ECON TEST 4
The items included in the CPI are
goods and services consumed by the typical urban household.
For the CPI to provide an accurate measure of the prices paid by urban consumers, it is necessary to
have a market basket that is consistent and corresponds to what households actually purchase.
Part-time workers are defined as people who are working
less than 35 hours per week.
The CPI is calculated by the Bureau of Labor Statistics on a frequency of every
month.
The inflation rate measures the
percentage change in the CPI from one year to the next year.
A marginally attached worker is
someone who does not have a job but is available and willing to work but has not made specific efforts to find a job during the past 4 weeks.
Frictional unemployment is the result of
the normal process of jobs being created and destroyed.
The CPI market basket
weights the goods and services according to the budget of an average urban household.
If the cost of the CPI market basket at current period prices is $1000 and the cost of the CPI market basket at base period prices is $250, the CPI is
400.
Janae was fired from her job with Microsoft in the 2008-09 recession because Microsoft's sales dipped. Janae's unemployment would be best classified as
cyclical unemployment.
During an expansion, the unemployment rate generally
falls.
The formula for the CPI is
(Cost of CPI market basket at current period prices ÷ Cost of CPI market basket at next year's prices) × 100.
The value of the CPI for the reference base period is always
100.
Suppose in year 1 the CPI is 90, in year 2 the CPI is 100, and in year 3 the CPI is 110. Then, inflation is
11 percent between years 1 and 2.
The reference base period that the BLS uses to measure the CPI is
1982-1984.
If the CPI this year is 240 and the CPI in the previous year was 200, what is the annual inflation rate?
20.0 percent
The highest unemployment rate in U.S. history was about
25 percent in 1933.
The CPI is a measure of the
average prices of all goods and services produced.
The CPI is a measure of the
average prices paid by consumers for a fixed basket of goods and services.
Cyclical unemployment includes people who become unemployed from
changes in the business cycle.
People who are willing and able to work but are not looking for work because they have been discouraged by their previous futile efforts are called
discouraged workers.
In the Current Population Survey, a person is considered unemployed if the person
does not have a job and is actively looking for a job.
Involuntary part-time workers are not working more hours due to
economic reasons.
In calculating the unemployment rate, part-time workers over the age of 16 are counted as
employed
Unemployment benefits in western Europe are more generous than in the United States. As a result, ________ in the United States.
frictional unemployment is lower
Jordan recently quit her job as a marketing consultant in Washington, D.C. and is looking for a better-paying job with an advertising agency in New York. Jordan is considered to be
frictionally unemployed.
Since 1980, the percentage of part-time workers who are part time for economic reasons
generally increased in recessions and decreased in expansions.
Since 1960, the labor force participation rate in the United States has
increased for women and decreased for men.
Phillip is a 22-year old who has no job and is available for work, but has not actively looked for a job in the last month. The Current Population Survey identifies Phillip as ________ , ________ the labor force, and ________ the working-age population.
not unemployed; not part of; part of
The labor force is the
number of employed people plus the number of unemployed people.
After 15 years with Ford Motor Corporation, one summer Cameron loses his job. His boss explained that his position has been downsized after the technological advances in automobile production.
structurally unemployed.
Structural unemployment is the result of
technology changes or foreign competition.