Question 1

The working-age population is divided between those people in the labor force and those people unemployed.

Accepted Answer

A) True 
 B)False

Question 2

In an economy,43 million people are employed,3 million are unemployed,and 4 million are not in the labor force.What is the employment-to-population ratio?

Accepted Answer

A)  86 percent 
B)  92 percent 
C)  93 percent 
D)  6.5 percent 
A)  86 percent 
B)  92 percent 
C)  93 percent 
D)  6.5 percent

Question 3

An individual who has stopped looking for a job but has looked in the past and still wants a job is referred to as

Accepted Answer

A)  a contingent worker. 
B)  a productive worker. 
C)  a marginally attached worker. 
D)  an unemployed worker. 
A)  a contingent worker. 
B)  a productive worker. 
C)  a marginally attached worker. 
D)  an unemployed worker.

Question 4

Which of the following is NOT considered to be in the labor force?

Accepted Answer

A)  a student who works part-time 
B)  a person who is not working but who has tried to find a job in the past week 
C)  a person who is waiting to start a new job in the next 30 days 
D)  a person who is not working and who has not tried to find a job 
A)  a student who works part-time 
B)  a person who is not working but who has tried to find a job in the past week 
C)  a person who is waiting to start a new job in the next 30 days 
D)  a person who is not working and who has not tried to find a job

Question 5

Andrew just lost his job as a corkscrew operator since his company has found a machine to perform his work tasks.Andrew did not have the skills needed to operate the machine.Andrew has searched for a new job for 6 months and continues to search.Therefore,Andrew is considered to be

Accepted Answer

A)  frictionally unemployed. 
B)  a discouraged worker. 
C)  cyclically unemployed. 
D)  structurally unemployed. 
A)  frictionally unemployed. 
B)  a discouraged worker. 
C)  cyclically unemployed. 
D)  structurally unemployed.

Question 6

The CPI is the average price of all goods and services produced within the economy.

Accepted Answer

A) True 
 B)False

Question 7

What,if any,is the impact of the CPI bias on government spending?

Accepted Answer

About one-third of government outlays,su

Question 8

Assume the inflation rate falls from 4 percent to 2 percent.This means that

Accepted Answer

A)  the price level has fallen. 
B)  the price level is increasing more slowly. 
C)  the economy is experiencing deflation. 
D)  real GDP is decreasing. 
A)  the price level has fallen. 
B)  the price level is increasing more slowly. 
C)  the economy is experiencing deflation. 
D)  real GDP is decreasing.

Question 9

At the natural unemployment rate,there is no

Accepted Answer

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

Question 10

This type of unemployment reflects the normal amount of unemployed workers who possess skills that will enable them to find another job.

Accepted Answer

A)  cyclical unemployment 
B)  frictional unemployment 
C)  structural unemployment 
D)  None of the above answers is correct. 
A)  cyclical unemployment 
B)  frictional unemployment 
C)  structural unemployment 
D)  None of the above answers is correct.

Question 11

The unemployment rate equals the number of

Accepted Answer

A)  unemployed workers multiplied by 100. 
B)  unemployed workers divided by the population then multiplied by 100. 
C)  unemployed workers divided by the number of employed workers then multiplied by 100. 
D)  unemployed workers divided by the labor force then multiplied by 100. 
A)  unemployed workers multiplied by 100. 
B)  unemployed workers divided by the population then multiplied by 100. 
C)  unemployed workers divided by the number of employed workers then multiplied by 100. 
D)  unemployed workers divided by the labor force then multiplied by 100.

Question 12

Between August 2011 and August 2012 the number of economic part-time workers decreased from 8.8 million to 8.0 million.Assuming the change resulted from economic part-time workers transitioning to full-time jobs,this change created

Accepted Answer

A)  no change to the U-3 unemployment rate. 
B)  a decrease to the U-3 unemployment rate. 
C)  an increase to the U-3 unemployment rate. 
D)  an increase in the employment-to-population ratio. 
A)  no change to the U-3 unemployment rate. 
B)  a decrease to the U-3 unemployment rate. 
C)  an increase to the U-3 unemployment rate. 
D)  an increase in the employment-to-population ratio.

