Question 1

In April 2017,the U.S.unemployment rate was highest for

Accepted Answer

A)  whites. 
B)  Hispanics. 
C)  high school dropouts. 
D)  African Americans. 
E)  Asians. 
A)  whites. 
B)  Hispanics. 
C)  high school dropouts. 
D)  African Americans. 
E)  Asians. D

Question 2

Counting part-time workers who are looking for full-time work as employed overstates the degree of joblessness in the economy.

Accepted Answer

A) True 
 B)False  False

Question 3

For the last few decades,the labor force participation rates of men have ________,and the labor force participation rates of women have ________.

Accepted Answer

A)  risen; risen 
B)  fallen; fallen 
C)  risen; fallen 
D)  fallen; risen 
A)  risen; risen 
B)  fallen; fallen 
C)  risen; fallen 
D)  fallen; risen D

Question 4

Explain whether you agree or disagree with the following statement: "The reason that inflation is bad is because it increases the cost of living-the costs of goods and services we buy-without increasing income in general."

Accepted Answer

Disagree.Inflation,in general,must incre

Question 5

If inflation is higher than expected,this helps borrowers (by reducing the real interest rate they pay)and hurts lenders (by reducing the real interest rate they receive).

Accepted Answer

A) True 
 B)False

Question 6

If cyclical unemployment is eliminated in the economy,then

Accepted Answer

A)  the economy is considered to be at full employment. 
B)  the unemployment rate is below the natural rate of unemployment. 
C)  the unemployment rate is above the natural rate of unemployment. 
D)  the economy is at less than full employment. 
A)  the economy is considered to be at full employment. 
B)  the unemployment rate is below the natural rate of unemployment. 
C)  the unemployment rate is above the natural rate of unemployment. 
D)  the economy is at less than full employment.

Question 7

The increased generosity of unemployment insurance programs in Canada as compared to the United States should

Accepted Answer

A)  decrease the duration of unemployment in Canada as compared to the United States. 
B)  increase the duration of unemployment in Canada as compared to the United States. 
C)  have no impact on the duration of unemployment in Canada. 
D)  raise the duration of unemployment in the United States. 
A)  decrease the duration of unemployment in Canada as compared to the United States. 
B)  increase the duration of unemployment in Canada as compared to the United States. 
C)  have no impact on the duration of unemployment in Canada. 
D)  raise the duration of unemployment in the United States.

Question 8

The real rate of interest is

Accepted Answer

A)  the nominal interest rate plus the inflation rate. 
B)  the nominal interest rate minus the inflation rate. 
C)  the interest rate determined by the supply and demand in the money market. 
D)  the nominal interest rate. 
A)  the nominal interest rate plus the inflation rate. 
B)  the nominal interest rate minus the inflation rate. 
C)  the interest rate determined by the supply and demand in the money market. 
D)  the nominal interest rate.

Question 9

Table 13-7
 $\begin{array}{|c|c|}
\hline \text { Year } & \text { CPI } \
\hline 2017 & 175 \
\hline 2018 & 180 \
\hline
\end{array}$
-Refer to Table 13-7.Suppose that the data in the table above reflect price levels in the economy.What is the inflation rate between 2017 and 2018?

Accepted Answer

A)  2.9% 
B)  3.5% 
C)  4.6% 
D)  5% 
E)  7.5% 
A)  2.9% 
B)  3.5% 
C)  4.6% 
D)  5% 
E)  7.5%

Question 10

Inflation that is ________ than what is expected benefits ________ and hurts ________.

