Question 1

Discouraged workers

Accepted Answer

A) are considered part of the unemployed because they are not working. 
B) are considered part of the unemployed because they are still in the labor force. 
C) are not considered part of the unemployed because they quit their jobs voluntarily. 
D) are not considered part of the unemployed because they are not actively seeking work. 
A) are considered part of the unemployed because they are not working. 
B) are considered part of the unemployed because they are still in the labor force. 
C) are not considered part of the unemployed because they quit their jobs voluntarily. 
D) are not considered part of the unemployed because they are not actively seeking work.

Question 2

The labor force in the United States includes

Accepted Answer

A) discouraged workers. 
B) those over the age of 16 who are employed or are seeking employment. 
C) those between ages 12 and 16 who are actually working. 
D) all of the above. 
A) discouraged workers. 
B) those over the age of 16 who are employed or are seeking employment. 
C) those between ages 12 and 16 who are actually working. 
D) all of the above.

Question 3

The Consumer Price Index (CPI)is a

Accepted Answer

A) statistical measure of a weighted average of prices of a specific set of goods and services purchased by consumers in urban areas. 
B) statistical measure of a weighted average of prices of commodities that firms produce and sell. 
C) price index measuring the changes in prices of all new goods and services produced in the economy. 
D) statistical measure of average prices using annually updated weights based on surveys of consumer spending. 
A) statistical measure of a weighted average of prices of a specific set of goods and services purchased by consumers in urban areas. 
B) statistical measure of a weighted average of prices of commodities that firms produce and sell. 
C) price index measuring the changes in prices of all new goods and services produced in the economy. 
D) statistical measure of average prices using annually updated weights based on surveys of consumer spending.

Question 4

A discouraged worker is someone who

Accepted Answer

A) has been fired. 
B) is unemployed. 
C) is not in the labor force. 
D) is employed. 
A) has been fired. 
B) is unemployed. 
C) is not in the labor force. 
D) is employed.

Question 5

To be counted in the labor force

Accepted Answer

A) a person has to be working at least 40 hours per week. 
B) a person has to be at least 16 or older, have a job, or if unemployed has to be actively seeking employment. 
C) a person, irrespective of his or her age, has to be working or, if out of work, actively seeking employment. 
D) a person has to be over 16 years of age, irrespective of whether she or he is actively seeking work. 
A) a person has to be working at least 40 hours per week. 
B) a person has to be at least 16 or older, have a job, or if unemployed has to be actively seeking employment. 
C) a person, irrespective of his or her age, has to be working or, if out of work, actively seeking employment. 
D) a person has to be over 16 years of age, irrespective of whether she or he is actively seeking work.

Question 6

Which of the following statements is TRUE about the seasonally adjusted unemployment rate?

Accepted Answer

A) The seasonally adjusted unemployment rate is the sum of the frictional unemployment rate, structural unemployment rate, and cyclical unemployment rate. 
B) The seasonally adjusted unemployment rate shows how the unemployment rate fluctuates with the various seasons. 
C) The seasonally adjusted unemployment rate is the same as the natural rate of unemployment. 
D) The seasonally adjusted unemployment rate is the rate computed for Fall, Spring, Summer and Winter. 
A) The seasonally adjusted unemployment rate is the sum of the frictional unemployment rate, structural unemployment rate, and cyclical unemployment rate. 
B) The seasonally adjusted unemployment rate shows how the unemployment rate fluctuates with the various seasons. 
C) The seasonally adjusted unemployment rate is the same as the natural rate of unemployment. 
D) The seasonally adjusted unemployment rate is the rate computed for Fall, Spring, Summer and Winter.

Question 7

An extremely severe recession is known as a

Accepted Answer

A) trough. 
B) peak. 
C) contraction. 
D) depression. 
A) trough. 
B) peak. 
C) contraction. 
D) depression.

Question 8

Suppose the population of El Campo is 120,000. Of the population 16 years and older, 50,000 are employed, 10,000 have never worked and are not looking for work, 5,000 are not working and are looking for work, and 15,000 are retired and not looking for work. The labor force equals

Accepted Answer

A) 50,000. 
B) 55,000. 
C) 65,000. 
D) 80,000. 
A) 50,000. 
B) 55,000. 
C) 65,000. 
D) 80,000.