Question 13

If the CPI basket costs $35 in the base period but costs $42,what is the CPI in the next period?

Accepted Answer

A)  83.3 
B)  $42 
C)  20 percent 
D)  120 
A)  83.3 
B)  $42 
C)  20 percent 
D)  120

Question 14

An observer of the economy notices that over the past 12 months the unemployment rate has fallen from 7.0 percent to 6.5 percent.During the same time,the rate of growth in real GDP has been positive.From this information we might conclude that

Accepted Answer

A)  inflation is not occurring. 
B)  an expansion is occurring in the economy. 
C)  a recession is in progress. 
D)  a trough in the business cycle will soon be reached. 
A)  inflation is not occurring. 
B)  an expansion is occurring in the economy. 
C)  a recession is in progress. 
D)  a trough in the business cycle will soon be reached.

Question 15

In the United States,the inflation rate has

Accepted Answer

A)  remained almost constant over the past 25 years. 
B)  risen and fallen since the 1970s. 
C)  fallen as a result of OPEC oil price hikes. 
D)  risen constantly over the past 30 years. 
A)  remained almost constant over the past 25 years. 
B)  risen and fallen since the 1970s. 
C)  fallen as a result of OPEC oil price hikes. 
D)  risen constantly over the past 30 years.

Question 16

Structural unemployment is

Accepted Answer

A)  associated with the changing of jobs in a dynamic economy. 
B)  associated with general downturns in the economy. 
C)  associated with changes in technology that change required job skills. 
D)  very short-term unemployment. 
A)  associated with the changing of jobs in a dynamic economy. 
B)  associated with general downturns in the economy. 
C)  associated with changes in technology that change required job skills. 
D)  very short-term unemployment.

Question 17

Suppose the current unemployment rate is 5 percent,the labor force is 400 million people,the labor force participation rate is 80 percent and the working-age population is 500 million people.What number of people are unemployed?

Accepted Answer

The number of unemployed peopl

Question 18

$$\begin{array} { | l | c | } 
\hline  { \text { Component } } & \begin{array} { c } 
\text { Number of people } \
\text { (millions) }
\end{array} \
\hline \text { Total population } & 246 \
\hline \text { Working-age population } & 207 \
\hline \text { Labor force } & 139 \
\hline \text { Employed } & 133 \
\hline \text { Unemployed } & 6 \
\hline
\end{array}$$
-The labor force participation rate is

Accepted Answer

A)  67.1 percent. 
B)  64.0 percent. 
C)  95.7 percent. 
D)  56 percent. 
A)  67.1 percent. 
B)  64.0 percent. 
C)  95.7 percent. 
D)  56 percent.

Question 19

Suppose that over a period of years the country of Quasiland switched from being an agriculturally-based economy to a technologically-based economy.As a result,many people lost jobs because they lacked the correct skills.As they search for new jobs,these people are part of

Accepted Answer

A)  frictional unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  discouraged workers. 
A)  frictional unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  discouraged workers.

Question 20

If the CPI is 120,this means that

Accepted Answer

A)  prices are 120 percent higher than in the reference base period. 
B)  prices are 0.12 times higher than in the reference base period. 
C)  prices are 20 percent higher than in the reference base period. 
D)  the inflation rate must be positive. 
A)  prices are 120 percent higher than in the reference base period. 
B)  prices are 0.12 times higher than in the reference base period. 
C)  prices are 20 percent higher than in the reference base period. 
D)  the inflation rate must be positive.

The working-age population is divided between those people in the labor force and those people unemployed.

In an economy,43 million people are employed,3 million are unemployed,and 4 million are not in the labor force.What is the employment-to-population ratio?

