Question 1

To obtain real average hourly earnings,nominal average hourly earnings are multiplied by the CPI.

Accepted Answer

A) True 
 B)False

Question 2

Table 13-19
 $$\begin{array} { | c | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { Nominal Average Hourly } \
\text { Earnings }
\end{array} & \begin{array} { c } 
\text { CPI } \
( \mathbf { 1 9 8 2 - 1 9 8 4 } = \mathbf { 1 0 0 } )
\end{array} \
\hline 2011 & \$ 10 & 100 \
\hline 2012 & 10 & 105 \
\hline 2013 & 12 & 110\
\hline
\end{array}$$
-Refer to Table 13-19.Looking at the table above,what is the rate of growth of the average price level from 2012 to 2013?

Accepted Answer

A) 1% 
B) 2% 
C) 3.5% 
D) 4.76% 
E) 5.25% 
A) 1% 
B) 2% 
C) 3.5% 
D) 4.76% 
E) 5.25%

Question 3

The United States has ________ social insurance programs,and generally has a ________ unemployment rate,as compared to Canada and Western Europe.

Accepted Answer

A) less generous; lower 
B) less generous; greater 
C) more generous; lower 
D) more generous; greater 
A) less generous; lower 
B) less generous; greater 
C) more generous; lower 
D) more generous; greater

Question 4

The advice to "retrain" would be most appropriate for which of the following types of unemployment?

Accepted Answer

A) frictional unemployment 
B) structural unemployment 
C) cyclical unemployment 
D) core unemployment 
A) frictional unemployment 
B) structural unemployment 
C) cyclical unemployment 
D) core unemployment

Question 5

What is the difference between the nominal interest rate and the real interest rate?

Accepted Answer

The nominal interest rate is t

Question 6

What are some reasons why the unemployment rate is typically lower in the United States as compared to Canada and some Western European countries?

Accepted Answer

Workers in Western Europe and Canada are

Question 7

When the actual inflation rate turns out to be greater than the expected inflation rate,who gains - the borrower or the lender - and who loses? Explain why.

Accepted Answer

The borrower gains because he pays back

Question 8

Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of 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.

Question 9

The inflation rate measures the average prices of goods and services in the economy.

Accepted Answer

A) True 
 B)False

Question 10

People who lost their jobs as hand-drawn animators because of the popularity of computer-generated 3D animation are examples of persons who are suffering

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 11

Which of the following do not suffer the costs of inflation?

Accepted Answer

A) persons on fixed incomes 
B) persons whose incomes rise more rapidly than inflation 
C) firms that have to devote more time and labor to raising prices 
D) an investor that has to pay higher taxes because of the inflation 
A) persons on fixed incomes 
B) persons whose incomes rise more rapidly than inflation 
C) firms that have to devote more time and labor to raising prices 
D) an investor that has to pay higher taxes because of the inflation

Question 12

Table 13-4
 $$\begin{array}{c}
 \quad \quad \quad\text { Base Year (2006) } \quad \quad 2013\
\begin{array} { | l | c | c | c |c| } 
\hline \text { Product } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \
\hline \text { Meat } & 100 & \$ 10 & 120 & \$ 12 \
\hline \text { Potatoes } & 200 & 2 & 180 & 3\
\hline
\end{array}
\end{array}$$
-Refer to Table 13-4.Assume the market basket for the consumer price index has two products - meat and potatoes - with the following values in 2006 and 2013 for price and quantity: The Consumer Price Index for 2013 equals

Accepted Answer

A) 125. 
B) 129. 
C) 135. 
D) 141. 
A) 125. 
B) 129. 
C) 135. 
D) 141.

Question 13

Paying efficiency wages are a way for a company to cut costs and become more efficient,and are therefore lower than market wages.

Accepted Answer

A) True 
 B)False

Question 14

The average period of unemployment was ________ following the 2007-2009 recession as following any other recession since the end of World War II.

Accepted Answer

A) three times as low 
B) approximately the same 
C) twice as high 
D) eight times as high 
A) three times as low 
B) approximately the same 
C) twice as high 
D) eight times as high

Question 15

The percent increase in the CPI from one year to the next is a measure of the

Accepted Answer

A) GDP deflator. 
B) unemployment rate. 
C) real interest rate. 
D) inflation rate. 
A) GDP deflator. 
B) unemployment rate. 
C) real interest rate. 
D) inflation rate.

Question 16

The formula for calculating the CPI is

Accepted Answer

A) (Expenditures in the current year/Expenditures in the base year)× 100. 
B) (Expenditures in the current year × Expenditures in the base year)/100. 
C) (Expenditures in the base year/Expenditures in the current year). 
D) (Expenditures in the base year × 100)/(Expenditures in the current year). 
A) (Expenditures in the current year/Expenditures in the base year)× 100. 
B) (Expenditures in the current year × Expenditures in the base year)/100. 
C) (Expenditures in the base year/Expenditures in the current year). 
D) (Expenditures in the base year × 100)/(Expenditures in the current year).

Question 17

If your nominal wage rises faster than the price level,we can say your real wage has ________ and the purchasing power of your income has ________.

Accepted Answer

A) fallen; fallen 
B) fallen; risen 
C) risen; risen 
D) risen; fallen 
A) fallen; fallen 
B) fallen; risen 
C) risen; risen 
D) risen; fallen

Question 18

Table 13-8
 $$\begin{array} { | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { CPI } \
( \mathbf { 1 9 8 2 } - \mathbf { 1 9 8 4 } = \mathbf { 1 0 0 } )
\end{array} \
\hline 2012 & 100 \
\hline 2013 & 120 \
\hline
\end{array}$$
-Refer to Table 13-8.Suppose that the data in the table above reflect the price levels in the economy.What is the inflation rate in between 2012 and 2013?

Accepted Answer

A) 2% 
B) 5% 
C) 10% 
D) 12% 
E) 20% 
A) 2% 
B) 5% 
C) 10% 
D) 12% 
E) 20%

Question 19

If the price level rose in three consecutive years from 100 to 120 to 140,then the annual inflation rate over those years would

Accepted Answer

A) increase. 
B) remain the same. 
C) decrease. 
D) equal 20%. 
A) increase. 
B) remain the same. 
C) decrease. 
D) equal 20%.

Question 20

Sarah is a full-time student who is not looking for work.What kind of unemployment is Sarah experiencing?

Accepted Answer

A) cyclical 
B) structural 
C) frictional 
D) Sarah is not experiencing unemployment of any kind because she is not currently part of the labor force. 
A) cyclical 
B) structural 
C) frictional 
D) Sarah is not experiencing unemployment of any kind because she is not currently part of the labor force.

To obtain real average hourly earnings,nominal average hourly earnings are multiplied by the CPI.

Table 13-19 Year Nominal Average Hourly Earnings CPI (=) 2011 \ 10 100 2012 10 105 2013 12 110 -Refer to Table 13-19.Looking at the table above,what is the rate of growth of the average price level from 2012 to 2013?

The United States has social insurance programs,and generally has a unemployment rate,as compared to Canada and Western Europe.

The advice to "retrain" would be most appropriate for which of the following types of unemployment?

What is the difference between the nominal interest rate and the real interest rate?

What are some reasons why the unemployment rate is typically lower in the United States as compared to Canada and some Western European countries?

When the actual inflation rate turns out to be greater than the expected inflation rate,who gains - the borrower or the lender - and who loses? Explain why.

Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called

The inflation rate measures the average prices of goods and services in the economy.

People who lost their jobs as hand-drawn animators because of the popularity of computer-generated 3D animation are examples of persons who are suffering

Which of the following do not suffer the costs of inflation?

Paying efficiency wages are a way for a company to cut costs and become more efficient,and are therefore lower than market wages.

The average period of unemployment was ________ following the 2007-2009 recession as following any other recession since the end of World War II.

The percent increase in the CPI from one year to the next is a measure of the

The formula for calculating the CPI is

If your nominal wage rises faster than the price level,we can say your real wage has and the purchasing power of your income has .

Table 13-8 Year CPI (-=) 2012 100 2013 120 -Refer to Table 13-8.Suppose that the data in the table above reflect the price levels in the economy.What is the inflation rate in between 2012 and 2013?

If the price level rose in three consecutive years from 100 to 120 to 140,then the annual inflation rate over those years would

Sarah is a full-time student who is not looking for work.What kind of unemployment is Sarah experiencing?

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

To obtain real average hourly earnings,nominal average hourly earnings are multiplied by the CPI.

Table 13-19 Year Nominal Average Hourly Earnings CPI (=) 2011 \ 10 100 2012 10 105 2013 12 110 -Refer to Table 13-19.Looking at the table above,what is the rate of growth of the average price level from 2012 to 2013?

The United States has ________ social insurance programs,and generally has a ________ unemployment rate,as compared to Canada and Western Europe.

The advice to "retrain" would be most appropriate for which of the following types of unemployment?

What is the difference between the nominal interest rate and the real interest rate?

What are some reasons why the unemployment rate is typically lower in the United States as compared to Canada and some Western European countries?

When the actual inflation rate turns out to be greater than the expected inflation rate,who gains - the borrower or the lender - and who loses? Explain why.

Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called

The inflation rate measures the average prices of goods and services in the economy.

People who lost their jobs as hand-drawn animators because of the popularity of computer-generated 3D animation are examples of persons who are suffering

Which of the following do not suffer the costs of inflation?

Paying efficiency wages are a way for a company to cut costs and become more efficient,and are therefore lower than market wages.

The average period of unemployment was ________ following the 2007-2009 recession as following any other recession since the end of World War II.

The percent increase in the CPI from one year to the next is a measure of the

The formula for calculating the CPI is

If your nominal wage rises faster than the price level,we can say your real wage has ________ and the purchasing power of your income has ________.

Table 13-8 Year CPI (-=) 2012 100 2013 120 -Refer to Table 13-8.Suppose that the data in the table above reflect the price levels in the economy.What is the inflation rate in between 2012 and 2013?

If the price level rose in three consecutive years from 100 to 120 to 140,then the annual inflation rate over those years would

Sarah is a full-time student who is not looking for work.What kind of unemployment is Sarah experiencing?

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 United States has social insurance programs,and generally has a unemployment rate,as compared to Canada and Western Europe.

If your nominal wage rises faster than the price level,we can say your real wage has and the purchasing power of your income has .