Quiz 3

The price index was 220 in one year and 238.2 in the next year. What was the inflation rate?

8.3 percent

What basket of goods and services is used to construct the CPI?

The goods and services that are typically bought by consumers as determined by government surveys

Which of the following includes everyone in the adult population that the Bureau of Labor Statistics counts as "unemployed"?

anyone who is not employed, is available for work, has looked for work in the past four weeks, and anyone who is waiting to be recalled from a job from which they have been laid off

Which of the following is correct? a. The labor-force participation rate of women has increased in part due to smaller families. b. Both of the other answers are correct. c. The labor-force participation rate of men has decreased in part due to men retiring younger and living longer.

b. Both of the other answers are correct.

The inflation rate is calculated by

determining the percentage change in the price index from the preceding period.

Rosa deposits $100 in a bank account that pays an annual interest rate of 20 percent. A year later, after Rosa has accumulated $20 in interest, she withdraws her $120. Rosa's purchasing power

did not change if the inflation rate was 20 percent.

The unemployment rate is computed as the number of unemployed

divided by the labor force, all times 100.

To be counted as "employed" in the U.S. labor force statistics, a person

does not have to be working for pay if they are working for a family business and does not have to be working full time

You know that a candy bar costs sixty cents today. You also know the CPI for 1962 and the CPI for today. Which of the following would you use to compute the price of the candy bar in 1962 prices?

sixty cents x (1962 CPI / today's CPI)

Unemployment data are collected

through a regular survey of about 60,000 households.