Question 1

If the cyclical unemployment rate is negative,then the

Accepted Answer

When the cyclical unemployment rate is negative, it means the economy is operating above its potential, leading to an actual unemployment rate that is lower than the natural unemployment rate. This does not directly relate to the comparison between structural and frictional unemployment rates.

Question 2

Look at the following data: The frictional unemployment rate is 3 percent,the natural unemployment rate is 6.5 percent,and the cyclical unemployment rate is 2.4 percent.The structural unemployment rate is __________ percent and the actual unemployment rate (in this economy)is __________ percent.

Accepted Answer

The answer of Look at the following data: The frictional...

Question 3

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 was previously employed, has taken time out of the workforce, and is now reentering the labor force. The other options are not applicable to this scenario. A discouraged worker has given up looking for work, a job loser has recently been laid off or fired, and a job leaver has voluntarily quit their previous job. An entrant may or may not have prior work experience.

Question 4

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

- First, we need to calculate the cost of the market basket in the base year and the current year. 
- Base year cost: 10X*$1.20 + 12Y*$2.10 + 18Z*$3.25 = $120 + $25.20 + $58.50 = $203.70 
- Current year cost: 10X*$1.44 + 12Y*$2.23 + 18Z*$3.88 = $144 + $26.76 + $69.84 = $240.60 
- Then, we can use the formula for the consumer price index (CPI): 
CPI = (cost of market basket in current year / cost of market basket in base year) x 100 
CPI = ($240.60 / $203.70) x 100 = 118.1 ≈ 116 
Therefore, the approximate consumer price index in the current year is 116, which is closest to choice C, 116.

Question 5

Look at the following data: Employed persons = 110 million;civilian labor force = 135 million persons;civilian noninstitutional population = 190 million.The unemployment rate is __________ percent and the employment rate is __________ percent.

Accepted Answer

The answer of Look at the following data: Employed persons...

Question 6

If the CPI is 143 in year 1 and 149 in year 2,what is the approximate percentage change in prices between the two years?

Accepted Answer

To determine the approximate percentage change, we use the formula: ((CPI in year 2 - CPI in year 1)/CPI in year 1) x 100. Plugging in the values, we get ((149-143)/143) x 100 = 4.2%. Therefore, the answer is B, 4.2 percent.

Question 7

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

Jones is frictionally unemployed because he has transferable skills and there are opportunities in another industry (B), indicating a temporary period of unemployment while transitioning between jobs. Smith is structurally unemployed because his skills do not match current job market demands, indicating a more permanent form of unemployment due to changes in the economy or industry.

Question 8

Suppose that the price index in 1999 was 170 and your salary was $44,000.Suppose in 2016 the consumer price index will be 290.What salary will you have to earn in 2016 in order to equal your 1999 real income?

Accepted Answer

To calculate the real income in 1999, we divide the salary by the price index: 
Real income in 1999 = $44,000/170 = $258.82

To find the equivalent salary in 2016 that would provide the same purchasing power, we use the formula: 
Real income in 2016 = Real income in 1999 x (New price index/old price index)

Real income in 2016 = $258.82 x (290/170) = $440.49

Therefore, the salary needed in 2016 to achieve the same purchasing power as $44,000 in 1999 is $75,059 (nearest dollar). The correct answer choice is C.

Question 9

Look at the following data: Total population = 230 million;employed persons = 80 million;unemployed persons = 8 million.The unemployment rate is approximately __________ and the employment rate __________.

Accepted Answer

The answer of Look at the following data: Total population...

Question 10

Which of the following statements is false?

Accepted Answer

All of the statements are true, therefore none of them are false. The sum of the unemployment rate and employment rate always equals 100%, according to the definition of those two rates. The sum of the number of employed persons and the number of unemployed persons equals the civilian non-institutional population, by definition. The labor force participation rate is calculated by dividing the number of persons in the civilian labor force by the total population, as stated in statement C.

Question 11

If the CPI was 196.5 in 2005 and 172.2 in 2000,by what percentage did prices rise during the period 2000-2005?

Accepted Answer

To find the percentage increase in prices, we'll use the formula:

((CPI in 2005 - CPI in 2000) / CPI in 2000) x 100%

Plugging in the given values, we get:

((196.5 - 172.2) / 172.2) x 100%
= 14.1%

Therefore, prices rose by 14.1% during the period 2000-2005. The correct answer is choice D.

Question 12

Smith's income was $50,000 in year 1 and $55,600 in year 2.The CPI was 114 in year 1 and 124 in year 2.What was the approximate percentage change in Smith's real income between the two years?

Accepted Answer

To calculate the real income change, adjust the incomes by the CPI to get them in constant dollars. For year 1, the real income is already in constant dollars since it's the base year. For year 2, adjust the income using the CPI: $55,600 * (114 / 124) = $51,100. The change in real income is from $50,000 to $51,100, which is an increase of $1,100. The percentage change in real income is ($1,100 / $50,000) * 100% = 2.2%.

Question 13

Is it possible for the economy to be at full employment and still have some people who are unemployed?

Accepted Answer

Full employment means the economy is operating at the natural unemployment rate, which includes structural and frictional unemployment. It does not include cyclical unemployment, which is caused by economic downturns. Therefore, there will always be some level of natural unemployment, even when the economy is at full employment.

Question 14

Assume that Ms.Sawyer's salary is $22,000,up from $20,000 last year,while the CPI is 165 this year,up from 150 last year.This means that Ms.Sawyer's real income has

Accepted Answer

The answer of Assume that Ms.Sawyer's salary is $22,000,up from...

Question 15

A movie star was paid $1 million in 1960 to do a movie.The CPI was 29.3 in 1960 and the CPI in 2012 was 226.665.Approximately how much did the movie star earn in 2012 dollars?

Accepted Answer

To find the amount in 2012 dollars, we need to adjust for inflation using the CPI. We can use the following formula: 
Amount in 2012 dollars = (Amount in 1960 dollars) x (CPI in 2012) / (CPI in 1960)
Plugging in the values, we get: 
Amount in 2012 dollars = ($1 million) x (226.665) / (29.3) = $7.74 million
Therefore, the answer is D) $7.74 million.

Question 16

Which of the following statements is true?

Accepted Answer

- Statement A is false as base year prices are used as a reference point for calculating price changes, and may be lower or higher than current year prices.
- Statement B is true as the CPI in the base year is always set at 100.
- Statement C is approximately true as the percent change in prices between year 1 and year 2 can be calculated as [(CPI year 2 - CPI year 1)/CPI year 1] x 100, which in this case is [(123-112)/112] x 100 = 9.8%.

Question 17

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

Accepted Answer

A person who leaves their job voluntarily is considered a "job leaver" in labor market terminology.

Question 18

The movie "Return of the Jedi" earned $264 million in 1983 when it was released.The CPI in 1983 was 97.8 and the CPI in 2012 was 226.665.Approximately how much did the movie earn in 2012 dollars?

Accepted Answer

To adjust for inflation, we need to use the formula: 
Adjusted value in 2012 dollars = Value in original year x (CPI in 2012 / CPI in original year)
Plugging in the numbers: 
Adjusted value in 2012 dollars = $264 million x (226.665 / 97.8) 
= $612 million 
Therefore, the correct answer is option B, $612 million.

Question 19

A __________ is a person who was employed in the civilian labor force and was either fired or laid off.

Accepted Answer

The correct term for a person who was employed in the civilian labor force and was either fired or laid off is "displaced worker," which is not listed among the options provided.

Question 20

Good X sold for $40 in 1957.The CPI in 1957 was 27.6 and the CPI in 2009 was 214.537.What was the price of good X in 2009 dollars?

Accepted Answer

To calculate the price of Good X in 2009 dollars, we need to first adjust the 1957 price for inflation using the CPI ratios.

Inflation rate = CPI in 2009 / CPI in 1957 = 214.537 / 27.6 = 7.774

Price of Good X in 2009 dollars = Price in 1957 dollars x Inflation rate 
= $40 x 7.774 = $311 (rounded to the nearest dollar)

Therefore, the best choice is D.

Quiz 6: Macroeconomic Measurements, Prices and Unemployment

If the cyclical unemployment rate is negative,then the

Look at the following data: The frictional unemployment rate is 3 percent,the natural unemployment rate is 6.5 percent,and the cyclical unemployment rate is 2.4 percent.The structural unemployment rate is percent and the actual unemployment rate (in this economy) is percent.

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

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?

Look at the following data: Employed persons = 110 million;civilian labor force = 135 million persons;civilian noninstitutional population = 190 million.The unemployment rate is percent and the employment rate is percent.

If the CPI is 143 in year 1 and 149 in year 2,what is the approximate percentage change in prices between the two years?

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.

Suppose that the price index in 1999 was 170 and your salary was $44,000.Suppose in 2016 the consumer price index will be 290.What salary will you have to earn in 2016 in order to equal your 1999 real income?

Look at the following data: Total population = 230 million;employed persons = 80 million;unemployed persons = 8 million.The unemployment rate is approximately and the employment rate .

Which of the following statements is false?

If the CPI was 196.5 in 2005 and 172.2 in 2000,by what percentage did prices rise during the period 2000-2005?

Smith's income was $50,000 in year 1 and $55,600 in year 2.The CPI was 114 in year 1 and 124 in year 2.What was the approximate percentage change in Smith's real income between the two years?

Is it possible for the economy to be at full employment and still have some people who are unemployed?

Assume that Ms.Sawyer's salary is $22,000,up from $20,000 last year,while the CPI is 165 this year,up from 150 last year.This means that Ms.Sawyer's real income has

A movie star was paid $1 million in 1960 to do a movie.The CPI was 29.3 in 1960 and the CPI in 2012 was 226.665.Approximately how much did the movie star earn in 2012 dollars?

Which of the following statements is true?

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

The movie "Return of the Jedi" earned $264 million in 1983 when it was released.The CPI in 1983 was 97.8 and the CPI in 2012 was 226.665.Approximately how much did the movie earn in 2012 dollars?

A __________ is a person who was employed in the civilian labor force and was either fired or laid off.

Good X sold for $40 in 1957.The CPI in 1957 was 27.6 and the CPI in 2009 was 214.537.What was the price of good X in 2009 dollars?

Quiz 6: Macroeconomic Measurements, Prices and Unemployment

If the cyclical unemployment rate is negative,then the

Look at the following data: The frictional unemployment rate is 3 percent,the natural unemployment rate is 6.5 percent,and the cyclical unemployment rate is 2.4 percent.The structural unemployment rate is __________ percent and the actual unemployment rate (in this economy) is __________ percent.

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

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?

Look at the following data: Employed persons = 110 million;civilian labor force = 135 million persons;civilian noninstitutional population = 190 million.The unemployment rate is __________ percent and the employment rate is __________ percent.

If the CPI is 143 in year 1 and 149 in year 2,what is the approximate percentage change in prices between the two years?

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.

Suppose that the price index in 1999 was 170 and your salary was $44,000.Suppose in 2016 the consumer price index will be 290.What salary will you have to earn in 2016 in order to equal your 1999 real income?

Look at the following data: Total population = 230 million;employed persons = 80 million;unemployed persons = 8 million.The unemployment rate is approximately __________ and the employment rate __________.

Which of the following statements is false?

If the CPI was 196.5 in 2005 and 172.2 in 2000,by what percentage did prices rise during the period 2000-2005?

Smith's income was $50,000 in year 1 and $55,600 in year 2.The CPI was 114 in year 1 and 124 in year 2.What was the approximate percentage change in Smith's real income between the two years?

Is it possible for the economy to be at full employment and still have some people who are unemployed?

Assume that Ms.Sawyer's salary is $22,000,up from $20,000 last year,while the CPI is 165 this year,up from 150 last year.This means that Ms.Sawyer's real income has

A movie star was paid $1 million in 1960 to do a movie.The CPI was 29.3 in 1960 and the CPI in 2012 was 226.665.Approximately how much did the movie star earn in 2012 dollars?

Which of the following statements is true?

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

The movie "Return of the Jedi" earned $264 million in 1983 when it was released.The CPI in 1983 was 97.8 and the CPI in 2012 was 226.665.Approximately how much did the movie earn in 2012 dollars?

A __________ is a person who was employed in the civilian labor force and was either fired or laid off.

Good X sold for $40 in 1957.The CPI in 1957 was 27.6 and the CPI in 2009 was 214.537.What was the price of good X in 2009 dollars?

Look at the following data: The frictional unemployment rate is 3 percent,the natural unemployment rate is 6.5 percent,and the cyclical unemployment rate is 2.4 percent.The structural unemployment rate is percent and the actual unemployment rate (in this economy) is percent.

Look at the following data: Employed persons = 110 million;civilian labor force = 135 million persons;civilian noninstitutional population = 190 million.The unemployment rate is percent and the employment rate is percent.

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.

Look at the following data: Total population = 230 million;employed persons = 80 million;unemployed persons = 8 million.The unemployment rate is approximately and the employment rate .