Question 1

Full employment occurs when

Accepted Answer

A)  structural unemployment is zero. 
B)  cyclical unemployment is zero. 
C)  frictional unemployment is zero. 
D)  cyclical and frictional unemployment are zero. 
A)  structural unemployment is zero. 
B)  cyclical unemployment is zero. 
C)  frictional unemployment is zero. 
D)  cyclical and frictional unemployment are zero.

Question 2

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

Accepted Answer

A)  people not working, but who want to work. 
B)  people who are not actively participating in meaningful economic activity. 
C)  new entrants into the labor force. 
D)  non-institutionalized working-age people who are actually working or seeking employment. 
A)  people not working, but who want to work. 
B)  people who are not actively participating in meaningful economic activity. 
C)  new entrants into the labor force. 
D)  non-institutionalized working-age people who are actually working or seeking employment.

Question 3

All people in the working-age population can be divided into

Accepted Answer

A)  labor force participants. 
B)  employed, unemployed, or not in the labor force. 
C)  either over-employed or under-employed. 
D)  potential employees. 
A)  labor force participants. 
B)  employed, unemployed, or not in the labor force. 
C)  either over-employed or under-employed. 
D)  potential employees.

Question 4

$$\begin{array} { | l | c | } 
\hline \text { Category } & \begin{array} { c } 
\text { Number of people } \
\text { (millions) }
\end{array} \
\hline \text { Total population } & 246 \
\hline \text { Working-age population } & 207 \
\hline \text { Labor force } & 139 \
\hline \text { Employed } & 133 \
\hline \text { Unemployed } & 6 \
\hline
\end{array}$$
-Based on the information in the above table,what is the unemployment rate?
What is the labor force participation rate?

Accepted Answer

The unemployment rate equals (6 million

Question 5

Full-time students and prisoners are ________.

Accepted Answer

A)  not in the labor force 
B)  in the labor force 
C)  counted as discouraged workers 
D)  counted as unemployed 
A)  not in the labor force 
B)  in the labor force 
C)  counted as discouraged workers 
D)  counted as unemployed

Question 6

The labor force is defined as

Accepted Answer

A)  people with full time jobs. 
B)  workers with jobs and unemployed workers. 
C)  all people capable of work. 
D)  All of the above answers are correct. 
A)  people with full time jobs. 
B)  workers with jobs and unemployed workers. 
C)  all people capable of work. 
D)  All of the above answers are correct.

Question 7

If a worker is temporarily laid off because the economy is in a recession,

Accepted Answer

A)  frictional unemployment increases. 
B)  structural unemployment increases. 
C)  the size of the labor force rises. 
D)  cyclical unemployment increases. 
A)  frictional unemployment increases. 
B)  structural unemployment increases. 
C)  the size of the labor force rises. 
D)  cyclical unemployment increases.

Question 8

$$\begin{array} { | l | c | } 
\hline \text { Component } & \begin{array} { c } 
\text { Number of people } \
\text { (millions) }
\end{array} \
\hline \text { Under 16 } & 50 \
\hline \text { Working full-time } & 90 \
\hline \text { Working part-time } & 30 \
\hline \text { Retired } & 40 \
\hline \text { Unemployed } & 5 \
\hline
\end{array}$$
-Using the data in the above table,the unemployment rate is

Accepted Answer

A)  4.0 percent. 
B)  4.16 percent. 
C)  5.55 percent. 
D)  28.0 percent. 
A)  4.0 percent. 
B)  4.16 percent. 
C)  5.55 percent. 
D)  28.0 percent.

Question 9

$\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 person is cyclically unemployed?

Accepted Answer

A)  A 
B)  B 
C)  C 
D)  None of the people 
A)  A 
B)  B 
C)  C 
D)  None of the people

Question 10

An individual who has stopped looking for a job because he is convinced that he cannot find a job is referred to as

Accepted Answer

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

Question 11

$$\begin{array} { | l | c | } 
\hline \text { Component } & \begin{array} { c } 
\text { Number of people } \
\text { (millions) }
\end{array} \
\hline \text { Under 16 } & 50 \
\hline \text { Working full-time } & 90 \
\hline \text { Working part-time } & 30 \
\hline \text { Retired } & 40 \
\hline \text { Unemployed } & 5 \
\hline
\end{array}$$
-Using the data in the above table,the labor force participation rate is

Accepted Answer

A)  66 percent. 
B)  58.1 percent. 
C)  75.7 percent. 
D)  96.0 percent. 
A)  66 percent. 
B)  58.1 percent. 
C)  75.7 percent. 
D)  96.0 percent.

Question 12

Structural unemployment

Accepted Answer

A)  falls during the expansion phase of the business cycle. 
B)  falls as the pace of technological progress increases. 
C)  generally lasts longer than frictional unemployment. 
D)  falls when the government provides more generous unemployment compensation benefits. 
A)  falls during the expansion phase of the business cycle. 
B)  falls as the pace of technological progress increases. 
C)  generally lasts longer than frictional unemployment. 
D)  falls when the government provides more generous unemployment compensation benefits.

Question 13

Explain the CPI bias and how it can distort private contracts and increase government outlays.

Accepted Answer

The CPI bias is the point that the CPI o

Question 14

The labor force includes

Accepted Answer

A)  only the number of people employed. 
B)  discouraged workers. 
C)  only the number of people unemployed. 
D)  both employed and unemployed workers. 
A)  only the number of people employed. 
B)  discouraged workers. 
C)  only the number of people unemployed. 
D)  both employed and unemployed workers.

Question 15

If the CPI basket of goods cost $200 in the reference base period and $450 in a later year,the CPI in the later year equals

Accepted Answer

A)  225. 
B)  250. 
C)  300. 
D)  450. 
A)  225. 
B)  250. 
C)  300. 
D)  450.

Question 16

Looking at inflation rates in the United States since the 1970s we see that

Accepted Answer

A)  inflation fell the most during the 1970s productivity slowdown. 
B)  the highest inflation rates were the double digits during the 1990s. 
C)  the inflation rate increased with the increased growth of the 1990s. 
D)  the 1970s experienced the highest inflation rates. 
A)  inflation fell the most during the 1970s productivity slowdown. 
B)  the highest inflation rates were the double digits during the 1990s. 
C)  the inflation rate increased with the increased growth of the 1990s. 
D)  the 1970s experienced the highest inflation rates.

Question 17

Which of the following situations best describes an individual who is cyclically unemployed?

Accepted Answer

A)  Catherine is a ski instructor who is not working because it is summer. 
B)  Matthew was an artillery man, but he has been unable to find work since he left the army. 
C)  Nicholas was laid-off when orders for General Motors cars fell during a recession. 
D)  Susan quit her job as a preschool teacher to try to find a better paying job. 
A)  Catherine is a ski instructor who is not working because it is summer. 
B)  Matthew was an artillery man, but he has been unable to find work since he left the army. 
C)  Nicholas was laid-off when orders for General Motors cars fell during a recession. 
D)  Susan quit her job as a preschool teacher to try to find a better paying job.

Question 18

$$\begin{array} { | l | c | } 
\hline{ \text { Component } } & \begin{array} { c } 
\text { Number of } \
\text { people }
\end{array} \
\hline \text { Total population } & 2600 \
\hline \text { Working-age population } & 2000 \
\hline \text { Not in labor force } & 500 \
\hline \text { Employed } & 1300 \
\hline
\end{array}$$
-Using the information in the table above,calculate the employment-to-population ratio.

Accepted Answer

A)  75 percent 
B)  65 percent 
C)  50 percent 
D)  23.2 percent 
A)  75 percent 
B)  65 percent 
C)  50 percent 
D)  23.2 percent

Question 19

The ________ equals the number of ________.

Accepted Answer

A)  labor force; persons over 16 years old 
B)  labor force; unemployed and employed persons 
C)  working age population; employed persons 
D)  unemployment rate; people unemployed 
A)  labor force; persons over 16 years old 
B)  labor force; unemployed and employed persons 
C)  working age population; employed persons 
D)  unemployment rate; people unemployed

Question 20

$\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 {Now that the kids are in school for a full day,this}\
\text { person is looking for work and has interviewed for }\
\text {three jobs during the past two weeks.}\
\hline \text {This person has been laid off from a job but expects}\
\text { to be called back as soon as the economy improves.}\
\hline \text {This person has just graduated from college and}\
\text { will start a new job in three weeks. In the meantime }\
\text {this person will tour the great American beaches.}\ 
\hline \text {This person was laid off last year when new}\
  \text {equipment was installed at the plant, reducing the}\
 \text { number of workers needed. Shortly after being laid}\
 \text { off, this person looked for a new job, was unable to}\
 \text { find one and then stopped looking, even though this }\
 \text {person still wants a job and is available for work.}\
\hline 
\end{array}
\end{array}\)

-The above table shows answers given by people interviewed in a government survey of households.Which individual or individuals are considered marginally attached?

Accepted Answer

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

Full employment occurs when

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 shows the percentage of

All people in the working-age population can be divided into

Category Number of people (millions) Total population 246 Working-age population 207 Labor force 139 Employed 133 Unemployed 6 -Based on the information in the above table,what is the unemployment rate? What is the labor force participation rate?

Full-time students and prisoners are ________.

The labor force is defined as

If a worker is temporarily laid off because the economy is in a recession,

Component Number of people (millions) Under 16 50 Working full-time 90 Working part-time 30 Retired 40 Unemployed 5 -Using the data in the above table,the unemployment rate is

An individual who has stopped looking for a job because he is convinced that he cannot find a job is referred to as

Component Number of people (millions) Under 16 50 Working full-time 90 Working part-time 30 Retired 40 Unemployed 5 -Using the data in the above table,the labor force participation rate is

Structural unemployment

Explain the CPI bias and how it can distort private contracts and increase government outlays.

The labor force includes

If the CPI basket of goods cost $200 in the reference base period and $450 in a later year,the CPI in the later year equals

Looking at inflation rates in the United States since the 1970s we see that

Which of the following situations best describes an individual who is cyclically unemployed?

Component Number of people Total population 2600 Working-age population 2000 Not in labor force 500 Employed 1300 -Using the information in the table above,calculate the employment-to-population ratio.

The equals the number of .

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

Full employment occurs when

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 shows the percentage of

All people in the working-age population can be divided into

Category Number of people (millions) Total population 246 Working-age population 207 Labor force 139 Employed 133 Unemployed 6 -Based on the information in the above table,what is the unemployment rate? What is the labor force participation rate?

Full-time students and prisoners are ________.

The labor force is defined as

If a worker is temporarily laid off because the economy is in a recession,

Component Number of people (millions) Under 16 50 Working full-time 90 Working part-time 30 Retired 40 Unemployed 5 -Using the data in the above table,the unemployment rate is

An individual who has stopped looking for a job because he is convinced that he cannot find a job is referred to as

Component Number of people (millions) Under 16 50 Working full-time 90 Working part-time 30 Retired 40 Unemployed 5 -Using the data in the above table,the labor force participation rate is

Structural unemployment

Explain the CPI bias and how it can distort private contracts and increase government outlays.

The labor force includes

If the CPI basket of goods cost $200 in the reference base period and $450 in a later year,the CPI in the later year equals

Looking at inflation rates in the United States since the 1970s we see that

Which of the following situations best describes an individual who is cyclically unemployed?

Component Number of people Total population 2600 Working-age population 2000 Not in labor force 500 Employed 1300 -Using the information in the table above,calculate the employment-to-population ratio.

The ________ equals the number of ________.

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

The equals the number of .