Question 9

In recent years the labor force participation rate has been fairly stable

Accepted Answer

A) as has the labor force participation rate for males, females, minorities, and nonminorities. 
B) although the female labor force participation rate has fallen while the male labor force participation rate has increased. 
C) although the male labor force participation rate has fallen while the female labor force participation rate has increased. 
D) although the labor force participation rate of young adults has increased while the labor force participation rate of those in the 40-55 age classification has fallen. 
A) as has the labor force participation rate for males, females, minorities, and nonminorities. 
B) although the female labor force participation rate has fallen while the male labor force participation rate has increased. 
C) although the male labor force participation rate has fallen while the female labor force participation rate has increased. 
D) although the labor force participation rate of young adults has increased while the labor force participation rate of those in the 40-55 age classification has fallen.

Question 10

The largest category of the unemployed are

Accepted Answer

A) job losers. 
B) reentrants. 
C) job leavers. 
D) new entrants. 
A) job losers. 
B) reentrants. 
C) job leavers. 
D) new entrants.

Question 11

You receive a 5 percent raise in your salary. The inflation rate is 6 percent. The purchasing power of your salary has

Accepted Answer

A) increased by 1 percent. 
B) decreased by 1 percent. 
C) increased by 11 percent. 
D) decreased by 11 percent. 
A) increased by 1 percent. 
B) decreased by 1 percent. 
C) increased by 11 percent. 
D) decreased by 11 percent.

Question 12

Which one of the following individuals would be classified as structurally unemployed?

Accepted Answer

A) Joe was laid off by by his construction company because there was a reduction in the number of houses built in the winter. 
B) Gail lost her job with the state because there was a reduction in the state budget. 
C) Tommy lost his job when the steel mill where he worked was closed because domestic producers would not produce as efficiently and cheaply as foreign firms. 
D) Fay lost her job in early January when the Christmas store where she worked was closed. 
A) Joe was laid off by by his construction company because there was a reduction in the number of houses built in the winter. 
B) Gail lost her job with the state because there was a reduction in the state budget. 
C) Tommy lost his job when the steel mill where he worked was closed because domestic producers would not produce as efficiently and cheaply as foreign firms. 
D) Fay lost her job in early January when the Christmas store where she worked was closed.

Question 13

A Two-Good Market
  
-In the table shown above, assuming that the market basket cost of light bulbs and volleyballs in the base year was $4500, what would the price index for this two-good market equal in the year 2010?

Accepted Answer

A) 104.86 
B) 100.00 
C) 112.52 
D) 122.22 
A) 104.86 
B) 100.00 
C) 112.52 
D) 122.22

Question 14

An unemployment rate of zero cannot be expected since

Accepted Answer

A) there are some people who do not want to work. 
B) there will always be discouraged workers. 
C) some portion of the labor force will always be between jobs. 
D) aggregate demand can never create enough job vacancies. 
A) there are some people who do not want to work. 
B) there will always be discouraged workers. 
C) some portion of the labor force will always be between jobs. 
D) aggregate demand can never create enough job vacancies.

Question 15

When the unanticipated inflation rate is zero

Accepted Answer

A) creditors gain at the expense of debtors. 
B) debtors gain at the expense of creditors. 
C) neither creditors not debtors gain or lose. 
D) both creditors and debtors lose at the expense of the government. 
A) creditors gain at the expense of debtors. 
B) debtors gain at the expense of creditors. 
C) neither creditors not debtors gain or lose. 
D) both creditors and debtors lose at the expense of the government.

Question 16

A severe and prolonged recession is called

Accepted Answer

A) a slump. 
B) a stagnation. 
C) a trough. 
D) a depression. 
A) a slump. 
B) a stagnation. 
C) a trough. 
D) a depression.

Question 17

Ups and downs in business activity are referred to as

Accepted Answer

A) ebb and flow. 
B) contractions. 
C) variability. 
D) business fluctuations. 
A) ebb and flow. 
B) contractions. 
C) variability. 
D) business fluctuations.

Question 18

If I voluntarily end my employment, the Bureau of Labor Statistics would consider me to be

Accepted Answer

A) a job loser. 
B) a job leaver. 
C) a discouraged worker. 
D) a reentrant. 
A) a job loser. 
B) a job leaver. 
C) a discouraged worker. 
D) a reentrant.

