Question 1

Of the following sequences of price levels,which correctly represents a 5 percent inflation rate?

Accepted Answer

A) 100, 100, 100, 100 
B) 100, 105, 105, 105 
C) 100, 105, 110, 115 
D) 100, 105, 110.25, 115.76 
E) 95, 100, 105, 110 
A) 100, 100, 100, 100 
B) 100, 105, 105, 105 
C) 100, 105, 110, 115 
D) 100, 105, 110.25, 115.76 
E) 95, 100, 105, 110 D

Question 2

The reference base period is 2002.A consumer price index of 122 in 2012 means that

Accepted Answer

A) prices of consumer goods have gone up by a factor of 12.2. 
B) if the price of a good was $100 in 2002, its price in 2012 is $122. 
C) prices of consumer goods have more than doubled. 
D) the market basket of consumer goods that cost $122 in 2002 can be purchased for $100 in 2012. 
E) the average of the prices paid by urban consumers for a fixed market basket of consumer goods and services was 22 percent higher in 2012 than it was on average during 2002. 
A) prices of consumer goods have gone up by a factor of 12.2. 
B) if the price of a good was $100 in 2002, its price in 2012 is $122. 
C) prices of consumer goods have more than doubled. 
D) the market basket of consumer goods that cost $122 in 2002 can be purchased for $100 in 2012. 
E) the average of the prices paid by urban consumers for a fixed market basket of consumer goods and services was 22 percent higher in 2012 than it was on average during 2002. E

Question 3

Which of the following reflects an increase in unemployment?

Accepted Answer

A) an increase in the employment-to-population ratio 
B) a decrease in the unemployment rate 
C) an increase in the labour force participation rate 
D) an increase in the involuntary part-time rate 
E) none of the above 
A) an increase in the employment-to-population ratio 
B) a decrease in the unemployment rate 
C) an increase in the labour force participation rate 
D) an increase in the involuntary part-time rate 
E) none of the above E

Question 4

In a country with a working-age population of 30 million,18 million are employed,2 million are unemployed,and 2 million of the employed are working part-time,half of whom wish to work full-time.If 1 million of those unemployed are cyclically unemployed,what is the natural unemployment rate?

Accepted Answer

A) 5.6 percent 
B) 5 percent 
C) 6.7 percent 
D) 11.1 percent 
E) none of the above 
A) 5.6 percent 
B) 5 percent 
C) 6.7 percent 
D) 11.1 percent 
E) none of the above

Question 5

The unemployment rate is defined as the number of

Accepted Answer

A) unemployed people divided by the number of employed people. 
B) employed people divided by the number of people in the country. 
C) unemployed people divided by the number of people in the country. 
D) unemployed people divided by the sum of the people employed and the people unemployed. 
E) unemployed people divided by the number of people in the country who are employed. 
A) unemployed people divided by the number of employed people. 
B) employed people divided by the number of people in the country. 
C) unemployed people divided by the number of people in the country. 
D) unemployed people divided by the sum of the people employed and the people unemployed. 
E) unemployed people divided by the number of people in the country who are employed.

Question 6

Rochelle lost her job as a salesperson when sales fell off during the recession.Now she is looking for a new job.Rochelle is

Accepted Answer

A) frictionally unemployed. 
B) structurally unemployed. 
C) not unemployed. 
D) cyclically unemployed. 
E) none of the above. 
A) frictionally unemployed. 
B) structurally unemployed. 
C) not unemployed. 
D) cyclically unemployed. 
E) none of the above.

Question 7

The labour force participation rate is

Accepted Answer

A) the percentage of the working-age population who are employed. 
B) the percentage of the labour force who are unemployed or employed. 
C) the percentage of the working-age population who are either unemployed or employed. 
D) the percentage of the labour force who are employed. 
E) none of the above. 
A) the percentage of the working-age population who are employed. 
B) the percentage of the labour force who are unemployed or employed. 
C) the percentage of the working-age population who are either unemployed or employed. 
D) the percentage of the labour force who are employed. 
E) none of the above.

Question 8

Use the table below to answer the following questions.
Table 21.3.1
Suppose a simple economy produces three goods only.
The price and output data for some selected years are shown below.
  
