Question 1

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 2

Most unemployed persons fall into the category of job loser.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Of all the categories of unemployment,most unemployed persons fall into the category of

Accepted Answer

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

Question 5

Suppose that 1983 is the base year for the Consumer Price Index (CPI)and in 2015 the CPI was 226.What does this "226" mean?

Accepted Answer

A) What cost $100 in 1983 on average cost 226 times as much in 2015. 
B) What cost $100 in 1983 on average cost $226 more in 2015. 
C) What cost $100 in 1983 on average cost 100/226 (or 0.44)times as much in 2015 (that is,it will cost $22 in 2015). 
D) What cost $100 in 1983 on average cost $126 more in 2015. 
A) What cost $100 in 1983 on average cost 226 times as much in 2015. 
B) What cost $100 in 1983 on average cost $226 more in 2015. 
C) What cost $100 in 1983 on average cost 100/226 (or 0.44)times as much in 2015 (that is,it will cost $22 in 2015). 
D) What cost $100 in 1983 on average cost $126 more in 2015.

Question 6

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 7

If Carlos is waiting to be called back to his job from which he has been temporarily laid off,the Bureau of Labor Statistics will classify him as unemployed.

Accepted Answer

A) True 
 B)False

Question 8

In an economy with a population of 100 million persons,40 million hold civilian jobs and 9 million are not working but are looking for jobs.The number counted as unemployed is

Accepted Answer

A) 91 million. 
B) 9 million. 
C) 51 million. 
D) 40 million. 
E) 49 million. 
A) 91 million. 
B) 9 million. 
C) 51 million. 
D) 40 million. 
E) 49 million.

Question 9

Which of the following statements is false?

Accepted Answer

A) A discouraged worker is counted as an unemployed worker. 
B) The frictional unemployment rate is greater than the natural unemployment rate. 
C) The natural unemployment rate is greater than the structural unemployment rate. 
D) The natural unemployment rate is equal to the sum of the frictional unemployment rate and the structural unemployment rate. 
E) a and b 
A) A discouraged worker is counted as an unemployed worker. 
B) The frictional unemployment rate is greater than the natural unemployment rate. 
C) The natural unemployment rate is greater than the structural unemployment rate. 
D) The natural unemployment rate is equal to the sum of the frictional unemployment rate and the structural unemployment rate. 
E) a and b

Question 10

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 11

The value of the consumer price index (CPI)is always equal to ______________ in the base year.

Accepted Answer

A) 1 
B) 10 
C) 100 
D) 1,000 
E) There is not enough information given to answer this question. 
A) 1 
B) 10 
C) 100 
D) 1,000 
E) There is not enough information given to answer this question.

Question 12

Persons who are retired or engaged in own-home housework are considered to be in which of the following categories?

Accepted Answer

A) in the civilian labor force 
B) not in the labor force 
C) employed 
D) unemployed 
A) in the civilian labor force 
B) not in the labor force 
C) employed 
D) unemployed

Question 13

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 14

A common measure of inflation is the percentage change in the CPI of adjacent years.

Accepted Answer

A) True 
 B)False

Question 15

The civilian non-institutional population consists of everyone in the population who is

Accepted Answer

A) at least 16 years of age,in the armed forces,or institutionalized. 
B) at least 16 years of age. 
C) not in the armed forces. 
D) not institutionalized. 
E) b,c,and d 
A) at least 16 years of age,in the armed forces,or institutionalized. 
B) at least 16 years of age. 
C) not in the armed forces. 
D) not institutionalized. 
E) b,c,and d

Question 16

The CPI was 238 in one year and 244 the following year.How much did prices rise between these two years?

Accepted Answer

A) 2.46 percent 
B) 5.50 percent 
C) 2.52 percent 
D) 0.03 percent 
A) 2.46 percent 
B) 5.50 percent 
C) 2.52 percent 
D) 0.03 percent

Question 17

In year 1 the CPI is 174,and in year 2 the CPI is 190.If Sarah's salary was $49,800 in year 1,what salary in year 2 would cause her to exactly "keep up with inflation"?

Accepted Answer

A) $34,004 
B) $42,942 
C) $40,508 
D) $54,379 
A) $34,004 
B) $42,942 
C) $40,508 
D) $54,379

Question 18

Describe what the unemployment rate and the employment rate measure.If we were to sum the unemployment rate and the employment rate,would that sum be equal to one hundred percent? Explain why or why not.

Accepted Answer

The unemployment rate measures the perce

Question 19

If we subtract the number of persons not in the labor force from the civilian noninstitutional population,we get the number of people in the

Accepted Answer

A) ranks of the unemployed. 
B) civilian labor force. 
C) ranks of the employed. 
D) ranks of discouraged workers. 
E) none of the above 
A) ranks of the unemployed. 
B) civilian labor force. 
C) ranks of the employed. 
D) ranks of discouraged workers. 
E) none of the above

Question 20

The CPI is based on a representative group of goods called the market basket.

Accepted Answer

A) True 
 B)False

Exam 6: Macroeconomic Measurements, part I: Prices and Unemployment

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

Most unemployed persons fall into the category of job loser.

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?

Of all the categories of unemployment,most unemployed persons fall into the category of

Suppose that 1983 is the base year for the Consumer Price Index (CPI)and in 2015 the CPI was 226.What does this "226" mean?

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

If Carlos is waiting to be called back to his job from which he has been temporarily laid off,the Bureau of Labor Statistics will classify him as unemployed.

In an economy with a population of 100 million persons,40 million hold civilian jobs and 9 million are not working but are looking for jobs.The number counted as unemployed is

Which of the following statements is false?

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

The value of the consumer price index (CPI)is always equal to ______________ in the base year.

Persons who are retired or engaged in own-home housework are considered to be in which of the following categories?

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 common measure of inflation is the percentage change in the CPI of adjacent years.

The civilian non-institutional population consists of everyone in the population who is

The CPI was 238 in one year and 244 the following year.How much did prices rise between these two years?

In year 1 the CPI is 174,and in year 2 the CPI is 190.If Sarah's salary was $49,800 in year 1,what salary in year 2 would cause her to exactly "keep up with inflation"?

Describe what the unemployment rate and the employment rate measure.If we were to sum the unemployment rate and the employment rate,would that sum be equal to one hundred percent? Explain why or why not.

If we subtract the number of persons not in the labor force from the civilian noninstitutional population,we get the number of people in the

The CPI is based on a representative group of goods called the market basket.

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free, controlled, and Relative

Supply,demand,and Price: Applications

Macroeconomic Measurements, part II: GDP and Real GDP

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self-Regulating Economy

Keynesian Macroeconomics and Economic Instability: a Critique of the Self-Regulating Economy

Fiscal Policy and the Federal Budget

Money,banking,and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth: Resources, technology, ideas, and Institutions

The Financial Crisis of 2007-2009

Debates in Macroeconomics Over the Role and Effects of Government

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

Globalization and International Impacts on the Economy

The Economic Case for and Against Government: Five Topics Considered

Stocks, bonds, futures, and Options

Filters

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

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.