Question 1

Most economists believe that labor unions significantly increase the overall unemployment rate in the United States.

Accepted Answer

A) True 
 B)False

Question 2

The unemployment rate is

Accepted Answer

A) the percentage of the labor force that is employed. 
B) the percentage of the number employed that is unemployed. 
C) the percentage of the working-age population that is unemployed. 
D) the percentage of the labor force that is unemployed. 
E) the percentage of the working-age population that is employed. 
A) the percentage of the labor force that is employed. 
B) the percentage of the number employed that is unemployed. 
C) the percentage of the working-age population that is unemployed. 
D) the percentage of the labor force that is unemployed. 
E) the percentage of the working-age population that is employed.

Question 3

If firms pay what are called "efficiency wages," they pay wages that

Accepted Answer

A) motivate workers to increase their productivity. 
B) are lower than average to ensure maximum profit. 
C) will eventually lower the unemployment rate. 
D) are mandated by the government. 
A) motivate workers to increase their productivity. 
B) are lower than average to ensure maximum profit. 
C) will eventually lower the unemployment rate. 
D) are mandated by the government.

Question 4

Which of the following statements is true about the U.S.economy?

Accepted Answer

A) Each year,many new jobs are created,but few existing jobs are destroyed,and the unemployed find jobs quickly. 
B) Each year,few new jobs are created,but few existing jobs are destroyed,keeping unemployment low. 
C) Each year,many new jobs are created and many existing jobs are destroyed. 
D) Each year few jobs are created,and therefore it takes the unemployed a long time to find a new job. 
A) Each year,many new jobs are created,but few existing jobs are destroyed,and the unemployed find jobs quickly. 
B) Each year,few new jobs are created,but few existing jobs are destroyed,keeping unemployment low. 
C) Each year,many new jobs are created and many existing jobs are destroyed. 
D) Each year few jobs are created,and therefore it takes the unemployed a long time to find a new job.

Question 5

Jack was unemployed two weeks ago but just started a new job.As a result of this increase in the number of employed workers,which of the following occurred?

Accepted Answer

A) The labor force participation rate increased. 
B) The unemployment rate increased. 
C) The labor force participation rate decreased. 
D) The unemployment rate decreased. 
A) The labor force participation rate increased. 
B) The unemployment rate increased. 
C) The labor force participation rate decreased. 
D) The unemployment rate decreased.

Question 6

Which of the following is an example of a worker experiencing cyclical unemployment?

Accepted Answer

A) a worker who changes jobs to move closer her family 
B) an assembly line worker who loses his job because of automation 
C) a freightliner employee that got laid off because of the recession of 2007-2009 
D) a lifeguard who was hired during the summer season is laid off after summer is over 
E) a worker who quits his job because he does not get along with his boss 
A) a worker who changes jobs to move closer her family 
B) an assembly line worker who loses his job because of automation 
C) a freightliner employee that got laid off because of the recession of 2007-2009 
D) a lifeguard who was hired during the summer season is laid off after summer is over 
E) a worker who quits his job because he does not get along with his boss

Question 7

If the CPI changes from 125 to 120 between 2012 and 2013,how did prices change between 2012 and 2013?

Accepted Answer

A) Prices increased by 5%. 
B) Prices decreased by 5% 
C) Prices increased by 25%. 
D) Prices decreased by 4%. 
A) Prices increased by 5%. 
B) Prices decreased by 5% 
C) Prices increased by 25%. 
D) Prices decreased by 4%.

Question 8

The PPI is the

Accepted Answer

A) price parity index. 
B) prime producer index. 
C) producer price index. 
D) production performance indicator. 
A) price parity index. 
B) prime producer index. 
C) producer price index. 
D) production performance indicator.

Question 9

The U.S.unemployment insurance program

Accepted Answer

A) increases the amount of time the unemployed spend searching for a job. 
B) decreases the level of frictional unemployment. 
C) pays the unemployed a benefit equal to twice the average wage. 
D) eliminates structural unemployment. 
A) increases the amount of time the unemployed spend searching for a job. 
B) decreases the level of frictional unemployment. 
C) pays the unemployed a benefit equal to twice the average wage. 
D) eliminates structural unemployment.

Question 10

Counting part-time workers who are looking for full-time work as employed overstates the degree of joblessness in the economy.

Accepted Answer

A) True 
 B)False

Question 11

There are no costs to inflation if it is fully anticipated.

Accepted Answer

A) True 
 B)False

Question 12

Table 9-14
   The table above reports the nominal average hourly earnings in private industry and the consumer price index for 1965 and 2010.
-Refer to Table 9-14.The real average hourly earnings for 1965 in 2010 dollars equal

Accepted Answer

A) $3.87. 
B) $5.80. 
C) $12.10. 
D) $18.14. 
A) $3.87. 
B) $5.80. 
C) $12.10. 
D) $18.14.

Question 13

What are some reasons why the unemployment rate is typically lower in the United States as compared to Canada and some Western European countries?

Accepted Answer

Workers in Western Europe and Canada are

Question 14

Suppose that homemakers are included as employed in the labor force statistics,rather than being counted as out of the labor force.This would

Accepted Answer

A) increase the measured unemployment rate. 
B) increase the measured labor force participation rate. 
C) decrease the number of persons in the labor force. 
D) decrease the number of persons in the working-age population. 
A) increase the measured unemployment rate. 
B) increase the measured labor force participation rate. 
C) decrease the number of persons in the labor force. 
D) decrease the number of persons in the working-age population.

Question 15

Table 9-11
  
-Refer to Table 9-11.Suppose an economy has only three goods and the typical family purchases the amounts given in the table above.If 2005 is the base year,then what is the CPI for 2013?

Accepted Answer

A) 40.08 
B) 100 
C) 180 
D) 208 
A) 40.08 
B) 100 
C) 180 
D) 208

Question 16

Table 9-19
  
-Refer to Table 9-19.Looking at the table above,what is the rate of growth of the average price level from 2012 to 2013?

Accepted Answer

A) 1% 
B) 2% 
C) 3.5% 
D) 4.76% 
E) 5.25% 
A) 1% 
B) 2% 
C) 3.5% 
D) 4.76% 
E) 5.25%

Question 17

The CPI in 2010 was 218,while the CPI in 1980 was 82.If you had $5,000 in 1980,its equivalent purchasing power in 2008 would be $10,850.

Accepted Answer

A) True 
 B)False

Question 18

The consumer price index implicitly assumes that the demand curve for each good and service in the representative market basket is

Accepted Answer

A) positively sloped. 
B) negatively sloped. 
C) vertical. 
D) horizontal. 
A) positively sloped. 
B) negatively sloped. 
C) vertical. 
D) horizontal.

Question 19

Describe how inflation can be costly even if it is anticipated.

Accepted Answer

First,there will be redistribution as so

Question 20

Why does the substitution bias cause the consumer price index to overstate inflation and the cost of living? Why does the increase in quality bias cause the consumer price index to overstate inflation and the cost of living?

Accepted Answer

The substitution bias causes the CPI to

Most economists believe that labor unions significantly increase the overall unemployment rate in the United States.

The unemployment rate is

If firms pay what are called "efficiency wages," they pay wages that

Which of the following statements is true about the U.S.economy?

Jack was unemployed two weeks ago but just started a new job.As a result of this increase in the number of employed workers,which of the following occurred?

Which of the following is an example of a worker experiencing cyclical unemployment?

If the CPI changes from 125 to 120 between 2012 and 2013,how did prices change between 2012 and 2013?

The PPI is the

The U.S.unemployment insurance program

Counting part-time workers who are looking for full-time work as employed overstates the degree of joblessness in the economy.

There are no costs to inflation if it is fully anticipated.

Table 9-14 The table above reports the nominal average hourly earnings in private industry and the consumer price index for 1965 and 2010. -Refer to Table 9-14.The real average hourly earnings for 1965 in 2010 dollars equal

What are some reasons why the unemployment rate is typically lower in the United States as compared to Canada and some Western European countries?

Suppose that homemakers are included as employed in the labor force statistics,rather than being counted as out of the labor force.This would

Table 9-11 -Refer to Table 9-11.Suppose an economy has only three goods and the typical family purchases the amounts given in the table above.If 2005 is the base year,then what is the CPI for 2013?

Table 9-19 -Refer to Table 9-19.Looking at the table above,what is the rate of growth of the average price level from 2012 to 2013?

The CPI in 2010 was 218,while the CPI in 1980 was 82.If you had $5,000 in 1980,its equivalent purchasing power in 2008 would be $10,850.

The consumer price index implicitly assumes that the demand curve for each good and service in the representative market basket is

Describe how inflation can be costly even if it is anticipated.

Why does the substitution bias cause the consumer price index to overstate inflation and the cost of living? Why does the increase in quality bias cause the consumer price index to overstate inflation and the cost of living?

Economics: Foundations and Models

Trade-Offs,comparative Advantage,and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms,the Stock Market,and Corporate Governance

Comparative Advantage and the Gains From International Trade

GDP: Measuring Total Production and Income

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 9: Unemployment and Inflation

Most economists believe that labor unions significantly increase the overall unemployment rate in the United States.

The unemployment rate is

If firms pay what are called "efficiency wages," they pay wages that

Which of the following statements is true about the U.S.economy?

Jack was unemployed two weeks ago but just started a new job.As a result of this increase in the number of employed workers,which of the following occurred?

Which of the following is an example of a worker experiencing cyclical unemployment?

If the CPI changes from 125 to 120 between 2012 and 2013,how did prices change between 2012 and 2013?

The PPI is the

The U.S.unemployment insurance program

Counting part-time workers who are looking for full-time work as employed overstates the degree of joblessness in the economy.

There are no costs to inflation if it is fully anticipated.

Table 9-14 The table above reports the nominal average hourly earnings in private industry and the consumer price index for 1965 and 2010. -Refer to Table 9-14.The real average hourly earnings for 1965 in 2010 dollars equal

What are some reasons why the unemployment rate is typically lower in the United States as compared to Canada and some Western European countries?

Suppose that homemakers are included as employed in the labor force statistics,rather than being counted as out of the labor force.This would

Table 9-11 -Refer to Table 9-11.Suppose an economy has only three goods and the typical family purchases the amounts given in the table above.If 2005 is the base year,then what is the CPI for 2013?

Table 9-19 -Refer to Table 9-19.Looking at the table above,what is the rate of growth of the average price level from 2012 to 2013?

The CPI in 2010 was 218,while the CPI in 1980 was 82.If you had $5,000 in 1980,its equivalent purchasing power in 2008 would be $10,850.

The consumer price index implicitly assumes that the demand curve for each good and service in the representative market basket is

Describe how inflation can be costly even if it is anticipated.

Why does the substitution bias cause the consumer price index to overstate inflation and the cost of living? Why does the increase in quality bias cause the consumer price index to overstate inflation and the cost of living?

Economics: Foundations and Models

Trade-Offs,comparative Advantage,and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms,the Stock Market,and Corporate Governance

Comparative Advantage and the Gains From International Trade

GDP: Measuring Total Production and Income

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters