econ review 6

U.S. steelworkers who have lost their job to workers receiving lower wages overseas are part of unemployment.

structural

During the 1970s, when handheld calculators became popular and replaced slide rules in performing computations, workers in the slide rule industry lost their jobs. These workers' unemployment status is:

structural.

Jill has an escalator clause in her labor contract that gives her a raise commensurate with the consumer price index (CPI). Last year she earned $40,000 and the CPI was 100. If the CPI this year is 110, her new salary is:

$44,000.

There are 15 million people living in Marketstan, of whom 9 million are working and I million are actively looking for work. What is Marketstan's unemployment rate?

10%

Which of the following would be included in the consumer price index?

A payment made by you to your doctor.

Which of the following statements is NOT correct?

Discouraged workers are considered underemployed.

All of the following types of wages can cause unemployment EXCEPT:

Equilibrium wages

Robert lost his job and now takes care of the children while his wife works. Robert has decided he likes his daddy duties. Robert would take a job similar to the one he lost if it was offered, but he is not actively seeking work. How is Robert categorized in the unemployment figures?

Robert is not part of the labor force.

Which of the following persons is considered lo be unemployed?

Tiffany, who is going on interviews, hoping to get her first job

The key to being counted as unemployed by the Bureau of Labor Statistics is to be:

actively seeking work

In 2012, the group with the LOWEST unemployment rate in the United States was:

college graduates and higher.

Suppose that anticipated inflation is 4% for the coming year, with loan contracts set at 7% in the expectation of a 3% return after inflation. If the actual inflation rate at the end of the year is 2%:

creditors gain at debtors' expense.

Which of the following pairs is NOT synonymous?

cyclical unemployment and full employment

Workers who want to work but have been frustrated by the inability to find work and have stopped searching are known as:

discouraged workers.

If the rate of inflation decreases from 5% to 3%, the economy is undergoing:

disinflation

Frictional unemployment occurs when job openings:

exist, and people are willing to take them, but it takes some time to bring the two together.

For your purchasing power to stay the same, your wages must:

increase at the same rate as inflation.

Inflation has significant long-run effects on the economy because:

it distorts the price signal and produces incentives for speculation.

Most economists believe that the consumer price index ___ the rate of inflation.

overstates

The price of feed corn would be included in the:

producer price index.

janet is receiving a 5% pay raise. If the rate of inflation is 2%, then .Janet's purchasing power is:

rising

The labor force is defined as:

the total number of the employed and unemployed.