Accepted Answer

A)  less; lenders; borrowers 
B)  less; borrowers; lenders 
C)  greater; lenders; borrowers 
D)  greater; lenders; no one 
A)  less; lenders; borrowers 
B)  less; borrowers; lenders 
C)  greater; lenders; borrowers 
D)  greater; lenders; no one

Question 11

Jack just received a promotion at work and now works 50 hours per week instead of 35.As a result,

Accepted Answer

A)  the unemployment rate increased. 
B)  the unemployment rate decreased. 
C)  the labor force participation rate increased. 
D)  neither the unemployment rate nor the labor force participation rate changed. 
A)  the unemployment rate increased. 
B)  the unemployment rate decreased. 
C)  the labor force participation rate increased. 
D)  neither the unemployment rate nor the labor force participation rate changed.

Question 12

The consumer price index is the

Accepted Answer

A)  cost of a market basket of goods and services typically consumed in the base year. 
B)  cost of a market basket of goods and services typically consumed in the current period. 
C)  average of the prices of the goods and services purchased by a typical urban family of four. 
D)  average of the prices of new final goods and services produced in the economy over a period of time. 
A)  cost of a market basket of goods and services typically consumed in the base year. 
B)  cost of a market basket of goods and services typically consumed in the current period. 
C)  average of the prices of the goods and services purchased by a typical urban family of four. 
D)  average of the prices of new final goods and services produced in the economy over a period of time.

Question 13

Eliminating structural unemployment would be good for the economy.

Accepted Answer

A) True 
 B)False

Question 14

Table 13-10
 $\begin{array}{|l|r|r|r|r|r|}
\hline &\text { Ouantity } & \text { Price } & \text { Expenditure } & \text { Price }& \text { Expenditure (on base year} \
\text { Product } & \text { (2013) } & (2013) & {(2013)} & \text { (2018) } & \text { quantities) (2018) } \
\hline \text { Computers } & 1 & \$ 1,200 & \$ 1,200 & \$ 900 & \$ 900 \
\hline \text { Books } & 10 & 25 & 250 & 30 & 300 \
\hline \text { Burgers } & 50 & 3 & 150 & 4 & 200 \
\hline \text { Total } & & & \$ 1,600 & & \$ 1,400\
\hline
\end{array}$
-Refer to Table 13-10.Suppose an economy has only three goods and the typical family purchases the amounts given in the table above.If 2013 is the base year,then what is the CPI for 2018?

Accepted Answer

A)  14.3 
B)  87.5 
C)  114.3 
D)  160 
A)  14.3 
B)  87.5 
C)  114.3 
D)  160

Question 15

According to the text,economists consider full employment to occur when

Accepted Answer

A)  everyone who wants a job has a job. 
B)  frictional unemployment equals zero. 
C)  the sum of frictional unemployment and structural unemployment equals zero. 
D)  the unemployment rate consists of only frictional and structural unemployment. 
A)  everyone who wants a job has a job. 
B)  frictional unemployment equals zero. 
C)  the sum of frictional unemployment and structural unemployment equals zero. 
D)  the unemployment rate consists of only frictional and structural unemployment.

Question 16

Suppose 180,000 people are employed,20,000 people are unemployed,and 50,000 people are not in the labor force.Calculate the labor force participation rate.

Accepted Answer

The labor force participation rate is ca

Question 17

The natural rate of unemployment is the amount of unemployment

Accepted Answer

A)  associated with the business cycle. 
B)  equal to frictional plus structural unemployment. 
C)  that exists when the economy goes into recession. 
D)  that exists when the economy is in an expansion. 
A)  associated with the business cycle. 
B)  equal to frictional plus structural unemployment. 
C)  that exists when the economy goes into recession. 
D)  that exists when the economy is in an expansion.

Question 18

When the actual inflation rate turns out to be greater than the expected inflation rate,who gains-the borrower or the lender-and who loses? Explain why.

Accepted Answer

The borrower gains because he pays back

Question 19

Why would a firm pay efficiency wages?

