Question 1

Assume the inflation rate falls from 4 percent to 2 percent. This means that

Accepted Answer

A)  the price level has fallen. 
B)  the price level is increasing more slowly. 
C)  the economy is experiencing deflation. 
D)  real GDP is decreasing. 
A)  the price level has fallen. 
B)  the price level is increasing more slowly. 
C)  the economy is experiencing deflation. 
D)  real GDP is decreasing.

Question 2

How does the Current Population Survey determine if a person should be counted in the labor force?

Accepted Answer

To be in the labor force, a person must

Question 3

The table below shows data regarding Germany's labor market.
 
The data show that Germany's unemployment rate between 2007 and 2008

Accepted Answer

A)  increased. 
B)  decreased 
C)  stayed the same. 
D)  cannot be determined because the population decreased. 
A)  increased. 
B)  decreased 
C)  stayed the same. 
D)  cannot be determined because the population decreased.

Question 4

Full employment occurs when the

Accepted Answer

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

Question 5

To calculate the unemployment rate, which of the following are necessary pieces of information?
I.the number of unemployed persons
II.the population
III.the number of people in the labor force
IV.the working age population

Accepted Answer

A)  I, II III and IV 
B)  I and II 
C)  I and III 
D)  I and IV 
A)  I, II III and IV 
B)  I and II 
C)  I and III 
D)  I and IV

Question 6

Catherine quit her job in order to look for a new one; therefore, she is best considered as

Accepted Answer

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

Question 7

If the economy is at full employment

Accepted Answer

A)  the entire population is employed. 
B)  the entire labor force is employed. 
C)  the only unemployment is frictional unemployment plus discouraged workers. 
D)  real GDP equals potential GDP. 
A)  the entire population is employed. 
B)  the entire labor force is employed. 
C)  the only unemployment is frictional unemployment plus discouraged workers. 
D)  real GDP equals potential GDP.

Question 8

The labor force is defined as the

Accepted Answer

A)  number of employed people plus the number of unemployed people. 
B)  number of people who are working. 
C)  number of people who are working in labor-type jobs. 
D)  number of union members who are working. 
A)  number of employed people plus the number of unemployed people. 
B)  number of people who are working. 
C)  number of people who are working in labor-type jobs. 
D)  number of union members who are working.

Question 9

What are the three types of unemployment and how do they change over the business cycle?

Accepted Answer

The three types of unemployment are fric

Question 10

Suppose the population of Tiny Town is 100 people and the working age population is 70. If 10 of these people are unemployed, the unemployment rate in Tiny Town is

Accepted Answer

A)  10 percent. 
B)  10/70 × 100. 
C)  10/80 × 100. 
D)  There is not enough information provided to calculate the unemployment rate. 
A)  10 percent. 
B)  10/70 × 100. 
C)  10/80 × 100. 
D)  There is not enough information provided to calculate the unemployment rate.

Question 11

The working-age population is divided between those people in the labor force and those people unemployed.

Accepted Answer

A) True 
 B)False

Question 12

The working-age population is defined as the number of

Accepted Answer

A)  people over the age of 16 who are not in jail, hospital, or other institution. 
B)  people who have a job. 
C)  people working full-time jobs who are over the age of 16. 
D)  people looking for work. 
A)  people over the age of 16 who are not in jail, hospital, or other institution. 
B)  people who have a job. 
C)  people working full-time jobs who are over the age of 16. 
D)  people looking for work.

Question 13

The economy is at full employment when

Accepted Answer

A)  there are no unemployed workers. 
B)  all unemployment is frictional or structural. 
C)  there are fewer unemployed workers than available jobs. 
D)  all unemployment is cyclical. 
A)  there are no unemployed workers. 
B)  all unemployment is frictional or structural. 
C)  there are fewer unemployed workers than available jobs. 
D)  all unemployment is cyclical.

Question 14

-The tables above give the purchases of a typical consumer in a country comprised of one large city. These consumers purchase only restaurant meals and parking. The year 2015 is the reference base period.
a)Find the total cost of the CPI basket for 2015 and 2016.
b)What is the CPI in 2012 and in 2016?
c)What is the inflation rate between 2015 and 2016?

Accepted Answer

a)The total cost of the CPI basket in 20

Question 15

In September 2012 the U.S. unemployment rate was 7.8 percent while the natural unemployment rate was 6 percent. The U.S. economy

Accepted Answer

A)  had a negative output gap. 
B)  had a positive output gap. 
C)  had an output gap of zero. 
D)  was at full employment. 
A)  had a negative output gap. 
B)  had a positive output gap. 
C)  had an output gap of zero. 
D)  was at full employment.

Question 16

-If the CPI was 121.5 at the end of last year and 138.3 at the end of this year, the inflation rate over these two years was

Accepted Answer

A)  10.2 percent. 
B)  13.8 percent. 
C)  12.2 percent. 
D)  16.8 percent. 
A)  10.2 percent. 
B)  13.8 percent. 
C)  12.2 percent. 
D)  16.8 percent.

Question 17

What is inflation and how is it measured using the Consumer Price Index?

Accepted Answer

The inflation rate is the percentage cha

Question 18

Suppose the current unemployment rate is 5 percent, the labor force is 400 million people, the labor force participation rate is 80 percent and the working-age population is 500 million people. What number of people are unemployed?

Accepted Answer

A)  100 million people 
B)  25 million people 
C)  20 million people 
D)  5 million people 
A)  100 million people 
B)  25 million people 
C)  20 million people 
D)  5 million people

Question 19

The absence of cyclical unemployment means the economy is at the natural unemployment rate.

Accepted Answer

A) True 
 B)False

Question 20

At the natural unemployment rate, there is no

Accepted Answer

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

Assume the inflation rate falls from 4 percent to 2 percent. This means that

How does the Current Population Survey determine if a person should be counted in the labor force?

The table below shows data regarding Germany's labor market. The data show that Germany's unemployment rate between 2007 and 2008

Full employment occurs when the

To calculate the unemployment rate, which of the following are necessary pieces of information? I.the number of unemployed persons II.the population III.the number of people in the labor force IV.the working age population

Catherine quit her job in order to look for a new one; therefore, she is best considered as

If the economy is at full employment

The labor force is defined as the

What are the three types of unemployment and how do they change over the business cycle?

Suppose the population of Tiny Town is 100 people and the working age population is 70. If 10 of these people are unemployed, the unemployment rate in Tiny Town is

The working-age population is divided between those people in the labor force and those people unemployed.

The working-age population is defined as the number of

The economy is at full employment when

In September 2012 the U.S. unemployment rate was 7.8 percent while the natural unemployment rate was 6 percent. The U.S. economy

-If the CPI was 121.5 at the end of last year and 138.3 at the end of this year, the inflation rate over these two years was

What is inflation and how is it measured using the Consumer Price Index?

Suppose the current unemployment rate is 5 percent, the labor force is 400 million people, the labor force participation rate is 80 percent and the working-age population is 500 million people. What number of people are unemployed?

The absence of cyclical unemployment means the economy is at the natural unemployment rate.

At the natural unemployment rate, there is no

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

Assume the inflation rate falls from 4 percent to 2 percent. This means that

How does the Current Population Survey determine if a person should be counted in the labor force?

The table below shows data regarding Germany's labor market. The data show that Germany's unemployment rate between 2007 and 2008

Full employment occurs when the

To calculate the unemployment rate, which of the following are necessary pieces of information? I.the number of unemployed persons II.the population III.the number of people in the labor force IV.the working age population

Catherine quit her job in order to look for a new one; therefore, she is best considered as

If the economy is at full employment

The labor force is defined as the

What are the three types of unemployment and how do they change over the business cycle?

Suppose the population of Tiny Town is 100 people and the working age population is 70. If 10 of these people are unemployed, the unemployment rate in Tiny Town is

The working-age population is divided between those people in the labor force and those people unemployed.

The working-age population is defined as the number of

The economy is at full employment when

In September 2012 the U.S. unemployment rate was 7.8 percent while the natural unemployment rate was 6 percent. The U.S. economy

-If the CPI was 121.5 at the end of last year and 138.3 at the end of this year, the inflation rate over these two years was

What is inflation and how is it measured using the Consumer Price Index?

Suppose the current unemployment rate is 5 percent, the labor force is 400 million people, the labor force participation rate is 80 percent and the working-age population is 500 million people. What number of people are unemployed?

The absence of cyclical unemployment means the economy is at the natural unemployment rate.

At the natural unemployment rate, there is no

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