Question 1

Unpredictable changes in the value of money, which brings about gains and losses, are a consequence of unpredictable changes in

Accepted Answer

A)  real GDP. 
B)  unemployment rate. 
C)  inflation. 
D)  productivity. 
A)  real GDP. 
B)  unemployment rate. 
C)  inflation. 
D)  productivity.

Question 2

-The tables above give the purchases of an average consumer in a small economy. (These consumers purchase only loaves of bread and jugs of soda.)Suppose 2015 is the reference base period.
a)What quantities are in the CPI basket?
b)What is the cost of the CPI basket using 2015 prices?
c)What is the cost of the CPI basket using 2016 prices?
d)What is the CPI in 2016?

Accepted Answer

a)The quantities in the CPI basket are t

Question 3

-The information in the table above gives the 2012 reference base period CPI basket and prices used to construct the CPI for a small nation. It also has the 2013 prices. What is the value of the CPI for the reference base period, 2012?

Accepted Answer

A)  140 
B)  133 
C)  100 
D)  75 
A)  140 
B)  133 
C)  100 
D)  75

Question 4

An observer of the economy notices that over the past 12 months the unemployment rate has fallen from 7.0 percent to 6.5 percent. During the same time, the rate of growth in real GDP has been positive. From this information we might conclude that

Accepted Answer

A)  inflation is not occurring. 
B)  an expansion is occurring in the economy. 
C)  a recession is in progress. 
D)  a trough in the business cycle will soon be reached. 
A)  inflation is not occurring. 
B)  an expansion is occurring in the economy. 
C)  a recession is in progress. 
D)  a trough in the business cycle will soon be reached.

Question 5

The unemployment rate equals

Accepted Answer

A)  (number of people employed/working age population) × 100. 
B)  (number of people unemployed/labor force) × 100. 
C)  (labor force/working age population) × 100. 
D)  (number of people employed/number of people age 16 and over) × 100. 
A)  (number of people employed/working age population) × 100. 
B)  (number of people unemployed/labor force) × 100. 
C)  (labor force/working age population) × 100. 
D)  (number of people employed/number of people age 16 and over) × 100.

Question 6

Which of the following means that the CPI overstates the actual inflation rate?

Accepted Answer

A)  new goods bias 
B)  quality change bias 
C)  outlet substitution bias 
D)  All of the above cause the CPI to overstate inflation. 
A)  new goods bias 
B)  quality change bias 
C)  outlet substitution bias 
D)  All of the above cause the CPI to overstate inflation.

Question 7

In an economy, 42 million people are in the labor force, 38 million are employed, and 47 million are of working age. How many people are not in the labor force?

Accepted Answer

A)  19 percent 
B)  9 million 
C)  5 million 
D)  4 million 
A)  19 percent 
B)  9 million 
C)  5 million 
D)  4 million

Question 8

Full employment occurs when

Accepted Answer

A)  structural unemployment is zero. 
B)  cyclical unemployment is zero. 
C)  frictional unemployment is zero. 
D)  cyclical and frictional unemployment are zero. 
A)  structural unemployment is zero. 
B)  cyclical unemployment is zero. 
C)  frictional unemployment is zero. 
D)  cyclical and frictional unemployment are zero.

Question 9

-If the CPI was 122.3 at the end of last year and 124.5 at the end of this year, the inflation rate over these two years was

Accepted Answer

A)  1.8 percent. 
B)  2.5 percent. 
C)  22.5 percent. 
D)  18.0 percent. 
A)  1.8 percent. 
B)  2.5 percent. 
C)  22.5 percent. 
D)  18.0 percent.

Question 10

The table below shows the price index for Zimbabwe starting in 2000.
 
www.econstats.com
Which of the following statements CORRECTLY describe the behavior of prices in Zimbabwe?
i.The cost of the CPI basket increased.
iI.The inflation rate was 73.4 percent between 2000 and 2001.

Accepted Answer

A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II 
A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II

Question 11

Suppose there are 100 million in the labor force, and 6 million unemployed people. During the next month, 200,000 people lose their jobs and 300,000 find jobs. The new total of employed persons is ________ and the new unemployment rate is ________.

Accepted Answer

A)  100.1 million; 5.8 percent 
B)  100 million; 6.1 percent 
C)  94.1 million; 5.9 percent 
D)  93.9 million; 6.1 percent 
A)  100.1 million; 5.8 percent 
B)  100 million; 6.1 percent 
C)  94.1 million; 5.9 percent 
D)  93.9 million; 6.1 percent

Question 12

When the economy is at full employment the

Accepted Answer

A)  natural unemployment rate is equal to 0 percent. 
B)  natural unemployment rate equals the unemployment rate. 
C)  natural unemployment rate is equal to 10 percent. 
D)  unemployment rate is equal to 0 percent. 
A)  natural unemployment rate is equal to 0 percent. 
B)  natural unemployment rate equals the unemployment rate. 
C)  natural unemployment rate is equal to 10 percent. 
D)  unemployment rate is equal to 0 percent.

Question 13

The table below shows the price index for China starting in 2000.
 
Www)econstats.com
The inflation rate between 2004 and 2005 was

Accepted Answer

A)  3.9 percent 
B)  2.8 percent 
C)  1.8 percent 
D)  0.7 percent. 
A)  3.9 percent 
B)  2.8 percent 
C)  1.8 percent 
D)  0.7 percent.

Question 14

If the number of people unemployed is 100, the number of people employed is 1000, and the working-age population is 1400, then the labor force is

Accepted Answer

A)  1000. 
B)  1100. 
C)  1400. 
D)  1500. 
A)  1000. 
B)  1100. 
C)  1400. 
D)  1500.

Question 15

Ms. Krupsky has shorthand and typing skills and still finds herself unemployed. In today's economy, Ms. Krupsky is an example of what type of unemployment?

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 16

An individual is structurally unemployed if

Accepted Answer

A)  there is a recession and the individual is laid off. 
B)  the individual wants to work just during certain months of the year. 
C)  the individual quits a job in order to search for a better one. 
D)  the individual lacks marketable job skills because technology has changed. 
A)  there is a recession and the individual is laid off. 
B)  the individual wants to work just during certain months of the year. 
C)  the individual quits a job in order to search for a better one. 
D)  the individual lacks marketable job skills because technology has changed.

Question 17

When real GDP is ________ potential GDP, the unemployment rate is ________ the natural unemployment rate.

Accepted Answer

A)  greater than; less than 
B)  less than; equal to 
C)  equal to; greater than 
D)  greater than; greater than 
A)  greater than; less than 
B)  less than; equal to 
C)  equal to; greater than 
D)  greater than; greater than

Question 18

-Using the information in the table above, calculate the number of people in the labor force.

Accepted Answer

A)  2500 
B)  2100 
C)  1500 
D)  800 
A)  2500 
B)  2100 
C)  1500 
D)  800

Question 19

The current U.S. population is about 300 million yet the current U.S. labor force is only about 150 million. What subtractions are made from the population number to set it equal to the labor force?

Accepted Answer

The population is first reduced by elimi

Question 20

If the price level for the last three months has been 112, 125, and 126, we would say

Accepted Answer

A)  inflation has been constant over the three months. 
B)  inflation was more rapid between the first and second month than between the second and third month. 
C)  inflation was less rapid between the first and second month than between the second and third month. 
D)  inflation has steadily increased over the three months. 
A)  inflation has been constant over the three months. 
B)  inflation was more rapid between the first and second month than between the second and third month. 
C)  inflation was less rapid between the first and second month than between the second and third month. 
D)  inflation has steadily increased over the three months.

Unpredictable changes in the value of money, which brings about gains and losses, are a consequence of unpredictable changes in

-The information in the table above gives the 2012 reference base period CPI basket and prices used to construct the CPI for a small nation. It also has the 2013 prices. What is the value of the CPI for the reference base period, 2012?

An observer of the economy notices that over the past 12 months the unemployment rate has fallen from 7.0 percent to 6.5 percent. During the same time, the rate of growth in real GDP has been positive. From this information we might conclude that

The unemployment rate equals

Which of the following means that the CPI overstates the actual inflation rate?

In an economy, 42 million people are in the labor force, 38 million are employed, and 47 million are of working age. How many people are not in the labor force?

Full employment occurs when

-If the CPI was 122.3 at the end of last year and 124.5 at the end of this year, the inflation rate over these two years was

The table below shows the price index for Zimbabwe starting in 2000. www.econstats.com Which of the following statements CORRECTLY describe the behavior of prices in Zimbabwe? i.The cost of the CPI basket increased. iI.The inflation rate was 73.4 percent between 2000 and 2001.

Suppose there are 100 million in the labor force, and 6 million unemployed people. During the next month, 200,000 people lose their jobs and 300,000 find jobs. The new total of employed persons is and the new unemployment rate is .

When the economy is at full employment the

The table below shows the price index for China starting in 2000. Www)econstats.com The inflation rate between 2004 and 2005 was

If the number of people unemployed is 100, the number of people employed is 1000, and the working-age population is 1400, then the labor force is

Ms. Krupsky has shorthand and typing skills and still finds herself unemployed. In today's economy, Ms. Krupsky is an example of what type of unemployment?

An individual is structurally unemployed if

When real GDP is potential GDP, the unemployment rate is the natural unemployment rate.

-Using the information in the table above, calculate the number of people in the labor force.

The current U.S. population is about 300 million yet the current U.S. labor force is only about 150 million. What subtractions are made from the population number to set it equal to the labor force?

If the price level for the last three months has been 112, 125, and 126, we would say

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

Unpredictable changes in the value of money, which brings about gains and losses, are a consequence of unpredictable changes in

-The information in the table above gives the 2012 reference base period CPI basket and prices used to construct the CPI for a small nation. It also has the 2013 prices. What is the value of the CPI for the reference base period, 2012?

An observer of the economy notices that over the past 12 months the unemployment rate has fallen from 7.0 percent to 6.5 percent. During the same time, the rate of growth in real GDP has been positive. From this information we might conclude that

The unemployment rate equals

Which of the following means that the CPI overstates the actual inflation rate?

In an economy, 42 million people are in the labor force, 38 million are employed, and 47 million are of working age. How many people are not in the labor force?

Full employment occurs when

-If the CPI was 122.3 at the end of last year and 124.5 at the end of this year, the inflation rate over these two years was

The table below shows the price index for Zimbabwe starting in 2000. www.econstats.com Which of the following statements CORRECTLY describe the behavior of prices in Zimbabwe? i.The cost of the CPI basket increased. iI.The inflation rate was 73.4 percent between 2000 and 2001.

Suppose there are 100 million in the labor force, and 6 million unemployed people. During the next month, 200,000 people lose their jobs and 300,000 find jobs. The new total of employed persons is ________ and the new unemployment rate is ________.

When the economy is at full employment the

The table below shows the price index for China starting in 2000. Www)econstats.com The inflation rate between 2004 and 2005 was

If the number of people unemployed is 100, the number of people employed is 1000, and the working-age population is 1400, then the labor force is

Ms. Krupsky has shorthand and typing skills and still finds herself unemployed. In today's economy, Ms. Krupsky is an example of what type of unemployment?

An individual is structurally unemployed if

When real GDP is ________ potential GDP, the unemployment rate is ________ the natural unemployment rate.

-Using the information in the table above, calculate the number of people in the labor force.

The current U.S. population is about 300 million yet the current U.S. labor force is only about 150 million. What subtractions are made from the population number to set it equal to the labor force?

If the price level for the last three months has been 112, 125, and 126, we would say

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

Suppose there are 100 million in the labor force, and 6 million unemployed people. During the next month, 200,000 people lose their jobs and 300,000 find jobs. The new total of employed persons is and the new unemployment rate is .

When real GDP is potential GDP, the unemployment rate is the natural unemployment rate.