Question 1

The unemployment rate generally falls during ________ in the business cycle.

Accepted Answer

A)  a peak 
B)  a recession 
C)  a trough 
D)  an expansion 
A)  a peak 
B)  a recession 
C)  a trough 
D)  an expansion

Question 2

Cyclical unemployment

Accepted Answer

A)  is due mainly to job leavers. 
B)  may increase or decrease during an expansion. 
C)  occurs when technology improvements change job requirements. 
D)  fluctuates over the business cycle. 
A)  is due mainly to job leavers. 
B)  may increase or decrease during an expansion. 
C)  occurs when technology improvements change job requirements. 
D)  fluctuates over the business cycle.

Question 3

If the number of people unemployed is 100,the number of people employed is 1000,and the working-age population is 1400,then the employment-to-population ratio is

Accepted Answer

A)  78.6 percent. 
B)  75 percent. 
C)  71.4 percent. 
D)  66.6 percent. 
A)  78.6 percent. 
B)  75 percent. 
C)  71.4 percent. 
D)  66.6 percent.

Question 4

Who of the following is counted as unemployed?

Accepted Answer

A)  Rene, a retired chemist 
B)  Homer, a full-time student at a vocational school 
C)  Kim, a worker on strike from her company for a week 
D)  Glenn, a student who just graduated from college last week and is currently looking for a job 
A)  Rene, a retired chemist 
B)  Homer, a full-time student at a vocational school 
C)  Kim, a worker on strike from her company for a week 
D)  Glenn, a student who just graduated from college last week and is currently looking for a job

Question 5

$$\begin{array} { | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Total } \
\text { population } \
\text { (millions) }
\end{array} & \begin{array} { c } 
\text { Currently } \
\text { employed } \
\text { (millions) }
\end{array} & \begin{array} { c } 
\text { Not working } \
\text { and looking } \
\text { for work } \
\text { (millions) }
\end{array} & \begin{array} { c } 
\text { Want to work but } \
\text { no longer looking } \
\text { for work } \
\text { (millions) }
\end{array} \
\hline 80 & 40 & 2 & 4 \
\hline
\end{array}$$
-The labor force participation rate is the ratio of

Accepted Answer

A)  (the labor force divided by the working-age population) multiplied by 100. 
B)  (the number of unemployed divided by the working-age population) multiplied by 100. 
C)  (the labor force divided by the total population) multiplied by 100. 
D)  (the number of unemployed divided by the labor force) multiplied by 100. 
A)  (the labor force divided by the working-age population) multiplied by 100. 
B)  (the number of unemployed divided by the working-age population) multiplied by 100. 
C)  (the labor force divided by the total population) multiplied by 100. 
D)  (the number of unemployed divided by the labor force) multiplied by 100.

Question 6

What is a discouraged worker?
How do they affect the unemployment rate?

Accepted Answer

A discouraged worker is a person without

Question 7

Suppose there are currently 100 people unemployed,1500 people employed,1600 people in the labor force,and 2000 people in the working age population.The unemployment rate equals 100 times

Accepted Answer

A)  100/1500. 
B)  100/1600. 
C)  100/2000. 
D)  1500/2000. 
A)  100/1500. 
B)  100/1600. 
C)  100/2000. 
D)  1500/2000.

Question 8

The consumer price index (CPI)

Accepted Answer

A)  compares the cost of the typical basket of goods consumed in period 1 to the cost of a basket of goods typically consumed in period 2. 
B)  compares the cost in the current period to the cost in a reference base period of a basket of goods typically consumed in the base period. 
C)  measures the increase in the prices of the goods included in GDP. 
D)  is the ratio of the average price of a typical basket of goods to the cost of producing those goods. 
A)  compares the cost of the typical basket of goods consumed in period 1 to the cost of a basket of goods typically consumed in period 2. 
B)  compares the cost in the current period to the cost in a reference base period of a basket of goods typically consumed in the base period. 
C)  measures the increase in the prices of the goods included in GDP. 
D)  is the ratio of the average price of a typical basket of goods to the cost of producing those goods.

Question 9

The labor force is defined as the

Accepted Answer

A)  number of people over 16 years of age. 
B)  number of people who are working. 
C)  sum of employed and unemployed people. 
D)  number of people in blue-collar jobs. 
A)  number of people over 16 years of age. 
B)  number of people who are working. 
C)  sum of employed and unemployed people. 
D)  number of people in blue-collar jobs.

Question 10

The natural unemployment rate

Accepted Answer

A)  falls with an increase in cyclical unemployment. 
B)  rises with an increase in structural unemployment. 
C)  rises with an increase in cyclical unemployment. 
D)  rises with a decrease in frictional unemployment. 
A)  falls with an increase in cyclical unemployment. 
B)  rises with an increase in structural unemployment. 
C)  rises with an increase in cyclical unemployment. 
D)  rises with a decrease in frictional unemployment.

Question 11

Which of the following individuals is the best example of a structurally unemployed worker?

Accepted Answer

A)  a recent college graduate who has entered the labor force 
B)  an individual who has been laid off from his job because of a business cycle recession 
C)  an automobile worker who has lost her job because of an increase in automobile imports and does not have the skills currently needed by businesses 
D)  an individual who quits one job in the hope of finding a better job 
A)  a recent college graduate who has entered the labor force 
B)  an individual who has been laid off from his job because of a business cycle recession 
C)  an automobile worker who has lost her job because of an increase in automobile imports and does not have the skills currently needed by businesses 
D)  an individual who quits one job in the hope of finding a better job

Question 12

$\begin{array}{c}
\begin{array}{|l|}
\hline \text {Person \( A $}\
\
\
\hline \text {Person $ \mathrm{B} $}\
\
\
\
\
\hline \text {Person C}\
\
\
\hline \text {Person D}\
\
\

\hline
\end{array}
\begin{array}{l|}
\hline \text {This person has just graduated from high school and  }\
\text { is working at a part-time job but wants a full-time }\
\text { job.}\
\hline \text { At the age of 45 , this person was laid off from the}\ 
\text { automobile industry when new equipment was .}\
\text { installed and the person did not have the skills }\
\text { necessary to use the equipment. This person now is }\
\text { searching to find a new job.}\ 
\hline \text {As a result of this person's spouse being transferred }\
\text {  to a job in a new city, this person is looking for a}\
\text { new job. }\ 
\hline \text {This person just graduated from college and is}\
  \text { looking for an engineering job. In the meantime,}\
 \text { this person is working full-time waiting tables.}\
\hline 
\end{array}
\end{array}\)

-The above table shows answers given by people interviewed in the Current Population Survey.Which people are structurally unemployed?

Accepted Answer

A)  A, B, C, and D 
B)  A, B, and C 
C)  B and C. 
D)  A, B, and D 
A)  A, B, C, and D 
B)  A, B, and C 
C)  B and C. 
D)  A, B, and D

Question 13

Which labor market statistic tends rise during recessions and fall during expansions?

Accepted Answer

A)  the unemployment rate 
B)  the labor-force participation rate 
C)  the employment-to-population ratio 
D)  aggregate hours 
A)  the unemployment rate 
B)  the labor-force participation rate 
C)  the employment-to-population ratio 
D)  aggregate hours

Question 14

If the price level for the last three months has been 112,125,and 126,we would say

Accepted Answer

A)  inflation has been constant over the three months. 
B)  inflation was more rapid between the first and second month than between the second and third month. 
C)  inflation was less rapid between the first and second month than between the second and third month. 
D)  inflation has steadily increased over the three months. 
A)  inflation has been constant over the three months. 
B)  inflation was more rapid between the first and second month than between the second and third month. 
C)  inflation was less rapid between the first and second month than between the second and third month. 
D)  inflation has steadily increased over the three months.

Question 15

What is inflation and how is it measured using the Consumer Price Index?

Accepted Answer

The inflation rate is the percentage cha

Question 16

As of July 2012,the 12 month CPI inflation rate was 1.4 percent and the 12 month core CPI inflation rate was 2.1 percent. The difference between these two measurements of inflation indicates

Accepted Answer

A)  prices for food and fuel grew more rapidly than prices for other goods. 
B)  prices for food and fuel grew less rapidly than prices for other goods. 
C)  the underlying inflation rate was lower than the overall inflation rate. 
D)  hyperinflation. 
A)  prices for food and fuel grew more rapidly than prices for other goods. 
B)  prices for food and fuel grew less rapidly than prices for other goods. 
C)  the underlying inflation rate was lower than the overall inflation rate. 
D)  hyperinflation.

Question 17

Frictional,structural and cyclical unemployment are three classifications of unemployment.

Accepted Answer

A) True 
 B)False

Question 18

Suppose the Consumer Price Index is 143.6.What does that number mean?

Accepted Answer

A)  On average, goods cost $143.60. 
B)  On average, goods cost $243.60. 
C)  Prices rose 143.6 percent over the reference base period, on average. 
D)  Prices rose 43.6 percent over the reference base period, on average. 
A)  On average, goods cost $143.60. 
B)  On average, goods cost $243.60. 
C)  Prices rose 143.6 percent over the reference base period, on average. 
D)  Prices rose 43.6 percent over the reference base period, on average.

Question 19

Which of the following people would be considered unemployed by the Bureau of Labor Statistics?
I. Mrs.X retires from her job at the age of 55 and does not look for another job.
II. Mr.Y was laid off from his job as a welder,but expects to be rehired in 8 months.

Accepted Answer

A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II 
A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II

Question 20

If a new and better good replaced an older and less expensive good,then the price level measured by the CPI ________.

Accepted Answer

A)  is lower than the actual price level 
B)  is higher than the actual price level 
C)  might be either higher or lower than the actual price 
D)  is the same as the actual price level because it measures the prices of the actual goods 
A)  is lower than the actual price level 
B)  is higher than the actual price level 
C)  might be either higher or lower than the actual price 
D)  is the same as the actual price level because it measures the prices of the actual goods

The unemployment rate generally falls during ________ in the business cycle.

Cyclical unemployment

If the number of people unemployed is 100,the number of people employed is 1000,and the working-age population is 1400,then the employment-to-population ratio is

Who of the following is counted as unemployed?

Total population (millions) Currently employed (millions) Not working and looking for work (millions) Want to work but no longer looking for work (millions) 80 40 2 4 -The labor force participation rate is the ratio of

What is a discouraged worker? How do they affect the unemployment rate?

Suppose there are currently 100 people unemployed,1500 people employed,1600 people in the labor force,and 2000 people in the working age population.The unemployment rate equals 100 times

The consumer price index (CPI)

The labor force is defined as the

The natural unemployment rate

Which of the following individuals is the best example of a structurally unemployed worker?

Which labor market statistic tends rise during recessions and fall during expansions?

If the price level for the last three months has been 112,125,and 126,we would say

What is inflation and how is it measured using the Consumer Price Index?

As of July 2012,the 12 month CPI inflation rate was 1.4 percent and the 12 month core CPI inflation rate was 2.1 percent. The difference between these two measurements of inflation indicates

Frictional,structural and cyclical unemployment are three classifications of unemployment.

Suppose the Consumer Price Index is 143.6.What does that number mean?

Which of the following people would be considered unemployed by the Bureau of Labor Statistics? I. Mrs.X retires from her job at the age of 55 and does not look for another job. II. Mr.Y was laid off from his job as a welder,but expects to be rehired in 8 months.

If a new and better good replaced an older and less expensive good,then the price level measured by the CPI ________.

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 unemployment rate generally falls during ________ in the business cycle.

Cyclical unemployment

If the number of people unemployed is 100,the number of people employed is 1000,and the working-age population is 1400,then the employment-to-population ratio is

Who of the following is counted as unemployed?

Total population (millions) Currently employed (millions) Not working and looking for work (millions) Want to work but no longer looking for work (millions) 80 40 2 4 -The labor force participation rate is the ratio of

What is a discouraged worker? How do they affect the unemployment rate?

Suppose there are currently 100 people unemployed,1500 people employed,1600 people in the labor force,and 2000 people in the working age population.The unemployment rate equals 100 times

The consumer price index (CPI)

The labor force is defined as the

The natural unemployment rate

Which of the following individuals is the best example of a structurally unemployed worker?

Which labor market statistic tends rise during recessions and fall during expansions?

If the price level for the last three months has been 112,125,and 126,we would say

What is inflation and how is it measured using the Consumer Price Index?

As of July 2012,the 12 month CPI inflation rate was 1.4 percent and the 12 month core CPI inflation rate was 2.1 percent. The difference between these two measurements of inflation indicates

Frictional,structural and cyclical unemployment are three classifications of unemployment.

Suppose the Consumer Price Index is 143.6.What does that number mean?

Which of the following people would be considered unemployed by the Bureau of Labor Statistics? I. Mrs.X retires from her job at the age of 55 and does not look for another job. II. Mr.Y was laid off from his job as a welder,but expects to be rehired in 8 months.

If a new and better good replaced an older and less expensive good,then the price level measured by the CPI ________.

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