Question 1

The producer price index tracks the prices firms receive for goods and services at all stages of production.

Accepted Answer

A) True 
 B)False

Question 2

By offering training to workers whose firms laid them off because of competition from foreign firms,the federal government is attempting to reduce

Accepted Answer

A) frictional unemployment. 
B) structural unemployment. 
C) cyclical unemployment. 
D) seasonal unemployment. 
E) unnatural unemployment. 
A) frictional unemployment. 
B) structural unemployment. 
C) cyclical unemployment. 
D) seasonal unemployment. 
E) unnatural unemployment.

Question 3

Suppose that in 2016,all prices in the economy double and that all wages and salaries also double.In 2016 you

Accepted Answer

A) are worse off than you were in 2015 as you can no longer afford to buy as many goods and services. 
B) are better off than you were in 2015 as your salary is higher than it was in 2015 and you can now buy more goods and services. 
C) are no better off or worse off than you were in 2015 as the purchasing power of your salary has remained the same. 
D) cannot determine whether you are better off or worse off than you were in 2015,because the purchasing power of your salary cannot be determined. 
A) are worse off than you were in 2015 as you can no longer afford to buy as many goods and services. 
B) are better off than you were in 2015 as your salary is higher than it was in 2015 and you can now buy more goods and services. 
C) are no better off or worse off than you were in 2015 as the purchasing power of your salary has remained the same. 
D) cannot determine whether you are better off or worse off than you were in 2015,because the purchasing power of your salary cannot be determined.

Question 4

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 5

Monthly expenditures for a family of 4 in 2015 averaged $1,400.In 2016,the cost of the same purchases was $1,500.If 2015 is the base year,what was the CPI in 2016?

Accepted Answer

A) 110 
B) 107 
C) 100 
D) 93 
A) 110 
B) 107 
C) 100 
D) 93

Question 6

The costs to firms of changing prices are called menu costs.

Accepted Answer

A) True 
 B)False

Question 7

A lumberjack loses his job because timber cutting restrictions were imposed by the EPA to protect the spotted owl habitat.This lumberjack would be

Accepted Answer

A) frictionally unemployed. 
B) cyclically unemployed. 
C) structurally unemployed. 
D) seasonally unemployed. 
A) frictionally unemployed. 
B) cyclically unemployed. 
C) structurally unemployed. 
D) seasonally unemployed.

Question 8

A student who just graduated from college but has not found a job would most likely be

Accepted Answer

A) frictionally unemployed. 
B) structurally unemployed. 
C) cyclically unemployed. 
D) seasonally unemployed. 
A) frictionally unemployed. 
B) structurally unemployed. 
C) cyclically unemployed. 
D) seasonally unemployed.

Question 9

In recent years,economists have come to rely more on the establishment survey rather than the household survey to analyze current labor market statistics.

Accepted Answer

A) True 
 B)False

Question 10

When actual inflation is less than expected inflation,

Accepted Answer

A) borrowers lose and lenders gain. 
B) borrowers gain and lenders lose. 
C) borrowers and lenders both gain. 
D) borrowers and lenders both lose. 
A) borrowers lose and lenders gain. 
B) borrowers gain and lenders lose. 
C) borrowers and lenders both gain. 
D) borrowers and lenders both lose.

Question 11

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 12

Emma is a road construction worker.During the winter months,Emma finds it more difficult to get work.The unemployment Emma experiences in the winter is

Accepted Answer

A) structural. 
B) cyclical. 
C) seasonal. 
D) functional. 
A) structural. 
B) cyclical. 
C) seasonal. 
D) functional.

Question 13

The stated interest rate on a loan is the

Accepted Answer

A) real interest rate. 
B) nominal interest rate. 
C) actual inflation rate. 
D) expected inflation rate. 
A) real interest rate. 
B) nominal interest rate. 
C) actual inflation rate. 
D) expected inflation rate.

Question 14

In 2006,before the start of the recession,the employment-population ratio was 63.4 percent.In August 2015,more than six years after the end of the recession,the ratio

Accepted Answer

A) was still 50 percent lower than the ratio in 2006. 
B) was still only 59.4 percent. 
C) was back to its 2006 level. 
D) had increased to 72.3 percent. 
A) was still 50 percent lower than the ratio in 2006. 
B) was still only 59.4 percent. 
C) was back to its 2006 level. 
D) had increased to 72.3 percent.

Question 15

Which of the following causes the unemployment rate to understate the true extent of joblessness?

Accepted Answer

A) Many full time workers really want to be part time workers. 
B) Persons who collect unemployment benefits report themselves to be searching for a job. 
C) Discouraged workers are not counted as unemployed. 
D) A drug dealer reports herself as unemployed. 
E) Discouraged workers are counted as unemployed. 
A) Many full time workers really want to be part time workers. 
B) Persons who collect unemployment benefits report themselves to be searching for a job. 
C) Discouraged workers are not counted as unemployed. 
D) A drug dealer reports herself as unemployed. 
E) Discouraged workers are counted as unemployed.

Question 16

The equilibrium wage in a local labor market is $10 per hour.If a minimum wage of $15 per hour is imposed,which of the following will occur?

Accepted Answer

A) There will be an increase in unemployment. 
B) There will be an increase in the quantity of labor demanded by firms. 
C) There will be a decrease in the quantity of labor supplied by households. 
D) All of the above will occur. 
A) There will be an increase in unemployment. 
B) There will be an increase in the quantity of labor demanded by firms. 
C) There will be a decrease in the quantity of labor supplied by households. 
D) All of the above will occur.

Question 17

If the nominal interest rate is 6% and the inflation rate is 9%,then the real interest rate is

Accepted Answer

A) -3%. 
B) 3%. 
C) 6.67%. 
D) 15%. 
A) -3%. 
B) 3%. 
C) 6.67%. 
D) 15%.

Question 18

Which of the following cause the unemployment rate as measured by the Bureau of Labor Statistics to overstate the true extent of joblessness?

Accepted Answer

A) inflation 
B) discouraged workers 
C) counting people as employed who are working part time,although they would prefer to be working full time 
D) unemployed persons falsely report themselves to be actively looking for a job 
A) inflation 
B) discouraged workers 
C) counting people as employed who are working part time,although they would prefer to be working full time 
D) unemployed persons falsely report themselves to be actively looking for a job

Question 19

The labor force equals the number of people

Accepted Answer

A) employed. 
B) unemployed. 
C) employed plus unemployed. 
D) in the working-age population. 
A) employed. 
B) unemployed. 
C) employed plus unemployed. 
D) in the working-age population.

Question 20

Which of the following price indices comes closest to measuring the cost of living of the typical household?

Accepted Answer

A) GDP deflator 
B) producer price index 
C) consumer price index 
D) household price index 
A) GDP deflator 
B) producer price index 
C) consumer price index 
D) household price index

The producer price index tracks the prices firms receive for goods and services at all stages of production.

By offering training to workers whose firms laid them off because of competition from foreign firms,the federal government is attempting to reduce

Suppose that in 2016,all prices in the economy double and that all wages and salaries also double.In 2016 you

The PPI is the

Monthly expenditures for a family of 4 in 2015 averaged $1,400.In 2016,the cost of the same purchases was $1,500.If 2015 is the base year,what was the CPI in 2016?

The costs to firms of changing prices are called menu costs.

A lumberjack loses his job because timber cutting restrictions were imposed by the EPA to protect the spotted owl habitat.This lumberjack would be

A student who just graduated from college but has not found a job would most likely be

In recent years,economists have come to rely more on the establishment survey rather than the household survey to analyze current labor market statistics.

When actual inflation is less than expected inflation,

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

Emma is a road construction worker.During the winter months,Emma finds it more difficult to get work.The unemployment Emma experiences in the winter is

The stated interest rate on a loan is the

In 2006,before the start of the recession,the employment-population ratio was 63.4 percent.In August 2015,more than six years after the end of the recession,the ratio

Which of the following causes the unemployment rate to understate the true extent of joblessness?

The equilibrium wage in a local labor market is $10 per hour.If a minimum wage of $15 per hour is imposed,which of the following will occur?

If the nominal interest rate is 6% and the inflation rate is 9%,then the real interest rate is

Which of the following cause the unemployment rate as measured by the Bureau of Labor Statistics to overstate the true extent of joblessness?

The labor force equals the number of people

Which of the following price indices comes closest to measuring the cost of living of the typical household?

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

The producer price index tracks the prices firms receive for goods and services at all stages of production.

By offering training to workers whose firms laid them off because of competition from foreign firms,the federal government is attempting to reduce

Suppose that in 2016,all prices in the economy double and that all wages and salaries also double.In 2016 you

The PPI is the

Monthly expenditures for a family of 4 in 2015 averaged $1,400.In 2016,the cost of the same purchases was $1,500.If 2015 is the base year,what was the CPI in 2016?

The costs to firms of changing prices are called menu costs.

A lumberjack loses his job because timber cutting restrictions were imposed by the EPA to protect the spotted owl habitat.This lumberjack would be

A student who just graduated from college but has not found a job would most likely be

In recent years,economists have come to rely more on the establishment survey rather than the household survey to analyze current labor market statistics.

When actual inflation is less than expected inflation,

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

Emma is a road construction worker.During the winter months,Emma finds it more difficult to get work.The unemployment Emma experiences in the winter is

The stated interest rate on a loan is the

In 2006,before the start of the recession,the employment-population ratio was 63.4 percent.In August 2015,more than six years after the end of the recession,the ratio

Which of the following causes the unemployment rate to understate the true extent of joblessness?

The equilibrium wage in a local labor market is $10 per hour.If a minimum wage of $15 per hour is imposed,which of the following will occur?

If the nominal interest rate is 6% and the inflation rate is 9%,then the real interest rate is

Which of the following cause the unemployment rate as measured by the Bureau of Labor Statistics to overstate the true extent of joblessness?

The labor force equals the number of people

Which of the following price indices comes closest to measuring the cost of living of the typical household?

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