Question 1

If unemployment equals the natural unemployment rate,then there

Accepted Answer

A)  is zero unemployment. 
B)  is only frictional or structural unemployment. 
C)  are no job openings existing at the time. 
D)  is less than full employment. 
A)  is zero unemployment. 
B)  is only frictional or structural unemployment. 
C)  are no job openings existing at the time. 
D)  is less than full employment.

Question 2

Structural unemployment is

Accepted Answer

A)  associated with the normal changing of jobs in a dynamic economy. 
B)  associated with the general downturns in the economy. 
C)  associated with the general decline of specific industries. 
D)  almost always short-term in nature. 
A)  associated with the normal changing of jobs in a dynamic economy. 
B)  associated with the general downturns in the economy. 
C)  associated with the general decline of specific industries. 
D)  almost always short-term in nature.

Question 3

During a recession,the ________.

Accepted Answer

A)  number of discouraged workers decreases 
B)  unemployment rate decreases 
C)  employment-to-population ratio increases 
D)  number of marginally attached workers increases 
A)  number of discouraged workers decreases 
B)  unemployment rate decreases 
C)  employment-to-population ratio increases 
D)  number of marginally attached workers increases

Question 4

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

Accepted Answer

A)  80 million. 
B)  46 million. 
C)  42 million. 
D)  40 million. 
A)  80 million. 
B)  46 million. 
C)  42 million. 
D)  40 million.

Question 5

Bill loses his job as a loan officer when the bank he works for is bought up by a larger financial institution.Bill has the skills necessary to find a new job,so as Bill searches for work he is best considered an example of

Accepted Answer

A)  frictional unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  a discouraged worker. 
A)  frictional unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  a discouraged worker.

Question 6

When cyclical unemployment is zero,

Accepted Answer

A)  frictional unemployment is zero. 
B)  cyclical and frictional unemployment are zero. 
C)  structural unemployment is zero. 
D)  the unemployment rate equals the natural unemployment rate. 
A)  frictional unemployment is zero. 
B)  cyclical and frictional unemployment are zero. 
C)  structural unemployment is zero. 
D)  the unemployment rate equals the natural unemployment rate.

Question 7

The unemployment rate is defined as the

Accepted Answer

A)  number of people not working. 
B)  percentage of the population not working. 
C)  percentage of the labor force not working. 
D)  percentage of the working-age population not working. 
A)  number of people not working. 
B)  percentage of the population not working. 
C)  percentage of the labor force not working. 
D)  percentage of the working-age population not working.

Question 8

The official U-3 unemployment rate

Accepted Answer

A)  includes persons without a job who have made efforts in the last week to find a job. 
B)  includes persons without a job, whether they are actively searching for work or not. 
C)  counts discouraged workers as unemployed. 
D)  counts people with part-time jobs who want full-time jobs as unemployed. 
A)  includes persons without a job who have made efforts in the last week to find a job. 
B)  includes persons without a job, whether they are actively searching for work or not. 
C)  counts discouraged workers as unemployed. 
D)  counts people with part-time jobs who want full-time jobs as unemployed.

Question 9

In August 2012,the CPI inflation rate was 0.6 percent while the core CPI inflation rate was 0.1 percent. The difference between these two measurements of inflation indicates

Accepted Answer

A)  prices for food and fuel were increasing more rapidly than prices for other goods. 
B)  prices for food and fuel were increasing less rapidly than prices for other goods. 
C)  the underlying inflation rate was higher than the overall inflation rate. 
D)  a negative underlying inflation rate. 
A)  prices for food and fuel were increasing more rapidly than prices for other goods. 
B)  prices for food and fuel were increasing less rapidly than prices for other goods. 
C)  the underlying inflation rate was higher than the overall inflation rate. 
D)  a negative underlying inflation rate.

Question 10

2012 2013
 $$\begin{array} { | l | c | c | c | c | } 
\hline \text { Item } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \
\hline \text { Books } & 10 & \$ 30 & 8 & \$ 50 \
\hline \text { Pens } & 20 & \$ 1 & 15 & \$ 2 \
\hline
\end{array}$$
-In 2012,consumers in Dexter consumed only books and pens.The prices and quantities for 2012 and 2013 are listed in the table above.The reference base period for Dexter's CPI is 2012.What is the cost of the CPI basket in 2012?

Accepted Answer

A)  $430 
B)  $335 
C)  $320 
D)  $540 
A)  $430 
B)  $335 
C)  $320 
D)  $540

Question 11

$$\begin{array} { | l | c | } 
\hline { \text { Category } } & \begin{array} { c } 
\text { Number } \
\text { (millions) }
\end{array} \
\hline \text { Discouraged workers } & 15 \
\hline \text { Unemployed workers } & 40 \
\hline \text { Employed workers } & 100 \
\hline \begin{array} { l } 
\text { Population (16years and } \
\text { over) }
\end{array} & 225 \
\hline
\end{array}$$
-In the above table,the labor force participation rate is

Accepted Answer

A)  55 percent. 
B)  44 percent. 
C)  62 percent. 
D)  69 percent. 
A)  55 percent. 
B)  44 percent. 
C)  62 percent. 
D)  69 percent.

Question 12

The best example of a frictionally unemployed individual is

Accepted Answer

A)  Charles who has lost his job as an autoworker because of increased imports and can't find a good job that utilizes his skills. 
B)  Mary who quit her job to find work closer to her home. 
C)  Sam who lost his job as a real estate salesperson when the housing market went soft because of a recession. 
D)  Sandy who has few skills and is no longer looking for work. 
A)  Charles who has lost his job as an autoworker because of increased imports and can't find a good job that utilizes his skills. 
B)  Mary who quit her job to find work closer to her home. 
C)  Sam who lost his job as a real estate salesperson when the housing market went soft because of a recession. 
D)  Sandy who has few skills and is no longer looking for work.

Question 13

Suppose that the U.S.population is 275 million.Also assume that the labor force is 135 million and that 130 million people are employed.Calculate the unemployment rate.

Accepted Answer

The unemployment rat

Question 14

The biases in the CPI are

Accepted Answer

A)  not important since they are so small. 
B)  important only to economists, not the real world. 
C)  important since they effect nearly 1/3 of federal government spending. 
D)  not important although they are large. 
A)  not important since they are so small. 
B)  important only to economists, not the real world. 
C)  important since they effect nearly 1/3 of federal government spending. 
D)  not important although they are large.

Question 15

The unemployment rate equals

Accepted Answer

A)  (number of people employed/working age population) × 100. 
B)  (number of people unemployed/labor force) × 100. 
C)  (labor force/working age population) × 100. 
D)  (number of people employed/number of people age 16 and over) × 100. 
A)  (number of people employed/working age population) × 100. 
B)  (number of people unemployed/labor force) × 100. 
C)  (labor force/working age population) × 100. 
D)  (number of people employed/number of people age 16 and over) × 100.

Question 16

The population of Tiny Town is 100 people and the labor force is made up of 75 people.If 5 of these people are unemployed,the unemployment rate is

Accepted Answer

A)  5/100 × 100. 
B)  5/80 × 100. 
C)  5/75 × 100. 
D)  There is not enough information provided to calculate the unemployment rate. 
A)  5/100 × 100. 
B)  5/80 × 100. 
C)  5/75 × 100. 
D)  There is not enough information provided to calculate the unemployment rate.

Question 17

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

Accepted Answer

A)  labor force divided by the number of persons employed then multiplied by 100. 
B)  number of persons unemployed divided by the labor force then multiplied by 100. 
C)  labor force divided by the unemployment rate then multiplied by 100. 
D)  labor force divided by the working age population then multiplied by 100. 
A)  labor force divided by the number of persons employed then multiplied by 100. 
B)  number of persons unemployed divided by the labor force then multiplied by 100. 
C)  labor force divided by the unemployment rate then multiplied by 100. 
D)  labor force divided by the working age population then multiplied by 100.

