Question 1

Exhibit 6-2
  
-Refer to Exhibit 6-2. How many unemployed persons are there in year 4?

Accepted Answer

A) 80 million 
B) 100 million 
C) 150 million 
D) 350 million 
E) 400 million 
A) 80 million 
B) 100 million 
C) 150 million 
D) 350 million 
E) 400 million

Question 2

The difference between the existing unemployment rate and the natural unemployment rate is defined is the __________ unemployment rate.

Accepted Answer

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

Question 3

Exhibit 6-2
  
-Refer to Exhibit 6-2. How many unemployed persons are there in year 3?

Accepted Answer

A) 50 million 
B) 100 million 
C) 150 million 
D) 350 million 
E) 400 million 
A) 50 million 
B) 100 million 
C) 150 million 
D) 350 million 
E) 400 million

Question 4

Smith's income was $50,000 in year 1 and $55,600 in year 2. The CPI was 114 in year 1 and 124 in year 2. What was the approximate percentage change in Smith's real income between the two years?

Accepted Answer

A) -2.2 percent 
B) +3.4 percent 
C) -1.7 percent 
D) +5.6 percent 
E) +2.2 percent 
A) -2.2 percent 
B) +3.4 percent 
C) -1.7 percent 
D) +5.6 percent 
E) +2.2 percent

Question 5

Which of the following statements is false?

Accepted Answer

A) The sum of the unemployment rate and the employment rate always equals 100 percent. 
B) The sum of the number of employed persons and the number of unemployed persons equals the civilian non-institutional population. 
C) The labor force participation rate equals the number of persons in the civilian labor force divided by the number of persons in the total population. 
D) a, b, and c 
A) The sum of the unemployment rate and the employment rate always equals 100 percent. 
B) The sum of the number of employed persons and the number of unemployed persons equals the civilian non-institutional population. 
C) The labor force participation rate equals the number of persons in the civilian labor force divided by the number of persons in the total population. 
D) a, b, and c

Question 6

Exhibit 6-2
  
-Refer to Exhibit 6-2. How many unemployed persons are there in year 1?

Accepted Answer

A) 25 million 
B) 50 million 
C) 75 million 
D) 175 million 
E) 200 million 
A) 25 million 
B) 50 million 
C) 75 million 
D) 175 million 
E) 200 million

Question 7

In an economy with 200 million people, 140 million hold civilian jobs and 9 million are not working but are looking for jobs. The unemployment rate is

Accepted Answer

A) 6.4% 
B) 6.0%. 
C) 9.2%. 
D) 27.4%. 
E) 4.5% 
A) 6.4% 
B) 6.0%. 
C) 9.2%. 
D) 27.4%. 
E) 4.5%

Question 8

Exhibit 6-2
  
-Refer to Exhibit 6-2. How many persons are not participating in the labor force in year 3?

Accepted Answer

A) 50 million 
B) 100 million 
C) 150 million 
D) 350 million 
E) 400 million 
A) 50 million 
B) 100 million 
C) 150 million 
D) 350 million 
E) 400 million

Question 9

Exhibit 6-2
  
-Refer to Exhibit 6-2. The labor force participation rate in year 3 is

Accepted Answer

A) 12 1/2 percent. 
B) 70 percent. 
C) 80 percent. 
D) 30 percent. 
E) 50 percent. 
A) 12 1/2 percent. 
B) 70 percent. 
C) 80 percent. 
D) 30 percent. 
E) 50 percent.

Question 10

Suppose there are 200 million persons in the population, 120 million persons in the civilian labor force, and 90 million persons are employed. The number of persons unemployed is _______ million and the unemployment rate is ___________ percent.

Accepted Answer

A) 30; 25 
B) 30; 33 
C) 30; 5 
D) 80; 40 
A) 30; 25 
B) 30; 33 
C) 30; 5 
D) 80; 40

Question 11

Exhibit 6-2
  
-Refer to Exhibit 6-2. The employment rate in year 1 is

Accepted Answer

A) 12 1/2 percent. 
B) 70 percent. 
C) 87 1/2 percent. 
D) 30 percent. 
E) 10 percent. 
A) 12 1/2 percent. 
B) 70 percent. 
C) 87 1/2 percent. 
D) 30 percent. 
E) 10 percent.

