Question 1

A price index can be constructed by:

Accepted Answer

A) ​dividing the value of a market basket by the rate of inflation. 
B) ​dividing the current-year value of a market basket by the base-year value of the same market basket and multiplying by 100. 
C) ​multiplying the value of a market basket by the rate of inflation. 
D) ​multiplying the current-year value of a market basket by the base-year value of the same market basket and dividing by 100. 
A) ​dividing the value of a market basket by the rate of inflation. 
B) ​dividing the current-year value of a market basket by the base-year value of the same market basket and multiplying by 100. 
C) ​multiplying the value of a market basket by the rate of inflation. 
D) ​multiplying the current-year value of a market basket by the base-year value of the same market basket and dividing by 100.

Question 2

A person who works 25 hours per week:

Accepted Answer

A) ​is considered to be a discouraged worker. 
B) ​is considered to be unemployed. 
C) ​is considered to part of the labor force. 
D) ​none of the above 
A) ​is considered to be a discouraged worker. 
B) ​is considered to be unemployed. 
C) ​is considered to part of the labor force. 
D) ​none of the above

Question 3

Since 1950, there has been ____ in the labor force participation rate.

Accepted Answer

A) ​no change 
B) ​an increase 
C) ​a decrease 
D) ​first an increase and then a significant decrease 
A) ​no change 
B) ​an increase 
C) ​a decrease 
D) ​first an increase and then a significant decrease

Question 4

If a minimum wage law is passed imposing a price floor above the equilibrium price of unskilled labor and employers increasingly used efficiency wages, it would ___ unemployment and ____ the natural rate of unemployment:

Accepted Answer

A) ​Increase; increase. 
B) ​Increase; not change. 
C) ​Not change, increase. 
D) ​Do none of the above. 
A) ​Increase; increase. 
B) ​Increase; not change. 
C) ​Not change, increase. 
D) ​Do none of the above.

Question 5

What are the three major types of unemployment? What are their causes?
​

Accepted Answer

The first is frictional unemployment. Pe

Question 6

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. From the data provided, the unemployment rate is approximately ____ percent.

Accepted Answer

A) ​4.5 
B) ​7.7 
C) ​9.2 
D) ​5.4 
A) ​4.5 
B) ​7.7 
C) ​9.2 
D) ​5.4

Question 7

The type of unemployment that occurs because of a recession is called:

Accepted Answer

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

Question 8

Which of the following groups would not tend to lose from unexpected inflation?

Accepted Answer

A) ​Retirees on fixed pensions. 
B) ​Creditors. 
C) ​Those whose incomes are tied to long-term contracts. 
D) ​Those whose wages have cost of living adjustment clauses in their contracts. 
A) ​Retirees on fixed pensions. 
B) ​Creditors. 
C) ​Those whose incomes are tied to long-term contracts. 
D) ​Those whose wages have cost of living adjustment clauses in their contracts.

Question 9

Economists consider cyclical unemployment to be the byproduct of a healthy economy.

Accepted Answer

A) True 
 B)False

Question 10

If the overall unemployment rate is 8 percent, it is likely that:

Accepted Answer

A) ​It is greater than 8 percent for teenagers. 
B) ​It is less than 8 percent for college=educated middle-aged men. 
C) ​It is more than 8 percent for those without a high school diploma. 
D) ​All of the above are true. 
A) ​It is greater than 8 percent for teenagers. 
B) ​It is less than 8 percent for college=educated middle-aged men. 
C) ​It is more than 8 percent for those without a high school diploma. 
D) ​All of the above are true.

Question 11

A discouraged worker is:

Accepted Answer

A) ​one who opts to quit work to attend college. 
B) ​one who opts to quit searching for work after unsuccessfully seeking employment. 
C) ​a part-time worker who would like to work more hours. 
D) ​none of the above. 
A) ​one who opts to quit work to attend college. 
B) ​one who opts to quit searching for work after unsuccessfully seeking employment. 
C) ​a part-time worker who would like to work more hours. 
D) ​none of the above.

Question 12

In recent years, economists have come to believe that full employment in the U.S. economy occurs at an unemployment rate between:

Accepted Answer

A) ​1.0 and 2.0 percent. 
B) ​2.5 and 3.5 percent. 
C) ​4.5 and 5.5 percent. 
D) ​6.5 and 7.5 percent. 
A) ​1.0 and 2.0 percent. 
B) ​2.5 and 3.5 percent. 
C) ​4.5 and 5.5 percent. 
D) ​6.5 and 7.5 percent.

Question 13

The unemployment rate is calculated as:

Accepted Answer

A) ​the number of officially unemployed persons divided by the number of officially employed persons. 
B) ​the number of officially employed persons divided by the number of officially unemployed persons. 
C) ​the number of officially unemployed persons divided by the number of officially employed plus unemployed persons. 
D) ​the number of officially unemployed persons divided by the population. 
A) ​the number of officially unemployed persons divided by the number of officially employed persons. 
B) ​the number of officially employed persons divided by the number of officially unemployed persons. 
C) ​the number of officially unemployed persons divided by the number of officially employed plus unemployed persons. 
D) ​the number of officially unemployed persons divided by the population.

Question 14

The Employment Act of 1946 dictated the U.S. goal of maintaining high employment through high economic growth but did not specify any goals with regard to the price level.

Accepted Answer

A) True 
 B)False

Question 15

Discouraged workers are defined as those:

Accepted Answer

A) ​whose productivity is low because working in dead-end jobs reduces their morale. 
B) ​who are counted as frictionally unemployed, having become dissatisfied with their previous jobs. 
C) ​who are counted as structurally unemployed, lacking training for the skilled positions for which they are applying. 
D) ​who have given up looking for a job and are not counted as unemployed. 
A) ​whose productivity is low because working in dead-end jobs reduces their morale. 
B) ​who are counted as frictionally unemployed, having become dissatisfied with their previous jobs. 
C) ​who are counted as structurally unemployed, lacking training for the skilled positions for which they are applying. 
D) ​who have given up looking for a job and are not counted as unemployed.

Question 16

Inflation:

Accepted Answer

A) ​can cause a redistribution of income from creditors to borrowers. 
B) may discourage investment and economic growth. 
C) ​can decrease the value of a nation's currency relative to other nations. 
D) ​may result in any of the above. 
A) ​can cause a redistribution of income from creditors to borrowers. 
B) may discourage investment and economic growth. 
C) ​can decrease the value of a nation's currency relative to other nations. 
D) ​may result in any of the above.

Question 17

Deflation exists whenever:

Accepted Answer

A) ​the overall price level falls. 
B) ​the overall price level rises. 
C) ​the economy experiences a contraction. 
D) ​the price of a good decreases. 
A) ​the overall price level falls. 
B) ​the overall price level rises. 
C) ​the economy experiences a contraction. 
D) ​the price of a good decreases.

Question 18

Suppose you live in a community of 100 people where everyone who is able to do so seeks work. If 80 people are over 16 years old and 72 of them are employed, what is the unemployment rate in this community?

Accepted Answer

​In this community, only 80 pe

Question 19

Persons who do not hold a job, but are actively seeking work are considered:

Accepted Answer

A) ​out of the labor force. 
B) ​unemployed. 
C) ​unemployable, and not counted in official statistics. 
D) ​underemployed. 
A) ​out of the labor force. 
B) ​unemployed. 
C) ​unemployable, and not counted in official statistics. 
D) ​underemployed.

Question 20

If the number of employed persons equals 180 million, the number of unemployed persons equals 15 million, and the number of persons over age 16 in the population equals 210 million, the unemployment rate equals ____ and the labor force participation rate equals ____.

Accepted Answer

A) ​7.1%; 85.7% 
B) ​7.7%; 85.7% 
C) ​7.1%; 92.9% 
D) ​7.7%; 92.9% 
A) ​7.1%; 85.7% 
B) ​7.7%; 85.7% 
C) ​7.1%; 92.9% 
D) ​7.7%; 92.9%

A price index can be constructed by:

A person who works 25 hours per week:

Since 1950, there has been ____ in the labor force participation rate.

If a minimum wage law is passed imposing a price floor above the equilibrium price of unskilled labor and employers increasingly used efficiency wages, it would _ unemployment and __ the natural rate of unemployment:

What are the three major types of unemployment? What are their causes?

The type of unemployment that occurs because of a recession is called:

Which of the following groups would not tend to lose from unexpected inflation?

Economists consider cyclical unemployment to be the byproduct of a healthy economy.

If the overall unemployment rate is 8 percent, it is likely that:

A discouraged worker is:

In recent years, economists have come to believe that full employment in the U.S. economy occurs at an unemployment rate between:

The unemployment rate is calculated as:

The Employment Act of 1946 dictated the U.S. goal of maintaining high employment through high economic growth but did not specify any goals with regard to the price level.

Discouraged workers are defined as those:

Inflation:

Deflation exists whenever:

Suppose you live in a community of 100 people where everyone who is able to do so seeks work. If 80 people are over 16 years old and 72 of them are employed, what is the unemployment rate in this community?

Persons who do not hold a job, but are actively seeking work are considered:

If the number of employed persons equals 180 million, the number of unemployed persons equals 15 million, and the number of persons over age 16 in the population equals 210 million, the unemployment rate equals and the labor force participation rate equals .

The Role and Method of Economics

Eight Powerful Ideas

Scarcity, Trade-Offs, and Production Possibilities

Demand, Supply, and Market Equilibrium

Market in Motion and Price Controls

Elasticities

Market Efficiency and Welfare

Market Failure

Public Finance and Public Choice

The Firm: Production and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Product Differentiation

Oligopoly and Strategic Behavior

The Markets for Labor, Capital, and Land

Income, Poverty and Health Care

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Measuring Economic Performance

Economic Growth in the Global Economy

Financial Markets, Saving, and Investment

Filters

Exam 10: Consumer Choice Theory

A price index can be constructed by:

A person who works 25 hours per week:

Since 1950, there has been ____ in the labor force participation rate.

If a minimum wage law is passed imposing a price floor above the equilibrium price of unskilled labor and employers increasingly used efficiency wages, it would ___ unemployment and ____ the natural rate of unemployment:

What are the three major types of unemployment? What are their causes? ​

The type of unemployment that occurs because of a recession is called:

Which of the following groups would not tend to lose from unexpected inflation?

Economists consider cyclical unemployment to be the byproduct of a healthy economy.

If the overall unemployment rate is 8 percent, it is likely that:

A discouraged worker is:

In recent years, economists have come to believe that full employment in the U.S. economy occurs at an unemployment rate between:

The unemployment rate is calculated as:

The Employment Act of 1946 dictated the U.S. goal of maintaining high employment through high economic growth but did not specify any goals with regard to the price level.

Discouraged workers are defined as those:

Inflation:

Deflation exists whenever:

Suppose you live in a community of 100 people where everyone who is able to do so seeks work. If 80 people are over 16 years old and 72 of them are employed, what is the unemployment rate in this community?

Persons who do not hold a job, but are actively seeking work are considered:

If the number of employed persons equals 180 million, the number of unemployed persons equals 15 million, and the number of persons over age 16 in the population equals 210 million, the unemployment rate equals ____ and the labor force participation rate equals ____.

The Role and Method of Economics

Eight Powerful Ideas

Scarcity, Trade-Offs, and Production Possibilities

Demand, Supply, and Market Equilibrium

Market in Motion and Price Controls

Elasticities

Market Efficiency and Welfare

Market Failure

Public Finance and Public Choice

The Firm: Production and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Product Differentiation

Oligopoly and Strategic Behavior

The Markets for Labor, Capital, and Land

Income, Poverty and Health Care

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Measuring Economic Performance

Economic Growth in the Global Economy

Financial Markets, Saving, and Investment

Filters

If a minimum wage law is passed imposing a price floor above the equilibrium price of unskilled labor and employers increasingly used efficiency wages, it would _ unemployment and __ the natural rate of unemployment:

What are the three major types of unemployment? What are their causes?

If the number of employed persons equals 180 million, the number of unemployed persons equals 15 million, and the number of persons over age 16 in the population equals 210 million, the unemployment rate equals and the labor force participation rate equals .