Question 1

What happened to the labor-force participation rate for males between the years 1950 and 2012? What are some reasons for this trend?

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Question 2

NOT: a. The unemployment rate is calculated as: (number of unemployed / labor force) x 100. Here the number of unemployed is not explicitly stated. To find the number of unemployed, subtract the number of employed from the labor force (since labor force = employed + unemployed). Once that is found, it is easy to find the unemployment rate. 
b. The relevant population is calculated as: the total number of people in the labor force + the number of people not in the labor force. c. The labor-force participation rate is calculated as: (labor force / relevant population) x 100. Once you have found the relevant population from part b, you just need to use it in this equation
-What would one expect to happen to the labor-force participation rate if the following situations occurred?
a.A large percentage of the workforce retires.
b.The government begins to subsidize current workers who go back to school full-time to attain an advanced degree.
c.The government offers a transfer payment to discouraged workers and to unemployed workers.

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Question 3

Explain two shortcomings of using the official unemployment rate as an economic indicator.

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Question 4

A student had the following expenditures last month: rent-$500,food expenses-$200,cost of a used textbook from the bookstore-$50,cost of new shoes-$100,and cost of gas for the car-$100.Which of these items are included in GDP?

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Question 5

Identify three reasons why GDP is not a perfect measure of a nation's well-being.

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Question 6

Describe the methodology of finding the consumer price index (CPI).

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Question 7

How do the unemployment rates differ between adults and teenagers in the United States,holding all else constant? What are some reasons for this difference?

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Question 8

Define "inflation." Be specific.Be sure to address whether the prices of all goods are increasing,what is included in determining the basis for changes in the price level,and how the price level is measured.

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Question 9

You are given the following information about an economy:
Labor force: 167 million
Not in the labor force: 33 million
Employed: 145 million
Answer the following questions to one decimal point:
a.What is the unemployment rate?
b.What is the relevant population?
c.What is the labor-force participation rate?

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Question 10

Between the years 2000 and 2012,what trend was observed regarding the labor-force participation rate in the United States? What are some reasons for this trend?

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Question 11

What is the difference between a discouraged worker and an underemployed worker? Why is it important to understand both of these worker categories in order to fully understand the employment situation in an economy?

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Question 12

What happened to the labor-force participation rate for females between 1950 and 2012? What are some reasons for this trend?

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Question 13

Explain why intermediate goods and used goods do not count in GDP.

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Question 14

In some nations the only currency is gold.Someone proposes the argument that if gold were the only currency,there could not be inflation.Would you agree or disagree with this statement? Explain.

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Question 15

What does inflation have to do with wealth redistribution?

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Inflation reduces the purchasing power of money, so borrowers repay loans with money that is worth less than when they borrowed it, effectively transferring wealth from lenders to borrowers.

Question 16

Explain why a country with a lower level of real GDP per capita might have a higher level of well-being in comparison to a country with a higher level of real GDP per capita.

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Question 17

From 1950 through 2012,what happened to the gap between the labor-force participation rates for males and females? What are some reasons for this trend?

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Question 18

How does inflation affect savings?

Accepted Answer

Inflation affects savings because if the rate of return on savings is less than the inflation rate, then the purchasing power of savings decreases. As goods and services become more expensive due to inflation, the value of savings decreases if the rate of return is not able to keep pace with inflation. Deflation, on the other hand, can increase the value of savings, but it is generally not desirable as it leads to economic contraction and unemployment. Hyperinflation can have severe effects on savings and the broader economy, but it is not as common as regular inflation. Therefore, the best choice is D.

Question 19

Inflation can create uncertainty by making:

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...

Question 20

GDP is most often measured by the:

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Quiz 11: Measuring the Macroeconomy, Inflation, and Unemployment