Question 1

The labor force is the sum of

Accepted Answer

A)  employed workers and discouraged workers. 
B)  employed workers and unemployed workers. 
C)  employed workers and individuals not looking for work. 
D)  unemployed workers and the working-age population. 
A)  employed workers and discouraged workers. 
B)  employed workers and unemployed workers. 
C)  employed workers and individuals not looking for work. 
D)  unemployed workers and the working-age population.

Question 2

If firms pay what are called "efficiency wages," they pay wages that

Accepted Answer

A)  motivate workers to increase their productivity. 
B)  are lower than average to ensure maximum profit. 
C)  will eventually lower the unemployment rate. 
D)  are mandated by the government. 
A)  motivate workers to increase their productivity. 
B)  are lower than average to ensure maximum profit. 
C)  will eventually lower the unemployment rate. 
D)  are mandated by the government.

Question 3

Table 13-19
 $\begin{array}{|c|c|c|}
\hline \text { Year } & \begin{array}{c}
\text { Nominal Average Hourly } \
\text { Earnings }
\end{array} & \begin{array}{c}
\text { CPI } \
(\mathbf{1 9 8 2 - 1 9 8 4}=\mathbf{1 0 0})
\end{array} \
\hline 2016 & \$ 10 & 100 \
\hline 2017 & 10 & 105 \
\hline 2018 & 12 & 110 \
\hline
\end{array}$
-Refer to Table 13-19.Looking at the table above,what is the rate of growth of the average price level from 2017 to 2018?

Accepted Answer

A)  1% 
B)  2% 
C)  3.5% 
D)  4.76% 
E)  5.25% 
A)  1% 
B)  2% 
C)  3.5% 
D)  4.76% 
E)  5.25%

Question 4

If the number of unemployed workers is 19 million,the number in the working-age population is 500 million,and the unemployment rate is 4%,what is the labor force participation rate?

Accepted Answer

A)  4.75% 
B)  7.8% 
C)  95% 
D)  96.2% 
A)  4.75% 
B)  7.8% 
C)  95% 
D)  96.2%

Question 5

To reduce the bias in the consumer price index,the Bureau of Labor Statistics

Accepted Answer

A)  updates the market basket every two years, rather than every 10 years. 
B)  updates the market basket every 10 years, rather than every two years. 
C)  incorporates substitutions by consumers when prices of specific products rise rapidly. 
D)  incorporates substitutions by consumers when prices of specific products fall rapidly. 
A)  updates the market basket every two years, rather than every 10 years. 
B)  updates the market basket every 10 years, rather than every two years. 
C)  incorporates substitutions by consumers when prices of specific products rise rapidly. 
D)  incorporates substitutions by consumers when prices of specific products fall rapidly.

Question 6

Table 13-3
  $ \quad $ $ \quad $ $ \quad $ $ \quad $ $ \quad $ $ \quad $$\text { Base Year (2013) } 2018$
$\begin{array}{|c|c|r|r|}
\hline \text { Product } & \text { Quantity } & \text { Price } & \text { Price } \
\hline \text { Cokes } & 100 & \$ 0.50 & \$ 0.75 \
\hline \text { Hamburgers } & 200 & 2.00 & 2.50 \
\hline \text { CDs } & 10 & 20.00 & 21.00 \
\hline
\end{array}$
-Refer to Table 13-3.Assume the market basket for the consumer price index has three products-Cokes,hamburgers,and CDs-with the following values in 2013 and 2018 for price and quantity: The Consumer Price Index for 2018 equals

Accepted Answer

A)  75. 
B)  93. 
C)  108. 
D)  121. 
A)  75. 
B)  93. 
C)  108. 
D)  121.

Question 7

If consumers purchase fewer of those products that increase most in price and more of those products that decrease in price as compared to the CPI basket,then

Accepted Answer

A)  changes in the CPI accurately reflect the true rate of inflation. 
B)  changes in the CPI understate the true rate of inflation. 
C)  changes in the CPI overstate the true rate of inflation. 
D)  changes in the CPI are unrelated to the true rate of inflation. 
A)  changes in the CPI accurately reflect the true rate of inflation. 
B)  changes in the CPI understate the true rate of inflation. 
C)  changes in the CPI overstate the true rate of inflation. 
D)  changes in the CPI are unrelated to the true rate of inflation.

Question 8

Which of the following has a tendency to raise the unemployment rate?

Accepted Answer

A)  implementing a minimum wage above the market wage in an economy 
B)  reducing unemployment insurance in an economy 
C)  offering wages at the market-clearing rate 
D)  reducing labor union membership in an economy 
A)  implementing a minimum wage above the market wage in an economy 
B)  reducing unemployment insurance in an economy 
C)  offering wages at the market-clearing rate 
D)  reducing labor union membership in an economy

Question 9

Labor unions cause unemployment because the union contract wage is set

Accepted Answer

A)  below the market wage, causing a shortage of labor. 
B)  below the market wage, causing a surplus of labor. 
C)  above the market wage, causing a surplus of labor. 
D)  above the market wage, causing a shortage of labor. 
A)  below the market wage, causing a shortage of labor. 
B)  below the market wage, causing a surplus of labor. 
C)  above the market wage, causing a surplus of labor. 
D)  above the market wage, causing a shortage of labor.

Question 10

Inflation redistributes income to a greater extent when the inflation is unanticipated compared to when the inflation is anticipated.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is an example of a worker experiencing cyclical unemployment?

Accepted Answer

A)  a worker who changes jobs to move closer to her family 
B)  an assembly line worker who loses his job because of automation 
C)  a freightliner employee that got laid off because of the recession of 2007-2009 
D)  a lifeguard who was hired during the summer season is laid off after summer is over 
A)  a worker who changes jobs to move closer to her family 
B)  an assembly line worker who loses his job because of automation 
C)  a freightliner employee that got laid off because of the recession of 2007-2009 
D)  a lifeguard who was hired during the summer season is laid off after summer is over

Question 12

Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called

Accepted Answer

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

Question 13

If inflation is completely anticipated

Accepted Answer

A)  no one loses in the economy. 
B)  borrowers lose in the economy. 
C)  lenders lose in the economy. 
D)  firms lose because they incur menu costs. 
A)  no one loses in the economy. 
B)  borrowers lose in the economy. 
C)  lenders lose in the economy. 
D)  firms lose because they incur menu costs.

Question 14

If inflation is unanticipated,no redistribution of income can occur.

Accepted Answer

A) True 
 B)False

Question 15

If inflation is anticipated,some effects of inflation on the redistribution of income can be avoided.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is not a cost imposed by inflation?

Accepted Answer

A)  Inflation reduces the affordability of goods and services to the average consumer. 
B)  The money that consumers and firms hold loses its purchasing power. 
C)  Firms must pay for changing prices on products and printing new catalogs. 
D)  Banks can lose if they under predict inflation and charge an interest rate that does not completely compensate for inflation. 
A)  Inflation reduces the affordability of goods and services to the average consumer. 
B)  The money that consumers and firms hold loses its purchasing power. 
C)  Firms must pay for changing prices on products and printing new catalogs. 
D)  Banks can lose if they under predict inflation and charge an interest rate that does not completely compensate for inflation.

Question 17

Jack was unemployed two weeks ago but just started a new job.As a result of this increase in the number of employed workers,which of the following occurred?

Accepted Answer

A)  The labor force participation rate increased. 
B)  The unemployment rate increased. 
C)  The labor force participation rate decreased. 
D)  The unemployment rate decreased. 
A)  The labor force participation rate increased. 
B)  The unemployment rate increased. 
C)  The labor force participation rate decreased. 
D)  The unemployment rate decreased.

Question 18

If the minimum wage is set above the market wage

Accepted Answer

A)  the quantity of labor supplied will be below the quantity of labor demanded. 
B)  unemployment will rise. 
C)  highly-skilled workers will have a harder time finding jobs. 
D)  All of the above are correct. 
A)  the quantity of labor supplied will be below the quantity of labor demanded. 
B)  unemployment will rise. 
C)  highly-skilled workers will have a harder time finding jobs. 
D)  All of the above are correct.

