HOMEWORK2 - HOMEWORK 2 Name DUE ON MARCH 09 MULTIPLE...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 6
Background image of page 7
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: HOMEWORK 2 Name DUE ON MARCH 09 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Legalizing all forms of illegal activities A) reduces the size of the underground economy and increases GDP. B increases the size of the underground economy and lowers GDP. ) C) reduces both the underground economy and GDP. D) reduced GDP. 2) The number of people unemployed equals A the number of people employed minus the labor force. B the labor force plus the number of people employed. ) ) C) the number of people employed divided by the labor force. ) D the labor force minus the number of people employed. 3) Bob is unemployed if he A) is temporarily laid off. B) has looked for a job for two months and then quit looking. C) is not looking for a job. ) D A and C are correct. 4) The labor—force participation rate is the ratio of the A) number employed to total population. B) labor force to total population. C) labor force to the total population 16 years old or older. D) number employed to the total population 16 years old or older. E) number of people employed to the total number of people in the labor force. 5) Carla lost her job and immediately started looking for another job. As a result the A) labor force decreases. C) labor force increases. INTRODUCTION TO MACROECONOMICS B) unemployment rate increases. D) unemployment rate remains constant. SPRING 2010 3) 5) Refer to the information provided in Table 7.1 below to answer the questions that follow. Table 7.1 Employed 11,000 people Unemployed 2,500 people Not in the Labor Force 3.000 people 6) Refer to Table 7.1. The labor force equals A) 13,500. B) 15,500. C) 14,000. D) 16,000. 7) Refer to Table 7.1. The unemployment rate is A) 18.5%. B) 15.5%. C) 9.09%. D) 16.9%. 8) Refer to Table 7.1. The labor—force participation rate is A) 136.36%. B) 90.91%. C) 71.43%. D) 81.8%. 9) Refer to Table 7.1. The employment rate is A) 18.5%. B) 33.3%. C) 81.5%. D) 66.7%. Refer to the information provided in Table 7.2 below to answer the questions that follow. Table 7.2 Labor force participation rate 65% Total population 16 years of age and older 210 million Unemployment rate 5% 10) Refer to Table 7.2. The labor force A) equals 136.5 million. B) equals 150 million C) equals 75.5 million. D) cannot be determined from this information. 11) Refer to Table 7.2. The total number of people unemployed is A) 7.58 million. B) 9.54 million. C) 4.67 million. 12) Refer to Table 7.2. The total number of people employed is A) 126.96 million. B) 129.67 million. C) 131.83 million. D) 6.83 million. D) 128.92 million. 9) 10) 11) 12) 13) Refer to Table 7.2. The total population A) is 130.65 million. B) is 250.5 million C) is 210 million. D) cannot be determined from this information. 14) The number of people classified as employed is 220,000 and the number of people classified as unemployed is 30,000. The size of the labor force A) equals 250,000. B) equals 200,000. C) equals 300,000. D) cannot be determined from this information. 15) If the number of people classified as unemployed is 10,000 and the number of people classified as employed is 620,000, what is the unemployment rate? A) 6.2% B) 10.6% C) 16.6% D) 1.6% 16) If the unemployment rate is 3.85% and the number of people employed is 250,000, total number of people unemployed is around A) 25,000 people. B) 10,000 people. C) 15,000 people D) cannot be determined from this information 17) If the labor force is 250,000 and the total population 16 years of age or older is 300,000, the labor—force participation rate is A) 79.5%. B) 80.9%. C) 75.6%. D) 83.3%. 18) If the labor—force participation rate is 85% and the total population 16 years of age or older is 1 million people, the labor force is A) 80,000 people. B) 850,000 people. C) 280,000 people. 19) When an individual quits his/her job and decides to stay at home for a while, the labor—force participation rate A stays the same. B may increase or decrease, depending on the length of time he/she stays at home. ) ) C) increases. ) D decreases. C») D) 180,000 people. 13) 14) 15) 16) 17) 18) 19) 20) Mike has just graduated from college and is now looking for a job, but has not yet found one. This causes the unemployment rate to and the labor—force participation rate to A) stay the same; stay the same B) increase; increase C) increase; stay the same D) increase; decrease 21) In June there are 30,000 people classified as unemployed and the size of the labor force is 600,000. The only change between June and July is that 10,000 of the unemployed give up looking for work. Which of the following is true? A) In June the unemployment rate was 6% and in July the unemployment rate was 3.8%. B) In June the unemployment rate was 3.8% and in July the unemployment rate was 6%. C) In June the unemployment rate was 5% and in July the unemployment rate was 3.39%. D) The unemployment rate in both June and July was 5%. 22) Classifying discouraged workers as unemployed would A) increase the unemployment rate. B) decrease the unemployment rate. C) have an indeterminate impact on the unemployment rate. ) D not change the unemployment rate. 23) The Humphrey-Hawkins Act formally established a specific unemployment target for the economy of A) 8%. B) 4%. C) 6%. D) 2%. 