Question 1

This type of unemployment reflects the normal amount of unemployed workers who possess skills that will enable them to find another job.

Accepted Answer

A)  cyclical unemployment 
B)  frictional unemployment 
C)  structural unemployment 
D)  None of the above answers is correct. 
A)  cyclical unemployment 
B)  frictional unemployment 
C)  structural unemployment 
D)  None of the above answers is correct.

Question 2

When a student finishes college and begins looking for work

Accepted Answer

A)  cyclical unemployment increases. 
B)  structural unemployment increases. 
C)  frictional unemployment increases. 
D)  frictional and cyclical unemployment increase. 
A)  cyclical unemployment increases. 
B)  structural unemployment increases. 
C)  frictional unemployment increases. 
D)  frictional and cyclical unemployment increase.

Question 3

How does the unemployment rate change in a recession and in an expansion?

Accepted Answer

During a recession, the unempl

Question 4

From September 2013 to September 2014, the employment-to-population ratio increased from 58.6 percent to 59.0 percent. This change could have been the result of

Accepted Answer

A)  a decrease in the working-age population. 
B)  unemployed workers becoming part-time workers. 
C)  unemployed workers becoming discouraged workers. 
D)  discouraged workers starting to look for jobs again. 
A)  a decrease in the working-age population. 
B)  unemployed workers becoming part-time workers. 
C)  unemployed workers becoming discouraged workers. 
D)  discouraged workers starting to look for jobs again.

Question 5

The technique currently used to calculate the CPI implicitly assumes that over time consumers buy

Accepted Answer

A)  relatively more of goods whose relative prices are rising. 
B)  relatively less of goods whose relative prices are rising. 
C)  the same relative quantities of goods as in a base year. 
D)  goods and services whose quality improves at the rate of growth of real income. 
A)  relatively more of goods whose relative prices are rising. 
B)  relatively less of goods whose relative prices are rising. 
C)  the same relative quantities of goods as in a base year. 
D)  goods and services whose quality improves at the rate of growth of real income.

Question 6

Suppose the population is 220 million people, the labor force is 150 million people, the number of people employed is 130 million and the working-age population is 175 million people. What is the labor force participation rate?

Accepted Answer

A)  0.68 percent 
B)  68 percent 
C)  85.7 percent 
D)  86.7 percent 
A)  0.68 percent 
B)  68 percent 
C)  85.7 percent 
D)  86.7 percent

Question 7

Why is unemployment a problem?

Accepted Answer

Unemployment is a problem for both the n

Question 8

The unemployment rate equals [(the number of people unemployed)/(the population)] × 100.

Accepted Answer

A) True 
 B)False

Question 9

When more labor is unemployed than the amount at the natural unemployment rate, then real GDP ________ potential GDP.

Accepted Answer

A)  is equal to 
B)  is less than 
C)  is greater than 
D)  cannot be compared to 
A)  is equal to 
B)  is less than 
C)  is greater than 
D)  cannot be compared to

Question 10

Suppose the price level this year is 150 and the price level last year was 125. The inflation rate between last year and this year was

Accepted Answer

A)  20 percent. 
B)  2 percent. 
C)  16.6 percent. 
D)  1.6 percent. 
A)  20 percent. 
B)  2 percent. 
C)  16.6 percent. 
D)  1.6 percent.

Question 11

Suppose the Consumer Price Index is 143.6. What does that number mean?

Accepted Answer

A)  On average, goods cost $143.60. 
B)  On average, goods cost $243.60. 
C)  Prices rose 143.6 percent over the reference base period, on average. 
D)  Prices rose 43.6 percent over the reference base period, on average. 
A)  On average, goods cost $143.60. 
B)  On average, goods cost $243.60. 
C)  Prices rose 143.6 percent over the reference base period, on average. 
D)  Prices rose 43.6 percent over the reference base period, on average.

Question 12

When the economy moves into and out of recessions and expansions, the unemployment rate fluctuates around the

Accepted Answer

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

Question 13

The natural unemployment rate

Accepted Answer

A)  falls with an increase in cyclical unemployment. 
B)  rises with an increase in structural unemployment. 
C)  rises with an increase in cyclical unemployment. 
D)  rises with a decrease in frictional unemployment. 
A)  falls with an increase in cyclical unemployment. 
B)  rises with an increase in structural unemployment. 
C)  rises with an increase in cyclical unemployment. 
D)  rises with a decrease in frictional unemployment.

Question 14

-In the above table, the inflation rate between 2012 and 2013 is approximately

Accepted Answer

A)  0.9 percent. 
B)  1 percent. 
C)  10 percent. 
D)  100 percent. 
A)  0.9 percent. 
B)  1 percent. 
C)  10 percent. 
D)  100 percent.

Question 15

-Suppose the CPI last year is 121 and the CPI this year is 137. The CORRECT method to calculate the inflation rate is

Accepted Answer

A)  (137 - 121)/100 = 0.16. 
B)  137 × 121 = 258. 
C)  [(137 - 121)/121] × 100 = 13.2. 
D)  (137/121) × 100 = 113.2. 
A)  (137 - 121)/100 = 0.16. 
B)  137 × 121 = 258. 
C)  [(137 - 121)/121] × 100 = 13.2. 
D)  (137/121) × 100 = 113.2.

Question 16

-Using the notation Pt to designate this period's price level and Pt?? to designate last period's price level, the formula for measuring the inflation rate from last period to this period is

Accepted Answer

A)  [(Pt - Pt ? ?) / Pt] × 100. 
B)  [(Pt ?? - Pt) / Pt ? ?] × 100. 
C)  [(Pt - Pt ? ?) / Pt ? ?] × 100. 
D)  [(Pt ?? - Pt) / Pt] × 100. 
A)  [(Pt - Pt ? ?) / Pt] × 100. 
B)  [(Pt ?? - Pt) / Pt ? ?] × 100. 
C)  [(Pt - Pt ? ?) / Pt ? ?] × 100. 
D)  [(Pt ?? - Pt) / Pt] × 100.

Question 17

-The Bureau of Labor Statistics reported the data in the table above for October 2003.
a)Calculate the number of people unemployed.
b)Calculate the number of people who are not in the labor force
c)Calculate the unemployment rate.
d)Calculate the labor force participation rate.

Accepted Answer

a)The labor force is the sum of the numb

Question 18

Give an example of a frictionally unemployed person.

Accepted Answer

A person who is without a job because of

Question 19

-If 2009 is the reference base period, what is the price index for the CPI basket of goods for 2015 in the above table?

Accepted Answer

A)  97.3 
B)  102.8 
C)  128.0 
D)  zero because the price of Blu-rays fell and the price of water increased 
A)  97.3 
B)  102.8 
C)  128.0 
D)  zero because the price of Blu-rays fell and the price of water increased

Question 20

When cyclical unemployment is zero

Accepted Answer

A)  frictional unemployment is zero. 
B)  cyclical and frictional unemployment are zero. 
C)  structural unemployment is zero. 
D)  the unemployment rate equals the natural unemployment rate. 
A)  frictional unemployment is zero. 
B)  cyclical and frictional unemployment are zero. 
C)  structural unemployment is zero. 
D)  the unemployment rate equals the natural unemployment rate.

This type of unemployment reflects the normal amount of unemployed workers who possess skills that will enable them to find another job.

When a student finishes college and begins looking for work

How does the unemployment rate change in a recession and in an expansion?

From September 2013 to September 2014, the employment-to-population ratio increased from 58.6 percent to 59.0 percent. This change could have been the result of

The technique currently used to calculate the CPI implicitly assumes that over time consumers buy

Suppose the population is 220 million people, the labor force is 150 million people, the number of people employed is 130 million and the working-age population is 175 million people. What is the labor force participation rate?

Why is unemployment a problem?

The unemployment rate equals [(the number of people unemployed)/(the population)] × 100.

When more labor is unemployed than the amount at the natural unemployment rate, then real GDP ________ potential GDP.

Suppose the price level this year is 150 and the price level last year was 125. The inflation rate between last year and this year was

Suppose the Consumer Price Index is 143.6. What does that number mean?

When the economy moves into and out of recessions and expansions, the unemployment rate fluctuates around the

The natural unemployment rate

-In the above table, the inflation rate between 2012 and 2013 is approximately

-Suppose the CPI last year is 121 and the CPI this year is 137. The CORRECT method to calculate the inflation rate is

-Using the notation Pt to designate this period's price level and Pt?? to designate last period's price level, the formula for measuring the inflation rate from last period to this period is

-The Bureau of Labor Statistics reported the data in the table above for October 2003. a)Calculate the number of people unemployed. b)Calculate the number of people who are not in the labor force c)Calculate the unemployment rate. d)Calculate the labor force participation rate.

Give an example of a frictionally unemployed person.

-If 2009 is the reference base period, what is the price index for the CPI basket of goods for 2015 in the above table?

When cyclical unemployment is zero

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

This type of unemployment reflects the normal amount of unemployed workers who possess skills that will enable them to find another job.

When a student finishes college and begins looking for work

How does the unemployment rate change in a recession and in an expansion?

From September 2013 to September 2014, the employment-to-population ratio increased from 58.6 percent to 59.0 percent. This change could have been the result of

The technique currently used to calculate the CPI implicitly assumes that over time consumers buy

Suppose the population is 220 million people, the labor force is 150 million people, the number of people employed is 130 million and the working-age population is 175 million people. What is the labor force participation rate?

Why is unemployment a problem?

The unemployment rate equals [(the number of people unemployed)/(the population)] × 100.

When more labor is unemployed than the amount at the natural unemployment rate, then real GDP ________ potential GDP.

Suppose the price level this year is 150 and the price level last year was 125. The inflation rate between last year and this year was

Suppose the Consumer Price Index is 143.6. What does that number mean?

When the economy moves into and out of recessions and expansions, the unemployment rate fluctuates around the

The natural unemployment rate

-In the above table, the inflation rate between 2012 and 2013 is approximately

-Suppose the CPI last year is 121 and the CPI this year is 137. The CORRECT method to calculate the inflation rate is

-Using the notation Pt to designate this period's price level and Pt?? to designate last period's price level, the formula for measuring the inflation rate from last period to this period is

-The Bureau of Labor Statistics reported the data in the table above for October 2003. a)Calculate the number of people unemployed. b)Calculate the number of people who are not in the labor force c)Calculate the unemployment rate. d)Calculate the labor force participation rate.

Give an example of a frictionally unemployed person.

-If 2009 is the reference base period, what is the price index for the CPI basket of goods for 2015 in the above table?

When cyclical unemployment is zero

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