Question 1

Which of the following groups would NOT be considered as part of the civilian labor force?

Accepted Answer

A)  full-time students who are not working or looking for work 
B)  those already employed 
C)  those who are unemployed 
D)  all individuals only working part-time 
A)  full-time students who are not working or looking for work 
B)  those already employed 
C)  those who are unemployed 
D)  all individuals only working part-time

Question 2

The total civilian labor force is comprised of

Accepted Answer

A)  the unemployed and the employed. 
B)  only the employed. 
C)  all individuals over 16 years of age, whether or not they work or are seeking work. 
D)  only full-time employed individuals between the ages of 18 and 55. 
A)  the unemployed and the employed. 
B)  only the employed. 
C)  all individuals over 16 years of age, whether or not they work or are seeking work. 
D)  only full-time employed individuals between the ages of 18 and 55.

Question 3

The term "unemployment" is best described as the total number of

Accepted Answer

A)  people not working. 
B)  people who have been laid off and have stopped looking for work. 
C)  adults who work fewer hours than they wish to work. 
D)  adults who are looking for work but have not found a job. 
A)  people not working. 
B)  people who have been laid off and have stopped looking for work. 
C)  adults who work fewer hours than they wish to work. 
D)  adults who are looking for work but have not found a job.

Question 4

Assume that there was a 10 percent increase in the price of all goods in 2010; if the base year is 2009, then the price index in 2010 will be

Accepted Answer

A)  90. 
B)  110. 
C)  200. 
D)  1100. 
A)  90. 
B)  110. 
C)  200. 
D)  1100.

Question 5

-Using the above table, the labor force participation rate is

Accepted Answer

A)  65.6 percent. 
B)  73.8 percent. 
C)  81.8 percent. 
D)  69.1 percent. 
A)  65.6 percent. 
B)  73.8 percent. 
C)  81.8 percent. 
D)  69.1 percent.

Question 6

The labor force includes all of the following individuals who are 16 years or older EXCEPT

Accepted Answer

A)  people who have never been in the labor force but have just found a job. 
B)  the employed. 
C)  the unemployed. 
D)  people who are retired and not actively seeking work. 
A)  people who have never been in the labor force but have just found a job. 
B)  the employed. 
C)  the unemployed. 
D)  people who are retired and not actively seeking work.

Question 7

Full employment does not necessarily mean that every adult has a job because

Accepted Answer

A)  students and homemakers are always looking for work. 
B)  there are always some discouraged workers. 
C)  policy makers never want to achieve full employment. 
D)  there are transaction costs in finding a job in the labor market. 
A)  students and homemakers are always looking for work. 
B)  there are always some discouraged workers. 
C)  policy makers never want to achieve full employment. 
D)  there are transaction costs in finding a job in the labor market.

Question 8

A person who is unemployed because of a mismatch between the person's skills and current employment requirements is experiencing

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 9

If the U.S. economy enters a recession, the

Accepted Answer

A)  economy experiences full employment. 
B)  unemployment rate tends to increase. 
C)  labor force tends to increase. 
D)  entire population will be partially unemployed. 
A)  economy experiences full employment. 
B)  unemployment rate tends to increase. 
C)  labor force tends to increase. 
D)  entire population will be partially unemployed.

Question 10

A person who has taken medical leave is

Accepted Answer

A)  in the labor force. 
B)  not in the labor force. 
C)  unemployed. 
D)  a job leaver. 
A)  in the labor force. 
B)  not in the labor force. 
C)  unemployed. 
D)  a job leaver.

Question 11

If an outdoor vendor loses her job when winter weather comes, this individual is

Accepted Answer

A)  seasonally unemployed. 
B)  cyclically unemployed. 
C)  structurally unemployed. 
D)  chronically unemployed. 
A)  seasonally unemployed. 
B)  cyclically unemployed. 
C)  structurally unemployed. 
D)  chronically unemployed.

Question 12

Which of the following is a true statement?

Accepted Answer

A)  All recessions are due to external shocks. 
B)  Ultimately, no recession has been due to an external shock. 
C)  There have been recessions that cannot be explained by external shocks. 
D)  All recessions and all expansions are due to external shocks. 
A)  All recessions are due to external shocks. 
B)  Ultimately, no recession has been due to an external shock. 
C)  There have been recessions that cannot be explained by external shocks. 
D)  All recessions and all expansions are due to external shocks.

Exam 7: The Macroeconomy: Unemployment, Inflation, and Deflation

Which of the following groups would NOT be considered as part of the civilian labor force?

The total civilian labor force is comprised of

The term "unemployment" is best described as the total number of

Assume that there was a 10 percent increase in the price of all goods in 2010; if the base year is 2009, then the price index in 2010 will be

-Using the above table, the labor force participation rate is

The labor force includes all of the following individuals who are 16 years or older EXCEPT

Full employment does not necessarily mean that every adult has a job because

A person who is unemployed because of a mismatch between the person's skills and current employment requirements is experiencing

If the U.S. economy enters a recession, the

A person who has taken medical leave is

If an outdoor vendor loses her job when winter weather comes, this individual is

Which of the following is a true statement?

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Measuring the Economys Performance

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money, Banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Demand and Supply Elasticity

Consumer Choice

Rents, Profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, Supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, Poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters