CHAPTER 8. Practise Problems
|
|
- Roderick Hoover
- 7 years ago
- Views:
Transcription
1 CHAPTER 8 Practise Problems 1. The labor force is: A) the total of people employed. B) the total population. C) the total of the population of working age. D) the total of people employed and unemployed. 2. To be counted as unemployed, one must: A) have had a job previously. B) be out of work and be actively looking for a job. C) have had a job before and be actively looking for work. D) be actively looking for a job and have at least a high-school diploma or its equivalent. 3. If a country has a working-age population of 200 million, 135 million people with jobs, and 15 million people unemployed and seeking employment, then its unemployment rate is: A) 4%. B) 7.5%. C) 10%. D) 67.5%. 4. If a country has a working-age population of 200 million, 135 million people with jobs, and 15 million people unemployed and seeking employment, then its labor force is: A) 335 million. B) 200 million. C) 155 million. D) 150 million. 5. A person who is not working and is not looking for work is: A) included in the unemployment rate. B) underemployed. C) a member of the labor force who is not working. D) not counted in the unemployment statistics. Page 1
2 6. The labor force is considered to be: A) everyone who is employed. B) everyone who is employed plus everyone who is unemployed. C) the population of the nation. D) those not frictionally unemployed plus all others employed. 7. The percentage of the labor force that is unemployed is the: A) labor force participation rate. B) employment ratio. C) unemployment rate. D) natural employment rate. 8. In order to be officially unemployed, a person must be: A) looking for work in the past four weeks. B) under 55 years old. C) frictionally unemployed. D) structurally unemployed. 9. A survey reveals that on a small island 100 people have jobs, 25 people are looking for jobs, and 45 people are neither working nor looking for work. The unemployment rate on the island is: A) 12.5%. B) 20%. C) 25%. D) 50%. 10. The country of Livonia has an adult population of 100 million; 60% of Livonia's population is employed, but 10% of the people are unemployed. The labor force participation rate in Livonia is: A) 70%. B) 60%. C) 7%. D) 10%. 11. If the rate of unemployment is 10% and the labor force is 130 million, the number of unemployed workers is: A) 10%. B) 13 million. C) 10 million. D) impossible to determine with the above information. Page 2
3 Use the following to answer questions 12-14: 12. (Table: Labor Force Data) Using the data from the accompanying table, suppose the labor force participation rate is 70%. The labor force is equal to: A) 1,200 million. B) 50 million. C) 105 million. D) 400 million. 13. (Table: Labor Force Data) Using the data from the accompanying table, suppose the labor force participation rate is 70%. The number of unemployed adults is: A) 8 million. B) 53 million. C) 103 million. D) 50 million. 14. (Table: Labor Force Data) If the labor force participation rate in this economy is 70 percent, the unemployment rate is: A) 7.6%. B) 5% C) 4%. D) 3%. Use the following to answer questions 15-16: Page 3
4 15. (Table: Labor Force Distribution) Based on the accompanying table, the total population is: A) 486 million. B) 253 million. C) 278 million. D) 283 million. 16. (Table: Labor Force Distribution) Based on the accompanying table, the unemployment rate is: A) 3.85%. B) 10%. C) 4.55%. D) 6.75%. 17. Economists claim that the unemployment rate can understate the true level of unemployment because none of the following groups is included, except: A) discouraged workers. B) marginally attached workers. C) underemployed workers. D) workers without jobs who have looked for work in the last four weeks. 18. Jim has a part-time job and would prefer to have a full-time job but has been unable to find full-time work. Jim is classified as: A) a discouraged worker. B) an underemployed worker. C) an unemployed worker. D) out of the labor force. 19. Which federal agency calculates and reports the official unemployment rate? A) Federal Reserve Bank B) Treasury Department C) Department of Health and Human Services D) Bureau of Labor Statistics 20. During a recession: A) unemployment and the growth rate of real GDP both decrease. B) unemployment decreases and the growth rate of real GDP increases. C) unemployment increases and the growth rate of real GDP decreases. D) there is no relation between unemployment and the growth rate of real GDP. Page 4
5 21. Periods of recession are likely to be marked by: A) rising unemployment. B) constant unemployment. C) increasing employment. D) constant employment. Use the following to answer questions 22-25: Table: Unemployment and Employment Data 22. (Table: Unemployment and Employment Data) According to the accompanying table, the unemployment rate for this economy is: A) 2.9%. B) 4.8%. C) 5%. D) 5.3%. 23. (Table: Unemployment and Employment Data) The labor force in this economy is: A) 170 million. B) 140 million. C) 100 million. D) 98 million. 24. (Table: Unemployment and Employment Data) If marginally attached workers are included, the labor force in this economy is: A) 170 million. B) 103 million. C) 100 million. D) 98 million. Page 5
6 25. (Table: Unemployment and Employment Data) If marginally attached workers are included in the labor force and in the unemployment rate, the unemployment rate in this economy is: A) 8.4%. B) 7.8% C) 5%. D) 3%. 26. Frictional unemployment exists because of all of the following reasons EXCEPT: A) that new jobs are continually being created. B) that some old jobs are always being destroyed. C) that new workers are always entering the labor market. D) for the minimum wage. 27. 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 known as: A) structural unemployment. B) cyclical unemployment. C) frictional unemployment. D) seasonal unemployment. 28. The labor supply curve is positively sloped because: A) more people are willing to work at lower wages than at higher wages. B) more people are willing to work at higher wages than at lower wages. C) employers are willing to hire more people at lower wages. D) employers are willing to hire more people at higher wages. 29. All of the following create structural unemployment EXCEPT: A) a government-mandated price ceiling on the price of labor set above the equilibrium wage. B) collective bargaining efforts that secure higher wages for unionized workers than for nonunionized workers. C) offering high wages in order to attract high-quality workers. D) granting Social Security benefits to laid-off workers. Page 6
7 Use the following to answer questions 30-35: Figure: The Minimum Wage 30. (Figure: The Minimum Wage) Look at the accompanying figure on the labor market. Which of the following is a binding minimum wage? A) P1. B) P2. C) P3. D) zero. 31. (Figure: The Minimum Wage) Look at the accompanying figure on the labor market. What is the quantity of labor demanded at a binding minimum wage of P3? A) Q1. B) Q2. C) Q3. D) Q (Figure: The Minimum Wage) Look at the accompanying figure on the labor market. What is the quantity of labor supplied at a binding minimum wage of P3? A) Q1. B) Q2. C) Q3. D) Q4. Page 7
8 33. (Figure: The Minimum Wage) Look at the accompanying figure on the labor market. The binding minimum wage of P3 leads to unemployment of: A) Q3 Q1. B) Q3 Q2. C) Q4 Q1. D) Q4 Q (Figure: The Minimum Wage) Look at the accompanying figure on the labor market. By how much does the quantity of labor supplied rise when the government imposes a binding minimum wage of P3? A) Q4 Q1. B) Q3 Q2. C) Q2 Q1. D) Q4 Q (Figure: The Minimum Wage) Look at the accompanying figure on the labor market. By how much does the quantity of labor demanded fall when the government imposes a binding minimum wage of P3? A) Q4 Q1. B) Q3 Q2. C) Q2 Q1. D) Q4 Q2. Use the following to answer questions 36-38: Figure: The Effect of a Minimum Wage Page 8
9 36. (Figure: The Effect of a Minimum Wage) Suppose the labor market is in equilibrium at E when the government imposes a minimum wage of WF. One problem that may arise is that the quantity of labor supplied would, resulting in structural unemployment. A) decrease to QD B) stay at QE C) increase to QS D) stay at WE 37. (Figure: The Effect of a Minimum Wage) Suppose the labor market is in equilibrium at E when the government imposes a minimum wage of WF. Structural unemployment will equal: A) QS QD. B) QE QD. C) QS QE. D) zero. 38. (Figure: The Effect of a Minimum Wage) Suppose that after some time with a minimum wage of WF, the government abolishes the minimum wage. Employment would: A) decrease to QE. B) increase to QE. C) stay at QE. D) be impossible to determine. 39. Cyclical unemployment: A) rises during a recession. B) falls during a recession. C) rises during an expansion. D) is a part of natural unemployment. 40. The natural level of unemployment contains no unemployment. A) minority B) structural C) frictional D) cyclical Page 9
10 41. In February of 2012, the Bureau of Labor Statistics calculated the unemployment rate to be 8.3%. If frictional unemployment was 3.1% and structural unemployment was 3.2%, then the natural rate of unemployment would be: A) 4.5%. B) 2.0%. C) 1%. D) 5.5%. 42. Over the past year, Eli has been working very hard. His employer has taken notice and is giving Eli a 6% raise in salary. During this past year, overall prices in the economy have increased by 4%. Given this information, Eli's real wage has: A) stayed constant. B) increased by 6%. C) increased by 2%. D) decreased by 4%. Use the following to answer question 43: 43. (Table: The Consumer Price Index (CPI)) According to the accompanying table, the inflation rate between 2011 and 2012 is: A) 10%. B) 3%. C) 1.4%. D) 24.6%. 44. (Table: The Consumer Price Index (CPI)) According to the accompanying table, the consumer price index in 2009 was In 2010, it was What was the rate of inflation from 2009 to 2010? A) 12.2% B) 4.5% C) 2.1% D) 16.7% Page 10
11 45. Shoe-leather costs refer to the costs of: A) the raw material used in production. B) the increased number of transactions as inflation increases. C) living adjustments as inflation increases. D) the raw material used in production, the increased number of transactions as inflation increases, and living adjustments as inflation increases. 46. The costs that arise from the way inflation makes money a less reliable unit of measurement are known as: A) shoe-leather costs. B) menu costs. C) unit-of-account costs. D) medium of exchange costs. 47. Suppose that a country has a progressive income tax code, where taxable income is calculated in nominal terms but the schedule of income tax rates is NOT indexed to inflation. An individual whose income keeps up with inflation will find that over time he or she she will pay: A) the alternative minimum tax. B) a lower percentage of income in taxes over time. C) the same percentage of income in taxes over time. D) a higher percentage of income in taxes over time. 48. Menu costs of inflation are the: A) costs associated with money being a less reliable unit of measurement. B) costs of transactions associated with avoiding the inflation tax. C) costs associated with businesses changing prices. D) revenue the government gets from printing money. 49. Unit-of-account costs refer to the: A) increase in prices during inflation. B) decrease in the value of money during inflation. C) loss of the reliability of money as a relative unit of measurement. D) increased costs of servicing bank accounts during inflation. 50. During rapid price inflation, firms must frequently change prices. The cost of changing listed prices is known as the: A) menu cost. B) real interest rate cost. C) shoe-leather cost. D) unit-of-account cost. Page 11
12 Use the following to answer questions 51-55: Figure: The Labor Market 51. (Figure: The Labor Market) Refer to the accompanying figure on the labor market. The equilibrium wage rate is: A) $16. B) $15. C) $14. D) $ (Figure: The Labor Market) Refer to the accompanying figure on the labor market. The level of employment at the equilibrium wage rate is: A) 80,000. B) 110,000 C) 100,000. D) 90, (Figure: The Labor Market) Refer to the accompanying figure on the labor market. The size of the labor force at equilibrium wage rate is: A) 80,000. B) 110,000. C) 100,000. D) 200,000. Page 12
13 54. (Figure: The Labor Market) Refer to the accompanying figure on the labor market. The unemployment rate at the equilibrium wage rate is: A) 0%. B) 50%. C) 80%. D) 15%. 55. (Figure: The Labor Market) Refer to the accompanying figure on the labor market. What will be the level of employment if firms decide to pay an efficiency wage of $16? A) 80,000 B) 100,000 C) 110,000 D) 200,000 Page 13
4. The statistics and data on unemployment are gathered and reported: A) daily. B) weekly. C) monthly. D) yearly.
Exam 1 inclass review for exam 1 (2) 1. To be counted as unemployed, one must: A) have had a job previously. B) be out of work and be actively looking for a job. C) have had a job before and be actively
More informationBUSINESS ECONOMICS CEC2 532-751 & 761
BUSINESS ECONOMICS CEC2 532-751 & 761 PRACTICE MACROECONOMICS MULTIPLE CHOICE QUESTIONS Warning: These questions have been posted to give you an opportunity to practice with the multiple choice format
More informationEcon 202 Final Exam. Table 3-1 Labor Hours Needed to Make 1 Pound of: Meat Potatoes Farmer 8 2 Rancher 4 5
Econ 202 Final Exam 1. If inflation expectations rise, the short-run Phillips curve shifts a. right, so that at any inflation rate unemployment is higher. b. left, so that at any inflation rate unemployment
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Suvey of Macroeconomics, MBA 641 Fall 2006, Final Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Modern macroeconomics emerged from
More informationNews. The Real Wage. Wages, Labor Markets and Unemployment. Organizing Theme Five Labor Market Trends
Wages, Labor Markets and Unemployment News Item Five Important Labor Market Trends Demand for and upply of Labor Real Wages Grow Primarily because Workers Become More ive Explaining Wage Inequality Unemployment
More informationLECTURE NOTES ON MACROECONOMIC PRINCIPLES
LECTURE NOTES ON MACROECONOMIC PRINCIPLES Peter Ireland Department of Economics Boston College peter.ireland@bc.edu http://www2.bc.edu/peter-ireland/ec132.html Copyright (c) 2013 by Peter Ireland. Redistribution
More informationEconomics 212 Principles of Macroeconomics Study Guide. David L. Kelly
Economics 212 Principles of Macroeconomics Study Guide David L. Kelly Department of Economics University of Miami Box 248126 Coral Gables, FL 33134 dkelly@miami.edu First Version: Spring, 2006 Current
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Econ 111 Summer 2007 Final Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The classical dichotomy allows us to explore economic growth
More informationINTRODUCTION TO MACROECONOMICS MIDTERM- SAMPLE QUESTIONS
INTRODUCTION TO MACROECONOMICS MIDTERM- SAMPLE QUESTIONS MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) In May 2009, Ford Motor Company's sales
More informationAnswer: A. Answer: A.16. Use the following to answer questions 6-9:
1. The rate of economic growth is best defined as the: A) percentage increase in real GDP over time. B) increase in investment as a percentage of GDP over time. C) percentage increase in consumption expenditures
More informationChapter 3 Productivity, Output, and Employment
Chapter 3 Productivity, Output, and Employment Multiple Choice Questions 1. A mathematical expression relating the amount of output produced to quantities of capital and labor utilized is the (a) real
More informationPrinciples of Macro - Fall 2008 - EXAM 2
Principles of Macro - Fall 2008 - EXAM 2 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. Which of the following is true? a. Although levels
More informationCHAPTER 23 FISCAL POLICY: COPING WITH INFLATION AND UNEMPLOYMENT
CHAPTER 23 FISCAL POLICY: COPING WITH INFLATION AND UNEMPLOYMENT Chapter in a Nutshell To say that an economy is in equilibrium tells us very little about the general state of the economy. The model showing
More informationThe labor market. National and local labor markets. Internal labor markets. Primary and secondary labor markets. Labor force and unemployment
The labor market The labor market differs from most product markets in several important ways. Among these differences are: labor services are rented, not sold, labor productivity is affected by pay and
More informationHouseholds Wages, profit, interest, rent = $750. Factor markets. Wages, profit, interest, rent = $750
KrugmanMacro_SM_Ch07.qxp 11/9/05 4:47 PM Page 87 Tracking the Macroeconomy 1. Below is a simplified circular-flow diagram for the economy of Micronia. a. What is the value of GDP in Micronia? b. What is
More informationMultiple Choice Identify the choice that best completes the statement or answers the question.
