Question 1

The cyclical unemployment rate can never be negative.

Accepted Answer

A) True 
 B)False

Question 2

Assume that Dakota's salary is $49,500,up from $45,000 last year,while the CPI is 198 this year,up from 180 last year.This means that Dakota's real income has ____________ since last year.

Accepted Answer

A)  increased 
B)  decreased 
C)  stayed the same 
D)  There is not enough information provided to answer this question. 
A)  increased 
B)  decreased 
C)  stayed the same 
D)  There is not enough information provided to answer this question.

Question 3

In order to be classified as unemployed,a person must be not working,

Accepted Answer

A)  have been actively looking for work within the past four weeks,and currently be available for work. 
B)  and currently be available for work,regardless of whether one is actively looking for work or not. 
C)  and be waiting to be called back to work from a temporary layoff. 
D)  and actively looking for work within the past year. 
E)  ​a or c 
A)  have been actively looking for work within the past four weeks,and currently be available for work. 
B)  and currently be available for work,regardless of whether one is actively looking for work or not. 
C)  and be waiting to be called back to work from a temporary layoff. 
D)  and actively looking for work within the past year. 
E)  ​a or c

Question 4

If the government enacts legislation which allows lenders to lower lending standards,the government indirectly___________ the demand for which leads to _________ house prices.

Accepted Answer

A)  decreased; higher 
B)  decreased; lower 
C)  increased; higher 
D)  increased; lower 
A)  decreased; higher 
B)  decreased; lower 
C)  increased; higher 
D)  increased; lower

Question 5

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

Accepted Answer

A)  1.38 
B)  0.14 
C)  1.29 
D)  1.94 
E)  3.00 
A)  1.38 
B)  0.14 
C)  1.29 
D)  1.94 
E)  3.00

Question 6

Suppose that the price index in 1999 was 170 and your salary was $44,000.Suppose in 2016 the consumer price index will be 290.What salary will you have to earn in 2016 in order to equal your 1999 real income?

Accepted Answer

A)  $66,000 
B)  $77,647 
C)  $75,059 
D)  $83,209 
A)  $66,000 
B)  $77,647 
C)  $75,059 
D)  $83,209

Question 7

If the existing unemployment rate is 3.1 percent and the natural unemployment rate is 4.5 percent,the cyclical unemployment rate is ________ percent.

Accepted Answer

A)  7.6 
B)  3.8 
C)  -1.4 
D)  1.4 
A)  7.6 
B)  3.8 
C)  -1.4 
D)  1.4

Question 8

The difference between the existing unemployment rate and the natural unemployment rate is defined is the __________ unemployment rate.

Accepted Answer

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

Question 9

Some economists believe that because the government ______________ discouraged workers as unemployed,the unemployment rate is biased ________________.

Accepted Answer

A)  counts; upward 
B)  counts; downward 
C)  does not count; upward 
D)  does not count; downward 
A)  counts; upward 
B)  counts; downward 
C)  does not count; upward 
D)  does not count; downward

Question 10

Suppose that 1982 is the base year for the Consumer Price Index (CPI)and in 2019 the CPI is 270.What does this "270" mean?

Accepted Answer

A)  What cost $100 in 1982 on average cost 270 times as much in 2019. 
B)  What cost $100 in 1982 on average cost $270 in 2019. 
C)  What cost $100 in 1982 on average cost 0.27 times as much in 2019. 
D)  What cost $100 in 1982 on average cost $27 more in 2019 
A)  What cost $100 in 1982 on average cost 270 times as much in 2019. 
B)  What cost $100 in 1982 on average cost $270 in 2019. 
C)  What cost $100 in 1982 on average cost 0.27 times as much in 2019. 
D)  What cost $100 in 1982 on average cost $27 more in 2019

Question 11

Suppose that 1983 is the base year for the Consumer Price Index (CPI)and in 2019 the CPI is 254.What does this "254" mean?

Accepted Answer

A)  What cost $100 in 1983 on average cost 254 times as much in 2019. 
B)  What cost $100 in 1983 on average cost $254 more in 2019. 
C)  What cost $100 in 1983 on average cost 100/254 (or 0.39)times as much in 2019. 
D)  What cost $100 in 1983 on average cost $154 more in 2019. 
A)  What cost $100 in 1983 on average cost 254 times as much in 2019. 
B)  What cost $100 in 1983 on average cost $254 more in 2019. 
C)  What cost $100 in 1983 on average cost 100/254 (or 0.39)times as much in 2019. 
D)  What cost $100 in 1983 on average cost $154 more in 2019.

The cyclical unemployment rate can never be negative.

Assume that Dakota's salary is $49,500,up from $45,000 last year,while the CPI is 198 this year,up from 180 last year.This means that Dakota's real income has ____________ since last year.

In order to be classified as unemployed,a person must be not working,

If the government enacts legislation which allows lenders to lower lending standards,the government indirectly___ the demand for which leads to _ house prices.

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

Suppose that the price index in 1999 was 170 and your salary was $44,000.Suppose in 2016 the consumer price index will be 290.What salary will you have to earn in 2016 in order to equal your 1999 real income?

If the existing unemployment rate is 3.1 percent and the natural unemployment rate is 4.5 percent,the cyclical unemployment rate is ________ percent.

The difference between the existing unemployment rate and the natural unemployment rate is defined is the __________ unemployment rate.

Some economists believe that because the government discouraged workers as unemployed,the unemployment rate is biased __.

Suppose that 1982 is the base year for the Consumer Price Index (CPI)and in 2019 the CPI is 270.What does this "270" mean?

Suppose that 1983 is the base year for the Consumer Price Index (CPI)and in 2019 the CPI is 254.What does this "254" mean?

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

Exam 6: Elasticity

The cyclical unemployment rate can never be negative.

Assume that Dakota's salary is $49,500,up from $45,000 last year,while the CPI is 198 this year,up from 180 last year.This means that Dakota's real income has ____________ since last year.

In order to be classified as unemployed,a person must be not working,

If the government enacts legislation which allows lenders to lower lending standards,the government indirectly___________ the demand for which leads to _________ house prices.

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

Suppose that the price index in 1999 was 170 and your salary was $44,000.Suppose in 2016 the consumer price index will be 290.What salary will you have to earn in 2016 in order to equal your 1999 real income?

If the existing unemployment rate is 3.1 percent and the natural unemployment rate is 4.5 percent,the cyclical unemployment rate is ________ percent.

The difference between the existing unemployment rate and the natural unemployment rate is defined is the __________ unemployment rate.

Some economists believe that because the government ______________ discouraged workers as unemployed,the unemployment rate is biased ________________.

Suppose that 1982 is the base year for the Consumer Price Index (CPI)and in 2019 the CPI is 270.What does this "270" mean?

Suppose that 1983 is the base year for the Consumer Price Index (CPI)and in 2019 the CPI is 254.What does this "254" mean?

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

If the government enacts legislation which allows lenders to lower lending standards,the government indirectly___ the demand for which leads to _ house prices.

Some economists believe that because the government discouraged workers as unemployed,the unemployment rate is biased __.