Question 19

People who have dropped out of the labor force and who are no longer looking for a job because they believe the job market has little to offer them are classified by the Labor Department as

Accepted Answer

A) unemployed. 
B) non-participants. 
C) discouraged workers. 
D) wage-rate busters. 
A) unemployed. 
B) non-participants. 
C) discouraged workers. 
D) wage-rate busters.

Question 20

Suppose that you borrow $5,000 from the bank to purchase some land and you agree to pay 9 percent interest on the loan. If the loan must be repaid in 12 months and the inflation rate is 13 percent during the year, then

Accepted Answer

A) you will repay the bank with dollars with more purchasing power than you initially borrowed. 
B) you will repay the bank with fewer dollars than the bank initially loaned you. 
C) you will repay the bank with dollars with less purchasing power than it initially loaned you. 
D) the bank will receive fewer dollars, because of inflation, than it had initially expected to receive. 
A) you will repay the bank with dollars with more purchasing power than you initially borrowed. 
B) you will repay the bank with fewer dollars than the bank initially loaned you. 
C) you will repay the bank with dollars with less purchasing power than it initially loaned you. 
D) the bank will receive fewer dollars, because of inflation, than it had initially expected to receive.

Discouraged workers

The labor force in the United States includes

The Consumer Price Index (CPI)is a

A discouraged worker is someone who

To be counted in the labor force

Which of the following statements is TRUE about the seasonally adjusted unemployment rate?

An extremely severe recession is known as a

Suppose the population of El Campo is 120,000. Of the population 16 years and older, 50,000 are employed, 10,000 have never worked and are not looking for work, 5,000 are not working and are looking for work, and 15,000 are retired and not looking for work. The labor force equals

In recent years the labor force participation rate has been fairly stable

The largest category of the unemployed are

You receive a 5 percent raise in your salary. The inflation rate is 6 percent. The purchasing power of your salary has

Which one of the following individuals would be classified as structurally unemployed?

A Two-Good Market -In the table shown above, assuming that the market basket cost of light bulbs and volleyballs in the base year was $4500, what would the price index for this two-good market equal in the year 2010?

An unemployment rate of zero cannot be expected since

When the unanticipated inflation rate is zero

A severe and prolonged recession is called

Ups and downs in business activity are referred to as

If I voluntarily end my employment, the Bureau of Labor Statistics would consider me to be

People who have dropped out of the labor force and who are no longer looking for a job because they believe the job market has little to offer them are classified by the Labor Department as

Suppose that you borrow $5,000 from the bank to purchase some land and you agree to pay 9 percent interest on the loan. If the loan must be repaid in 12 months and the inflation rate is 13 percent during the year, then

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money Banking and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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Exam 7: The Macroeconomy: Unemployment, Inflation, and Deflation

Discouraged workers

The labor force in the United States includes

The Consumer Price Index (CPI)is a

A discouraged worker is someone who

To be counted in the labor force

Which of the following statements is TRUE about the seasonally adjusted unemployment rate?

An extremely severe recession is known as a

Suppose the population of El Campo is 120,000. Of the population 16 years and older, 50,000 are employed, 10,000 have never worked and are not looking for work, 5,000 are not working and are looking for work, and 15,000 are retired and not looking for work. The labor force equals

In recent years the labor force participation rate has been fairly stable

The largest category of the unemployed are

You receive a 5 percent raise in your salary. The inflation rate is 6 percent. The purchasing power of your salary has

Which one of the following individuals would be classified as structurally unemployed?

A Two-Good Market -In the table shown above, assuming that the market basket cost of light bulbs and volleyballs in the base year was $4500, what would the price index for this two-good market equal in the year 2010?

An unemployment rate of zero cannot be expected since

When the unanticipated inflation rate is zero

A severe and prolonged recession is called

Ups and downs in business activity are referred to as

If I voluntarily end my employment, the Bureau of Labor Statistics would consider me to be

People who have dropped out of the labor force and who are no longer looking for a job because they believe the job market has little to offer them are classified by the Labor Department as

Suppose that you borrow $5,000 from the bank to purchase some land and you agree to pay 9 percent interest on the loan. If the loan must be repaid in 12 months and the inflation rate is 13 percent during the year, then

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money Banking and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters