Exam 10: Consumer Choice Theory

If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals:

Say that initially the nominal interest rate is 6% and prices are stable, but the inflation rate the following year rises to 3%. If the real rate of interest is to remain unchanged, the nominal interest rate in the second year must:

The construction of a price index is complicated by several factors, including changes in the quality of goods and services over time, the introduction of new products, and the disappearance of old, outmoded products.

Unemployment rises in ____, and falls in ____.

A city in which 320,000 persons are employed has a labor force of 359,500 persons. The unemployment rate for the city is:

The current cost of a market basket of goods is $9,000. The cost of the same basket of goods in the base year was $3,000. The current price index is:

Unemployment that results from technological changes that renders some people's skills obsolete is called:

Why are creditors harmed by unexpected inflation?

Nearly every society desires to achieve the macroeconomic goals of high employment, a stable price level, and high economic growth.

If the minimum wage law is repealed and employers begin using efficiency wages far less frequently, it would ___ unemployment and ____ the natural rate of unemployment:

Frictional unemployment is the temporary unemployment that results from the search time that occurs when people are searching for suitable jobs and firms are looking for suitable workers.

The GDP deflator represents a somewhat ____ measure of prices that the CPI and the GDP deflator tends to be ____ volatile than the CPI.

If the numbers of employed and unemployed do not change but the size of the civilian population increases by 10%, what would be the effect?

A major macroeconomic goal of nearly every society is:

In the unemployment rate, part-time workers are:

Which of the following is false?

The natural rate of unemployment can change over time as technological, demographic, institutional, and other conditions vary.

Exhibit 10-2 Assume the following information about a country for the following problems: The total adult population equals 580 million; The number of civilians employed is 360 million; The number of civilians unemployed is 30 million ​ -Refer to Exhibit 10-2. The number of people considered to be out of the labor force is:

The unemployment rate measures:

Which of the following statements is incorrect?