unit 3 quiz econ

Collective bargaining refers to

the process by which unions and firms agree on the terms of employment.

Refer to Table 24-4. Will's Year 1 food expenditures in Year 2 dollars amount to

$5,250.

Refer to Table 28-4. If the local government imposed a minimum wage of $7 in Productionville, how many people would be unemployed?

5000

Wanda quit her job because she was unhappy at work. Arnold was laid off from his landscaping job because his company was downsizing. Who is eligible for unemployment insurance benefits?

Arnold but not Wanda

Esmerelda worked part-time for her mother's business without pay. Tabitha was absent from work because she had strep throat. Who is counted as "employed" by the Bureau of Labor Statistics?

Both Esmerelda and Tabitha

Refer to Table 28-2. Suppose that the natural rate of unemployment is 5% for those under 55 and 3% for those 55 and older. The cyclical unemployment rate for those under 55 is

a. 0.88%, which is less than the cyclical unemployment rate for those 55 and older.

Refer to Table 24-1. The cost of the basket in Year 1 was

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The steps involved in calculating the consumer price index and the inflation rate, in order, are as follows:

b. Fix the basket, find the prices, compute the basket's cost, choose a base year and compute the index, and compute the inflation rate.

The producer price index measures the cost of a basket of goods and services

bought by firms.

public policy

can reduce both frictional unemployment and the natural rate of unemployment.

The Carters' oldest son attends Big State University. He and his parents pay all his fees and tuition. These payments count in GDP as

consumption of services.

Refer to Table 28-2. In the proper order, which age group has the highest unemployment rate and which has the highest labor-force participation rate?

d. 55 and older, under 55

According to the circular-flow diagram GDP, can be computed as

d. either the revenue firms receive from the sales of goods and services or the payments they make to factors of produc

In the early 1900s, Henry Ford introduced a

d. high-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory.

Because every transaction has a buyer and a seller,

every transaction contributes equally to an economy's income and to its expenditure.

Social Security payments are

excluded from GDP because they do not reflect the economy's production.

For any given year, the CPI is the price of the basket of goods and services in the

given year divided by the price of the basket in the base year, then multiplied by 100.

Disposable personal income is the income that

households and noncorporate businesses have left after paying taxes and non-tax payments to the government.

The labor-force participation rate measures the percentage of the

labor force that is either employed or unemployed.

Refer to Table 23-3. What was the growth rate of real GDP for 1930?

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Sheila is on a temporary layoff from her automobile factory job but has not looked for work in the last four weeks. The Bureau of Labor Statistics counts Sheila as

unemployed and in the labor force.

If the consumer price index was 96 in Year 1, 100 in Year 2, and 102 in Year 3, then the base year must be

year 2