Question 1

Which of the following statements is INCORRECT?

Accepted Answer

A)  The labor force is equal to the number of people employed plus the number of people unemployed. 
B)  The working age population includes everyone over the age of 16. 
C)  The unemployment rate is the number of persons who are unemployed divided by the labor force then times 100. 
D)  The labor-force participation rate is the labor force divided by the working-age population then times 100. 
A)  The labor force is equal to the number of people employed plus the number of people unemployed. 
B)  The working age population includes everyone over the age of 16. 
C)  The unemployment rate is the number of persons who are unemployed divided by the labor force then times 100. 
D)  The labor-force participation rate is the labor force divided by the working-age population then times 100.

Question 2

-In the table above, what price level belongs in space D?

Accepted Answer

A)  125 
B)  130 
C)  140 
D)  145 
A)  125 
B)  130 
C)  140 
D)  145

Question 3

-In the above table, the inflation rate between 2014 and 2015 is approximately

Accepted Answer

A)  10 percent. 
B)  11 percent. 
C)  121 percent. 
D)  None of the above answers is correct. 
A)  10 percent. 
B)  11 percent. 
C)  121 percent. 
D)  None of the above answers is correct.

Question 4

Bill is a high-school dropout who lost his job in a fast food restaurant when the economy plunged into a recession. After 8 months, Bill is still looking for work. He is an example of

Accepted Answer

A)  frictional unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  the natural unemployment rate. 
A)  frictional unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  the natural unemployment rate.

Question 5

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

Question 6

As of July 2012, the 12 month CPI inflation rate was 1.4 percent and the 12 month core CPI inflation rate was 2.1 percent. The difference between these two measurements of inflation indicates

Accepted Answer

A)  prices for food and fuel grew less rapidly than prices for other goods. 
B)  prices for food and fuel grew more rapidly than prices for other goods. 
C)  the underlying inflation rate was lower than the overall inflation rate. 
D)  hyperinflation. 
A)  prices for food and fuel grew less rapidly than prices for other goods. 
B)  prices for food and fuel grew more rapidly than prices for other goods. 
C)  the underlying inflation rate was lower than the overall inflation rate. 
D)  hyperinflation.

Question 7

Full employment occurs when

Accepted Answer

A)  there is no cyclical unemployment. 
B)  there is no unemployment. 
C)  there is no frictional unemployment. 
D)  the unemployment rate is less than 5 percent. 
A)  there is no cyclical unemployment. 
B)  there is no unemployment. 
C)  there is no frictional unemployment. 
D)  the unemployment rate is less than 5 percent.

Question 8

Suppose initially that the working-age population is 220 million, the labor force is 150 million, and the official U-3 unemployment rate is 10 percent. 5 million new jobs are created and filled by 5 million people who had previously been discouraged workers. What is the new U-3 unemployment rate?

Accepted Answer

A)  6.25 percent 
B)  6.7 percent 
C)  9.7 percent 
D)  8.7 percent 
A)  6.25 percent 
B)  6.7 percent 
C)  9.7 percent 
D)  8.7 percent

Question 9

Unlike cyclical unemployment, both frictional and structural unemployment rise during recessions and fall during expansions.

Accepted Answer

A) True 
 B)False

Question 10

A major characteristic of structural unemployment that differentiates it from frictional unemployment is that structural unemployment

Accepted Answer

A)  exists only during a recession. 
B)  exists in an expansion whereas there is no frictional unemployment in an expansion. 
C)  is a short-term problem. 
D)  usually lasts longer than frictional unemployment. 
A)  exists only during a recession. 
B)  exists in an expansion whereas there is no frictional unemployment in an expansion. 
C)  is a short-term problem. 
D)  usually lasts longer than frictional unemployment.

Question 11

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 12

If unemployment is at the natural rate, then there

Accepted Answer

A)  is no cyclical unemployment. 
B)  is no frictional unemployment. 
C)  will be cyclical and frictional unemployment but not structural unemployment. 
D)  will be only cyclical unemployment. 
A)  is no cyclical unemployment. 
B)  is no frictional unemployment. 
C)  will be cyclical and frictional unemployment but not structural unemployment. 
D)  will be only cyclical unemployment.

Question 13

-Using the information in the above table, the unemployment rate is

Accepted Answer

A)  4.5 percent. 
B)  4.3 percent. 
C)  2.8 percent. 
D)  6.0 percent. 
A)  4.5 percent. 
B)  4.3 percent. 
C)  2.8 percent. 
D)  6.0 percent.

Question 14

"The new goods bias puts a downward bias into the CPI and its measure of the inflation rate." Is the previous sentence correct or not? Explain your answer.

Accepted Answer

The sentence is False because the new go

Question 15

-In the above table, the working age population is

Accepted Answer

A)  225 million. 
B)  100 million. 
C)  140 million. 
D)  155 million. 
A)  225 million. 
B)  100 million. 
C)  140 million. 
D)  155 million.

Question 16

If the base year CPI basket costs $250 and next year the CPI basket costs $275, what is next year's CPI?

Accepted Answer

The CPI eq

Question 17

The unemployment rate measures the percentage of the working-age population who can't find a job.

Accepted Answer

A) True 
 B)False

Question 18

Recessions and expansions affect most strongly which type of unemployment?

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 19

Who of the following is counted as unemployed?

Accepted Answer

A)  Rene, a retired chemist 
B)  Homer, a full-time student at a vocational school 
C)  Kim, a worker on strike from her company for a week 
D)  Glenn, a student who just graduated from college last week and is currently looking for a job 
A)  Rene, a retired chemist 
B)  Homer, a full-time student at a vocational school 
C)  Kim, a worker on strike from her company for a week 
D)  Glenn, a student who just graduated from college last week and is currently looking for a job

Question 20

What is the relationship between the natural unemployment rate, the unemployment rate, potential GDP, and actual GDP?

Accepted Answer

When the economy is at potential GDP, th

Which of the following statements is INCORRECT?

-In the table above, what price level belongs in space D?

-In the above table, the inflation rate between 2014 and 2015 is approximately

Bill is a high-school dropout who lost his job in a fast food restaurant when the economy plunged into a recession. After 8 months, Bill is still looking for work. He is an example of

As of July 2012, the 12 month CPI inflation rate was 1.4 percent and the 12 month core CPI inflation rate was 2.1 percent. The difference between these two measurements of inflation indicates

Full employment occurs when

Suppose initially that the working-age population is 220 million, the labor force is 150 million, and the official U-3 unemployment rate is 10 percent. 5 million new jobs are created and filled by 5 million people who had previously been discouraged workers. What is the new U-3 unemployment rate?

Unlike cyclical unemployment, both frictional and structural unemployment rise during recessions and fall during expansions.

A major characteristic of structural unemployment that differentiates it from frictional unemployment is that structural unemployment

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

If unemployment is at the natural rate, then there

-Using the information in the above table, the unemployment rate is

"The new goods bias puts a downward bias into the CPI and its measure of the inflation rate." Is the previous sentence correct or not? Explain your answer.

-In the above table, the working age population is

If the base year CPI basket costs $250 and next year the CPI basket costs $275, what is next year's CPI?

The unemployment rate measures the percentage of the working-age population who can't find a job.

Recessions and expansions affect most strongly which type of unemployment?

Who of the following is counted as unemployed?

What is the relationship between the natural unemployment rate, the unemployment rate, potential GDP, and actual GDP?

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

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 5: Monitoring Jobs and Inflation

Which of the following statements is INCORRECT?

-In the table above, what price level belongs in space D?

-In the above table, the inflation rate between 2014 and 2015 is approximately

Bill is a high-school dropout who lost his job in a fast food restaurant when the economy plunged into a recession. After 8 months, Bill is still looking for work. He is an example of

As of July 2012, the 12 month CPI inflation rate was 1.4 percent and the 12 month core CPI inflation rate was 2.1 percent. The difference between these two measurements of inflation indicates

Full employment occurs when

Suppose initially that the working-age population is 220 million, the labor force is 150 million, and the official U-3 unemployment rate is 10 percent. 5 million new jobs are created and filled by 5 million people who had previously been discouraged workers. What is the new U-3 unemployment rate?

Unlike cyclical unemployment, both frictional and structural unemployment rise during recessions and fall during expansions.

A major characteristic of structural unemployment that differentiates it from frictional unemployment is that structural unemployment

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

If unemployment is at the natural rate, then there

-Using the information in the above table, the unemployment rate is

"The new goods bias puts a downward bias into the CPI and its measure of the inflation rate." Is the previous sentence correct or not? Explain your answer.

-In the above table, the working age population is

If the base year CPI basket costs $250 and next year the CPI basket costs $275, what is next year's CPI?

The unemployment rate measures the percentage of the working-age population who can't find a job.

Recessions and expansions affect most strongly which type of unemployment?

Who of the following is counted as unemployed?

What is the relationship between the natural unemployment rate, the unemployment rate, potential GDP, and actual GDP?

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

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters