Question 1 A recession occurs when there is a six consecutive month fall in Question 1 options:
A) real GDP.
B) nominal GDP.
C) the trade balance.
D) the price level.
Question 2 Since 1929, real GDP in the United States has grown at an average annual rate of about Question 2 options:
A) 0.5 percent.
B) 1 percent.
C) 3 percent.
D) 7.5 percent.
Question 3 Suppose that after reading a two-year low, the index of leading economic indicators rises for several months. Which of the following economic events will likely follow? Question 3 options:
A) A recession.
B) Severe inflation.
C) Increased production.
D) Reduced investment.
Question 4 Which of the following people would be officially counted as unemployed? Question 4 options:
A) A person who works only 5 hours per week for pay.
B) A full-time college student who chooses not to have a paying job.
C) A family member who works 20 hours per week in the family business without pay.
D) A jobless high-school graduate who is actively looking for work.
Question 5 Assume a country's population (age 16 and over) is 1 million people. What is the unemployment rate if there are 750,000 people in the labor force, 60,000 of whom are unemployed? Question 5 options:
A) 6%.
B) 8%.
C) 12.5%
D) 16.7%
Question 6 If a sizable number of workers were switched from full-time to half time employment, then the official unemployment rate would Question 6 options:
A) rise.
B) fall.
C) remain unchanged.
D) react unpredictably.
Question 7 Which of the following people would be classified as structurally unemployed? Question 7 options:
A) Computer programmers who lost their jobs because of a recession.
B) Construction workers who are on temporary layoff.
C) Discouraged workers who have given up looking for work.
D) Textile workers who lost their jobs because of new foreign competition.
Question 8 The economy is fully employed when there is no :
A) seasonal unemployment.
B) frictional unemployment.
C) structrual unemployment.
D) cyclical unemployment.
Question 9 The GDP gap measures the nation's monetary losses of real goods and services from :
A) operating at less than full employment.
B) discouraged workers who have stopped searching for employment. C) murders, suicides, and other sociological impacts of sustained unemployment.
D) seasonal and frictional unemployment.
Question 10 In the United States, the unemployment rate for blacks is :
A) roughly the same as the unemployment rate for whites.
B) about 1â2 percentage points higher than the unemployment rate for whites.
C) more than twice the unemployment rate for whites.
D) between 3 and 4 times the unemployment rate for whites.
Question 1 A recession occurs when there is a six consecutive month fall in Question 1 options:
A) real GDP.
B) nominal GDP.
C) the trade balance.
D) the price level.
Question 2 Since 1929, real GDP in the United States has grown at an average annual rate of about Question 2 options:
A) 0.5 percent.
B) 1 percent.
C) 3 percent.
D) 7.5 percent.
Question 3 Suppose that after reading a two-year low, the index of leading economic indicators rises for several months. Which of the following economic events will likely follow? Question 3 options:
A) A recession.
B) Severe inflation.
C) Increased production.
D) Reduced investment.
Question 4 Which of the following people would be officially counted as unemployed? Question 4 options:
A) A person who works only 5 hours per week for pay.
B) A full-time college student who chooses not to have a paying job.
C) A family member who works 20 hours per week in the family business without pay.
D) A jobless high-school graduate who is actively looking for work.
Question 5 Assume a country's population (age 16 and over) is 1 million people. What is the unemployment rate if there are 750,000 people in the labor force, 60,000 of whom are unemployed? Question 5 options:
A) 6%.
B) 8%.
C) 12.5%
D) 16.7%
Question 6 If a sizable number of workers were switched from full-time to half time employment, then the official unemployment rate would Question 6 options:
A) rise.
B) fall.
C) remain unchanged.
D) react unpredictably.
Question 7 Which of the following people would be classified as structurally unemployed? Question 7 options:
A) Computer programmers who lost their jobs because of a recession.
B) Construction workers who are on temporary layoff.
C) Discouraged workers who have given up looking for work.
D) Textile workers who lost their jobs because of new foreign competition.
Question 8 The economy is fully employed when there is no :
A) seasonal unemployment.
B) frictional unemployment.
C) structrual unemployment.
D) cyclical unemployment.
Question 9 The GDP gap measures the nation's monetary losses of real goods and services from :
A) operating at less than full employment.
B) discouraged workers who have stopped searching for employment. C) murders, suicides, and other sociological impacts of sustained unemployment.
D) seasonal and frictional unemployment.
Question 10 In the United States, the unemployment rate for blacks is :
A) roughly the same as the unemployment rate for whites.
