Question 1

The labor force participation rates of women have rapidly increased since 1948.

Accepted Answer

A) True 
 B)False

Question 2

An efficiency wage

Accepted Answer

A)   is higher than the market wage and tends to increase productivity.
B)   is lower than the market wage and tends to increase productivity.
C)   is higher than the market wage and tends to decrease productivity.
D)   is lower than the market wage and tends to decrease productivity.E) B) and C)
F) A) and D)

Question 3

The consumer price index implicitly assumes that the demand curve for each good and service in the representative market basket is

Accepted Answer

A)   positively sloped.
B)   negatively sloped.
C)   vertical.
D)   horizontal.E) B) and C)
F) A) and B)

Question 4

Table 13-1
   Total population 20,000 Working-age population 15,000 Employment 1,000 Unemployment 100\begin{array}{|l|c|}\hline 	ext { Total population } & 20,000 \\hline 	ext { Working-age population } & 15,000 \\hline 	ext { Employment } & 1,000 \\hline 	ext { Unemployment } & 100\\hline\end{array} Total population  Working-age population  Employment  Unemployment ​20,00015,0001,000100​​  Consider the data above for a simple economy.
-Refer to Table 13-1.The labor force participation rate for this simple economy equals

Accepted Answer

A)   (1,000/1,100)  × 100.
B)   (1,000/15,000)  × 100.
C)   (1,100/15,000)  × 100.
D)   (1,100/20,000)  × 100. E) B) and C)
F) A) and C)

Question 5

If the nominal interest rate is 6% and the inflation rate is 9%,then the real interest rate is

Accepted Answer

A)   -3%.
B)   3%.
C)   6.67%.
D)   15%.E) A) and B)
F) A) and C)

Question 6

Suppose that at the beginning of a loan contract,the real interest rate is 4% and expected inflation is currently 6%.If actual inflation turns out to be 7% over the loan contract period,then

Accepted Answer

A)   borrowers gain 1% of the loan value.
B)   lenders gain 1% of the loan value.
C)   borrowers lose 3% of the loan value.
D)   lenders gain 3% of the loan value.E) A) and C)
F) A) and B)

Question 7

Which of the following explains the changes in the U.S.adult male labor force participation rate since 1948?

Accepted Answer

A)   More men are joining the military as compared to the past.
B)   More men are retiring later in life as compared to the past.
C)   Fewer men consider themselves discouraged workers as compared to the past.
D)   Younger men are remaining in school longer as compared to the past.E) A) and D)
F) A) and C)

Question 8

The natural rate of unemployment consists of frictional unemployment plus structural unemployment.

Accepted Answer

A) True 
 B)False

Question 9

If the CPI changes from 125 to 120 between 2017 and 2018,how did prices change between 2017 and 2018?

Accepted Answer

A)   Prices increased by 5%.
B)   Prices decreased by 5%
C)   Prices increased by 25%.
D)   Prices decreased by 4%.E) A) and B)
F) A) and C)

Question 10

Explain what economists mean by full employment and why this rate of unemployment is not zero.

Accepted Answer

Full employment occurs in the macro econ...

Question 11

You borrow $10,000 from a bank for one year at a nominal interest rate of 5%.If inflation over the year is 2%,what is the real interest rate you are paying?

Accepted Answer

A)   2%
B)   2.5%
C)   3%
D)   5%E) A) and C)
F) All of the above

Question 12

Which of the following price indices comes closest to measuring the cost of living of the typical household?

Accepted Answer

A)   GDP deflator
B)   producer price index
C)   consumer price index
D)   household price indexE) A) and B)
F) All of the above

Question 13

Housing is the largest component of the U.S.CPI market basket.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following would decrease the unemployment rate?

Accepted Answer

A)   an increase in the minimum wage
B)   an increase in the efficiency wage
C)   an increase in labor union membership
D)   government aid to retrain unemployed workersE) C) and D)
F) None of the above

Question 15

The labor force participation rates of men have gradually increased since 1948.

Accepted Answer

A) True 
 B)False

Question 16

Efficiency wage is another name for the minimum wage.

Accepted Answer

A) True 
 B)False

Question 17

The unemployment rate is

Accepted Answer

A)   the percentage of the labor force that is employed.
B)   the percentage of the number employed that is unemployed.
C)   the percentage of the working-age population that is unemployed.
D)   the percentage of the labor force that is unemployed.
E)   the percentage of the working-age population that is employed.F) A) and D)
G) B) and D)

Question 18

Most of the unemployment that occurred during the Great Depression was

Accepted Answer

A)   frictional unemployment.
B)   structural unemployment.
C)   cyclical unemployment.
D)   core unemployment.E) All of the above
F) C) and D)

Question 19

If your nominal wage rises more slowly than the price level,we can say your real wage has ________ and the purchasing power of a dollar has ________.

Accepted Answer

A)   fallen; fallen
B)   fallen; risen
C)   risen; risen
D)   risen; fallenE) All of the above
F) B) and D)

Question 20

Discouraged workers are classified by the BLS as

Accepted Answer

A)   part of the labor force.
B)   not in the labor force.
C)   unemployed.
D)   employed.
E)   part-time employees.F) C) and D)
G) None of the above

Exam 13: Unemployment and Inflation

The labor force participation rates of women have rapidly increased since 1948.

Correct Answer
verified

Which of the following would decrease the unemployment rate?

Correct Answer
verified

If the CPI changes from 125 to 120 between 2017 and 2018,how did prices change between 2017 and 2018?

Correct Answer
verified

Which of the following price indices comes closest to measuring the cost of living of the typical household?

Correct Answer
verified

The consumer price index implicitly assumes that the demand curve for each good and service in the representative market basket is

Correct Answer
verified

You borrow $10,000 from a bank for one year at a nominal interest rate of 5%.If inflation over the year is 2%,what is the real interest rate you are paying?

Correct Answer
verified

An efficiency wage

Correct Answer
verified

The natural rate of unemployment consists of frictional unemployment plus structural unemployment.

Correct Answer
verified

Suppose that at the beginning of a loan contract,the real interest rate is 4% and expected inflation is currently 6%.If actual inflation turns out to be 7% over the loan contract period,then

Correct Answer
verified

The unemployment rate is

Correct Answer
verified

Housing is the largest component of the U.S.CPI market basket.

Correct Answer
verified

Efficiency wage is another name for the minimum wage.

Correct Answer
verified

Correct Answer
verified

Discouraged workers are classified by the BLS as

Correct Answer
verified

Which of the following explains the changes in the U.S.adult male labor force participation rate since 1948?

Correct Answer
verified

The labor force participation rates of men have gradually increased since 1948.

Correct Answer
verified

Explain what economists mean by full employment and why this rate of unemployment is not zero.

Correct Answer
verified
Full employment occurs in the macro econ...
View Answer

If the nominal interest rate is 6% and the inflation rate is 9%,then the real interest rate is

Correct Answer
verified

Most of the unemployment that occurred during the Great Depression was

Correct Answer
verified

If your nominal wage rises more slowly than the price level,we can say your real wage has and the purchasing power of a dollar has .

Correct Answer
verified

Exam 13: Unemployment and Inflation

The labor force participation rates of women have rapidly increased since 1948.

Correct AnswerverifiedShow Answer

Which of the following would decrease the unemployment rate?

Correct AnswerverifiedShow Answer

If the CPI changes from 125 to 120 between 2017 and 2018,how did prices change between 2017 and 2018?

Correct AnswerverifiedShow Answer

Which of the following price indices comes closest to measuring the cost of living of the typical household?

Correct AnswerverifiedShow Answer

The consumer price index implicitly assumes that the demand curve for each good and service in the representative market basket is

Correct AnswerverifiedShow Answer

You borrow $10,000 from a bank for one year at a nominal interest rate of 5%.If inflation over the year is 2%,what is the real interest rate you are paying?

Correct AnswerverifiedShow Answer

An efficiency wage

Correct AnswerverifiedShow Answer

The natural rate of unemployment consists of frictional unemployment plus structural unemployment.

Correct AnswerverifiedShow Answer

Suppose that at the beginning of a loan contract,the real interest rate is 4% and expected inflation is currently 6%.If actual inflation turns out to be 7% over the loan contract period,then

Correct AnswerverifiedShow Answer

The unemployment rate is

Correct AnswerverifiedShow Answer

Housing is the largest component of the U.S.CPI market basket.

Correct AnswerverifiedShow Answer

Efficiency wage is another name for the minimum wage.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Discouraged workers are classified by the BLS as

Correct AnswerverifiedShow Answer

Which of the following explains the changes in the U.S.adult male labor force participation rate since 1948?

Correct AnswerverifiedShow Answer

The labor force participation rates of men have gradually increased since 1948.

Correct AnswerverifiedShow Answer

Explain what economists mean by full employment and why this rate of unemployment is not zero.

Correct AnswerverifiedFull employment occurs in the macro econ...View AnswerShow Answer

If the nominal interest rate is 6% and the inflation rate is 9%,then the real interest rate is

Correct AnswerverifiedShow Answer

Most of the unemployment that occurred during the Great Depression was

Correct AnswerverifiedShow Answer

If your nominal wage rises more slowly than the price level,we can say your real wage has ________ and the purchasing power of a dollar has ________.

Correct AnswerverifiedShow Answer

Correct Answer
verified

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
verified
Full employment occurs in the macro econ...
View Answer

Correct Answer
verified

Correct Answer
verified

If your nominal wage rises more slowly than the price level,we can say your real wage has and the purchasing power of a dollar has .

Correct Answer
verified