24) During recessions, the number of discouraged workers unemployment rate. and this the A) increases; reduces C) falls; reduces B) decreases; increases D) increases; increases 25) Frictional unemployment arises because A) the economy is in a recession. B) those who seek employment are not qualified to perform the jobs they are looking for. C) there is no job for those who seek employment. D) there is a job for those who seek employment, but they haven't found it yet. 26) An auto worker in Ohio who loses her job because the company relocated the plant in another country represents an example of A) cyclical unemployment. B) frictional unemployment. C) natural unemployment. D) structural unemployment. 20) 21) 22) 23) 24) 25) 26) 27) An individual who cannot find a job because his or her job skills have become obsolete is an example of A) structural unemployment. B) cyclical unemployment. C) frictional unemployment. D) seasonal unemployment. 28) Estimates for the natural rate of unemployment in the United States range from A) 4% to 6%. B) 4% to 8%. C) 4% to 5%. D) 4% to 10%. 29) The demand for refrigerators falls when the economy enters a downturn. If a refrigerator manufacturer lays off workers during an economic downturn, this would be an example of A) frictional unemployment. B) cyclical unemployment. C) structural unemployment. D) natural unemployment. 30) The economy is in a recession and the housing market is in a slump. As a result of this, a real estate firm lays off half of its real estate agents. This is an example of A) structural unemployment. B) natural unemployment. C) frictional unemployment. D) cyclical unemployment. 31) The computes the CPI each month, using a bundle of goods meant to represent the "market basket” purchased monthly by a typical consumer. A) Department of Commerce; rural B) Bureau of Labor Statistics; rural C) Federal Reserve System; urban D) Bureau of Labor Statistics; urban E) Federal Reserve System; rural Refer to the information provided in Table 7.4 below to answer the questions that follow. Table 7.4 Price per Unit in Units Purchased 2001 2002 2003 Good A 5 $1.00 $1.50 $1.50 Good B 12 $2.00 $2.50 $3.00 Good C 6 $4.00 $4.50 $5.00 32) Refer to Table 7.4. The bundle price for the goods in period 2001 is A) $53. B) $100. C) $73.5. D) $64.5. 33) Refer to Table 7.4. If 2001 is the base period, the price index in 2001 is A) 100. B) 1000. C) 10. D) 1 U] 27) 28) 29) 30) 31) 32) 33) 34) Refer to Table 7.4. If 2001 is the base year, the price index in 2002 is A) 112.6. B) 100.3. C) 109.4. D) 121.7. 35) Refer to Table 7.4. If 2001 is the base year, the price index in 2003 is A) 13.78. B) 138.7. C) 1.387. D) 130.78. 36) Refer to Table 7.4. If 2001 is the base year, the inflation rate between 2001 and 2002 is A) 38.7%. B) 30.7%. C) 3.78%. D) 21.7%. 37) Refer to Table 7.4. If 2001 is the base year, the inflation rate between 2001 and 2003 is A) 38.7%. B) 3.87%. C) 380.7%. D) 30.8%. 38) Refer to Table 7.4. If 2002 is the base year, the inflation rate between 2002 and 2003 is A) 15.9%. B) 17.4%. C) 16.5%. D) 14.0%. 39) The broadest—based price index available is the A) wholesale price index. B) producer price index. C) consumer price index. D) GDP deflator. 40) The difference between the interest rate on a loan and the inflation rate is the A) inflation premium. B) expected interest rate. C) real interest rate. D) nominal interest rate. 41) You want to make a 5% real return on a loan that you are planning to make, and the expected inflation rate during the period of the loan is 6%. You should charge a nominal interest rate of A) 11%. B) 9%. C) 1%. D) —9%. 42) If A. Jackson is paid an interest rate of 10% on his savings, but the inflation rate is 20%, the real interest rate is A) -10%. B) 20%. C) 10%. D) —20%. 43) If the inflation rate is smaller than the nominal interest rate, the real interest rate is A) zero. B) positive. C) negative. D) either positive or zero. 44) The CPI in period 1 is 150 and the CPI in period 2 is 200. The rate of inflation between period 1 and period 2 is A) 14.28%. B) 25%. C) 33.33%. D) 50%. 34) 36) 37) 38) 39) 40) 41) 42) 43) 45) The producer price index measures 4.5) A) goods consumers typically purchase. B) prices of finished goods. C) consumer goods. D) prices that producers receive for products at all stages in production process. E) wholesale goods. 46) An unanticipated increase in inflation will 46) A) benefit debtors. B) benefit creditors. C) hurt debtors. D) hurt creditors. E) benefit neither creditors or debtors. 47) If Jack received a $1,000 bonus and his MP5 is 0.15, his consumption rises by $ and his 47) saving rises by $ A) 150; 500 B) 1,000; 150 C) 850; 150 D) 150; 850 48) Uncertainty about the future is likely to 48) A) have no impact on current spending. B) increase current spending. C) decrease current spending. D) either increase or decrease current spending. 49) Higher interest rates are likely to 49) A) have no effect on consumer spending or saving. B) decrease both consumer spending and consumer saving. C) decreases consumer spending and increase consumer saving. D) increase consumer spending and decrease consumer saving. 50) If the MP8 is .15, MPC 50) A) is .85. B) is .15. C) is 1.15. D) cannot be determined by the given information. ...
View Full Document

Page1 / 7

HOMEWORK2 - HOMEWORK 2 Name DUE ON MARCH 09 MULTIPLE...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online