Question 1

A person who leaves the labor force because they could not find a job is called:

Accepted Answer

A)  a dissatisfied worker. 
B)  a disgruntled worker. 
C)  a discouraged worker. 
D)  a disbarred worker. 
A)  a dissatisfied worker. 
B)  a disgruntled worker. 
C)  a discouraged worker. 
D)  a disbarred worker.

Question 2

You are an employee of the Bureau of Labor Statistics involved in the monthly survey of households used to estimate the unemployment rate. In each of the following cases, classify the individual as frictionally, structurally, or cyclically unemployed. Explain your classification.
(a) There has been a general economic slowdown. Because of weak demand, Andy Capp has lost his job at the docks.
(b) Phil McCafferty, a newly qualified dental school graduate, is looking for a place to set up practice.
(c) Coal miner Ned Ludd is thrown out of work by the introduction of a more mechanized production process.
(d) Latosha Hogan, a computer programmer with a large bank, quit her job two months ago in search of a better- paid programming position. She is still looking.

Accepted Answer

(a) Andy is cyclically unemployed. He ha

Question 3

Bob is unemployed if he:

Accepted Answer

A)  is not looking for a job. 
B)  looked for a job for two months and then quit looking. 
C)  is temporarily laid off. 
D)  A and C are correct. 
A)  is not looking for a job. 
B)  looked for a job for two months and then quit looking. 
C)  is temporarily laid off. 
D)  A and C are correct.

Question 4

If you expect that the inflation rate is 5 percent and the actual inflation rate turned out to be exactly 5 percent, then:

Accepted Answer

A)  lenders gain. 
B)  borrowers gain. 
C)  both the borrowers and lenders gain. 
D)  neither borrowers nor lenders gain. 
A)  lenders gain. 
B)  borrowers gain. 
C)  both the borrowers and lenders gain. 
D)  neither borrowers nor lenders gain.

Question 5

The number of people classified as employed is 220,000 and the number of people classified as unemployed is 30,000. The size of the labor force:

Accepted Answer

A)  equals 300,000. 
B)  equals 200,000. 
C)  equals 250,000. 
D)  cannot be determined from this information. 
A)  equals 300,000. 
B)  equals 200,000. 
C)  equals 250,000. 
D)  cannot be determined from this information.

Question 6

The demand for refrigerators falls when the economy enters a downturn. If a refrigerator manufacturer lays off workers during an economic downturn, this would be an example of:

Accepted Answer

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

Question 7

The portion of unemployment that is due to the mismatch between skills and jobs is called _______ unemployment.

Accepted Answer

A)  frictional 
B)  cyclical 
C)  discouraged- worker 
D)  structural 
A)  frictional 
B)  cyclical 
C)  discouraged- worker 
D)  structural

Question 8

-Refer to Table 6.4. The labor- force participation rate equals:

Accepted Answer

A)  3.7%. 
B)  83.5%. 
C)  66.6%. 
D)  3.1%. 
A)  3.7%. 
B)  83.5%. 
C)  66.6%. 
D)  3.1%.

Question 9

The CPI somewhat overstates changes in the cost of living while the GDP chain index does not.

Accepted Answer

A) True 
 B)False

Question 10

Recall Application 3, "Social Norms, Unemployment ,and Perceived Happiness," to answer the following questions:
-According to the application, men suffered _ in well- being when _ were also unemployed.

Accepted Answer

A)  a larger decline; their peers 
B)  a smaller decline; their peers 
C)  a smaller increase; their family 
D)  a larger decline; their family 
A)  a larger decline; their peers 
B)  a smaller decline; their peers 
C)  a smaller increase; their family 
D)  a larger decline; their family

Question 11

-Refer to Table 6.13. If 2000 is the base year, the inflation rate between 1999 and 2001 is:

Accepted Answer

A)  9%. 
B)  114%. 
C)  1.4%. 
D)  14%. 
A)  9%. 
B)  114%. 
C)  1.4%. 
D)  14%.

Question 12

Which of the following individuals are hurt when the economy experiences unanticipated inflation?

Accepted Answer

A)  savers 
B)  fixed income earners 
C)  lenders 
D)  All of the above are hurt by unanticipated inflation. 
A)  savers 
B)  fixed income earners 
C)  lenders 
D)  All of the above are hurt by unanticipated inflation.

Question 13

Carla lost her job and immediately started looking for another job. As a result the:

Accepted Answer

A)  unemployment rate remains constant. 
B)  labor force increases. 
C)  unemployment rate increases. 
D)  labor force decreases. 
A)  unemployment rate remains constant. 
B)  labor force increases. 
C)  unemployment rate increases. 
D)  labor force decreases.

