Question 1

Look at the following data: The frictional unemployment rate is 2 percent,the structural unemployment rate is 3.5 percent,and the actual unemployment rate is 9.5 percent.The natural unemployment rate is ____________ percent and the cyclical unemployment rate is __________ percent.

Accepted Answer

The natural unemployment rate is the sum of frictional and structural unemployment rates, so it is 2% + 3.5% = 5.5%. The cyclical unemployment rate is the difference between the actual and natural unemployment rates, so it is 9.5% - 5.5% = 4%. Therefore, option B is the correct answer.

Question 2

Which of the following statements is true?

Accepted Answer

The economy is considered to be at full employment when the actual unemployment rate equals the natural unemployment rate, which includes frictional and structural unemployment but not cyclical unemployment.

Question 3

The number of employed persons plus the number of unemployed persons equals the number of persons

Accepted Answer

The civilian labor force is defined as the sum of employed and unemployed persons, which means that the number of employed persons plus the number of unemployed persons equals the number of persons in the civilian labor force. The total population (A) includes both the labor force and those not in the labor force, while the civilian noninstitutional population (B) only includes individuals who are not in institutions such as prisons or mental hospitals. The answer (D) refers specifically to those who are not employed and not actively seeking employment, and (E) is incorrect as the sum of employed and unemployed persons must equal some subset of the overall population.

Question 4

Suppose there are 200 million persons in the population,120 million persons in the civilian labor force,and 90 million persons are employed.The number of persons unemployed is _______ million and the unemployment rate is ___________ percent.

Accepted Answer

The number of unemployed persons is the difference between the labor force and the employed, which is 120 million - 90 million = 30 million. The unemployment rate is calculated as (unemployed/labor force) * 100 = (30/120) * 100 = 25%.

Question 5

Every ____________ the U.S.government surveys ______________ of households to gather information about the number of Americans unemployed.

Accepted Answer

The U.S. government surveys households every month to gather information about the number of Americans unemployed, but the survey captures data on thousands of households rather than millions or even just thousands of households every week.

Question 6

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 reentrant is a person who previously had a job, left the workforce for a period of time, and is now returning to work. Option A, discouraged worker, refers to someone who is unemployed and has given up actively searching for a job. Option B, entrant, could technically apply to any person entering the labor force, including those who have not previously been employed. Option D, job loser, refers to someone who was laid off or terminated from a job. Option E, job leaver, refers to someone who voluntarily quit their job.

Question 7

Look at the following data: The frictional unemployment rate is 1.5 percent,the natural unemployment rate is 4.5 percent,and the cyclical unemployment rate is -1 percent.The structural unemployment rate is _________ percent and the actual unemployment rate (in this economy)is ___________ percent.

Accepted Answer

The natural unemployment rate is the sum of frictional and structural unemployment. Given the natural rate is 4.5% and frictional is 1.5%, structural unemployment is 3%. The actual unemployment rate is the natural rate plus cyclical unemployment, which is 4.5% - 1% = 3.5%.

Question 8

The answer is "a person employed in the civilian labor force who quits his or her job." The question is:

Accepted Answer

A job leaver is a person who voluntarily quits their job rather than being laid off or fired.

Question 9

Look at the following data: The structural unemployment rate is 4 percent,the natural unemployment rate is 5 percent,and the cyclical unemployment rate is 3 percent.The frictional unemployment rate is ____________ percent and the actual unemployment rate is __________ percent.

Accepted Answer

The frictional unemployment rate can be calculated as the difference between the natural unemployment rate and the structural unemployment rate:

Frictional unemployment rate = natural unemployment rate - structural unemployment rate = 5% - 4% = 1%

The actual unemployment rate can be calculated as the sum of all types of unemployment:

Actual unemployment rate = structural unemployment rate + frictional unemployment rate + cyclical unemployment rate = 4% + 1% + 3% = 8%

Therefore, the best choice is D, with a frictional unemployment rate of 1% and an actual unemployment rate of 8%.

Question 10

Which of the following statements is false?

Accepted Answer

A discouraged worker is not counted as part of the labor force and therefore not considered unemployed. The frictional unemployment rate is a component of the natural unemployment rate, not greater than it.

Question 11

If the CPI is 220 and nominal income is $37,000,approximately what does real income equal?

Accepted Answer

To calculate real income we need to divide nominal income by the CPI and then multiply by 100. 
Real Income = (Nominal Income/CPI) x 100 
Real Income = (37,000/220) x 100 = 16,818. Therefore, the real income is approximately $16,818, which is Option B.

