econ chp. 8

(Table: Price Levels) Look at the table Price Levels. What is the rate of inflation from 2012 to 2013? a) 6.4% b) 2.0% c) 4.5% d) 2.9%

2.0%

(Table: Population Data for Estill County) Look at the table Population Data for Estill County. If marginally attached workers are included, the labor force in Estill County is: a) 6,500. b) 7,400. c) 6,000. d) 5,500.

6,500

(Table: Population Data for Estill County) Look at the table Population Data for Estill County. What is the labor force participation rate? a) 64% b) 79% c) 17% d) 81%

81%

If the wage rate is $9 per hour and the price level is 2, then the real wage is: a) $7. b) $4.50. c) $18. d) $11.

$4.50

Which of the following most accurately describes how to calculate the unemployment rate? a) (Unemployed / employed) × 100 b) (Unemployed / labor force) × 100 c) (Unemployed / population) × 100 d) [(Unemployed - employed) / labor force] × 100 Save

(Unemployed / labor force) × 100

The consumer price index in 1979 was 72.6. In 1980 it was 82.4. What was the rate of inflation from 1979 to 1980? a) 11.89% b) 17.6% c) 9.8% d) 13.5%

13.5% Inflation in percent = (82.4 - 72.6) / 72.6 x 100 (new PI - oldPI)/ old PI x 100

In February 2012, the Bureau of Labor Statistics calculated the unemployment rate to be 8.3%. If frictional unemployment was 2% and structural unemployment was 3.2%, then cyclical unemployment was: a) 3.1%. b) 12.5%. c) 5.5%. d) 2.5%.

3.1%.

(Table: Employment Data) Look at the table Employment Data. The labor force is: a) 22 million. b) 31 million. c) 33 million. d) 32 million.

32 million.

One factor that raises the natural rate of unemployment is: a) the use of new technology in the workplace that increases labor productivity. b) the loss of labor union membership across industries. c) the loss of retirement funds, so that more people in the baby boom generation continue to work past the typical retirement age. d) a population boom that increases the number of young workers joining the labor force.

a population boom that increases the number of young workers joining the labor force.

The natural rate of unemployment will rise for all of the following reasons EXCEPT: a) more generous terms for unemployment compensation. b) a surge in the number of young and inexperienced workers. c) an increase in labor productivity that translates into greater demand for labor. d) an increase in union membership.

an increase in labor productivity that translates into greater demand for labor.

Deviations from the natural rate of unemployment are _____ unemployment. a) frictional b) structural c) random d) cyclical

cyclical

If the price level increases, real wages will: a) fluctuate randomly. b) decrease. c) remain constant. d) increase.

decrease.

As the average age of the labor force increased from the end of the 1970s to the end of the 1990s, the natural rate of unemployment: a) was unpredictable. b) increased. c) was unaffected. d) decreased.

decreased

Ron quit his job in retail management and moved to Florida with his wife, a physician who opened a new practice there. He was not successful in his job search for the next four months. Ron's unemployment is: a) cyclical. b) frictional. c) seasonal. d) structural

frictional

If more women enter or reenter the labor force, the natural rate of unemployment is likely to: a) remain unchanged. b) increase. c) decrease if they are well educated. d) decrease.

increase

If the actual inflation rate is less than the expected inflation rate: a) borrowers gain and lenders lose. b) everyone is worse off. c) lenders gain and borrowers lose. d) everyone benefits.

lenders gain and borrowers lose.

You are a college student and not working or looking for work. You are: a) not part of the labor force. b) in the labor force but not employed. c) unemployed. d) counted in the labor force as underemployed.

not part of the labor force.

Efficiency wages are: a) set above equilibrium wages to act as an incentive for better performance. b) market equilibrium wages. c) set below the equilibrium wage to increase profits. d) allowed to be below minimum wage.

set above equilibrium wages to act as an incentive for better performance.

The rate of unemployment when the economy is at full employment is: a) less than the full employment rate of unemployment. b) the natural rate. c) zero. d) the structural rate.

the natural rate.