B) about 1â2 percentage points higher than the unemployment rate for whites.
C) more than twice the unemployment rate for whites.
D) between 3 and 4 times the unemployment rate for whites.
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Related questions
QUESTION 1
Rosina Gonzales quit her job in Pennsylvania and moved to California to be close to her family. She is currently looking for work, so she would be considered
| frictionally unemployed. | ||
| cyclically unemployed. | ||
| a discouraged worker. | ||
| seasonally unemployed. |
1 points
QUESTION 2
Discouraged workers
| are counted as unemployed workers when the unemployment rate is calculated. | ||
| would decrease the unemployment rate if they were added to the number of unemployed workers. | ||
| are counted as one-half of a worker in the unemployment statistics. | ||
| would increase unemployment rate if they were added to the number of unemployed workers. |
1 points
QUESTION 3
In measuring the unemployment rate, part-time workers are ________ and discouraged workers are ________.
| included as employed; included as unemployed | ||
| excluded; excluded | ||
| excluded; included as unemployed | ||
| included as employed; excluded |
1 points
QUESTION 4
Mary has decided that the she does not like Iowa and has decided to quit her job as a medical technician and move to Arizona. Mary's unemployment as she searches for a new job is best classified as
| frictional. | ||
| cyclical. | ||
| structural. | ||
| seasonal. |
1 points
QUESTION 5
When a golf caddy in Minnesota (where golf courses close in the winter) is unemployed in December, it is most likely the case that the golf caddy is
| cyclically unemployed during long droughts. | ||
| frictionally unemployed during spring and summer. | ||
| structurally unemployed during spring and summer. | ||
| seasonally unemployed. |
1 points
QUESTION 6
After graduating from college, Yunis, age 22, started working for his parent's real estate business as an unpaid assistant. He works 25 hours a week helping manage rental units . In the Current Population Survey, Yunis is considered
| part of the labor force and employed. | ||
| part of the labor force and unemployed. | ||
| a discouraged worker. | ||
| not part of the labor force. |
1 points
QUESTION 7
The working-age population includes
| youngsters between the ages of 14 and 16 if they are working at least part time. | ||
| only employed people over the age of 16. | ||
| those in jails and hospitals. | ||
| employed and unemployed people over the age of 16. |
1 points
QUESTION 8
Involuntary part-time workers are workers who
| work less than 35 hours but would like to work full time. | ||
| work more than 35 hours but would like to work less than 35 hours. | ||
| work less than 35 hours by choice. | ||
| work have lost their jobs within the last four weeks and are seeking another job. |
1 points
QUESTION 9
Frictional unemployment is the result of
| the normal process of jobs being created and destroyed. | ||
| an economic recession. | ||
| people not getting along (having friction) with their employers. | ||
| the economic decline of major industries |
1 points
QUESTION 10
Bill just graduated with his degree in economics. Through Career Services he submitted his resume to several companies and he will visit them during the next two weeks. Bill is considered
| not in the labor force. | ||
| cyclically unemployed. | ||
| frictionally unemployed. | ||
| structurally unemployed. |
1 points
QUESTION 11
Harry works at the video rental store for 20 hours per week. He's asked his boss to allow him to work 40 hours per week, but has been told that business is too slow. Harry is considered
| an involuntary part-time worker. | ||
| a marginally attached worker. | ||
| a discouraged worker. | ||
| not in the labor force. |
1 points
QUESTION 12
Discouraged workers who are over 16 years old are
i.not counted as unemployed.
ii.part of the working-age population.
iii.part of the labor force.
| i and ii | ||
| ii and iii | ||
| ii only | ||
| i only |
1 points
QUESTION 13
Higher unemployment benefits create
| higher seasonal unemployment as workers switch jobs. | ||
| a lower number of job leavers. | ||
| incentives for longer job searches and higher frictional unemployment. | ||
| incentives for shorter job searches and higher structural unemployment. |
1 points
QUESTION 14
Seasonal unemployment includes people who become unemployed from
| changes in the business cycle. | ||
| technological changes. | ||
| the seasonal weather patterns. | ||
| normal changes in the labor force. |
1 points
QUESTION 15
Cyclical unemployment is
| higher when the economy is expanding. | ||
| always greater than the total of structural and frictional unemployment. | ||
| the total of structural and frictional unemployment. | ||
| created by a recession. |
1 points
QUESTION 16
Which of the following people would be classified as employed in the Current Population Survey?
| April, who just graduated from college and is looking for work | ||
| Jason, who was laid off from work less than 6 months ago but who has stopped looking for work | ||
| Rich, who is working 20 hours a week but wants a full-time job | ||
| Misty, who just quit her job to return full time to school |
1 points
QUESTION 17
People who are willing and able to work but are not looking for work because they have been discouraged by their previous futile efforts are called
| discouraged workers. | ||
| involuntarily unemployed. | ||
| part-time lookers. | ||
| unemployed workers. |
1 points
QUESTION 18
Discouraged workers are included in the calculation of the
i.unemployment rate.
ii.labor force participation rate.
iii.working-age population.
| i and ii | ||
| i only | ||
| iii only | ||
| ii only |
1 points
QUESTION 19
As firms search for the best employee to fill an opening and the unemployed search for the job that best fits their skills, the economy experiences
| changes in the business cycle. | ||
| cyclical unemployment. | ||
| frictional unemployment. | ||
| structural unemployment. |
1 points
QUESTION 20
Suppose the U.S. population is 275 million. If 210 million people are of working age, 135 million are employed, and 6 million are unemployed, what is the labor force participation rate?
| 64 percent | ||
| 67 percent | ||
| 76 percent | ||
| 49 percent |
1 points
QUESTION 21
During a recession the unemployment rate generally ________ and during an expansion the unemployment rate generally ________.
| rises; rises | ||
| rises; does not change | ||
| falls; rises | ||
| rises; falls |
1 points
QUESTION 22
In January of 2001, the population of the United States was 276.8 million, the working-age population was 210.2 million, the total number of people employed was 140, and the total number of people unemployed was 5.0 million. What was the labor force participation rate?
| 56 percent | ||
| 69 percent | ||
| 78 percent | ||
| 67 percent |
1 points
QUESTION 23
If Brian, age 24, had no job but was available for work and had looked for a job the week before the survey, Brian is classified in the Current Population Survey as
| unemployed. | ||
| employed. | ||
| a discouraged worker. | ||
| not in the labor force. |
1 points
QUESTION 24
Julie works part-time for economic reasons. She would be considered
| an involuntary part-time worker. | ||
| not in the labor force. | ||
| a job seeker. | ||
| a discouraged worker. |
1 points
QUESTION 25
Suppose the population is 300 million people, the labor force is 200 million people, the number of people employed is 185 million, and the working-age population is 170 million people. What is the unemployment rate?
| 5 percent | ||
| 7.5 percent | ||
| 8.8 percent | ||
| 92.5 percent |
1 points
QUESTION 1
Rosina Gonzales quit her job in Pennsylvania and moved to California to be close to her family. She is currently looking for work, so she would be considered
| frictionally unemployed. | ||
| cyclically unemployed. | ||
| a discouraged worker. | ||
| seasonally unemployed. |
1 points
QUESTION 2
Discouraged workers
| are counted as unemployed workers when the unemployment rate is calculated. | ||
| would decrease the unemployment rate if they were added to the number of unemployed workers. | ||
| are counted as one-half of a worker in the unemployment statistics. | ||
| would increase unemployment rate if they were added to the number of unemployed workers. |
1 points
QUESTION 3
In measuring the unemployment rate, part-time workers are ________ and discouraged workers are ________.
| included as employed; included as unemployed | ||
| excluded; excluded | ||
| excluded; included as unemployed | ||
| included as employed; excluded |
1 points
QUESTION 4
Mary has decided that the she does not like Iowa and has decided to quit her job as a medical technician and move to Arizona. Mary's unemployment as she searches for a new job is best classified as
| frictional. | ||
| cyclical. | ||
| structural. | ||
| seasonal. |
1 points
QUESTION 5
When a golf caddy in Minnesota (where golf courses close in the winter) is unemployed in December, it is most likely the case that the golf caddy is
| cyclically unemployed during long droughts. | ||
| frictionally unemployed during spring and summer. | ||
| structurally unemployed during spring and summer. | ||
| seasonally unemployed. |
1 points
QUESTION 6
After graduating from college, Yunis, age 22, started working for his parent's real estate business as an unpaid assistant. He works 25 hours a week helping manage rental units . In the Current Population Survey, Yunis is considered
| part of the labor force and employed. | ||
| part of the labor force and unemployed. | ||
| a discouraged worker. | ||
| not part of the labor force. |
1 points
QUESTION 7
The working-age population includes
| youngsters between the ages of 14 and 16 if they are working at least part time. | ||
| only employed people over the age of 16. | ||
| those in jails and hospitals. | ||
| employed and unemployed people over the age of 16. |
1 points
QUESTION 8
Involuntary part-time workers are workers who
| work less than 35 hours but would like to work full time. | ||
| work more than 35 hours but would like to work less than 35 hours. | ||
| work less than 35 hours by choice. | ||
| work have lost their jobs within the last four weeks and are seeking another job. |
1 points
QUESTION 9
Frictional unemployment is the result of
| the normal process of jobs being created and destroyed. | ||
| an economic recession. | ||
| people not getting along (having friction) with their employers. | ||
| the economic decline of major industries |
1 points
QUESTION 10
Bill just graduated with his degree in economics. Through Career Services he submitted his resume to several companies and he will visit them during the next two weeks. Bill is considered
| not in the labor force. | ||
| cyclically unemployed. | ||
| frictionally unemployed. | ||
| structurally unemployed. |
1 points
QUESTION 11
Harry works at the video rental store for 20 hours per week. He's asked his boss to allow him to work 40 hours per week, but has been told that business is too slow. Harry is considered
| an involuntary part-time worker. | ||
| a marginally attached worker. | ||
| a discouraged worker. | ||
| not in the labor force. |
1 points
QUESTION 12
Discouraged workers who are over 16 years old are
i.not counted as unemployed.
ii.part of the working-age population.
iii.part of the labor force.
| i and ii | ||
| ii and iii | ||
| ii only | ||
| i only |
1 points
QUESTION 13
Higher unemployment benefits create
| higher seasonal unemployment as workers switch jobs. | ||
| a lower number of job leavers. | ||
| incentives for longer job searches and higher frictional unemployment. | ||
| incentives for shorter job searches and higher structural unemployment. |
1 points
QUESTION 14
Seasonal unemployment includes people who become unemployed from
| changes in the business cycle. | ||
| technological changes. | ||
| the seasonal weather patterns. | ||
| normal changes in the labor force. |
1 points
QUESTION 15
Cyclical unemployment is
| higher when the economy is expanding. | ||
| always greater than the total of structural and frictional unemployment. | ||
| the total of structural and frictional unemployment. | ||
| created by a recession. |
1 points
QUESTION 16
Which of the following people would be classified as employed in the Current Population Survey?
| April, who just graduated from college and is looking for work | ||
| Jason, who was laid off from work less than 6 months ago but who has stopped looking for work | ||
| Rich, who is working 20 hours a week but wants a full-time job | ||
| Misty, who just quit her job to return full time to school |
1 points
QUESTION 17
People who are willing and able to work but are not looking for work because they have been discouraged by their previous futile efforts are called
| discouraged workers. | ||
| involuntarily unemployed. | ||
| part-time lookers. | ||
| unemployed workers. |
1 points
QUESTION 18
Discouraged workers are included in the calculation of the
i.unemployment rate.
ii.labor force participation rate.
iii.working-age population.
| i and ii | ||
| i only | ||
| iii only | ||
| ii only |
1 points
QUESTION 19
As firms search for the best employee to fill an opening and the unemployed search for the job that best fits their skills, the economy experiences
| changes in the business cycle. | ||
| cyclical unemployment. | ||
| frictional unemployment. | ||
| structural unemployment. |
1 points
QUESTION 20
Suppose the U.S. population is 275 million. If 210 million people are of working age, 135 million are employed, and 6 million are unemployed, what is the labor force participation rate?
| 64 percent | ||
| 67 percent | ||
| 76 percent | ||
| 49 percent |
1 points
QUESTION 21
During a recession the unemployment rate generally ________ and during an expansion the unemployment rate generally ________.
| rises; rises | ||
| rises; does not change | ||
| falls; rises | ||
| rises; falls |
1 points
QUESTION 22
In January of 2001, the population of the United States was 276.8 million, the working-age population was 210.2 million, the total number of people employed was 140, and the total number of people unemployed was 5.0 million. What was the labor force participation rate?
| 56 percent | ||
| 69 percent | ||
| 78 percent | ||
| 67 percent |
1 points
QUESTION 23
If Brian, age 24, had no job but was available for work and had looked for a job the week before the survey, Brian is classified in the Current Population Survey as
| unemployed. | ||
| employed. | ||
| a discouraged worker. | ||
| not in the labor force. |
1 points
QUESTION 24
Julie works part-time for economic reasons. She would be considered
| an involuntary part-time worker. | ||
| not in the labor force. | ||
| a job seeker. | ||
| a discouraged worker. |
1 points
QUESTION 25
Suppose the population is 300 million people, the labor force is 200 million people, the number of people employed is 185 million, and the working-age population is 170 million people. What is the unemployment rate?
| 5 percent | ||
| 7.5 percent | ||
| 8.8 percent | ||
| 92.5 percent |
1 points
| Annual Growth Rates of Real GDP Per Capita (in percents) | |||||||||||||
| Ending | |||||||||||||
| 1929 | |||||||||||||
| 1933 | -8.2 | ||||||||||||
| 1939 | 0.2 | ||||||||||||
| 1940 | 0.9 | ||||||||||||
| 1945 | 3.7 | 10.3 | |||||||||||
| 1950 | 2.4 | 4.1 | -1.8 | ||||||||||
| 1955 | 2.4 | 3.6 | 0.4 | 2.7 | |||||||||
| 1960 | 2.2 | 2.9 | 0.6 | 1.7 | 0.8 | ||||||||
| 1965 | 2.4 | 3.0 | 1.3 | 2.3 | 2.1 | 3.5 | |||||||
| 1970 | 2.3 | 2.9 | 1.5 | 2.3 | 2.2 | 2.9 | 2.3 | ||||||
| 1975 | 2.3 | 2.7 | 1.5 | 2.2 | 2.0 | 2.4 | 2.0 | 1.6 | |||||
| 1980 | 2.3 | 2.7 | 1.7 | 2.2 | 2.1 | 2.5 | 2.2 | 2.1 | 2.6 | ||||
| 1985 | 2.3 | 2.6 | 1.7 | 2.2 | 2.2 | 2.4 | 2.2 | 2.1 | 2.4 | 2.2 | |||
| 1990 | 2.3 | 2.6 | 1.8 | 2.2 | 2.2 | 2.4 | 2.2 | 2.2 | 2.4 | 2.2 | 2.3 | ||
| 1995 | 2.2 | 2.5 | 1.7 | 2.1 | 2.1 | 2.3 | 2.1 | 2.0 | 2.1 | 1.9 | 1.8 | 1.3 | |
| 2001 | 2.3 | 2.5 | 1.9 | 2.2 | 2.2 | 2.3 | 2.2 | 2.2 | 2.3 | 2.2 | 2.2 | 2.1 | 2.8 |
| 1929 | 1940 | 1945 | 1950 | 1955 | 1960 | 1965 | 1970 | 1975 | 1980 | 1985 | 1990 | 1995 | |
| Starting Year | |||||||||||||
Source: Economic Report of the President, various years.
This table keeps changes in real GDP from being overstated by adjusting for
Select one:
a. productivity.
b. inflation.
c. standard of living.
d. population growth.
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| Per Capita GDP | |
| Luxembourg | $33,609 |
| United States | $33,586 |
| Switzerland | $27,126 |
| Japan | $23,311 |
| Iceland | $23,230 |
Economists use numbers such as those in the table as a measure of
Select one:
a. net exports.
b. total dollar value of all final goods and services.
c. national income.
d. standard of living.
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| Per Capita GDP | |
| Luxembourg | $33,609 |
| United States | $33,586 |
| Switzerland | $27,126 |
| Japan | $23,311 |
| Iceland | $23,230 |
The numbers in this table were calculated by
Select one:
a. multiplying GDP by total population.
b. dividing GDP by total population.
c. adding the dollar value of all final goods and services produced in the nation.
d. subtracting net exports from GDP.
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| A key gauge of future U.S. economic activity declined 0.5% last month, as the Sept. 11 terrorist attacks in New York and Washington weakened an already troubled economy. The Conference Board said Monday its index of leading economic indicators fell to 109.2 in September,...the largest one-month decline since January 1996.... The index indicates where the overall U.S. economy is headed in the next three to six months.... The economy had been struggling for several months before the Sept. 11 attacks. Many economists have said they believe that a recession is unavoidable with the new uncertainties raised by the disaster. Source: âLeading Indicators Decline,â USAToday.com, October 22, 2001. |
The passage discusses a business fluctuation influenced by
Select one:
a. external shock.
b. monetary factors.
c. innovation.
d. capital expenditures.
Question 5
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| For all the recent talk of cutting taxes, Congress rarely cuts them when the economy is growing robustly, as it is now, and unemployment is low. The worry among economists is that the extra money in peopleâs pockets may make an already strong economy too strong, finally stoking inflation after a long period of relatively stable prices.
|
The passage describes rising inflation as a possible result of
Select one:
a. a booming economy.
b. rising unemployment.
c. tax cuts.
d. a prolonged period of stable prices.