Question 1

The labor force participation rate (LFPR)equals the number of

Accepted Answer

A)  employed persons divided by the number of unemployed persons. 
B)  unemployed persons divided by the civilian noninstitutional population. 
C)  employed persons divided by the civilian labor force. 
D)  employed persons divided by the civilian noninstitutional population. 
E)  none of the above 
A)  employed persons divided by the number of unemployed persons. 
B)  unemployed persons divided by the civilian noninstitutional population. 
C)  employed persons divided by the civilian labor force. 
D)  employed persons divided by the civilian noninstitutional population. 
E)  none of the above

Question 2

The CPI was 154 in one year and 165 the following year.How much did prices rise between these two years?

Accepted Answer

A)  5.46 percent 
B)  6.67 percent 
C)  7.14 percent 
D)  0.07 percent 
A)  5.46 percent 
B)  6.67 percent 
C)  7.14 percent 
D)  0.07 percent

Question 3

-Refer to Exhibit 6-2.How many persons are not participating in the labor force in year 1?

Accepted Answer

A)  25 million 
B)  50 million 
C)  75 million 
D)  175 million 
E)  200 million 
A)  25 million 
B)  50 million 
C)  75 million 
D)  175 million 
E)  200 million

Question 4

If the existing unemployment rate is 6.2 percent and the natural unemployment rate is 4.5 percent,the cyclical unemployment rate is ________ percent.

Accepted Answer

A)  10.7 
B)  5.35 
C)  -1.7 
D)  1.7 
A)  10.7 
B)  5.35 
C)  -1.7 
D)  1.7

Question 5

Look at the following data: The structural unemployment rate is 4 percent,the natural unemployment rate is 5 percent,and the cyclical unemployment rate is 3 percent.The frictional unemployment rate is ____________ percent and the actual unemployment rate is __________ percent.

Accepted Answer

A)  2; 7 
B)  2; 8 
C)  1; 7 
D)  1; 8 
A)  2; 7 
B)  2; 8 
C)  1; 7 
D)  1; 8

Question 6

A __________ is a person who was employed in the civilian labor force and was either fired or laid off.

Accepted Answer

A)  new entrant 
B)  reentrant 
C)  job leaver 
D)  job fixer 
E)  none of the above 
A)  new entrant 
B)  reentrant 
C)  job leaver 
D)  job fixer 
E)  none of the above

Question 7

-Refer to Exhibit 6-1.Prices rose by __________ percent from Year 2 to Year 3.

Accepted Answer

A)  3.39 
B)  0.023 
C)  3.28 
D)  2.22 
E)  2.27 
A)  3.39 
B)  0.023 
C)  3.28 
D)  2.22 
E)  2.27

Question 8

The unemployment due to changes in the types of skills employers require is called __________ unemployment.

Accepted Answer

A)  structural 
B)  cyclical 
C)  natural 
D)  frictional 
A)  structural 
B)  cyclical 
C)  natural 
D)  frictional

Question 9

One measure of the inflation rate is the

Accepted Answer

A)  sum of the CPIs of adjacent years. 
B)  percentage change in the CPI of adjacent years. 
C)  percentage change in the Real GDP of adjacent years. 
D)  GDP minus the Real GDP in a year. 
A)  sum of the CPIs of adjacent years. 
B)  percentage change in the CPI of adjacent years. 
C)  percentage change in the Real GDP of adjacent years. 
D)  GDP minus the Real GDP in a year.

Question 10

Suppose that in an economy the structural unemployment rate is 2.1 percent,the frictional unemployment rate is 2.3 percent,and the unemployment rate is 12.1 percent.The natural unemployment rate is _________ percent and the cyclical unemployment rate is ___________ percent.

Accepted Answer

A)  7.7; 4.4 
B)  0.2; 9.9 
C)  4.4; 7.7 
D)  10; 3.1 
A)  7.7; 4.4 
B)  0.2; 9.9 
C)  4.4; 7.7 
D)  10; 3.1

Question 11

Most unemployed persons fall into the category of job loser.

Accepted Answer

A) True 
 B)False

Question 12

-Refer to Exhibit 6-2.The unemployment rate in year 2 is

Accepted Answer

A)  75 percent. 
B)  33 1/3 percent. 
C)  50 percent. 
D)  66 2/3 percent. 
E)  25 percent. 
A)  75 percent. 
B)  33 1/3 percent. 
C)  50 percent. 
D)  66 2/3 percent. 
E)  25 percent.

Question 13

When making historical comparison's of one's income,is it better to use real income or nominal income for the basis of your comparison? Explain why one makes a better comparison than the other.

Accepted Answer

Real income should be used when making h

Question 14

At the time of Elise's 20 year high school reunion she was earning $50,000 and the CPI was 80.Now that it is time for her to attend her 25 year high school reunion,Elise's income has risen to $80,000 and the CPI is 150.At her 25 year reunion,can Elise rightfully brag that her real income has risen since the last time she saw her former classmates five years ago?

Accepted Answer

A)  Yes,Elise's real income rose during that 5 year period. 
B)  No,Elise's real income fell during that 5 year period. 
C)  No,Elise's real income remained constant during that 5 year period. 
D)  It is impossible to determine what happened to Elise's real income. 
A)  Yes,Elise's real income rose during that 5 year period. 
B)  No,Elise's real income fell during that 5 year period. 
C)  No,Elise's real income remained constant during that 5 year period. 
D)  It is impossible to determine what happened to Elise's real income.

Question 15

If the CPI is 230 in year 1 and 249 in year 2,what is the approximate percentage change in prices between the two years?

Accepted Answer

A)  7.6 percent 
B)  8.3 percent 
C)  15.7 percent 
D)  11.4 percent 
E)  6.0 percent 
A)  7.6 percent 
B)  8.3 percent 
C)  15.7 percent 
D)  11.4 percent 
E)  6.0 percent

Question 16

In an economy with a population of 300 million persons,130 million hold civilian jobs and 8 million are not working but are looking for jobs.The unemployment rate is

Accepted Answer

A)  6.2 percent. 
B)  8.6 percent. 
C)  2.7 percent. 
D)  9.4 percent. 
E)  5.8 percent. 
A)  6.2 percent. 
B)  8.6 percent. 
C)  2.7 percent. 
D)  9.4 percent. 
E)  5.8 percent.

Question 17

Every ____________ the U.S.government surveys ______________ of households to gather information about the number of Americans unemployed.

Accepted Answer

A)  month; millions 
B)  week; millions 
C)  week; thousands 
D)  month; thousands 
A)  month; millions 
B)  week; millions 
C)  week; thousands 
D)  month; thousands

Question 18

Suppose that 1983 is the base year for the Consumer Price Index (CPI)and in 2019 the CPI is 260.What does this "260" mean?

Accepted Answer

A)  What cost $100 in 1983 on average cost 2.60 times as much in 2019. 
B)  What cost $100 in 1983 on average cost $260 more in 2019. 
C)  What cost $100 in 1983 on average cost 0.26 times as much in 2019. 
D)  What cost $100 in 1983 on average cost $26 more in 2019. 
A)  What cost $100 in 1983 on average cost 2.60 times as much in 2019. 
B)  What cost $100 in 1983 on average cost $260 more in 2019. 
C)  What cost $100 in 1983 on average cost 0.26 times as much in 2019. 
D)  What cost $100 in 1983 on average cost $26 more in 2019.

Question 19

For all practical purposes,a discouraged worker is an unemployed person because a discouraged worker is not working.

Accepted Answer

A) True 
 B)False

Question 20

If a person is waiting to be called back to a job from which she has been laid off,how is she classified by the Bureau of Labor Statistics?

Accepted Answer

A)  as not in the labor force 
B)  as an unemployed person 
C)  as an employed person 
D)  as a discouraged worker 
A)  as not in the labor force 
B)  as an unemployed person 
C)  as an employed person 
D)  as a discouraged worker

Exam 6: Elasticity

The labor force participation rate (LFPR)equals the number of

The CPI was 154 in one year and 165 the following year.How much did prices rise between these two years?

-Refer to Exhibit 6-2.How many persons are not participating in the labor force in year 1?

If the existing unemployment rate is 6.2 percent and the natural unemployment rate is 4.5 percent,the cyclical unemployment rate is ________ percent.

Look at the following data: The structural unemployment rate is 4 percent,the natural unemployment rate is 5 percent,and the cyclical unemployment rate is 3 percent.The frictional unemployment rate is ____________ percent and the actual unemployment rate is __________ percent.

A __________ is a person who was employed in the civilian labor force and was either fired or laid off.

-Refer to Exhibit 6-1.Prices rose by __________ percent from Year 2 to Year 3.

The unemployment due to changes in the types of skills employers require is called __________ unemployment.

One measure of the inflation rate is the

Suppose that in an economy the structural unemployment rate is 2.1 percent,the frictional unemployment rate is 2.3 percent,and the unemployment rate is 12.1 percent.The natural unemployment rate is _________ percent and the cyclical unemployment rate is ___________ percent.

Most unemployed persons fall into the category of job loser.

-Refer to Exhibit 6-2.The unemployment rate in year 2 is

When making historical comparison's of one's income,is it better to use real income or nominal income for the basis of your comparison? Explain why one makes a better comparison than the other.

If the CPI is 230 in year 1 and 249 in year 2,what is the approximate percentage change in prices between the two years?

In an economy with a population of 300 million persons,130 million hold civilian jobs and 8 million are not working but are looking for jobs.The unemployment rate is

Every ____________ the U.S.government surveys ______________ of households to gather information about the number of Americans unemployed.

Suppose that 1983 is the base year for the Consumer Price Index (CPI)and in 2019 the CPI is 260.What does this "260" mean?

For all practical purposes,a discouraged worker is an unemployed person because a discouraged worker is not working.

If a person is waiting to be called back to a job from which she has been laid off,how is she classified by the Bureau of Labor Statistics?

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free,controlled,and Relative

Supply,demand,and Price: Applications

Consumer Choice: Maximizing Utility and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, oligopoly, and Game Theory

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

Wages,union,and Labor

The Distribution of Income and Poverty

Interest,rent,and Profit

Market Failure: Externalities, public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

International Finance

The Economic Case for and Against Government: Five Topics Considered

Stocks,bonds,futures,and Options

Stocks,bonds,futures,and Options

Filters

Look at the following data: The structural unemployment rate is 4 percent,the natural unemployment rate is 5 percent,and the cyclical unemployment rate is 3 percent.The frictional unemployment rate is __ percent and the actual unemployment rate is percent.

Suppose that in an economy the structural unemployment rate is 2.1 percent,the frictional unemployment rate is 2.3 percent,and the unemployment rate is 12.1 percent.The natural unemployment rate is _ percent and the cyclical unemployment rate is ___ percent.

Every the U.S.government surveys __ of households to gather information about the number of Americans unemployed.