Question 1

If the number of unemployed workers is 200 million,and the number in the labor force is 500 million,what is the unemployment rate?

Accepted Answer

A) 0.4% 
B) 4% 
C) 14% 
D) 40% 
A) 0.4% 
B) 4% 
C) 14% 
D) 40%

Question 2

By offering training to workers whose firms laid them off because of competition from foreign firms,the federal government is attempting to reduce

Accepted Answer

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

Question 3

Which of the following policies would reduce frictional unemployment?

Accepted Answer

A) a decrease in the minimum wage 
B) a job retraining program 
C) implementing an unemployment insurance policy 
D) building an on-line job database that helps workers find jobs 
A) a decrease in the minimum wage 
B) a job retraining program 
C) implementing an unemployment insurance policy 
D) building an on-line job database that helps workers find jobs

Question 4

The base period for CPI calculations is generally 1982-84.In 2005,50% of households accessed the Internet through a broadband connection that would not have existed in the 1980s.This potential for bias in the CPI is referred to as ________ bias and results in ________.

Accepted Answer

A) outlet bias; the CPI underestimating the true change in the cost of living 
B) new product; the CPI overestimating the true change in the cost of living 
C) outlet bias; the CPI overestimating the true change in the cost of living 
D) net product; the CPI underestimating the true change in the cost of living 
A) outlet bias; the CPI underestimating the true change in the cost of living 
B) new product; the CPI overestimating the true change in the cost of living 
C) outlet bias; the CPI overestimating the true change in the cost of living 
D) net product; the CPI underestimating the true change in the cost of living

Question 5

The labor force participation rates of women have rapidly increased since 1948.

Accepted Answer

A) True 
 B)False

Question 6

The reasons why someone cannot get a job are similar to the reasons why someone cannot get a date.Using the ideas of frictionally unemployed,structurally unemployed,and cyclically unemployed,describe and explain how a student at your university might be frictionally "undated," structurally "undated," and cyclically "undated."

Accepted Answer

The frictionally "undated" student does

Question 7

The producer price index tracks the prices firms receive for goods and services at all stages of production.

Accepted Answer

A) True 
 B)False

Question 8

Explain whether you agree or disagree with the following statement: "The reason that inflation is bad is because it increases the cost of living-the costs of goods and services we buy-without increasing income in general."

Accepted Answer

Disagree.Inflation,in general,must incre

Question 9

The unemployment rate is higher with a minimum wage law than it would be without a minimum wage law.

Accepted Answer

A) True 
 B)False

Question 10

In August 2013,the U.S.unemployment rate was highest for

Accepted Answer

A) whites. 
B) Hispanics. 
C) high school dropouts. 
D) African-Americans. 
E) Asians. 
A) whites. 
B) Hispanics. 
C) high school dropouts. 
D) African-Americans. 
E) Asians.

Question 11

To reduce the bias in the consumer price index,the Bureau of Labor Statistics

Accepted Answer

A) updates the market basket every two years, rather than every 10 years. 
B) updates the market basket every 10 years, rather than every two years. 
C) incorporates substitutions by consumers when prices of specific products rise rapidly. 
D) incorporates substitutions by consumers when prices of specific products fall rapidly. 
A) updates the market basket every two years, rather than every 10 years. 
B) updates the market basket every 10 years, rather than every two years. 
C) incorporates substitutions by consumers when prices of specific products rise rapidly. 
D) incorporates substitutions by consumers when prices of specific products fall rapidly.

Question 12

Which of the following causes the unemployment rate to understate the true extent of joblessness?

Accepted Answer

A) Many full time workers really want to be part time workers. 
B) Persons who collect unemployment benefits report themselves to be searching for a job. 
C) Discouraged workers are not counted as unemployed. 
D) A drug dealer reports herself as unemployed. 
E) Discouraged workers are counted as unemployed. 
A) Many full time workers really want to be part time workers. 
B) Persons who collect unemployment benefits report themselves to be searching for a job. 
C) Discouraged workers are not counted as unemployed. 
D) A drug dealer reports herself as unemployed. 
E) Discouraged workers are counted as unemployed.

Question 13

The unemployment rate is

Accepted Answer

A) the percentage of the labor force that is employed. 
B) the percentage of the number employed that is unemployed. 
C) the percentage of the working-age population that is unemployed. 
D) the percentage of the labor force that is unemployed. 
E) the percentage of the working-age population that is employed. 
A) the percentage of the labor force that is employed. 
B) the percentage of the number employed that is unemployed. 
C) the percentage of the working-age population that is unemployed. 
D) the percentage of the labor force that is unemployed. 
E) the percentage of the working-age population that is employed.

Question 14

Suppose the labor force stays constant,and the working-age population stays constant,but a greater number of persons who were unemployed become employed.The labor force participation rate will

Accepted Answer

A) increase. 
B) decrease. 
C) remain constant. 
D) not change in a way that can be predicted. 
A) increase. 
B) decrease. 
C) remain constant. 
D) not change in a way that can be predicted.

Question 15

The CPI in 2010 was 218,while the CPI in 1980 was 82.If you had $5,000 in 1980,its equivalent purchasing power in 2008 would be $10,850.

Accepted Answer

A) True 
 B)False

Question 16

The consumer price index implicitly assumes that the demand curve for each good and service in the representative market basket is

Accepted Answer

A) positively sloped. 
B) negatively sloped. 
C) vertical. 
D) horizontal. 
A) positively sloped. 
B) negatively sloped. 
C) vertical. 
D) horizontal.

Question 17

Article Summary
According to the Bureau of Labor Statistics, the unemployment rate fell from 7.4 percent in July 2013 to 7.3 percent in August, and at the same time the labor force participation rate fell to its lowest level in 35 years, from 63.4 percent to 63.2 percent. The decrease in the labor force participation rate was due to a decline in the size of the workforce of about 300,000 people. A large portion of the job growth in August was in the food service and retail sectors, areas which typically account for part-time and lower-paying jobs. On a brighter note, the average number of hours worked per week rose slightly, as did average hourly earnings and temporary employment.

-Refer to the Article Summary.Explain how the labor force declining by 300,000 people could have led to the decrease in the unemployment rate.

Accepted Answer

The labor force is calculated as the sum

Question 18

Table 13-3
 $$\begin{array}{c}
 \quad \quad \quad\text { Base Year (2006) } \quad \quad 2013\
\begin{array} { | l | c | c | c | } 
\hline \text { Product } & \text { Quantity } & \text { Price } & \text { Price } \
\hline \text { Cokes } & 100 & \$ 0.50 & \$ 0.75 \
\hline \text { Hamburgers } & 200 & 2.00 & 2.50 \
\hline \text { CDs } & 10 & 20.00 & 21.00 \
\hline
\end{array}
\end{array}$$
-Refer to Table 13-3.Assume the market basket for the consumer price index has three products - Cokes,hamburgers,and CDs - with the following values in 2006 and 2013 for price and quantity: The Consumer Price Index for 2013 equals

Accepted Answer

A) 75. 
B) 93. 
C) 108. 
D) 121. 
A) 75. 
B) 93. 
C) 108. 
D) 121.

Question 19

Table 13-18
 $$\begin{array} { | c | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { Nominal Average Hourly } \
\text { Earnings }
\end{array} & \begin{array} { c } 
\text { CPI } \
( \mathbf { 1 9 8 2 - 1 9 8 4 } = \mathbf { 1 0 0 } )
\end{array} \
\hline 2011 & \$ 10 & 100 \
\hline 2012 & 10 & 105 \
\hline 2013 & 12 & 117 \
\hline
\end{array}$$
-Refer to Table 13-18.Looking at the table above,what is the rate of growth of real average hourly earnings from 2012 to 2013?

