4/15/2021 ASSIGNMENT II : UNEMPLOYMENT AND INFLATION: Attempt review

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/ ASSIGNMENT II : UNEMPLOYMENT AND INFLATION

Started on Saturday, 6 February 2021, 4:08 PM

State Finished
Completed on Saturday, 6 February 2021, 4:16 PM
Time taken 8 mins 25 secs
Marks 40.00/40.00
Grade 100.00 out of 100.00

Question 1
Correct

Mark 1.00 out of 1.00

The labor force equals the number of people

Select one:
a. employed plus unemployed. 

b. employed.
c. in the working-age population.
d. unemployed.

The correct answer is: employed plus unemployed.

Question 2
Correct

Mark 1.00 out of 1.00

Table 9-1

Consider the data above for a simple economy.

Refer to Table 9-1. The labor force participation rate for this simple economy equals

Select one:
a. (1,100/15,000) × 100. 

b. (1,000/15,000) × 100.
c. (1,100/20,000) × 100.
d. (1,000/1,100) × 100.

The correct answer is: (1,100/15,000) × 100.

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4/15/2021 ASSIGNMENT II : UNEMPLOYMENT AND INFLATION: Attempt review

Question 3
Correct

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The unemployment rate equals the number of unemployed divided by the ________, all times 100.

Select one:
a. total population
b. working-age population
c. labor force 

d. number of employed

The correct answer is: labor force

Question 4
Correct

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Using a broader measure of the unemployment rate where discouraged workers and part-time workers who wished to
work full time were counted as unemployed, the BLS estimates the unemployment rate in August 2015 would have
________ compared to the measured unemployment rate.

Select one:
a. decreased by less than 1 percentage point
b. barely changed
c. increased by more than 7 percentage points
d. more than doubled 

The correct answer is: more than doubled

Question 5
Correct

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Frictional unemployment is the result of

Select one:
a. the search process of matching workers with jobs. 

b. a slowdown in the economy.

c. a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs.
d. the ups and downs in inflation.

The correct answer is: the search process of matching workers with jobs.

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Question 6
Correct

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Cyclical unemployment is the result of

Select one:
a. the ups and downs in inflation.
b. the search process of matching workers with jobs.
c. a slowdown in the economy. 

d. a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs.

The correct answer is: a slowdown in the economy.

Question 7
Correct

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If cyclical unemployment is eliminated in the economy, then

Select one:
a. the economy is considered to be at full employment. 

b. the unemployment rate is above the natural rate of unemployment.

c. the unemployment rate is below the natural rate of unemployment.
d. the economy is at less than full employment.

The correct answer is: the economy is considered to be at full employment.

Question 8
Correct

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If you have trouble finding a job because of a slowdown in the overall economy, we would say that you are

Select one:
a. cyclically unemployed. 

b. frictionally unemployed.
c. seasonally unemployed.
d. structurally unemployed.

The correct answer is: cyclically unemployed.

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4/15/2021 ASSIGNMENT II : UNEMPLOYMENT AND INFLATION: Attempt review

Question 9
Correct

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Which of the following is an example of a worker experiencing cyclical unemployment?

Select one:
a. a freightliner employee that got laid off because of the recession of 2007-2009 

b. a worker who quits his job because he does not get along with his boss
c. an assembly line worker who loses his job because of automation
d. a lifeguard who was hired during the summer season is laid off after summer is over
e. a worker who changes jobs to move closer her family

The correct answer is: a freightliner employee that got laid off because of the recession of 2007-2009

Question 10
Correct

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Emma is a road construction worker. During the winter months, Emma finds it more difficult to get work. The
unemployment Emma experiences in the winter is

Select one:
a. structural.
b. seasonal. 

c. functional.
d. cyclical.

The correct answer is: seasonal.

Question 11
Correct

Mark 1.00 out of 1.00

Unemployment caused by a business cycle recession is called cyclical unemployment.

Select one:
True 

False

The correct answer is 'True'.

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Question 12
Correct

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The natural rate of unemployment consists of frictional unemployment plus cyclical unemployment.

Select one:
True

False 

The correct answer is 'False'.

Question 13
Correct

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The full-employment rate of unemployment is zero.

Select one:
True

False 

The correct answer is 'False'.

Question 14
Correct

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Which of the following policies would reduce structural unemployment?

Select one:
a. building an online job database that helps workers find jobs
b. implementing an unemployment insurance policy
c. a job retraining program 
d. an increase in the minimum wage

The correct answer is: a job retraining program

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4/15/2021 ASSIGNMENT II : UNEMPLOYMENT AND INFLATION: Attempt review

Question 15
Correct

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If the minimum wage is set above the market wage,

Select one:
a. highly-skilled workers will have a harder time finding jobs.
b. the quantity of labor supplied will be below the quantity of labor demanded.
c. unemployment will rise. 

d. All of these are correct.

The correct answer is: unemployment will rise.

Question 16
Correct

Mark 1.00 out of 1.00

Minimum wage laws cause unemployment because the legal minimum wage is set

Select one:
a. above the market wage, causing labor demand to be greater than labor supply.
b. below the market wage, causing labor demand to be greater than labor supply.
c. above the market wage, causing labor demand to be less than labor supply. 

d. below the market wage, causing labor demand to be less than labor supply.
e. too low.

The correct answer is: above the market wage, causing labor demand to be less than labor supply.

Question 17
Correct

Mark 1.00 out of 1.00

If firms pay what are called "efficiency wages," they pay wages that

Select one:
a. are lower than average to ensure maximum profit.
b. will eventually lower the unemployment rate.
c. motivate workers to increase their productivity. 

d. are mandated by the government.

The correct answer is: motivate workers to increase their productivity.

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4/15/2021 ASSIGNMENT II : UNEMPLOYMENT AND INFLATION: Attempt review

Question 18
Correct

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Efficiency wages cause unemployment because

Select one:
a. firms pay wages that are below the market wage, causing the quantity of labor demanded to be greater than the
quantity of labor supplied.
b. firms pay wages that are above the market wage, causing the quantity of labor demanded to be less than the 
quantity of labor supplied.
c. firms pay wages that are below the market wage, causing the quantity of labor demanded to be less than the
quantity of labor supplied.
d. firms pay wages that are above the market wage, causing the quantity of labor demanded to be greater than the
quantity of labor supplied.

The correct answer is: firms pay wages that are above the market wage, causing the quantity of labor demanded to be
less than the quantity of labor supplied.

Question 19
Correct

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Figure 9-1

Refer to Figure 9-1. Based on the graph of the labor market above, if a minimum wage of $8 per hour is imposed, which of
the following will result?

Select one:
a. The quantity of labor demanded by firms will fall. 
b. Both The quantity of labor demanded by firms will rise and The unemployment rate will fall will occur.
c. The quantity of labor demanded by firms will rise.
d. The unemployment rate will fall.

The correct answer is: The quantity of labor demanded by firms will fall.

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4/15/2021 ASSIGNMENT II : UNEMPLOYMENT AND INFLATION: Attempt review

Question 20
Correct

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Figure 9-1

Refer to Figure 9-1. Based on the graph of the labor market above, if a minimum wage is set at $5 per hour, which of the
following will occur?

Select one:
a. The unemployment rate will rise.
b. The level of unemployment will rise, but the percentage of the labor force unemployed will not change.
c. None of these will occur. 

d. The unemployment rate will fall.

The correct answer is: None of these will occur.

Question 21
Correct

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Table 9-5

Refer to Table 9-5. Consider the following values of the consumer price index for 2015 and 2016. The inflation rate for
2016 was equal to

Select one:
a. 3.9 percent. 

b. 8.0 percent.
c. 215 percent.
d. 21.5 percent.

The correct answer is: 3.9 percent.

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Question 22
Correct

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Which of the following would be a consequence of substitution bias in the CPI?

Select one:
a. The inflation rate based on the CPI would underestimate the true level of inflation.
b. Businesses would overcompensate employees for inflation when giving cost of living raises. 

c. Social Security payments would not adequately compensate retired workers for inflation.
d. Judges would award child support payments that would not adequately keep up with the true cost of inflation.

The correct answer is: Businesses would overcompensate employees for inflation when giving cost of living raises.

Question 23
Correct

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The CPI is also referred to as

Select one:
a. the cost-of-living index. 

b. the producer price index.

c. the GDP deflator.
d. the inflation-consumption index.

The correct answer is: the cost-of-living index.

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Question 24
Correct

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Table 9-9

Refer to Table 9-9. Suppose that the data in the table above reflect the price levels in the economy. Given that data, we
can say that the cost of living rose by ________ between 2015 and 2016?

Select one:
a. 11%
b. 5%
c. 2%
d. 13% 

e. 8%

The correct answer is: 13%

Question 25
Correct

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If the CPI rises from 206.7 to 212.7 between two consecutive years, by how much has the cost of living changed between
these two years?

Select one:
a. The cost of living has increased by 2.9%. 

b. The cost of living has decreased by 6%.

c. The cost of living has increased by 6%.
d. The cost of living has increased by 12.7%.

The correct answer is: The cost of living has increased by 2.9%.