Question 19

Table 13-1
 $\begin{array}{|l|c|}
\hline \text { Total population } & 20,000 \
\hline \text { Working-age population } & 15,000 \
\hline \text { Employment } & 1,000 \
\hline \text { Unemployment } & 100\
\hline
\end{array}$ Consider the data above for a simple economy.
-Refer to Table 13-1.The unemployment rate for this simple economy equals

Accepted Answer

A)  (100/1,000) × 100. 
B)  (100/1,100) × 100. 
C)  (100/15,000) × 100. 
D)  (100/20,000) × 100. 
A)  (100/1,000) × 100. 
B)  (100/1,100) × 100. 
C)  (100/15,000) × 100. 
D)  (100/20,000) × 100.

Question 20

The unemployment rate equals the number of unemployed divided by the ________,all times 100.

Accepted Answer

A)  number of employed 
B)  labor force 
C)  working-age population 
D)  total population 
A)  number of employed 
B)  labor force 
C)  working-age population 
D)  total population

The labor force is the sum of

If firms pay what are called "efficiency wages," they pay wages that

Table 13-19 Year Nominal Average Hourly Earnings CPI (=) 2016 \ 10 100 2017 10 105 2018 12 110 -Refer to Table 13-19.Looking at the table above,what is the rate of growth of the average price level from 2017 to 2018?

If the number of unemployed workers is 19 million,the number in the working-age population is 500 million,and the unemployment rate is 4%,what is the labor force participation rate?

To reduce the bias in the consumer price index,the Bureau of Labor Statistics

If consumers purchase fewer of those products that increase most in price and more of those products that decrease in price as compared to the CPI basket,then

Which of the following has a tendency to raise the unemployment rate?

Labor unions cause unemployment because the union contract wage is set

Inflation redistributes income to a greater extent when the inflation is unanticipated compared to when the inflation is anticipated.

Which of the following is an example of a worker experiencing cyclical unemployment?

Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called

If inflation is completely anticipated

If inflation is unanticipated,no redistribution of income can occur.

If inflation is anticipated,some effects of inflation on the redistribution of income can be avoided.

Which of the following is not a cost imposed by inflation?

Jack was unemployed two weeks ago but just started a new job.As a result of this increase in the number of employed workers,which of the following occurred?

If the minimum wage is set above the market wage

Table 13-1 Total population 20,000 Working-age population 15,000 Employment 1,000 Unemployment 100 Consider the data above for a simple economy. -Refer to Table 13-1.The unemployment rate for this simple economy equals

The unemployment rate equals the number of unemployed divided by the ________,all times 100.

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

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Exam 13: Unemployment and Inflation

The labor force is the sum of

If firms pay what are called "efficiency wages," they pay wages that

Table 13-19 Year Nominal Average Hourly Earnings CPI (=) 2016 \ 10 100 2017 10 105 2018 12 110 -Refer to Table 13-19.Looking at the table above,what is the rate of growth of the average price level from 2017 to 2018?

If the number of unemployed workers is 19 million,the number in the working-age population is 500 million,and the unemployment rate is 4%,what is the labor force participation rate?

To reduce the bias in the consumer price index,the Bureau of Labor Statistics

If consumers purchase fewer of those products that increase most in price and more of those products that decrease in price as compared to the CPI basket,then

Which of the following has a tendency to raise the unemployment rate?

Labor unions cause unemployment because the union contract wage is set

Inflation redistributes income to a greater extent when the inflation is unanticipated compared to when the inflation is anticipated.

Which of the following is an example of a worker experiencing cyclical unemployment?

Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called

If inflation is completely anticipated

If inflation is unanticipated,no redistribution of income can occur.

If inflation is anticipated,some effects of inflation on the redistribution of income can be avoided.

Which of the following is not a cost imposed by inflation?

Jack was unemployed two weeks ago but just started a new job.As a result of this increase in the number of employed workers,which of the following occurred?

If the minimum wage is set above the market wage

Table 13-1 Total population 20,000 Working-age population 15,000 Employment 1,000 Unemployment 100 Consider the data above for a simple economy. -Refer to Table 13-1.The unemployment rate for this simple economy equals

The unemployment rate equals the number of unemployed divided by the ________,all times 100.

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