An individual who has stopped looking for a job but has looked in the past and still wants a job is referred to as

Which of the following is NOT considered to be in the labor force?

Andrew just lost his job as a corkscrew operator since his company has found a machine to perform his work tasks.Andrew did not have the skills needed to operate the machine.Andrew has searched for a new job for 6 months and continues to search.Therefore,Andrew is considered to be

The CPI is the average price of all goods and services produced within the economy.

What,if any,is the impact of the CPI bias on government spending?

Assume the inflation rate falls from 4 percent to 2 percent.This means that

At the natural unemployment rate,there is no

This type of unemployment reflects the normal amount of unemployed workers who possess skills that will enable them to find another job.

The unemployment rate equals the number of

Between August 2011 and August 2012 the number of economic part-time workers decreased from 8.8 million to 8.0 million.Assuming the change resulted from economic part-time workers transitioning to full-time jobs,this change created

If the CPI basket costs $35 in the base period but costs $42,what is the CPI in the next period?

An observer of the economy notices that over the past 12 months the unemployment rate has fallen from 7.0 percent to 6.5 percent.During the same time,the rate of growth in real GDP has been positive.From this information we might conclude that

In the United States,the inflation rate has

Structural unemployment is

Suppose the current unemployment rate is 5 percent,the labor force is 400 million people,the labor force participation rate is 80 percent and the working-age population is 500 million people.What number of people are unemployed?

Component Number of people (millions) Total population 246 Working-age population 207 Labor force 139 Employed 133 Unemployed 6 -The labor force participation rate is

Suppose that over a period of years the country of Quasiland switched from being an agriculturally-based economy to a technologically-based economy.As a result,many people lost jobs because they lacked the correct skills.As they search for new jobs,these people are part of

If the CPI is 120,this means that

What Is Economics

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

Exam 5: Monitoring Jobs and Inflation

The working-age population is divided between those people in the labor force and those people unemployed.

In an economy,43 million people are employed,3 million are unemployed,and 4 million are not in the labor force.What is the employment-to-population ratio?

An individual who has stopped looking for a job but has looked in the past and still wants a job is referred to as

Which of the following is NOT considered to be in the labor force?

Andrew just lost his job as a corkscrew operator since his company has found a machine to perform his work tasks.Andrew did not have the skills needed to operate the machine.Andrew has searched for a new job for 6 months and continues to search.Therefore,Andrew is considered to be

The CPI is the average price of all goods and services produced within the economy.

What,if any,is the impact of the CPI bias on government spending?

Assume the inflation rate falls from 4 percent to 2 percent.This means that

At the natural unemployment rate,there is no

This type of unemployment reflects the normal amount of unemployed workers who possess skills that will enable them to find another job.

The unemployment rate equals the number of

Between August 2011 and August 2012 the number of economic part-time workers decreased from 8.8 million to 8.0 million.Assuming the change resulted from economic part-time workers transitioning to full-time jobs,this change created

If the CPI basket costs $35 in the base period but costs $42,what is the CPI in the next period?

An observer of the economy notices that over the past 12 months the unemployment rate has fallen from 7.0 percent to 6.5 percent.During the same time,the rate of growth in real GDP has been positive.From this information we might conclude that

In the United States,the inflation rate has

Structural unemployment is

Suppose the current unemployment rate is 5 percent,the labor force is 400 million people,the labor force participation rate is 80 percent and the working-age population is 500 million people.What number of people are unemployed?

Component Number of people (millions) Total population 246 Working-age population 207 Labor force 139 Employed 133 Unemployed 6 -The labor force participation rate is

Suppose that over a period of years the country of Quasiland switched from being an agriculturally-based economy to a technologically-based economy.As a result,many people lost jobs because they lacked the correct skills.As they search for new jobs,these people are part of

If the CPI is 120,this means that

What Is Economics

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters