Question 1

If the CPI at the end of last year was 100 and the CPI at the end of this year was 115, the inflation rate was

Accepted Answer

A)   100 percent.
B)   115 percent.
C)   15 percent.
D)   1.5 percent.

Question 2

If last year's price level was 100 and this year's price level is 114, over the year the inflation rate has been

Accepted Answer

A)   100 percent.
B)   114 percent.
C)   14 percent.
D)   12 percent

Question 3

NPR ("Certain Green Industries Have Job Openings", November 12, 2008)  reported on a story about wind turbine manufacturers in Ohio having trouble finding skilled workers. The report noted that as a result tens of thousands of people having been laid off, there is "a huge pool of job- seekers. " The firms claim to"offer good pay and benefits." A representative from the United Steelworkers clai their union members have easily transferrable skills, but the pay is too low, around $30,000 annually manager at Apollo Alliance says that workers in the new industry need different skills than those in steel industry.
The type of unemployment described in the story is unemployment.

Accepted Answer

A)   structural
B)   cyclical
C)   efficiency wage
D)   frictional

Question 4

Full employment occurs when

Accepted Answer

A)   frictional unemployment is zero.
B)   structural unemployment is zero.
C)   cyclical and frictional unemployment are zero.
D)   cyclical unemployment is zero.

Question 5

Which population category equals the sum of employed and unemployed people?

Accepted Answer

A)   labor force
B)   working- age population
C)   not in the labor force
D)   young and institutionalized

Question 6

Suppose the country of Tiny Town experienced frictional unemployment. This frictional unemployment would

Accepted Answer

A)   signal that the number of discouraged workers is growing.
B)   be considered a natural occurrence in a growing economy.
C)   definitely signal that the country is in a recession.
D)   signal that there are more job leavers than job losers.

Question 7

If aggregate hours worked grows more slowly than the number of people employed then people are working fewer hours on average.

Accepted Answer

A) True 
 B)False

Question 8

Frictional unemployment increases when

Accepted Answer

A)   real GDP decreases and the unemployment rate rises.
B)   discouraged workers drop out of the work force.
C)   the number of workers who quit one job to find another increases.
D)   workers are replaced by machines and the unemployed workers do not have the skills to perform new jobs.

Question 9

The unemployment rate is defined as the

Accepted Answer

A)   percentage of the population not working.
B)   percentage of the working- age population not working.
C)   percentage of the labor force not working.
D)   number of people not working.

Question 10

The labor force is defined as the number of

Accepted Answer

A)   people who are employed and unemployed.
B)   unemployed people.
C)   people 16 and over.
D)   people with jobs, both part- time and full- time.

Question 11

If the Consumer Price Index last year was 110 and 115 this year, the inflation rate is approximately

Accepted Answer

A)   15.0 percent.
B)   5.0 percent.
C)   10.0 percent.
D)   4.5 percent.

Question 12

What is inflation and how is it measured using the Consumer Price Index?

Accepted Answer

The inflation rate is the percentage cha...

Question 13

The cost of inflation to society includes

Accepted Answer

A)   unpredictable changes in the value of money.
B)   higher interest rates paid by borrowers.
C)   the lost spending when people do not have enough money.
D)   higher interest rates paid by the government on its debt.

Question 14

Over the last forty years, the labor force participation rate and the employment- to- population ratio .

Accepted Answer

A)   decreased; increased
B)   increased; decreased
C)   increased; increased
D)   decreased; decreases

Question 15

Price indexes can overstate inflation because they

Accepted Answer

A)   do not contain the prices of any used goods.
B)   do not contain the prices of foreign goods.
C)   do not contain the prices of services.
D)   omit some quality improvements.

Question 16

The Bureau of Labor Statistics reported the data in the table above for October 2003.
a) Calculate the number of people unemployed.
b) Calculate the number of people who are not in the labor force
c) Calculate the unemployment rate.
d) Calculate the labor force participation rate.

Accepted Answer

a) The labor force is the sum of the num...

Question 17

Why is there unemployment even when the economy is at "full employment"?

Accepted Answer

There is unemployment even at "full empl...

Question 18

Which of the following is NOT included in the working- age population?

Accepted Answer

A)   discouraged workers
B)   retirees under the age of 55
C)   people in prison
D)   people waiting to be called back to a job after being laid off

Question 19

If the CPI was 132.5 at the end of last year and 137.5 at the end of this year, the inflation rate over these two years was

Accepted Answer

A)   3.6 percent.
B)   5.0 percent.
C)   3.8 percent.
D)   None of the above answers is correct.

Question 20

One way to be considered unemployed is to be without a job and looking for work.

Accepted Answer

A) True 
 B)False

Exam 5: Monitoring Jobs and Inflation

The Bureau of Labor Statistics reported the data in the table above for October 2003. a) Calculate the number of people unemployed. b) Calculate the number of people who are not in the labor force c) Calculate the unemployment rate. d) Calculate the labor force participation rate.

Correct Answer
verified
a) The labor force is the sum of the num...
View Answer

Over the last forty years, the labor force participation rate and the employment- to- population ratio .

Correct Answer
verified

If the CPI was 132.5 at the end of last year and 137.5 at the end of this year, the inflation rate over these two years was

Correct Answer
verified

Frictional unemployment increases when

Correct Answer
verified

Which of the following is NOT included in the working- age population?

Correct Answer
verified

The labor force is defined as the number of

Correct Answer
verified

If aggregate hours worked grows more slowly than the number of people employed then people are working fewer hours on average.

Correct Answer
verified

If the Consumer Price Index last year was 110 and 115 this year, the inflation rate is approximately

Correct Answer
verified

If the CPI at the end of last year was 100 and the CPI at the end of this year was 115, the inflation rate was

Correct Answer
verified

Full employment occurs when

Correct Answer
verified

The unemployment rate is defined as the

Correct Answer
verified

What is inflation and how is it measured using the Consumer Price Index?

Correct Answer
verified
The inflation rate is the percentage cha...
View Answer

The cost of inflation to society includes

Correct Answer
verified

Price indexes can overstate inflation because they

Correct Answer
verified

One way to be considered unemployed is to be without a job and looking for work.

Correct Answer
verified

Suppose the country of Tiny Town experienced frictional unemployment. This frictional unemployment would

Correct Answer
verified

Why is there unemployment even when the economy is at "full employment"?

Correct Answer
verified
There is unemployment even at "full empl...
View Answer

Which population category equals the sum of employed and unemployed people?

Correct Answer
verified

Correct Answer
verified

If last year's price level was 100 and this year's price level is 114, over the year the inflation rate has been

Correct Answer
verified

Exam 5: Monitoring Jobs and Inflation

The Bureau of Labor Statistics reported the data in the table above for October 2003. a) Calculate the number of people unemployed. b) Calculate the number of people who are not in the labor force c) Calculate the unemployment rate. d) Calculate the labor force participation rate.

Correct Answerverifieda) The labor force is the sum of the num...View AnswerShow Answer

Over the last forty years, the labor force participation rate and the employment- to- population ratio .

Correct AnswerverifiedShow Answer

If the CPI was 132.5 at the end of last year and 137.5 at the end of this year, the inflation rate over these two years was

Correct AnswerverifiedShow Answer

Frictional unemployment increases when

Correct AnswerverifiedShow Answer

Which of the following is NOT included in the working- age population?

Correct AnswerverifiedShow Answer

The labor force is defined as the number of

Correct AnswerverifiedShow Answer

If aggregate hours worked grows more slowly than the number of people employed then people are working fewer hours on average.

Correct AnswerverifiedShow Answer

If the Consumer Price Index last year was 110 and 115 this year, the inflation rate is approximately

Correct AnswerverifiedShow Answer

If the CPI at the end of last year was 100 and the CPI at the end of this year was 115, the inflation rate was

Correct AnswerverifiedShow Answer

Full employment occurs when

Correct AnswerverifiedShow Answer

The unemployment rate is defined as the

Correct AnswerverifiedShow Answer

What is inflation and how is it measured using the Consumer Price Index?

Correct AnswerverifiedThe inflation rate is the percentage cha...View AnswerShow Answer

The cost of inflation to society includes

Correct AnswerverifiedShow Answer

Price indexes can overstate inflation because they

Correct AnswerverifiedShow Answer

One way to be considered unemployed is to be without a job and looking for work.

Correct AnswerverifiedShow Answer

Suppose the country of Tiny Town experienced frictional unemployment. This frictional unemployment would

Correct AnswerverifiedShow Answer

Why is there unemployment even when the economy is at "full employment"?

Correct AnswerverifiedThere is unemployment even at "full empl...View AnswerShow Answer

Which population category equals the sum of employed and unemployed people?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If last year's price level was 100 and this year's price level is 114, over the year the inflation rate has been

Correct AnswerverifiedShow Answer

Correct Answer
verified
a) The labor force is the sum of the num...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The inflation rate is the percentage cha...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
There is unemployment even at "full empl...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified