Question 1

In recent years the labor force participation rate has been fairly stable

Accepted Answer

A)  as has the labor force participation rate for males, females, minorities, and nonminorities. 
B)  although the female labor force participation rate has fallen while the male labor force participation rate has increased. 
C)  although the male labor force participation rate has fallen while the female labor force participation rate has increased. 
D)  although the labor force participation rate of young adults has increased while the labor force participation rate of those in the 40-55 age classification has fallen. 
A)  as has the labor force participation rate for males, females, minorities, and nonminorities. 
B)  although the female labor force participation rate has fallen while the male labor force participation rate has increased. 
C)  although the male labor force participation rate has fallen while the female labor force participation rate has increased. 
D)  although the labor force participation rate of young adults has increased while the labor force participation rate of those in the 40-55 age classification has fallen.

Question 2

If a person is fired for poor performance but possesses skills required to obtain another job after some searching, this person is considered

Accepted Answer

A)  seasonally unemployed. 
B)  frictionally unemployed. 
C)  structurally unemployed. 
D)  a discouraged worker. 
A)  seasonally unemployed. 
B)  frictionally unemployed. 
C)  structurally unemployed. 
D)  a discouraged worker.

Question 3

Suppose that unemployment increases because the government requires employers to provide more funds for their employees' retirement programs. The increase in unemployment is most likely a result of an increase in

Accepted Answer

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

Question 4

The official dating of recessions is done by

Accepted Answer

A)  the President. 
B)  the Congress. 
C)  the National Bureau of Economic Research. 
D)  the Council of Economic Advisors. 
A)  the President. 
B)  the Congress. 
C)  the National Bureau of Economic Research. 
D)  the Council of Economic Advisors.

Question 5

When computing a price index, the base year is

Accepted Answer

A)  the earliest year for which data are available. 
B)  the year that is chosen as the point of reference for comparison of prices with other years. 
C)  the most recent year for which data are available. 
D)  the most recent year in which the inflation rate was close to zero. 
A)  the earliest year for which data are available. 
B)  the year that is chosen as the point of reference for comparison of prices with other years. 
C)  the most recent year for which data are available. 
D)  the most recent year in which the inflation rate was close to zero.

Question 6

-Considering the data from the table shown above, assuming that the market basket cost of light bulbs and volleyballs in the base year was $4500, what would be the price index for the year 2018?

Accepted Answer

A)  177.78 
B)  156.30 
C)  100.00 
D)  92.70 
A)  177.78 
B)  156.30 
C)  100.00 
D)  92.70

Question 7

-Refer to the above figure. Point B is known as

Accepted Answer

A)  a peak. 
B)  a recession. 
C)  an expansion. 
D)  a contraction. 
A)  a peak. 
B)  a recession. 
C)  an expansion. 
D)  a contraction.

Question 8

The labor force includes all of the following individuals who are 16 years or older EXCEPT

Accepted Answer

A)  people who have never been in the labor force but have just found a job. 
B)  the employed. 
C)  the unemployed. 
D)  people who are retired and not actively seeking work. 
A)  people who have never been in the labor force but have just found a job. 
B)  the employed. 
C)  the unemployed. 
D)  people who are retired and not actively seeking work.

Question 9

By definition, the labor force participation rate is

Accepted Answer

A)  the percentage of institutionalized working-age individuals who are employed or seeking employment. 
B)  the percentage of noninstitutionalized working-age individuals who are employed or seeking employment. 
C)  the annual rate of growth in the number of people who are either employed or searching for available jobs. 
D)  the annual rate of growth in the number of people who are unemployed and searching for available government-provided unemployment benefits. 
A)  the percentage of institutionalized working-age individuals who are employed or seeking employment. 
B)  the percentage of noninstitutionalized working-age individuals who are employed or seeking employment. 
C)  the annual rate of growth in the number of people who are either employed or searching for available jobs. 
D)  the annual rate of growth in the number of people who are unemployed and searching for available government-provided unemployment benefits.

Question 10

In conditions of full employment

Accepted Answer

A)  no one in or out of the labor force is unemployed. 
B)  the only unemployment results from a normal frictions and structural mismatches in the labor market. 
C)  the only unemployment results from cyclical swings in economic activity. 
D)  no one in the labor force is unemployed. 
A)  no one in or out of the labor force is unemployed. 
B)  the only unemployment results from a normal frictions and structural mismatches in the labor market. 
C)  the only unemployment results from cyclical swings in economic activity. 
D)  no one in the labor force is unemployed.

Question 11

The rate of unemployment is calculated as the number of

Accepted Answer

A)  unemployed workers divided by the number of employed workers. 
B)  people in the civilian labor force divided by the number of unemployed. 
C)  unemployed divided by the number of people in the civilian labor force. 
D)  employed workers divided by the number of unemployed workers. 
A)  unemployed workers divided by the number of employed workers. 
B)  people in the civilian labor force divided by the number of unemployed. 
C)  unemployed divided by the number of people in the civilian labor force. 
D)  employed workers divided by the number of unemployed workers.

Question 12

Suppose the population of El Campo is 120,000. Of the population 16 years and older, 50,000 are employed, 10,000 have never worked and are not looking for work, 5,000 are not working and are looking for work, and 15,000 are retired and not looking for work. The number unemployed equals

Accepted Answer

A)  5,000. 
B)  10,000. 
C)  15,000. 
D)  20,000. 
A)  5,000. 
B)  10,000. 
C)  15,000. 
D)  20,000.

Question 13

Full employment is NOT zero unemployment because

Accepted Answer

A)  there are statistical errors when determining the unemployment rate that cannot be overcome. 
B)  there is "normal" friction in the economy made up of those workers who are between jobs and those new entrants to the labor force. 
C)  there are undocumented workers in the economy who are not counted by the Bureau of Labor Statistics. 
D)  government workers are not counted in the labor force. 
A)  there are statistical errors when determining the unemployment rate that cannot be overcome. 
B)  there is "normal" friction in the economy made up of those workers who are between jobs and those new entrants to the labor force. 
C)  there are undocumented workers in the economy who are not counted by the Bureau of Labor Statistics. 
D)  government workers are not counted in the labor force.

Exam 7: The Macroeconomy: Unemployment, Inflation, and Deflation

In recent years the labor force participation rate has been fairly stable

If a person is fired for poor performance but possesses skills required to obtain another job after some searching, this person is considered

Suppose that unemployment increases because the government requires employers to provide more funds for their employees' retirement programs. The increase in unemployment is most likely a result of an increase in

The official dating of recessions is done by

When computing a price index, the base year is

-Considering the data from the table shown above, assuming that the market basket cost of light bulbs and volleyballs in the base year was $4500, what would be the price index for the year 2018?

-Refer to the above figure. Point B is known as

The labor force includes all of the following individuals who are 16 years or older EXCEPT

By definition, the labor force participation rate is

In conditions of full employment

The rate of unemployment is calculated as the number of

Suppose the population of El Campo is 120,000. Of the population 16 years and older, 50,000 are employed, 10,000 have never worked and are not looking for work, 5,000 are not working and are looking for work, and 15,000 are retired and not looking for work. The number unemployed equals

Full employment is NOT zero unemployment because

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Measuring the Economys Performance

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money, Banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Demand and Supply Elasticity

Consumer Choice

Rents, Profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, Supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, Poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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