Unit 2 review Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Which of the following is false about the circular-flow diagram? A. Households are the primary
More informationChapter: Practice Exam for Macro Indicators. Instruction: Name: Date: Multiple Choice
Chapter: Practice Exam for Macro Indicators Instruction: Name: Date: Multiple Choice 1. GDP does not include A) vegetables grown and consumed by a nonfarm family. B) the purchase of a new Porsche. C) the
More informationChapter 12 Unemployment and Inflation
Chapter 12 Unemployment and Inflation Multiple Choice Questions 1. The origin of the idea of a trade-off between inflation and unemployment was a 1958 article by (a) A.W. Phillips. (b) Edmund Phelps. (c)
More informationExam 1 Review. 3. A severe recession is called a(n): A) depression. B) deflation. C) exogenous event. D) market-clearing assumption.
Exam 1 Review 1. Macroeconomics does not try to answer the question of: A) why do some countries experience rapid growth. B) what is the rate of return on education. C) why do some countries have high
More informationEcon 202 Section 4 Final Exam
Douglas, Fall 2009 December 15, 2009 A: Special Code 00004 PLEDGE: I have neither given nor received unauthorized help on this exam. SIGNED: PRINT NAME: Econ 202 Section 4 Final Exam 1. Oceania buys $40
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) It is efficient to produce an additional shirt if A) the marginal benefit of producing the shirt
More informationAssignment #3. ECON 410.502 Macroeconomic Theory Spring 2010 Instructor: Guangyi Ma. Notice:
ECON 410.502 Macroeconomic Theory Spring 2010 Instructor: Guangyi Ma Assignment #3 Notice: (1) There are 25 multiple-choice problems and 2 analytic (short-answer) problems. This assignment is due on March
More informationEC2105, Professor Laury EXAM 2, FORM A (3/13/02)
EC2105, Professor Laury EXAM 2, FORM A (3/13/02) Print Your Name: ID Number: Multiple Choice (32 questions, 2.5 points each; 80 points total). Clearly indicate (by circling) the ONE BEST response to each
More informationCH 10 - REVIEW QUESTIONS
CH 10 - REVIEW QUESTIONS 1. The short-run aggregate supply curve is horizontal at: A) a level of output determined by aggregate demand. B) the natural level of output. C) the level of output at which the
More informationMiami Dade College ECO 2013.003 Principles of Macroeconomics - Fall 2014 Practice Test #2
Miami Dade College ECO 2013.003 Principles of Macroeconomics - Fall 2014 Practice Test #2 1. Whose analysis serves as the foundation of modern macroeconomics? A) Milton Friedman B) John Maynard Keynes
More informationThe Aggregate Demand- Aggregate Supply (AD-AS) Model
The AD-AS Model The Aggregate Demand- Aggregate Supply (AD-AS) Model Chapter 9 The AD-AS Model addresses two deficiencies of the AE Model: No explicit modeling of aggregate supply. Fixed price level. 2
More informationMacroeconomics, Fall 2007 Exam 3, TTh classes, various versions
Name: _ Days/Times Class Meets: Today s Date: Macroeconomics, Fall 2007 Exam 3, TTh classes, various versions Read these Instructions carefully! You must follow them exactly! I) On your Scantron card you
More informationLABOR UNIONS. Appendix. Key Concepts
Appendix LABOR UNION Key Concepts Market Power in the Labor Market A labor union is an organized group of workers that aims to increase wages and influence other job conditions. Craft union a group of
More informationChapter 11: Activity
Economics for Managers by Paul Farnham Chapter 11: Measuring Macroeconomic Activity 11.1 Measuring Gross Domestic Product (GDP) GDP: the market value of all currently yproduced final goods and services
More informationMICROECONOMIC PRINCIPLES SPRING 2001 MIDTERM ONE -- Answers. February 16, 2001. Table One Labor Hours Needed to Make 1 Pounds Produced in 20 Hours
MICROECONOMIC PRINCIPLES SPRING 1 MIDTERM ONE -- Answers February 1, 1 Multiple Choice. ( points each) Circle the correct response and write one or two sentences to explain your choice. Use graphs as appropriate.
More informationI. Introduction to Aggregate Demand/Aggregate Supply Model
University of California-Davis Economics 1B-Intro to Macro Handout 8 TA: Jason Lee Email: jawlee@ucdavis.edu I. Introduction to Aggregate Demand/Aggregate Supply Model In this chapter we develop a model
More informationUse the following to answer question 9: Exhibit: Keynesian Cross
1. Leading economic indicators are: A) the most popular economic statistics. B) data that are used to construct the consumer price index and the unemployment rate. C) variables that tend to fluctuate in
More informationUnemployment. Context and Purpose. Chapter Review. Learn about the data used to measure the amount of unemployment
In this chapter you will Learn about the data used to measure the amount of unemployment Unemployment Context and Purpose Chapter 28 is the fourth chapter in a four-chapter sequence on the level and growth
More informationChapter 8 Application: The Costs of Taxation
Chapter 8 Application: The Costs of Taxation Review Questions What three factors must be taken into account in order to fully understand the effect of taxes on economic well-being? ANSWER: In order to
More informationhttp://angel.bfwpub.com/section/content/default.asp?wci=pgt...
Hmwk 10 1. Which of the following people are counted as unemployed? A. a person who wants to work but stopped searching six months ago B. a person out of work but actively searching for work C. a person
More informationChapter 6 Supply, Demand, and Government Policies
Chapter 6 Supply, Demand, and Government Policies Review Questions Using supply-demand diagrams, show the difference between a non-binding price ceiling and a binding price ceiling in the wheat market.
More information4. Answer c. The index of nominal wages for 1996 is the nominal wage in 1996 expressed as a percentage of the nominal wage in the base year.
Answers To Chapter 2 Review Questions 1. Answer a. To be classified as in the labor force, an individual must be employed, actively seeking work, or waiting to be recalled from a layoff. However, those
More informationChapter 13. Aggregate Demand and Aggregate Supply Analysis
Chapter 13. Aggregate Demand and Aggregate Supply Analysis Instructor: JINKOOK LEE Department of Economics / Texas A&M University ECON 203 502 Principles of Macroeconomics In the short run, real GDP and
More informationBADM 527, Fall 2013. Midterm Exam 2. Multiple Choice: 3 points each. Answer the questions on the separate bubble sheet. NAME
BADM 527, Fall 2013 Name: Midterm Exam 2 November 7, 2013 Multiple Choice: 3 points each. Answer the questions on the separate bubble sheet. NAME 1. According to classical theory, national income (Real
More informationMacroeconomics 2301 Potential questions and study guide for exam 2. Any 6 of these questions could be on your exam!
Macroeconomics 2301 Potential questions and study guide for exam 2 Any 6 of these questions could be on your exam! 1. GDP is a key concept in Macroeconomics. a. What is the definition of GDP? b. List and
More information14.02 Principles of Macroeconomics Problem Set 1 Fall 2005 ***Solution***
Part I. True/False/Uncertain Justify your answer with a short argument. 14.02 Principles of Macroeconomics Problem Set 1 Fall 2005 ***Solution*** Posted: Monday, September 12, 2005 Due: Wednesday, September
More informationTHE ECONOMY AT FULL EMPLOYMENT. Objectives. Production and Jobs. Objectives. Real GDP and Employment. Real GDP and Employment CHAPTER
THE ECONOMY AT 29 FULL EMPLOYMENT CHAPTER Objectives After studying this chapter, you will able to Describe the relationship between the quantity of labour employed and real GDP Explain what determines
More informationECON 3312 Macroeconomics Exam 3 Fall 2014. Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
ECON 3312 Macroeconomics Exam 3 Fall 2014 Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Everything else held constant, an increase in net
More informationEconomics 101 Multiple Choice Questions for Final Examination Miller
Economics 101 Multiple Choice Questions for Final Examination Miller PLEASE DO NOT WRITE ON THIS EXAMINATION FORM. 1. Which of the following statements is correct? a. Real GDP is the total market value
More informationExtra Problems #3. ECON 410.502 Macroeconomic Theory Spring 2010 Instructor: Guangyi Ma. Notice:
ECON 410.502 Macroeconomic Theory Spring 2010 Instructor: Guangyi Ma Extra Problems #3 Notice: (1) There are 25 multiple-choice problems covering Chapter 6, 9, 10, 11. These problems are not homework and
More information1. Has your SEP been amended for current 4. Are you determining each eligible employee's compensation using the definition in your SEP document?
SEP CHECkLISt this checklist is not a complete description of all plan requirements, and should not be used as a substitute for a complete plan review. For Business Owner s Use (do not SEnd this worksheet
More informationChapter 7 Employment and Unemployment Macroeconomics In Context (Goodwin, et al.)
