 
C)  anticipated inflation. 
D)  hyperdeflation. 
A)  unanticipated inflation. 
B)  hyperinflation. 
C)  anticipated inflation. 
D)  hyperdeflation.

Question 15

The labor force participation rate is the ratio of the:

Accepted Answer

A)  labor force to the total population 16 years old or older. 
B)  number employed to total population. 
C)  number employed to the total population 16 years old or older. 
D)  labor force to total population. 
A)  labor force to the total population 16 years old or older. 
B)  number employed to total population. 
C)  number employed to the total population 16 years old or older. 
D)  labor force to total population.

Question 16

A disadvantage of prolonged unemployment is that it causes a worker to lose some of his skills.

Accepted Answer

A) True 
 B)False

Question 17

As the number of discouraged workers increases, we would expect that the unemployment rate would increase.

Accepted Answer

A) True 
 B)False

Question 18

The economy is in a recession and the housing market is in a slump. As a result of this, a real estate firm lays off half of its real estate agents. This is an example of:

Accepted Answer

A)  natural unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  frictional unemployment. 
A)  natural unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  frictional unemployment.

Question 19

When people who were previously looking for jobs stop looking for jobs, they are classified as:

Accepted Answer

A)  employed. 
B)  in the labor force. 
C)  unemployed. 
D)  not in the labor force. 
A)  employed. 
B)  in the labor force. 
C)  unemployed. 
D)  not in the labor force.

Question 20

Both the CPI and the chain index for GDP understate actual changes in prices.

Accepted Answer

A) True 
 B)False

An individual who cannot find a job because his or her job skills have become obsolete is an example of:

The statistics on unemployment usually shows that men

-Refer to Table 6.2. The total number of people unemployed is:

Discouraged workers are workers who leave the labor force because of:

Changes in the unemployment that occur as the economy expands and contracts are called _______ unemployment.

Payments received from the government upon becoming unemployed is called:

If the economy is experiencing 50 percent inflation per month, then a donut that costs $1.50 today will cost about _______ next year.

The index used most often to measure prices paid by households is the:

The component of unemployment that is substantially influenced by calendar- related effects are called:

Is seasonal unemployment one of the basic types of unemployment? Explain why or why not.

An increase in the number of discouraged workers will cause the:

If the labor- force participation rate is 85% and the total population 16 years of age or older is one million people, the labor force is:

According to the application, as more individuals avail of disability benefits,

When the inflation rate exceeds 50 percent per month, the economy is experiencing:

The labor force participation rate is the ratio of the:

A disadvantage of prolonged unemployment is that it causes a worker to lose some of his skills.

As the number of discouraged workers increases, we would expect that the unemployment rate would increase.

The economy is in a recession and the housing market is in a slump. As a result of this, a real estate firm lays off half of its real estate agents. This is an example of:

When people who were previously looking for jobs stop looking for jobs, they are classified as:

Both the CPI and the chain index for GDP understate actual changes in prices.

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand, Supply, and Market Equilibrium

Measuring a Nations Production and Income

The Economy at Full Employment

Why Do Economies Grow

Aggregate Demand and Aggregate Supply

Fiscal Policy

The Income-Expenditure Model

Investment and Financial Markets

Money and the Banking System

The Federal Reserve and Monetary Policy

Modern Macroeconomics: From the Short Run to the Long Run

The Dynamics of Inflation and Unemployment

Macroeconomic Policy Debates

International Trade and Public Policy

The World of International Finance

Filters

Exam 6: Unemployment and Inflation

An individual who cannot find a job because his or her job skills have become obsolete is an example of:

The statistics on unemployment usually shows that men

-Refer to Table 6.2. The total number of people unemployed is:

Discouraged workers are workers who leave the labor force because of:

Changes in the unemployment that occur as the economy expands and contracts are called _______ unemployment.

Payments received from the government upon becoming unemployed is called:

If the economy is experiencing 50 percent inflation per month, then a donut that costs $1.50 today will cost about _______ next year.

The index used most often to measure prices paid by households is the:

The component of unemployment that is substantially influenced by calendar- related effects are called:

Is seasonal unemployment one of the basic types of unemployment? Explain why or why not.

An increase in the number of discouraged workers will cause the:

If the labor- force participation rate is 85% and the total population 16 years of age or older is one million people, the labor force is:

According to the application, as more individuals avail of disability benefits,

When the inflation rate exceeds 50 percent per month, the economy is experiencing:

The labor force participation rate is the ratio of the:

A disadvantage of prolonged unemployment is that it causes a worker to lose some of his skills.

As the number of discouraged workers increases, we would expect that the unemployment rate would increase.

The economy is in a recession and the housing market is in a slump. As a result of this, a real estate firm lays off half of its real estate agents. This is an example of:

When people who were previously looking for jobs stop looking for jobs, they are classified as:

Both the CPI and the chain index for GDP understate actual changes in prices.

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand, Supply, and Market Equilibrium

Measuring a Nations Production and Income

The Economy at Full Employment

Why Do Economies Grow

Aggregate Demand and Aggregate Supply

Fiscal Policy

The Income-Expenditure Model

Investment and Financial Markets

Money and the Banking System

The Federal Reserve and Monetary Policy

Modern Macroeconomics: From the Short Run to the Long Run

The Dynamics of Inflation and Unemployment

Macroeconomic Policy Debates

International Trade and Public Policy

The World of International Finance

Filters