Question 18

The natural unemployment rate

Accepted Answer

A)  estimated to be close to 9 percent in recent years in the United States. 
B)  has been estimated to range between 4 percent and 6 percent in the United States in recent years. 
C)  is attained whenever the unemployment rate is less than 5 percent because 95 percent employment is considered full employment. 
D)  occurs when 100 percent of the labor force is employed. 
A)  estimated to be close to 9 percent in recent years in the United States. 
B)  has been estimated to range between 4 percent and 6 percent in the United States in recent years. 
C)  is attained whenever the unemployment rate is less than 5 percent because 95 percent employment is considered full employment. 
D)  occurs when 100 percent of the labor force is employed.

Question 19

In late 2006,the unemployment rate increased from 4.4 percent to 4.5 percent. It was reported that new jobs were created in several sectors including accounting,engineering services,computer design and education. These increases offset job losses in the construction and automobile industries. At the same time,the natural unemployment rate was estimated to be about 5.5 percent
Www)nytimes.com,12/9/2006
Based on the story,the labor market reflects

Accepted Answer

A)  a positive output gap. 
B)  a negative output gap. 
C)  cyclical unemployment. 
D)  efficiency wages. 
A)  a positive output gap. 
B)  a negative output gap. 
C)  cyclical unemployment. 
D)  efficiency wages.

Question 20

Reflecting the state of the economy in 2008,the Bureau of Labor Statistics reported in October that over 1000 jobs were lost in the legal services sector. For example,one firm in Chicago stated that it had fired 54 lawyers in 2008. A representative from the firm stated that most had worked in its real estate division. www.nytimes.com,11/11/2008
The lawyers that were fired are an example of ________ unemployment.

Accepted Answer

A)  frictional 
B)  structural 
C)  efficiency wage 
D)  cyclical 
A)  frictional 
B)  structural 
C)  efficiency wage 
D)  cyclical

If unemployment equals the natural unemployment rate,then there

Structural unemployment is

During a recession,the ________.

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 -In the table above,the size of the labor force is

Bill loses his job as a loan officer when the bank he works for is bought up by a larger financial institution.Bill has the skills necessary to find a new job,so as Bill searches for work he is best considered an example of

When cyclical unemployment is zero,

The unemployment rate is defined as the

The official U-3 unemployment rate

In August 2012,the CPI inflation rate was 0.6 percent while the core CPI inflation rate was 0.1 percent. The difference between these two measurements of inflation indicates

Category Number (millions) Discouraged workers 15 Unemployed workers 40 Employed workers 100 Population (16years and over) 225 -In the above table,the labor force participation rate is

The best example of a frictionally unemployed individual is

Suppose that the U.S.population is 275 million.Also assume that the labor force is 135 million and that 130 million people are employed.Calculate the unemployment rate.

The biases in the CPI are

The unemployment rate equals

The population of Tiny Town is 100 people and the labor force is made up of 75 people.If 5 of these people are unemployed,the unemployment rate is

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 calculated as the

The natural unemployment rate

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

If unemployment equals the natural unemployment rate,then there

Structural unemployment is

During a recession,the ________.

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 -In the table above,the size of the labor force is

Bill loses his job as a loan officer when the bank he works for is bought up by a larger financial institution.Bill has the skills necessary to find a new job,so as Bill searches for work he is best considered an example of

When cyclical unemployment is zero,

The unemployment rate is defined as the

The official U-3 unemployment rate

In August 2012,the CPI inflation rate was 0.6 percent while the core CPI inflation rate was 0.1 percent. The difference between these two measurements of inflation indicates

Category Number (millions) Discouraged workers 15 Unemployed workers 40 Employed workers 100 Population (16years and over) 225 -In the above table,the labor force participation rate is

The best example of a frictionally unemployed individual is

Suppose that the U.S.population is 275 million.Also assume that the labor force is 135 million and that 130 million people are employed.Calculate the unemployment rate.

The biases in the CPI are

The unemployment rate equals

The population of Tiny Town is 100 people and the labor force is made up of 75 people.If 5 of these people are unemployed,the unemployment rate is

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 calculated as the

The natural unemployment rate

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