Chapter 7 Employment and Unemployment Macroeconomics In Context (Goodwin, et al.) Chapter Overview This chapter introduces you to standard macro labor topics such the definition of the unemployment rate,
More informationChapter 9. Unemployment and Stagflation. These slides supplement the textbook, but should not replace reading the textbook
Chapter 9 Unemployment and Stagflation These slides supplement the textbook, but should not replace reading the textbook What is the labor force? All non-institutionalized individuals 16 years of age and
More informationCh.8-Q3. In each of the following situations, what type of unemployment is Melanie facing?
EC 102 Spring 2015 Problem Session #7 (Chapter 8): Ch.8-Q3. In each of the following situations, what type of unemployment is Melanie facing? a. After completing a complex programming project, Melanie
More informationIntroduction to Macroeconomics. TOPIC 1: Introduction, definition, measures
TOPIC 1: Introduction, definitions, measures Annaïg Morin CBS - Department of Economics August 2013 What is macroeconomics about? Understanding the behavior of an economy as a whole. studying aggregated
More informationName: Date: 3. Variables that a model tries to explain are called: A. endogenous. B. exogenous. C. market clearing. D. fixed.
Name: Date: 1 A measure of how fast prices are rising is called the: A growth rate of real GDP B inflation rate C unemployment rate D market-clearing rate 2 Compared with a recession, real GDP during a
More informationCHAPTER 5 Review... Page 1
CHAPTER 5 Review... 1. The rate of inflation is the: A) median level of prices. B) average level of prices. C) percentage change in the level of prices. D) measure of the overall level of prices. 2. If
More informationEcon 102 Aggregate Supply and Demand
Econ 102 ggregate Supply and Demand 1. s on previous homework assignments, turn in a news article together with your summary and explanation of why it is relevant to this week s topic, ggregate Supply
More informationNotes - Gruber, Public Finance Chapter 20.3 A calculation that finds the optimal income tax in a simple model: Gruber and Saez (2002).
Notes - Gruber, Public Finance Chapter 20.3 A calculation that finds the optimal income tax in a simple model: Gruber and Saez (2002). Description of the model. This is a special case of a Mirrlees model.
More informationUnemployment and Inflation
Unemployment and Inflation Unemployment Inflation Costs of Unemployment Personal Cost Loss of income Loss of self-esteem Increase in stress related psychological problems Increase in incidence of crime,
More informationChapter 4 Consumption, Saving, and Investment
Chapter 4 Consumption, Saving, and Investment Multiple Choice Questions 1. Desired national saving equals (a) Y C d G. (b) C d + I d + G. (c) I d + G. (d) Y I d G. 2. With no inflation and a nominal interest
More informationLabor Demand The Labor Market
Labor Demand The Labor Market 1. Labor demand 2. Labor supply Assumptions Hold capital stock fixed (for now) Workers are all alike. We are going to ignore differences in worker s aptitudes, skills, ambition
More informationGovernment Budget and Fiscal Policy CHAPTER
Government Budget and Fiscal Policy 11 CHAPTER The National Budget The national budget is the annual statement of the government s expenditures and tax revenues. Fiscal policy is the use of the federal
More informationPre-Test Chapter 16 ed17
Pre-Test Chapter 16 ed17 Multiple Choice Questions 1. Suppose total output (real GDP) is $4000 and labor productivity is 8. We can conclude that: A. real GDP per capita must be $500. B. the price-level
More informationMicroeconomics Instructor Miller Practice Problems Labor Market
Microeconomics Instructor Miller Practice Problems Labor Market 1. What is a factor market? A) It is a market where financial instruments are traded. B) It is a market where stocks and bonds are traded.
More information2 0 0 0 E D I T I O N CLEP O F F I C I A L S T U D Y G U I D E. The College Board. College Level Examination Program
2 0 0 0 E D I T I O N CLEP O F F I C I A L S T U D Y G U I D E College Level Examination Program The College Board Principles of Macroeconomics Description of the Examination The Subject Examination in
More informationPre-Test Chapter 11 ed17
Pre-Test Chapter 11 ed17 Multiple Choice Questions 1. Built-in stability means that: A. an annually balanced budget will offset the procyclical tendencies created by state and local finance and thereby
More informationFISCAL POLICY* Chapter. Key Concepts
Chapter 11 FISCAL POLICY* Key Concepts The Federal Budget The federal budget is an annual statement of the government s expenditures and tax revenues. Using the federal budget to achieve macroeconomic
More informationAnswers: 1. B 2. C 3. A 4. A 5 D 6. C 7. D 8. C 9. D 10. A * Adapted from the Study Guide
Economics 101 Quiz #1 Fall 2002 1. Assume that there are two goods, A and B. In 1996, Americans produced 20 units of A at a price of $10 and 40 units of B at a price of $50. In 2002, Americans produced
More informationReference: Gregory Mankiw s Principles of Macroeconomics, 2 nd edition, Chapters 10 and 11. Gross Domestic Product
Macroeconomics Topic 1: Define and calculate GDP. Understand the difference between real and nominal variables (e.g., GDP, wages, interest rates) and know how to construct a price index. Reference: Gregory
More informationMacroeconomia Capitolo 7. Seguire l andamento della macroeconomia. What you will learn in this chapter:
Macroeconomia Capitolo 7 Seguire l andamento della macroeconomia PowerPoint Slides by Can Erbil 2006 Worth Publishers, all rights reserved What you will learn in this chapter: How economists use aggregate
More informationMacroeconomics Machine-graded Assessment Items Module: Macroeconomic Measures of Performance
Macroeconomics Machine-graded Assessment Items Module: Macroeconomic Measures of Performance Machine-graded assessment question pools are provided for your reference and are organized by learning outcome.
More informationEcon 202 Section 2 Midterm 1
Douglas, Fall 2009 September 29, 2009 A: Special Code 0000 21 PLEDGE: I have neither given nor received unauthorized help on this exam. SIGNED: PRINT NAME: Econ 202 Section 2 Midterm 1 1. What will happen
More information13. If Y = AK 0.5 L 0.5 and A, K, and L are all 100, the marginal product of capital is: A) 50. B) 100. C) 200. D) 1,000.
Name: Date: 1. In the long run, the level of national income in an economy is determined by its: A) factors of production and production function. B) real and nominal interest rate. C) government budget
More informationSUPPLY AND DEMAND : HOW MARKETS WORK
SUPPLY AND DEMAND : HOW MARKETS WORK Chapter 4 : The Market Forces of and and demand are the two words that economists use most often. and demand are the forces that make market economies work. Modern
More informationProfessor Christina Romer. LECTURE 17 MACROECONOMIC VARIABLES AND ISSUES March 17, 2016
Economics 2 Spring 2016 Professor Christina Romer Professor David Romer LECTURE 17 MACROECONOMIC VARIABLES AND ISSUES March 17, 2016 I. MACROECONOMICS VERSUS MICROECONOMICS II. REAL GDP A. Definition B.
More informationTopic 4: Introduction to Labour Market, Aggregate Supply and AD-AS model
Topic 4: Introduction to Labour Market, Aggregate Supply and AD-AS model 1. In order to model the labour market at a microeconomic level, e simplify greatly by assuming that all jobs are the same in terms
More informationECON 443 Labor Market Analysis Final Exam (07/20/2005)
ECON 443 Labor Market Analysis Final Exam (07/20/2005) I. Multiple-Choice Questions (80%) 1. A compensating wage differential is A) an extra wage that will make all workers willing to accept undesirable
More informationAgenda. Business Cycles. What Is a Business Cycle? What Is a Business Cycle? What is a Business Cycle? Business Cycle Facts.
Agenda What is a Business Cycle? Business Cycles.. 11-1 11-2 Business cycles are the short-run fluctuations in aggregate economic activity around its long-run growth path. Y Time 11-3 11-4 1 Components
More informationEcon 202 Section 2 Midterm 2
Douglas, Fall 2009 November 3, 2009 A: Special Code 0000 PLEDGE: I have neither given nor received unauthorized help on this exam. SIGNED: PRINT NAME: Econ 202 Section 2 Midterm 2 1. The sale of stocks
More informationA. GDP, Economic Growth, and Business Cycles
ECON 3023 Hany Fahmy FAll, 2009 Lecture Note: Introduction and Basic Concepts A. GDP, Economic Growth, and Business Cycles A.1. Gross Domestic Product (GDP) de nition and measurement The Gross Domestic
More informationFISCAL POLICY* Chapter. Key Concepts
Chapter 15 FISCAL POLICY* Key Concepts The Federal Budget The federal budget is an annual statement of the government s expenditures and tax revenues. Using the federal budget to achieve macroeconomic
More informationMeasuring the Cost of Living THE CONSUMER PRICE INDEX
6 In this chapter, look for the answers to these questions: What is the Consumer (CPI)? How is it calculated? What s it used for? What are the problems with the CPI? How serious are they? How does the
More informationEcon 202 Final Exam. Douglas, Spring 2006 PLEDGE: I have neither given nor received unauthorized help on this exam.
, Spring 2006 PLEDGE: I have neither given nor received unauthorized help on this exam. SIGNED: PRINT NAME: Econ 202 Final Exam 1. When the government spends more, the initial effect is that a. aggregate
More informationIntroduction to Macroeconomics 1012 Final Exam Spring 2013 Instructor: Elsie Sawatzky
Introduction to Macroeconomics 1012 Final Exam Spring 2013 Instructor: Elsie Sawatzky Name Time: 2 hours Marks: 80 Multiple choice questions 1 mark each and a choice of 2 out of 3 short answer question
More informationEcon 202 Section 2 Final Exam
Douglas, Fall 2009 December 17, 2009 A: Special Code 0000 PLEDGE: I have neither given nor received unauthorized help on this exam. SIGNED: PRINT NAME: Econ 202 Section 2 Final Exam 1. The present value
More informationChapter 6 Economic Growth
Chapter 6 Economic Growth 1 The Basics of Economic Growth 1) The best definition for economic growth is A) a sustained expansion of production possibilities measured as the increase in real GDP over a
More informationAggregate Demand and Aggregate Supply Ing. Mansoor Maitah Ph.D. et Ph.D.