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4/15/2021 ASSIGNMENT II : UNEMPLOYMENT AND INFLATION: Attempt review

Question 26
Correct

Mark 1.00 out of 1.00

What does the PPI measure?

Select one:
a. the average of the prices received by producers of goods and services at all stages of the production process 

b. the level of production of goods and services generated in the economy in a given year
c. the average change in the prices paid for all goods produced in the economy over a given year
d. the difference between the prices consumers pay for goods and services and the prices producers pay for goods
and services

The correct answer is: the average of the prices received by producers of goods and services at all stages of the
production process

Question 27
Correct

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The inflation rate measures the average prices of goods and services in the economy.

Select one:
True

False 

The correct answer is 'False'.

Question 28
Correct

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If the CPI falls from 142 to 140 between two consecutive years, this implies that prices fell by 2% between those two years.

Select one:
True

False 

The correct answer is 'False'.

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Question 29
Correct

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Table 9-15

Refer to Table 9-15. Looking at the table above, real average hourly earnings in 2014 were

Select one:
a. $9.
b. $9.52.
c. $10. 

d. $12.63.

The correct answer is: $10.

Question 30
Correct

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Table 9-15

Refer to Table 9-15. Looking at the table above, real average hourly earnings were equal to ________ in 2015.

Select one:
a. $10
b. $9
c. $9.52 

d. $12

The correct answer is: $9.52

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Question 31
Correct

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Suppose your grandfather earned a salary of $12,000 in 1964. If the CPI is 31 in 1964 and 219 in 2016, then the value of
your grandfather's salary in 2016 dollars is approximately

Select one:
a. $84,775. 

b. $26,280.
c. $37,200.
d. $63,830.

The correct answer is: $84,775.

Question 32
Correct

Mark 1.00 out of 1.00

Table 9-17

Refer to Table 9-17. Looking at the table above, real average hourly earnings in 2015 were

Select one:
a. $11.37.
b. $5.63. 
c. $3.67.
d. $10.24.

The correct answer is: $5.63.

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Question 33
Correct

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Table 9-17

Refer to Table 9-17. Looking at the table above, real average hourly earnings between 2015 and 2016 changed by

Select one:
a. 9.9%.
b. 1.2%.
c. 14.5%. 

d. 4.5%.

The correct answer is: 14.5%.

Question 34
Correct

Mark 1.00 out of 1.00

Table 9-18

Refer to Table 9-18. Looking at the table above, what is the rate of growth of real average hourly earnings from 2015 to
2016?

Select one:
a. -4%
b. 7.8% 

c. 6.25%
d. 4%

The correct answer is: 7.8%

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4/15/2021 ASSIGNMENT II : UNEMPLOYMENT AND INFLATION: Attempt review

Question 35
Correct

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The CPI in 2010 was 218, while the CPI in 1980 was 82. If you had $5,000 in 1980, its equivalent purchasing power in 2008
would be $10,850.

Select one:
True

False 

The correct answer is 'False'.

Question 36
Correct

Mark 1.00 out of 1.00

An advantage of the household survey over the establishment survey of the labor market is that the household survey

Select one:
a. includes the number of discouraged workers.
b. is based on actual payrolls, rather than on unverified answers.
c. omits persons employed at newly opened firms.
d. includes the number of self-employed persons. 

The correct answer is: includes the number of self-employed persons.

Question 37
Correct

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The labor force is the sum of

Select one:
a. employed workers and unemployed workers. 

b. employed workers and discouraged workers.

c. employed workers and individuals not looking for work.
d. unemployed workers and the working-age population.

The correct answer is: employed workers and unemployed workers.

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4/15/2021 ASSIGNMENT II : UNEMPLOYMENT AND INFLATION: Attempt review

Question 38
Correct

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Except for recessions, the duration of unemployment for the typical person lasts

Select one:
a. over nine months.
b. over one year.
c. over five years.
d. six to nine months.
e. less than six months. 

The correct answer is: less than six months.

Question 39
Correct

Mark 1.00 out of 1.00

If the number of unemployed workers is 19 million, the number in the working-age population is 500 million, and the
unemployment rate is 4%, what is the labor force participation rate?

Select one:
a. 96.2%
b. 7.8%
c. 4.75%
d. 95% 

The correct answer is: 95%

Question 40
Correct

Mark 1.00 out of 1.00

The labor force participation rates of men have gradually increased since 1948.

Select one:
True

False 

The correct answer is 'False'.

◄ VIDEO [02/02/2021]-CHAPTER II: UNEMPLOYMENT AND INFLATION [3]

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VIDEO [02/05/2021]-CHAPTER II: UNEMPLOYMENT AND INFLATION [4] ►

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