Question

A price index is NOT

Select one: a. an inflation rate. b. a way to track the prices for a group of products c. a weighted average price of some type of good or service (e.g. consumer prices). d. the cost of a specific basket of goods and services.

Henry accepted a new position at a ball bearing manufacturing plant after graduation from college. With his macroeconomic education, Henry has been asked to advise the best way to measure inflation for the company to be able to accurately adjust its prices. What would Henry advise the company use?

Select one: a. Energy price index b. Producer Price Index c. GDP Deflator d. Consumer Price Index

The unemployment rate measures:

Select one:

a. The percentage of working age adults who are employed.

b. The percentage of the labor force who do not have a job, but are looking for one.

c. The percentage of working age adults who are unemployed but not looking for work.

d. The percentage of working age adults who are unemployed.

Question 17

To find unemployment, you need to calculate

Select one:

a. The number of discouraged workers divided by the number of civilian workers.

b. The number of unemployed workers divided by the labor force.

c. The number in the labor force divided by the population.

d. The percentage of people not working out of the civilian population

Question 18

Tom graduated from college in June but was still looking for work in August. This is an example of ________.

Select one:

a. cyclical unemployment.

b. structural unemployment.

c. seasonal unemployment

d. frictional unemployment.

Question 19

Using your understanding of economic history and inflation, which inflation target is most advisable?

Select one:

a. 10-20%

b. 0%

c. 5-10%

d. 1-2%

Question 20

Which of the following demographic has the highest unemployment rate according to U.S. Census Bureau data?

Select one:

a. Young African-American men

b. Asian men

c. Middle-aged Hispanic Women

d. Older caucasian men

Among all high-income countries, which consistently has the lowest long-run unemployment rate in the past 30 years?

Select one:

a. United States

b. United Kingdom

c. Japan

d. France

A year ago Parker reached his retirement and left the business to pursue other interests. He is now spending lots of time playing golf and visiting his grandchildren. For purposes of employment he is considered:

Select one:

a. unemployed.

b. out of the labor force.

c. underemployed.

d. in the labor force

Answer 1

Q. A price index is NOT

a. an inflation rate

Rate of change of the price index gives the inflation rate.

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Q. Henry accepted a new position at a ball bearing manufacturing plant after graduation from college. With his macroeconomic education, Henry has been asked to advise the best way to measure inflation for the company to be able to accurately adjust its prices. What would Henry advise the company use?

b. Producer Price Index

As his company is a manufacturing company, the PPI will give most relevant information.

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Q. The unemployment rate measures:

b. The percentage of the labor force who do not have a job, but are looking for one.

As per formula, unemployment rate = (unemployed workers / labor force) x 100

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Q. To find unemployment, you need to calculate

b. The number of unemployed workers divided by the labor force.

As per formula, unemployment rate = (unemployed workers / labor force) x 100

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Q. Tom graduated from college in June but was still looking for work in August. This is an example of ________.

d. frictional unemployment.

As per definition, it occurs when workers search for jobs of their liking.

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Q. Using your understanding of economic history and inflation, which inflation target is most advisable?

d. 1 - 2%

This target is globally acceptable.

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Q. Which of the following demographic has the highest unemployment rate according to U.S. Census Bureau data?

Select one:

a. Young African-American men

As per the latest census data of USA.

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Q. Among all high-income countries, which consistently has the lowest long-run unemployment rate in the past 30 years?

Select one:

c. Japan

Historically, Japan has had the lowest unemployment rate.

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Q. A year ago Parker reached his retirement and left the business to pursue other interests. He is now spending lots of time playing golf and visiting his grandchildren. For purposes of employment he is considered:

b. out of the labor force.

A retired person is considered out of the labor force.