Aggregate Demand and Aggregate Supply Ing. Mansoor Maitah Ph.D. et Ph.D. Aggregate Demand and Aggregate Supply Economic fluctuations, also called business cycles, are movements of GDP away from potential
More informationThe Circular Flow of Income and Expenditure
The Circular Flow of Income and Expenditure Imports HOUSEHOLDS Savings Taxation Govt Exp OTHER ECONOMIES GOVERNMENT FINANCIAL INSTITUTIONS Factor Incomes Taxation Govt Exp Consumer Exp Exports FIRMS Capital
More informationLecture 3: Intermediate macroeconomics, autumn 2012 Lars Calmfors
Lecture 3: Intermediate macroeconomics, autumn 2012 Lars Calmfors Literature: Mankiw, Chapter 6 Swedish Fiscal Policy 2012, Chapter 5 1 Topics Causes of unemployment Unemployment and labour market flows
More informationHow To Understand The Unemployment Rate
13.1 Unemployment Objectives Distinguish among four types of unemployment. Discuss the unemployment rate, and describe how it differs over time and across groups. Explain who is eligible for unemployment
More informationChapter 6: Measuring the Price Level and Inflation. The Price Level and Inflation. Connection between money and prices. Index Numbers in General
Chapter 6: The Price Level and Measuring the Price Level and Microeconomic causes changes in individual markets can explain only a tiny fraction of price change For the most part, price rises came about
More informationLabor Market and Unemployment Ing. Mansoor Maitah Ph.D.
Labor Market and Unemployment Ing. Mansoor Maitah Ph.D. Product and Factor Markets Demand for Goods and Services Market of Goods and Services S D Supply of Goods and Services Households Firms Supply of
More informationEcon 202 H01 Final Exam Spring 2005
Econ202Final Spring 2005 1 Econ 202 H01 Final Exam Spring 2005 1. Which of the following tends to reduce the size of a shift in aggregate demand? a. the multiplier effect b. the crowding-out effect c.
More informationBusiness Conditions Analysis Prof. Yamin Ahmad ECON 736
Business Conditions Analysis Prof. Yamin Ahmad ECON 736 Sample Final Exam Name Id # Instructions: There are two parts to this midterm. Part A consists of multiple choice questions. Please mark the answers
More informationCh.6 Aggregate Supply, Wages, Prices, and Unemployment
1 Econ 302 Intermediate Macroeconomics Chul-Woo Kwon Ch.6 Aggregate Supply, Wages, rices, and Unemployment I. Introduction A. The dynamic changes of and the price adjustment B. Link between the price change
More informationHow the Government Measures Unemployment
What Does the Unemployment Rate Tell Us? (HA) At any one time, millions of Americans may be out of work. For many of them, the experience is devastating. They struggle to pay bills and to put food on the
More informationThe labour market, I: real wages, productivity and unemployment 7.1 INTRODUCTION
7 The labour market, I: real wages, productivity and unemployment 7.1 INTRODUCTION Since the 1970s one of the major issues in macroeconomics has been the extent to which low output and high unemployment
More informationCosumnes River College Principles of Macroeconomics Problem Set 11 Will Not Be Collected
Name: Solutions Cosumnes River College Principles of Macroeconomics Problem Set 11 Will Not Be Collected Fall 2015 Prof. Dowell Instructions: This problem set will not be collected. You should still work
More informationEcon 101: Principles of Microeconomics
Econ 101: Principles of Microeconomics Chapter 12 - Behind the Supply Curve - Inputs and Costs Fall 2010 Herriges (ISU) Ch. 12 Behind the Supply Curve Fall 2010 1 / 30 Outline 1 The Production Function
More informationRefer to Figure 17-1
Chapter 17 1. Inflation can be measured by the a. change in the consumer price index. b. percentage change in the consumer price index. c. percentage change in the price of a specific commodity. d. change
More informationThe Data of Macroeconomics
CHAPTER 2 The Data of Macroeconomics Modified for ECON 2204 by Bob Murphy 2016 Worth Publishers, all rights reserved IN THIS CHAPTER, YOU WILL LEARN:... the meaning and measurement of the most important
More informationANSWERS are included at the end of the document. (test yourself on what you don t know first before using them!)
Final Exam Review : The review has 130 Multiple Choice questions from the 225 we did this semester. It also includes all 21 short answer questions which were used on the tests. ANSWERS are included at
More informationLECTURE NOTES ON MACROECONOMIC PRINCIPLES
LECTURE NOTES ON MACROECONOMIC PRINCIPLES Peter Ireland Department of Economics Boston College peter.ireland@bc.edu http://www2.bc.edu/peter-ireland/ec132.html Copyright (c) 2013 by Peter Ireland. Redistribution
More information