Accepted Answer

An efficiency wage is a wage that is hig

Question 20

According to the President's Council of Economic Advisors, the labor force participation rate has significantly declined since the year 2000, due primarily to retiring baby boomers and the severity of the 2007-2009 recession. However, over the past couple of years, the labor force participation rate has held fairly steady, indicating that previously discouraged workers may be reentering the labor market. In June 2017, the labor force participation rate was 62.8%, roughly the same as it was a month earlier.
Source: Andy Kiersz, "Labor force participation ticks up," businessinsider.com, July 7, 2017.
-Refer to the Article Summary.What is the labor force participation rate? What are discouraged workers? Explain how discouraged workers reentering the labor market would stop the decline of the labor force participation rate.

Accepted Answer

The labor force participation rate is th

In April 2017,the U.S.unemployment rate was highest for

Counting part-time workers who are looking for full-time work as employed overstates the degree of joblessness in the economy.

For the last few decades,the labor force participation rates of men have ,and the labor force participation rates of women have .

Explain whether you agree or disagree with the following statement: "The reason that inflation is bad is because it increases the cost of living-the costs of goods and services we buy-without increasing income in general."

If inflation is higher than expected,this helps borrowers (by reducing the real interest rate they pay)and hurts lenders (by reducing the real interest rate they receive).

If cyclical unemployment is eliminated in the economy,then

The increased generosity of unemployment insurance programs in Canada as compared to the United States should

The real rate of interest is

Table 13-7 Year CPI 2017 175 2018 180 -Refer to Table 13-7.Suppose that the data in the table above reflect price levels in the economy.What is the inflation rate between 2017 and 2018?

Inflation that is than what is expected benefits and hurts .

Jack just received a promotion at work and now works 50 hours per week instead of 35.As a result,

The consumer price index is the

Eliminating structural unemployment would be good for the economy.

According to the text,economists consider full employment to occur when

Suppose 180,000 people are employed,20,000 people are unemployed,and 50,000 people are not in the labor force.Calculate the labor force participation rate.

The natural rate of unemployment is the amount of unemployment

When the actual inflation rate turns out to be greater than the expected inflation rate,who gains-the borrower or the lender-and who loses? Explain why.

Why would a firm pay efficiency wages?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, The Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology,Production,and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Economic Growth, The Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, International Trade, and Exchange Rates

Filters

Exam 13: Unemployment and Inflation

In April 2017,the U.S.unemployment rate was highest for

Counting part-time workers who are looking for full-time work as employed overstates the degree of joblessness in the economy.

For the last few decades,the labor force participation rates of men have ________,and the labor force participation rates of women have ________.

Explain whether you agree or disagree with the following statement: "The reason that inflation is bad is because it increases the cost of living-the costs of goods and services we buy-without increasing income in general."

If inflation is higher than expected,this helps borrowers (by reducing the real interest rate they pay)and hurts lenders (by reducing the real interest rate they receive).

If cyclical unemployment is eliminated in the economy,then

The increased generosity of unemployment insurance programs in Canada as compared to the United States should

The real rate of interest is

Table 13-7 Year CPI 2017 175 2018 180 -Refer to Table 13-7.Suppose that the data in the table above reflect price levels in the economy.What is the inflation rate between 2017 and 2018?

Inflation that is ________ than what is expected benefits ________ and hurts ________.

Jack just received a promotion at work and now works 50 hours per week instead of 35.As a result,

The consumer price index is the

Eliminating structural unemployment would be good for the economy.

According to the text,economists consider full employment to occur when

Suppose 180,000 people are employed,20,000 people are unemployed,and 50,000 people are not in the labor force.Calculate the labor force participation rate.

The natural rate of unemployment is the amount of unemployment

When the actual inflation rate turns out to be greater than the expected inflation rate,who gains-the borrower or the lender-and who loses? Explain why.

Why would a firm pay efficiency wages?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, The Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology,Production,and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Economic Growth, The Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, International Trade, and Exchange Rates

Filters

For the last few decades,the labor force participation rates of men have ,and the labor force participation rates of women have .

Inflation that is than what is expected benefits and hurts .