Question 12

When flat screen televisions were first introduced in 1997 they were priced at $15,000. If the CPI in 1997 was 160 and the CPI in 2019 is 265, then this price is equivalent to approximately ______________________in 2019 dollars. If the average flat screen TV sells for $550 in 2019, the percentage change between the inflation-adjusted price of a flat screen TV in 1997 and the actual price in 2019 price is ___________.

Accepted Answer

A) $15,469; -96.4 percent 
B) $19,887; -95.6 percent 
C) $24,844; -97.7 percent 
D) $154; 3.6 percent 
E) $367; 8.3 percent 
A) $15,469; -96.4 percent 
B) $19,887; -95.6 percent 
C) $24,844; -97.7 percent 
D) $154; 3.6 percent 
E) $367; 8.3 percent

Question 13

Look at the following data: The frictional unemployment rate is 3 percent, the natural unemployment rate is 6.5 percent, and the cyclical unemployment rate is 2.4 percent. The structural unemployment rate is __________ percent and the actual unemployment rate (in this economy) is __________ percent.

Accepted Answer

A) 3; 8.9 
B) 3.5; 8.9 
C) 3.5; 9.5 
D) 5.4; 2.4 
E) none of the above 
A) 3; 8.9 
B) 3.5; 8.9 
C) 3.5; 9.5 
D) 5.4; 2.4 
E) none of the above

Question 14

If the CPI is 100 in the base year and 106 in the current year, how much did prices rise between the base year and the current year?

Accepted Answer

A) 6 percent 
B) 106 percent 
C) 1.06 percent 
D) 0.06 percent 
E) 60 percent 
A) 6 percent 
B) 106 percent 
C) 1.06 percent 
D) 0.06 percent 
E) 60 percent

Question 15

The number of employed persons plus the number of unemployed persons equals the number of persons

Accepted Answer

A) in the total population. 
B) in the civilian noninstitutional population. 
C) in the civilian labor force. 
D) not in the labor force. 
E) none of the above 
A) in the total population. 
B) in the civilian noninstitutional population. 
C) in the civilian labor force. 
D) not in the labor force. 
E) none of the above

Question 16

Exhibit 6-2
  
-Refer to Exhibit 6-2. The labor force participation rate in year 1 is

Accepted Answer

A) 12 1/2 percent. 
B) 80 percent. 
C) 87 1/2 percent. 
D) 70 percent. 
E) 10 percent. 
A) 12 1/2 percent. 
B) 80 percent. 
C) 87 1/2 percent. 
D) 70 percent. 
E) 10 percent.

Question 17

Exhibit 6-2
  
-Refer to Exhibit 6-2. The employment rate in year 3 is

Accepted Answer

A) 12 1/2 percent. 
B) 33 1/3 percent. 
C) 70 percent. 
D) 66 2/3 percent. 
E) 25 percent. 
A) 12 1/2 percent. 
B) 33 1/3 percent. 
C) 70 percent. 
D) 66 2/3 percent. 
E) 25 percent.

Question 18

If there are 10 job losers, 12 job leavers, 13 reentrants, and 12 new entrants, then there are __________ unemployed persons.

Accepted Answer

A) 35 
B) 47 
C) 25 
D) 37 
E) There is not enough information to answer the question. 
A) 35 
B) 47 
C) 25 
D) 37 
E) There is not enough information to answer the question.

Question 19

Jones lost his job in industry A, but he has skills that can be transferred to industry B (which is currently hiring). Smith lost a job in industry C, but his skills cannot be transferred to industry B or to any other industry. Jones is __________ unemployed and Smith is __________ unemployed.