Accepted Answer

A) 7.7% 
B) 6.25% 
C) 4% 
D) -4% 
A) 7.7% 
B) 6.25% 
C) 4% 
D) -4%

Question 20

The short-term unemployment arising from the process of matching workers with jobs is called

Accepted Answer

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

If the number of unemployed workers is 200 million,and the number in the labor force is 500 million,what is the unemployment rate?

By offering training to workers whose firms laid them off because of competition from foreign firms,the federal government is attempting to reduce

Which of the following policies would reduce frictional unemployment?

The base period for CPI calculations is generally 1982-84.In 2005,50% of households accessed the Internet through a broadband connection that would not have existed in the 1980s.This potential for bias in the CPI is referred to as bias and results in .

The labor force participation rates of women have rapidly increased since 1948.

The producer price index tracks the prices firms receive for goods and services at all stages of production.

Explain whether you agree or disagree with the following statement: "The reason that inflation is bad is because it increases the cost of living-the costs of goods and services we buy-without increasing income in general."

The unemployment rate is higher with a minimum wage law than it would be without a minimum wage law.

In August 2013,the U.S.unemployment rate was highest for

To reduce the bias in the consumer price index,the Bureau of Labor Statistics

Which of the following causes the unemployment rate to understate the true extent of joblessness?

The unemployment rate is

Suppose the labor force stays constant,and the working-age population stays constant,but a greater number of persons who were unemployed become employed.The labor force participation rate will

The CPI in 2010 was 218,while the CPI in 1980 was 82.If you had $5,000 in 1980,its equivalent purchasing power in 2008 would be $10,850.

The consumer price index implicitly assumes that the demand curve for each good and service in the representative market basket is

Table 13-18 Year Nominal Average Hourly Earnings CPI (=) 2011 \ 10 100 2012 10 105 2013 12 117 -Refer to Table 13-18.Looking at the table above,what is the rate of growth of real average hourly earnings from 2012 to 2013?

The short-term unemployment arising from the process of matching workers with jobs is called

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

Gdp: Measuring Total Production and Income

Economic Growth, the Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

Exam 13: Unemployment and Inflation

If the number of unemployed workers is 200 million,and the number in the labor force is 500 million,what is the unemployment rate?

By offering training to workers whose firms laid them off because of competition from foreign firms,the federal government is attempting to reduce

Which of the following policies would reduce frictional unemployment?

The base period for CPI calculations is generally 1982-84.In 2005,50% of households accessed the Internet through a broadband connection that would not have existed in the 1980s.This potential for bias in the CPI is referred to as ________ bias and results in ________.

The labor force participation rates of women have rapidly increased since 1948.

The producer price index tracks the prices firms receive for goods and services at all stages of production.

Explain whether you agree or disagree with the following statement: "The reason that inflation is bad is because it increases the cost of living-the costs of goods and services we buy-without increasing income in general."

The unemployment rate is higher with a minimum wage law than it would be without a minimum wage law.

In August 2013,the U.S.unemployment rate was highest for

To reduce the bias in the consumer price index,the Bureau of Labor Statistics

Which of the following causes the unemployment rate to understate the true extent of joblessness?

The unemployment rate is

Suppose the labor force stays constant,and the working-age population stays constant,but a greater number of persons who were unemployed become employed.The labor force participation rate will

The CPI in 2010 was 218,while the CPI in 1980 was 82.If you had $5,000 in 1980,its equivalent purchasing power in 2008 would be $10,850.

The consumer price index implicitly assumes that the demand curve for each good and service in the representative market basket is

Table 13-18 Year Nominal Average Hourly Earnings CPI (=) 2011 \ 10 100 2012 10 105 2013 12 117 -Refer to Table 13-18.Looking at the table above,what is the rate of growth of real average hourly earnings from 2012 to 2013?

The short-term unemployment arising from the process of matching workers with jobs is called

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

Gdp: Measuring Total Production and Income

Economic Growth, the Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

The base period for CPI calculations is generally 1982-84.In 2005,50% of households accessed the Internet through a broadband connection that would not have existed in the 1980s.This potential for bias in the CPI is referred to as bias and results in .