Question 14

-Refer to Table 6.3. The unemployment rate equals:

Accepted Answer

A)  5.0%. 
B)  4.4%. 
C)  2.8%. 
D)  4.2%. 
A)  5.0%. 
B)  4.4%. 
C)  2.8%. 
D)  4.2%.

Question 15

When people who are not working start looking for jobs, the labor- force participation rate increases.

Accepted Answer

A) True 
 B)False

Question 16

If there were no frictional unemployment the economy would grow faster.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is correct? The unemployment rate is:

Accepted Answer

A)  ((employed - labor force)/employed) x 100. 
B)  ((labor force - employed)/labor force) x 100. 
C)  (unemployed/population) x 100. 
D)  ((employed - unemployed)/labor force) x 100. 
A)  ((employed - labor force)/employed) x 100. 
B)  ((labor force - employed)/labor force) x 100. 
C)  (unemployed/population) x 100. 
D)  ((employed - unemployed)/labor force) x 100.

Question 18

A man is fired from his job because he was late for work too many times. While taking a break from searching for another job he would be classified as:

Accepted Answer

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

Question 19

-Refer to Table 6.4. The unemployment rate rate equals:

Accepted Answer

A)  83.5%. 
B)  3.1%. 
C)  66.6%. 
D)  3.7%. 
A)  83.5%. 
B)  3.1%. 
C)  66.6%. 
D)  3.7%.

Question 20

A price index is:

Accepted Answer

A)  a sustained increase in the overall price level. 
B)  a measurement showing the cost of a bundle of goods at a point in time. 
C)  a decrease in the overall price level. 
D)  a measurement showing how the average price of a bundle of goods changes over time. 
A)  a sustained increase in the overall price level. 
B)  a measurement showing the cost of a bundle of goods at a point in time. 
C)  a decrease in the overall price level. 
D)  a measurement showing how the average price of a bundle of goods changes over time.

A person who leaves the labor force because they could not find a job is called:

Bob is unemployed if he:

If you expect that the inflation rate is 5 percent and the actual inflation rate turned out to be exactly 5 percent, then:

The number of people classified as employed is 220,000 and the number of people classified as unemployed is 30,000. The size of the labor force:

The demand for refrigerators falls when the economy enters a downturn. If a refrigerator manufacturer lays off workers during an economic downturn, this would be an example of:

The portion of unemployment that is due to the mismatch between skills and jobs is called _______ unemployment.

-Refer to Table 6.4. The labor- force participation rate equals:

The CPI somewhat overstates changes in the cost of living while the GDP chain index does not.

Recall Application 3, "Social Norms, Unemployment ,and Perceived Happiness," to answer the following questions: -According to the application, men suffered _ in well- being when _ were also unemployed.

-Refer to Table 6.13. If 2000 is the base year, the inflation rate between 1999 and 2001 is:

Which of the following individuals are hurt when the economy experiences unanticipated inflation?

Carla lost her job and immediately started looking for another job. As a result the:

-Refer to Table 6.3. The unemployment rate equals:

When people who are not working start looking for jobs, the labor- force participation rate increases.

If there were no frictional unemployment the economy would grow faster.

Which of the following is correct? The unemployment rate is:

A man is fired from his job because he was late for work too many times. While taking a break from searching for another job he would be classified as:

-Refer to Table 6.4. The unemployment rate rate equals:

A price index is:

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

A person who leaves the labor force because they could not find a job is called:

Bob is unemployed if he:

If you expect that the inflation rate is 5 percent and the actual inflation rate turned out to be exactly 5 percent, then:

The number of people classified as employed is 220,000 and the number of people classified as unemployed is 30,000. The size of the labor force:

The demand for refrigerators falls when the economy enters a downturn. If a refrigerator manufacturer lays off workers during an economic downturn, this would be an example of:

The portion of unemployment that is due to the mismatch between skills and jobs is called _______ unemployment.

-Refer to Table 6.4. The labor- force participation rate equals:

The CPI somewhat overstates changes in the cost of living while the GDP chain index does not.

Recall Application 3, "Social Norms, Unemployment ,and Perceived Happiness," to answer the following questions: -According to the application, men suffered _ in well- being when _ were also unemployed.

-Refer to Table 6.13. If 2000 is the base year, the inflation rate between 1999 and 2001 is:

Which of the following individuals are hurt when the economy experiences unanticipated inflation?

Carla lost her job and immediately started looking for another job. As a result the:

-Refer to Table 6.3. The unemployment rate equals:

When people who are not working start looking for jobs, the labor- force participation rate increases.

If there were no frictional unemployment the economy would grow faster.

Which of the following is correct? The unemployment rate is:

A man is fired from his job because he was late for work too many times. While taking a break from searching for another job he would be classified as:

-Refer to Table 6.4. The unemployment rate rate equals:

A price index is:

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