Question 12

At the time of Kelsey's 20 year high school reunion she was earning $50,000 and the CPI was 120.Now that it is time for her to attend her 30 year high school reunion,Kelsey's income has risen to $97,000 and the CPI is 230.At her 30 year reunion,can Kelsey rightfully brag that her real income has risen since the last time she saw her former classmates ten years ago?

Accepted Answer

To determine if Kelsey's real income has risen, we need to adjust her income for inflation using the CPI. To do this, we calculate the ratio of the current CPI to the CPI at the time of her 20 year reunion (230/120 = 1.92) and multiply this ratio by her income at the time of her 20 year reunion ($50,000 x 1.92 = $96,000). This gives us Kelsey's income in today's dollars if it had the same purchasing power as her income 10 years ago. Since her actual income now is $97,000, we can see that her real income has indeed risen during that 10 year period.

Question 13

The labor force participation rate (LFPR)equals the number of

Accepted Answer

The labor force participation rate is actually calculated as the total labor force (the sum of employed and unemployed persons) divided by the civilian noninstitutional population, and none of the provided options accurately describe this calculation.

Question 14

Juan lost his job as a nuclear physicist working for a defense contractor.He can not find a job because no firms in the defense industry or any other industry are hiring people with his skills.Juan is ______________ unemployed.

Accepted Answer

Juan's unemployment is a result of a structural shift in the job market, where his specific skills are no longer in demand. This type of unemployment is called structural unemployment.

Question 15

At the time of Carol's 10 year high school reunion she was earning $30,000 and the CPI was 90.Now that it is time for her to attend her 20 year high school reunion,Carol's income has risen to $65,000 and the CPI is 200.At her 20 year reunion,can Carol rightfully brag that her real income has risen since the last time she saw her former classmates ten years ago?

Accepted Answer

Carol's real income is calculated by adjusting her nominal income for inflation using the CPI. At her 10-year reunion, her real income was $30,000 / 90 = $333.33 (in terms of the base year). At her 20-year reunion, her real income is $65,000 / 200 = $325. Since $325 is less than $333.33, her real income has actually fallen.

Question 16

If we subtract the number of persons not in the labor force from the civilian noninstitutional population,we get the number of people in the

Accepted Answer

The civilian noninstitutional population consists of individuals aged 16 or above who are not in the military, in prison, or in other institutional settings. The civilian labor force comprises those individuals who are either employed or unemployed but actively seeking work. Therefore, if we subtract the number of persons not in the labor force from the civilian noninstitutional population, we get the number of people in the civilian labor force.

Question 17

If there are 10 job losers,12 job leavers,13 reentrants,and 12 new entrants,then there are __________ unemployed persons.

Accepted Answer

The total number of unemployed persons is the sum of job losers, job leavers, reentrants, and new entrants: 10 + 12 + 13 + 12 = 47.

Question 18

Suppose there are 65 million employed persons,5 million unemployed persons,and 35 million persons not in the labor force.What does the civilian noninstitutional population equal?

Accepted Answer

The civilian noninstitutional population is the sum of employed, unemployed, and those not in the labor force: 65 million (employed) + 5 million (unemployed) + 35 million (not in labor force) = 105 million.

Question 19

Suppose there are 50 million persons in the population,25 million persons in the civilian labor force,and 20 million persons are employed.The number of persons unemployed is _______ million and the unemployment rate is ___________ percent.

Accepted Answer

The number of persons unemployed is the difference between the civilian labor force and the number of persons employed, which is 25 million - 20 million = 5 million. The unemployment rate is the number of unemployed persons divided by the labor force, then multiplied by 100 to get a percentage, which is (5 million / 25 million) * 100 = 20%.

Question 20

Of all the categories of unemployment,most unemployed persons fall into the category of

Accepted Answer

According to the Bureau of Labor Statistics, most unemployed persons fall into the category of job losers, which refers to individuals who have been laid off or terminated from their previous employment due to factors such as economic downturns or business restructuring. Reentrants are individuals who are returning to the workforce after an extended absence, new entrants are individuals who are entering the workforce for the first time, and job leavers are individuals who voluntarily left their previous job.

Quiz 6: Elasticity

Look at the following data: The frictional unemployment rate is 2 percent,the structural unemployment rate is 3.5 percent,and the actual unemployment rate is 9.5 percent.The natural unemployment rate is __ percent and the cyclical unemployment rate is percent.

Which of the following statements is true?

The number of employed persons plus the number of unemployed persons equals the number of persons

Suppose there are 200 million persons in the population,120 million persons in the civilian labor force,and 90 million persons are employed.The number of persons unemployed is _ million and the unemployment rate is _____ percent.

Every the U.S.government surveys __ of households to gather information about the number of Americans unemployed.

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

Look at the following data: The frictional unemployment rate is 1.5 percent,the natural unemployment rate is 4.5 percent,and the cyclical unemployment rate is -1 percent.The structural unemployment rate is _ percent and the actual unemployment rate (in this economy) is ___ percent.

The answer is "a person employed in the civilian labor force who quits his or her job." The question is:

Look at the following data: The structural unemployment rate is 4 percent,the natural unemployment rate is 5 percent,and the cyclical unemployment rate is 3 percent.The frictional unemployment rate is __ percent and the actual unemployment rate is percent.

Which of the following statements is false?

If the CPI is 220 and nominal income is $37,000,approximately what does real income equal?

The labor force participation rate (LFPR) equals the number of

Juan lost his job as a nuclear physicist working for a defense contractor.He can not find a job because no firms in the defense industry or any other industry are hiring people with his skills.Juan is ______________ unemployed.

If we subtract the number of persons not in the labor force from the civilian noninstitutional population,we get the number of people in the

If there are 10 job losers,12 job leavers,13 reentrants,and 12 new entrants,then there are __________ unemployed persons.

Suppose there are 65 million employed persons,5 million unemployed persons,and 35 million persons not in the labor force.What does the civilian noninstitutional population equal?

Suppose there are 50 million persons in the population,25 million persons in the civilian labor force,and 20 million persons are employed.The number of persons unemployed is _ million and the unemployment rate is _____ percent.

Of all the categories of unemployment,most unemployed persons fall into the category of

Quiz 6: Elasticity

Look at the following data: The frictional unemployment rate is 2 percent,the structural unemployment rate is 3.5 percent,and the actual unemployment rate is 9.5 percent.The natural unemployment rate is ____________ percent and the cyclical unemployment rate is __________ percent.

Which of the following statements is true?

The number of employed persons plus the number of unemployed persons equals the number of persons

Suppose there are 200 million persons in the population,120 million persons in the civilian labor force,and 90 million persons are employed.The number of persons unemployed is _______ million and the unemployment rate is ___________ percent.

Every ____________ the U.S.government surveys ______________ of households to gather information about the number of Americans unemployed.

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

Look at the following data: The frictional unemployment rate is 1.5 percent,the natural unemployment rate is 4.5 percent,and the cyclical unemployment rate is -1 percent.The structural unemployment rate is _________ percent and the actual unemployment rate (in this economy) is ___________ percent.

The answer is "a person employed in the civilian labor force who quits his or her job." The question is:

Look at the following data: The structural unemployment rate is 4 percent,the natural unemployment rate is 5 percent,and the cyclical unemployment rate is 3 percent.The frictional unemployment rate is ____________ percent and the actual unemployment rate is __________ percent.

Which of the following statements is false?

If the CPI is 220 and nominal income is $37,000,approximately what does real income equal?

The labor force participation rate (LFPR) equals the number of

Juan lost his job as a nuclear physicist working for a defense contractor.He can not find a job because no firms in the defense industry or any other industry are hiring people with his skills.Juan is ______________ unemployed.

If we subtract the number of persons not in the labor force from the civilian noninstitutional population,we get the number of people in the

If there are 10 job losers,12 job leavers,13 reentrants,and 12 new entrants,then there are __________ unemployed persons.

Suppose there are 65 million employed persons,5 million unemployed persons,and 35 million persons not in the labor force.What does the civilian noninstitutional population equal?

Suppose there are 50 million persons in the population,25 million persons in the civilian labor force,and 20 million persons are employed.The number of persons unemployed is _______ million and the unemployment rate is ___________ percent.

Of all the categories of unemployment,most unemployed persons fall into the category of

Look at the following data: The frictional unemployment rate is 2 percent,the structural unemployment rate is 3.5 percent,and the actual unemployment rate is 9.5 percent.The natural unemployment rate is __ percent and the cyclical unemployment rate is percent.

Suppose there are 200 million persons in the population,120 million persons in the civilian labor force,and 90 million persons are employed.The number of persons unemployed is _ million and the unemployment rate is _____ percent.

Every the U.S.government surveys __ of households to gather information about the number of Americans unemployed.

Look at the following data: The frictional unemployment rate is 1.5 percent,the natural unemployment rate is 4.5 percent,and the cyclical unemployment rate is -1 percent.The structural unemployment rate is _ percent and the actual unemployment rate (in this economy) is ___ percent.

Look at the following data: The structural unemployment rate is 4 percent,the natural unemployment rate is 5 percent,and the cyclical unemployment rate is 3 percent.The frictional unemployment rate is __ percent and the actual unemployment rate is percent.

Suppose there are 50 million persons in the population,25 million persons in the civilian labor force,and 20 million persons are employed.The number of persons unemployed is _ million and the unemployment rate is _____ percent.