Question 1

"Full employment" is said to exist when the unemployment rate equals

Accepted Answer

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

Question 2

Jones lost his job in industry A,but he has skills that can be transferred to industry B (which is currently hiring) .Smith lost a job in industry C,but his skills cannot be transferred to industry B or to any other industry.Jones is __________ unemployed and Smith is __________ unemployed.

Accepted Answer

A)   structurally; frictionally
B)   structurally; structurally
C)   frictionally; frictionally
D)   frictionally; structurally

Question 3

The federal government agency that is responsible for determining the inflation rate and the unemployment rate is the Federal Reserve.

Accepted Answer

A) True 
 B)False

Question 4

The base year is the year

Accepted Answer

A)   in which prices are unstable.
B)   in which prices are lowest.
C)   in which prices are highest.
D)   that serves as a reference point or benchmark.
E)   in which nominal output is largest.

Question 5

The unemployment rate equals the

Accepted Answer

A)   number of employed persons divided by the number of unemployed persons.
B)   number of unemployed persons divided by the civilian non-institutional population.
C)   number of unemployed persons divided by the civilian labor force.
D)   sum of unemployed persons and discouraged workers divided by the civilian labor force.

Question 6

-Refer to Exhibit 6-3.Prices changed by ___________ percent between year 2 and year 3.

Accepted Answer

A)   1.6
B)   2.2
C)   1.9
D)   2.3
E)   2.7

Question 7

A market basket is made up of three goods,10X,12Y,and 18Z.The prices in the base year are $1.20,$2.10,and $3.25,respectively.The prices in the current year are $1.44,$2.23,and $3.88.What is the approximate consumer price index in the current year?

Accepted Answer

A)   103
B)   111
C)   116
D)   110
E)   96

Question 8

-Refer to Exhibit 6-2.The labor force participation rate in year 1 is

Accepted Answer

A)   12 1/2 percent.
B)   80 percent.
C)   87 1/2 percent.
D)   70 percent.
E)   10 percent.

Question 9

The CPI is based on a representative group of goods called the market basket.

Accepted Answer

A) True 
 B)False

Question 10

The CPI in the base year is always equal to 100.

Accepted Answer

A) True 
 B)False

Question 11

When flat screen televisions were first introduced in 1997 they were priced at $15,000.If the CPI in 1997 was 160 and the CPI in 2019 is 265,then this price is equivalent to approximately ______________________in 2019 dollars.If the average flat screen TV sells for $550 in 2019,the percentage change between the inflation-adjusted price of a flat screen TV in 1997 and the actual price in 2019 price is ___________.

Accepted Answer

A)   $15,469; -96.4 percent
B)   $19,887; -95.6 percent
C)   $24,844; -97.7 percent
D)   $154; 3.6 percent
E)   $367; 8.3 percent

Question 12

Describe what the unemployment rate and the employment rate measure.If we were to sum the unemployment rate and the employment rate,would that sum be equal to one hundred percent? Explain why or why not.

Accepted Answer

The unemployment rate measures the perce...

Question 13

Which of the following statements is false?

Accepted Answer

A)   The sum of the unemployment rate and the employment rate always equals 100 percent.
B)   The sum of the number of employed persons and the number of unemployed persons equals the civilian non-institutional population.
C)   The labor force participation rate equals the number of persons in the civilian labor force divided by the number of persons in the total population.
D)   a,b,and c

Question 14

A movie star was paid $1 million in 1960 to do a movie.The CPI was 29.3 in 1960 and the CPI in 2014 was 240.Approximately how much did the movie star earn in 2014 dollars?

Accepted Answer

A)   $0.87 million
B)   $8.66 million
C)   $6.44 million
D)   $7.74 million
E)   ​$8.19 million

Question 15

Describe the terms frictional unemployment,structural unemployment,and cyclical unemployment.Give a hypothetical example of each to help support your answer.

Accepted Answer

Frictional unemployment is created when ...

Question 16

A worker is ​underemployed​ if she is working at a job for which her skills far exceed the requirements for the job.

Accepted Answer

A) True 
 B)False

Question 17

-Refer to Exhibit 6-1.Prices rose by __________ percent from Year 4 to Year 5.

Accepted Answer

A)   3.90
B)   3.75
C)   4.30
D)   5.90

Question 18

A(n) __________ is a person who was previously employed,hasn't worked for some time,and is currently reentering the labor force.

Accepted Answer

A)   discouraged worker
B)   entrant
C)   reentrant
D)   job loser
E)   job leaver

Question 19

-Refer to Exhibit 6-3.Prices changed by ___________ percent between year 3 and year 4.

Accepted Answer

A)   1.6
B)   2.2
C)   1.9
D)   2.3
E)   3.0

Question 20

The cyclical unemployment rate is defined as the __________ unemployment rates.

Accepted Answer

A)   sum of the structural and the frictional
B)   difference between the structural and the frictional
C)   difference between the existing (actual) and the natural
D)   sum of the natural and the frictional

Exam 6: Elasticity

Describe what the unemployment rate and the employment rate measure.If we were to sum the unemployment rate and the employment rate,would that sum be equal to one hundred percent? Explain why or why not.

Correct Answer
verified
The unemployment rate measures the perce...
View Answer

"Full employment" is said to exist when the unemployment rate equals

Correct Answer
verified

Describe the terms frictional unemployment,structural unemployment,and cyclical unemployment.Give a hypothetical example of each to help support your answer.

Correct Answer
verified
Frictional unemployment is created when ...
View Answer

Which of the following statements is false?

Correct Answer
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A worker is underemployed if she is working at a job for which her skills far exceed the requirements for the job.

Correct Answer
verified

-Refer to Exhibit 6-2.The labor force participation rate in year 1 is

Correct Answer
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The federal government agency that is responsible for determining the inflation rate and the unemployment rate is the Federal Reserve.

Correct Answer
verified

-Refer to Exhibit 6-3.Prices changed by ___________ percent between year 2 and year 3.

Correct Answer
verified

A market basket is made up of three goods,10X,12Y,and 18Z.The prices in the base year are $1.20,$2.10,and $3.25,respectively.The prices in the current year are $1.44,$2.23,and $3.88.What is the approximate consumer price index in the current year?

Correct Answer
verified

Jones lost his job in industry A,but he has skills that can be transferred to industry B (which is currently hiring) .Smith lost a job in industry C,but his skills cannot be transferred to industry B or to any other industry.Jones is unemployed and Smith is unemployed.

Correct Answer
verified

The cyclical unemployment rate is defined as the __________ unemployment rates.

Correct Answer
verified

The unemployment rate equals the

Correct Answer
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The CPI in the base year is always equal to 100.

Correct Answer
verified

-Refer to Exhibit 6-1.Prices rose by __________ percent from Year 4 to Year 5.

Correct Answer
verified

A movie star was paid $1 million in 1960 to do a movie.The CPI was 29.3 in 1960 and the CPI in 2014 was 240.Approximately how much did the movie star earn in 2014 dollars?

Correct Answer
verified

Correct Answer
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A(n) __________ is a person who was previously employed,hasn't worked for some time,and is currently reentering the labor force.

Correct Answer
verified

The CPI is based on a representative group of goods called the market basket.

Correct Answer
verified

-Refer to Exhibit 6-3.Prices changed by ___________ percent between year 3 and year 4.

Correct Answer
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The base year is the year

Correct Answer
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Exam 6: Elasticity

Describe what the unemployment rate and the employment rate measure.If we were to sum the unemployment rate and the employment rate,would that sum be equal to one hundred percent? Explain why or why not.

Correct AnswerverifiedThe unemployment rate measures the perce...View AnswerShow Answer

"Full employment" is said to exist when the unemployment rate equals

Correct AnswerverifiedShow Answer

Describe the terms frictional unemployment,structural unemployment,and cyclical unemployment.Give a hypothetical example of each to help support your answer.

Correct AnswerverifiedFrictional unemployment is created when ...View AnswerShow Answer

Which of the following statements is false?

Correct AnswerverifiedShow Answer

A worker is ​underemployed​ if she is working at a job for which her skills far exceed the requirements for the job.

Correct AnswerverifiedShow Answer

-Refer to Exhibit 6-2.The labor force participation rate in year 1 is

Correct AnswerverifiedShow Answer

The federal government agency that is responsible for determining the inflation rate and the unemployment rate is the Federal Reserve.

Correct AnswerverifiedShow Answer

-Refer to Exhibit 6-3.Prices changed by ___________ percent between year 2 and year 3.

Correct AnswerverifiedShow Answer

A market basket is made up of three goods,10X,12Y,and 18Z.The prices in the base year are $1.20,$2.10,and $3.25,respectively.The prices in the current year are $1.44,$2.23,and $3.88.What is the approximate consumer price index in the current year?

Correct AnswerverifiedShow Answer

Jones lost his job in industry A,but he has skills that can be transferred to industry B (which is currently hiring) .Smith lost a job in industry C,but his skills cannot be transferred to industry B or to any other industry.Jones is __________ unemployed and Smith is __________ unemployed.

Correct AnswerverifiedShow Answer

The cyclical unemployment rate is defined as the __________ unemployment rates.

Correct AnswerverifiedShow Answer

The unemployment rate equals the

Correct AnswerverifiedShow Answer

The CPI in the base year is always equal to 100.

Correct AnswerverifiedShow Answer

-Refer to Exhibit 6-1.Prices rose by __________ percent from Year 4 to Year 5.

Correct AnswerverifiedShow Answer

A movie star was paid $1 million in 1960 to do a movie.The CPI was 29.3 in 1960 and the CPI in 2014 was 240.Approximately how much did the movie star earn in 2014 dollars?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A(n) __________ is a person who was previously employed,hasn't worked for some time,and is currently reentering the labor force.

Correct AnswerverifiedShow Answer

The CPI is based on a representative group of goods called the market basket.

Correct AnswerverifiedShow Answer

-Refer to Exhibit 6-3.Prices changed by ___________ percent between year 3 and year 4.

Correct AnswerverifiedShow Answer

The base year is the year

Correct AnswerverifiedShow Answer

Correct Answer
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The unemployment rate measures the perce...
View Answer

Correct Answer
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Correct Answer
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Frictional unemployment is created when ...
View Answer

Correct Answer
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A worker is underemployed if she is working at a job for which her skills far exceed the requirements for the job.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Jones lost his job in industry A,but he has skills that can be transferred to industry B (which is currently hiring) .Smith lost a job in industry C,but his skills cannot be transferred to industry B or to any other industry.Jones is unemployed and Smith is unemployed.

Correct Answer
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Correct Answer
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