-Refer to Table 21.3.1.The reference base period is 2012.The CPI in 2012 is

Accepted Answer

A) 100. 
B) 157. 
C) 129. 
D) 64. 
E) 153. 
A) 100. 
B) 157. 
C) 129. 
D) 64. 
E) 153.

Question 9

Which one of the following people is cyclically unemployed?

Accepted Answer

A) a Saskatchewan welder who lost her job when her company relocated to B.C.and is currently looking for a job 
B) a Nova Scotia fishery worker who is searching for a better job closer to home 
C) a steel worker who is laid off but who expects to be called back soon 
D) an office worker who has lost her job because of a general slowdown in economic activity 
E) none of the above 
A) a Saskatchewan welder who lost her job when her company relocated to B.C.and is currently looking for a job 
B) a Nova Scotia fishery worker who is searching for a better job closer to home 
C) a steel worker who is laid off but who expects to be called back soon 
D) an office worker who has lost her job because of a general slowdown in economic activity 
E) none of the above

Question 10

The consumer price index is a measure of

Accepted Answer

A) the average of the prices paid by urban consumers for a fixed basket of consumer goods and services. 
B) the commodity prices paid by urban consumers for a fixed basket of consumer goods and services. 
C) the consumer prices paid by average households for a fixed basket of goods and services. 
D) the average of the prices paid by rural consumers for a fixed basket of consumer goods and services. 
E) the lowest prices paid by urban consumers for a fixed basket of consumer goods and services. 
A) the average of the prices paid by urban consumers for a fixed basket of consumer goods and services. 
B) the commodity prices paid by urban consumers for a fixed basket of consumer goods and services. 
C) the consumer prices paid by average households for a fixed basket of goods and services. 
D) the average of the prices paid by rural consumers for a fixed basket of consumer goods and services. 
E) the lowest prices paid by urban consumers for a fixed basket of consumer goods and services.

Question 11

The working-age population is the total number of people

Accepted Answer

A) in the labour force. 
B) in the labour force who are employed. 
C) aged 15 years and over. 
D) in the labour force, aged 15 years and over. 
E) in the labour force, aged 15 years and over, and employed. 
A) in the labour force. 
B) in the labour force who are employed. 
C) aged 15 years and over. 
D) in the labour force, aged 15 years and over. 
E) in the labour force, aged 15 years and over, and employed.

Question 12

The labour force is

Accepted Answer

A) the total number of people employed. 
B) the total number of people aged 15 years and over. 
C) the total number of people in the working-age population who are employed. 
D) the total number of people in the working-age population who are either employed or unemployed. 
E) none of the above. 
A) the total number of people employed. 
B) the total number of people aged 15 years and over. 
C) the total number of people in the working-age population who are employed. 
D) the total number of people in the working-age population who are either employed or unemployed. 
E) none of the above.

Question 13

If the economy is operating at full employment,then

Accepted Answer

A) everyone who wants a job has one. 
B) the entire labour force is employed. 
C) the unemployment rate is approximately 3 percent. 
D) the unemployment rate is zero. 
E) none of the above. 
A) everyone who wants a job has one. 
B) the entire labour force is employed. 
C) the unemployment rate is approximately 3 percent. 
D) the unemployment rate is zero. 
E) none of the above.

Question 14

In a country with a working-age population of 30 million,18 million are employed,2 million are unemployed,and 2 million of the employed are working part-time,half of whom wish to work full-time.The involuntary part-time rate is

Accepted Answer

A) 10 percent. 
B) 5 percent. 
C) 4.8 percent. 
D) 4.5 percent. 
E) none of the above. 
A) 10 percent. 
B) 5 percent. 
C) 4.8 percent. 
D) 4.5 percent. 
E) none of the above.

Question 15

Complete the following sentence.In an expansion,typically

Accepted Answer

A) unemployment increases. 
B) the labour force participation rate increases. 
C) the employment-to-population ratio decreases. 
D) employment decreases. 
E) both B and D are correct. 
A) unemployment increases. 
B) the labour force participation rate increases. 
C) the employment-to-population ratio decreases. 
D) employment decreases. 
E) both B and D are correct.

Question 16

Caitlin is working part-time at the Mr.G store,but wants to work full-time.She is

Accepted Answer

A) frictionally unemployed. 
B) structurally unemployed. 
C) not in the labour force. 
D) cyclically unemployed. 
E) none of the above. 
A) frictionally unemployed. 
B) structurally unemployed. 
C) not in the labour force. 
D) cyclically unemployed. 
E) none of the above.

Question 17

Who of the following would be counted as unemployed in Canada?

Accepted Answer

A) Caitlin, who is 14 years old, and looking for a babysitting job. 
B) James, who is a full-time student looking for a part-time job. 
C) Youngmin, who is a part-time hamburger flipper looking for a full-time job. 
D) Emmanuel, who lost his job at the steel plant when an automated assembly line was introduced six months ago, and has been job searching every day. 
E) Vik, who has been staying at home watching "The Old and the Boring" soap opera, and not searching since he was laid off at the flour mill. 
A) Caitlin, who is 14 years old, and looking for a babysitting job. 
B) James, who is a full-time student looking for a part-time job. 
C) Youngmin, who is a part-time hamburger flipper looking for a full-time job. 
D) Emmanuel, who lost his job at the steel plant when an automated assembly line was introduced six months ago, and has been job searching every day. 
E) Vik, who has been staying at home watching "The Old and the Boring" soap opera, and not searching since he was laid off at the flour mill.

Question 18

Which of the following statements is incorrect?

Accepted Answer

A) The labour force is equal to the number of people employed plus the number of people unemployed. 
B) The unemployment rate is the number of persons who are unemployed divided by the labour force, all multiplied by 100. 
C) The labour-force participation rate is the labour force divided by the working-age population, all multiplied by 100. 
D) The employment-to-population ratio is the number of people employed divided by the working-age population, all multiplied by 100. 
E) The involuntary part-time rate is the number of involuntary part-time workers divided by the number employed, all multiplied by 100. 
A) The labour force is equal to the number of people employed plus the number of people unemployed. 
B) The unemployment rate is the number of persons who are unemployed divided by the labour force, all multiplied by 100. 
C) The labour-force participation rate is the labour force divided by the working-age population, all multiplied by 100. 
D) The employment-to-population ratio is the number of people employed divided by the working-age population, all multiplied by 100. 
E) The involuntary part-time rate is the number of involuntary part-time workers divided by the number employed, all multiplied by 100.

Question 19

Unemployment caused by permanently decreased demand for horse-drawn carriages is an example of

Accepted Answer

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

Question 20

At full employment,there is no

Accepted Answer

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

Exam 21: Monitoring Jobs and Inflation

Of the following sequences of price levels,which correctly represents a 5 percent inflation rate?

The reference base period is 2002.A consumer price index of 122 in 2012 means that

Which of the following reflects an increase in unemployment?

In a country with a working-age population of 30 million,18 million are employed,2 million are unemployed,and 2 million of the employed are working part-time,half of whom wish to work full-time.If 1 million of those unemployed are cyclically unemployed,what is the natural unemployment rate?

The unemployment rate is defined as the number of

Rochelle lost her job as a salesperson when sales fell off during the recession.Now she is looking for a new job.Rochelle is

The labour force participation rate is

Use the table below to answer the following questions. Table 21.3.1 Suppose a simple economy produces three goods only. The price and output data for some selected years are shown below. -Refer to Table 21.3.1.The reference base period is 2012.The CPI in 2012 is

Which one of the following people is cyclically unemployed?

The consumer price index is a measure of

The working-age population is the total number of people

The labour force is

If the economy is operating at full employment,then

In a country with a working-age population of 30 million,18 million are employed,2 million are unemployed,and 2 million of the employed are working part-time,half of whom wish to work full-time.The involuntary part-time rate is

Complete the following sentence.In an expansion,typically

Caitlin is working part-time at the Mr.G store,but wants to work full-time.She is

Who of the following would be counted as unemployed in Canada?

Which of the following statements is incorrect?

Unemployment caused by permanently decreased demand for horse-drawn carriages is an example of

At full employment,there is no

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