Accepted Answer

A) structurally; frictionally 
B) structurally; structurally 
C) frictionally; frictionally 
D) frictionally; structurally 
A) structurally; frictionally 
B) structurally; structurally 
C) frictionally; frictionally 
D) frictionally; structurally

Question 20

Exhibit 6-2
  
-Refer to Exhibit 6-2. The labor force participation rate in year 4 is

Accepted Answer

A) 12 1/2 percent. 
B) 72 percent. 
C) 87 1/2 percent. 
D) 30 percent. 
E) 80 percent. 
A) 12 1/2 percent. 
B) 72 percent. 
C) 87 1/2 percent. 
D) 30 percent. 
E) 80 percent.

Exam 6: Macroeconomic Measurements Part I Prices and Unemployment

Exhibit 6-2 -Refer to Exhibit 6-2. How many unemployed persons are there in year 4?

The difference between the existing unemployment rate and the natural unemployment rate is defined is the __________ unemployment rate.

Exhibit 6-2 -Refer to Exhibit 6-2. How many unemployed persons are there in year 3?

Smith's income was $50,000 in year 1 and $55,600 in year 2. The CPI was 114 in year 1 and 124 in year 2. What was the approximate percentage change in Smith's real income between the two years?

Which of the following statements is false?

Exhibit 6-2 -Refer to Exhibit 6-2. How many unemployed persons are there in year 1?

In an economy with 200 million people, 140 million hold civilian jobs and 9 million are not working but are looking for jobs. The unemployment rate is

Exhibit 6-2 -Refer to Exhibit 6-2. How many persons are not participating in the labor force in year 3?

Exhibit 6-2 -Refer to Exhibit 6-2. The labor force participation rate in year 3 is

Suppose there are 200 million persons in the population, 120 million persons in the civilian labor force, and 90 million persons are employed. The number of persons unemployed is _______ million and the unemployment rate is ___________ percent.

Exhibit 6-2 -Refer to Exhibit 6-2. The employment rate in year 1 is

If the CPI is 100 in the base year and 106 in the current year, how much did prices rise between the base year and the current year?

The number of employed persons plus the number of unemployed persons equals the number of persons

Exhibit 6-2 -Refer to Exhibit 6-2. The labor force participation rate in year 1 is

Exhibit 6-2 -Refer to Exhibit 6-2. The employment rate in year 3 is

If there are 10 job losers, 12 job leavers, 13 reentrants, and 12 new entrants, then there are __________ unemployed persons.

Jones lost his job in industry A, but he has skills that can be transferred to industry B (which is currently hiring). Smith lost a job in industry C, but his skills cannot be transferred to industry B or to any other industry. Jones is __________ unemployed and Smith is __________ unemployed.

Exhibit 6-2 -Refer to Exhibit 6-2. The labor force participation rate in year 4 is

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand Theory

Prices Free Controlled and Relative

Supply Demand and Price Applications

Macroeconomic Measurements Part II Gdp and Real Gdp

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self Regulating Economy

Keynesian Macroeconomics and Economic Instability a Critique of the Self Regulating Economy

Fiscal Policy and the Federal Budget

Money Banking and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth Resources Technology Ideas and Institutions

Debates in Macroeconomics Over the Role and Effects of Government

Elasticity

Consumer Choice and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition Oligopoly and Game Theory

Government and Product Markets Antitrust and Regulation

Factor Markets With Emphasis on the Labor Market

Wages Unions and Labor

The Distribution of Income and Poverty

Interest Rent and Profit

Market Failure Externalities Public Goods and Asymmetric Information

Public Choice and Special Interest Group Politics

Building Theories to Explain Everyday Life From Observations to Questions to Theories to Predictions

International Trade

International Finance

The Economic Case for and Against Government Five Topics Considered

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Filters

Suppose there are 200 million persons in the population, 120 million persons in the civilian labor force, and 90 million persons are employed. The number of persons unemployed is _ million and the unemployment rate is _____ percent.

Jones lost his job in industry A, but he has skills that can be transferred to industry B (which is currently hiring). Smith lost a job in industry C, but his skills cannot be transferred to industry B or to any other industry. Jones is unemployed and Smith is unemployed.