Test Bank for Modern Principles of
Macroeconomics
The purpose of the Current Population Survey is to determine the - answersemployment
status of the population
Which of the following people would be classified as employed in the Current Population
Survey? - answersRich, who is working 20 hours a week but wants a full-time job.
Rob is considered unemployed in the Current Population Survey if he - answershas
looked for a job in the last four weeks but has not found a job.
The labor force includes people who - answersare actively seeking a job but do not
have a job.
If Jose is 22-years old, is available to work but does not have a job and made no
specific efforts to find a job for the previous month, Jose is classified in the Current
Population Survey as - answersnot in the labor force.
Assume the U.S. population is 300 million. If 200 million people are of working age, 125
million are employed, and 15 million are unemployed, what is the size of the labor
force? - answers140 million.
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 270
million people. What is the unemployment rate? - answers7.5 percent
Using the table above, the working-age population is - answers195 million
Using the table above, the number of people in the labor force is - answers175 million
Using the table above, the unemployment rate is - answers5.71 percent.
Which of the following would be considered a marginally attached worker? -
answersCarl, who isn't working and has not looked for work in 3 months because he
has been turned down for work when he last looked.
Discouraged workers are included in the calculation of the - answersworking-age
population
Rick lost his job as a logistics and distribution coordinator nearly three years ago. After
a long and failed search, Rick finally gives up and stops looking for a new job. Rick's
decision to suspend his job search causes the unemployment rate to ________ and the
labor force participation rate to _____ - answersdecrease; decrease.
,People who are working up to 34 hours per week but would like to work more are
considered - answersinvoluntary part-time workers.
Which of the following people would be considered unemployed? - answersVictoria,
who does not have job and has been actively searching for work, but turned down a job
paying less than she desired.
The unemployment rate generally ________ during recessions and generally ______
during expansions. - answersincreases;decreases.
Which of the following help explain the increase in the U.S. labor force participation rate
for women? - answersThere was an increase in the educational level of women.
Technological change in the home increased the time available for work outside the
home.
U-4, U-5 and U-6 are - answersall broader measures of the unemployment rate.
As firms search for the best employee to fill an opening and the unemployed search for
the job that best first their skills, the economy experiences - answersfrictional
unemployment
Which of the following would be considered unemployed as part of normal labor market
turnover? - answersHannah, who quit her job to find one that better suited her skills.
Charlotte, who started looking for a job upon graduation from high school.
Structural unemployment usually lasts ______ period of time _______ unemployment -
answersa longer; than frictional.
For twenty years, Jim was a customer service representative at a call center in
Minnesota. In order to save money, his firm moved the call center to India and laid off
Jim two years ago. Jim has been unable to find a similar job anywhere. Jim's
unemployment is best classified as - answersstructural.
John has been laid off from his job because of a general downturn in the economy.
John's unemployment is best classified as - answerscyclical.
At full employment there is no - answerscyclical unemployment.
The natural unemployment rate - answersincludes only frictional and structural
unemployment.
If the Federal government expands its support of education and retraining of workers
who have been unemployed for a relatively long length of time, which type of
unemployment would the education and retraining most likely be targeted? -
answersstructural.
, To measure the CPI, the BLS economic assistants check the prices of - answersabout
80,000 goods and services every month.
The items included in the CPI are - answersgoods and services consumed by the
typical urban household.
The CPI market basket - answersweighs the goods and services according to the
budget of an average urban household.
Which of the following changes would have the largest impact on the CPI? - answersa
one percent increase in the cost of housing.
In 2013, the reference base period for the CPI for the nation of Webot, a typical
consumer spent %30 on potatoes and $150 on steak. If the price of steak is $15 and the
price of potatoes is $1 then there are _______ units of steak and _____ units of
potatoes in the CPI market basket. - answers10;30
Suppose the CPI for this year is 133.7. This number means that - answersprices rose
33.7 percent over the base year.
Suppose that the cost of the CPI basket of goods and services rises from $137 in 2010.
which is the base year, to $159 in 2011. The CPI in 2011 is _________ and the inflation
rate from 2010 to 2011 is - answers116; 16 percent
The table above gives the CPI for a nation. Based on the table, we can determine that
the reference base period is - answers1998-2000
Suppose that last year, the price of strawberries was $2 and the price of milk was $1.
This year, the price of milk is $2 and the price of strawberries is $1. Which of the
following statements is true? - answersThe CPI might increase or decrease depending
on the quantities in the CPI market basket.
Suppose that the CPI basket contains only 40 heads of cauliflower and 60 bunches of
broccoli. If the price of cauliflower goes down by $1 per head and the price of broccoli
goes up by $1 per bunch, then - answersthe CPI increases.
In a small, agricultural nation, consumers buy only steak and potatoes. In 2009, the
base year, the typical consumer spent $50 on potatoes and $100 on steak. The price of
potatoes is $1 and the price of steak is $2 in 2009. In 2010, the price of potatoes is $2
and the price of steak is $1. The CPI for 2010 is - answers100.
When discussing the CPI, the term "commodity substitution bias" refers to changes in -
answersprices that lead households to change the items they buy.
Macroeconomics
The purpose of the Current Population Survey is to determine the - answersemployment
status of the population
Which of the following people would be classified as employed in the Current Population
Survey? - answersRich, who is working 20 hours a week but wants a full-time job.
Rob is considered unemployed in the Current Population Survey if he - answershas
looked for a job in the last four weeks but has not found a job.
The labor force includes people who - answersare actively seeking a job but do not
have a job.
If Jose is 22-years old, is available to work but does not have a job and made no
specific efforts to find a job for the previous month, Jose is classified in the Current
Population Survey as - answersnot in the labor force.
Assume the U.S. population is 300 million. If 200 million people are of working age, 125
million are employed, and 15 million are unemployed, what is the size of the labor
force? - answers140 million.
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 270
million people. What is the unemployment rate? - answers7.5 percent
Using the table above, the working-age population is - answers195 million
Using the table above, the number of people in the labor force is - answers175 million
Using the table above, the unemployment rate is - answers5.71 percent.
Which of the following would be considered a marginally attached worker? -
answersCarl, who isn't working and has not looked for work in 3 months because he
has been turned down for work when he last looked.
Discouraged workers are included in the calculation of the - answersworking-age
population
Rick lost his job as a logistics and distribution coordinator nearly three years ago. After
a long and failed search, Rick finally gives up and stops looking for a new job. Rick's
decision to suspend his job search causes the unemployment rate to ________ and the
labor force participation rate to _____ - answersdecrease; decrease.
,People who are working up to 34 hours per week but would like to work more are
considered - answersinvoluntary part-time workers.
Which of the following people would be considered unemployed? - answersVictoria,
who does not have job and has been actively searching for work, but turned down a job
paying less than she desired.
The unemployment rate generally ________ during recessions and generally ______
during expansions. - answersincreases;decreases.
Which of the following help explain the increase in the U.S. labor force participation rate
for women? - answersThere was an increase in the educational level of women.
Technological change in the home increased the time available for work outside the
home.
U-4, U-5 and U-6 are - answersall broader measures of the unemployment rate.
As firms search for the best employee to fill an opening and the unemployed search for
the job that best first their skills, the economy experiences - answersfrictional
unemployment
Which of the following would be considered unemployed as part of normal labor market
turnover? - answersHannah, who quit her job to find one that better suited her skills.
Charlotte, who started looking for a job upon graduation from high school.
Structural unemployment usually lasts ______ period of time _______ unemployment -
answersa longer; than frictional.
For twenty years, Jim was a customer service representative at a call center in
Minnesota. In order to save money, his firm moved the call center to India and laid off
Jim two years ago. Jim has been unable to find a similar job anywhere. Jim's
unemployment is best classified as - answersstructural.
John has been laid off from his job because of a general downturn in the economy.
John's unemployment is best classified as - answerscyclical.
At full employment there is no - answerscyclical unemployment.
The natural unemployment rate - answersincludes only frictional and structural
unemployment.
If the Federal government expands its support of education and retraining of workers
who have been unemployed for a relatively long length of time, which type of
unemployment would the education and retraining most likely be targeted? -
answersstructural.
, To measure the CPI, the BLS economic assistants check the prices of - answersabout
80,000 goods and services every month.
The items included in the CPI are - answersgoods and services consumed by the
typical urban household.
The CPI market basket - answersweighs the goods and services according to the
budget of an average urban household.
Which of the following changes would have the largest impact on the CPI? - answersa
one percent increase in the cost of housing.
In 2013, the reference base period for the CPI for the nation of Webot, a typical
consumer spent %30 on potatoes and $150 on steak. If the price of steak is $15 and the
price of potatoes is $1 then there are _______ units of steak and _____ units of
potatoes in the CPI market basket. - answers10;30
Suppose the CPI for this year is 133.7. This number means that - answersprices rose
33.7 percent over the base year.
Suppose that the cost of the CPI basket of goods and services rises from $137 in 2010.
which is the base year, to $159 in 2011. The CPI in 2011 is _________ and the inflation
rate from 2010 to 2011 is - answers116; 16 percent
The table above gives the CPI for a nation. Based on the table, we can determine that
the reference base period is - answers1998-2000
Suppose that last year, the price of strawberries was $2 and the price of milk was $1.
This year, the price of milk is $2 and the price of strawberries is $1. Which of the
following statements is true? - answersThe CPI might increase or decrease depending
on the quantities in the CPI market basket.
Suppose that the CPI basket contains only 40 heads of cauliflower and 60 bunches of
broccoli. If the price of cauliflower goes down by $1 per head and the price of broccoli
goes up by $1 per bunch, then - answersthe CPI increases.
In a small, agricultural nation, consumers buy only steak and potatoes. In 2009, the
base year, the typical consumer spent $50 on potatoes and $100 on steak. The price of
potatoes is $1 and the price of steak is $2 in 2009. In 2010, the price of potatoes is $2
and the price of steak is $1. The CPI for 2010 is - answers100.
When discussing the CPI, the term "commodity substitution bias" refers to changes in -
answersprices that lead households to change the items they buy.
