# E202 MyEconLab Quiz 1

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Total Population
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Includes labor force, adults in the military, adults not in the labor force, non-adults and the institutionalized adults
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Which of the following is NOT considered to be in the labor force? (A) a person who is not working but who has tried to find a job in the past week (B) a student who works part-time (C) a person who is waiting to start a new job in the next 30 days (D) a person who is not working and who has not tried to find a job
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(D) a person who is not working and who has not tried to find a job
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Price Index=
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cost of market basket in later year / cost of market basket in base year * 100
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Anticipated Value of Price Index Next Year=
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price index of base year + expected inflation rate
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The cost of inflation to society includes (A) the lost spending when people do not have enough money (B) higher interest rated paid by the government on its debt (C) higher interest rates paid by borrowers (D) unpredictable changes in the value of money
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(D) unpredictable changes in the value of money
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Frictional Unemployment Rate=
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Frictional Unemployment / Labor Force * 100
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The unemployment rate is at the natural unemployment rate when (A) structural unemployment equals 0 (B) cyclical unemployment equals 0 (C) all types of unemployment equal 0 (D) frictional unemployment equals 0
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(B) cyclical unemployment equals 0
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The natural rate of unemployment is best defined as (A) the rate of unemployment when there is no cyclical or structural unemployment (B) the state of the economy when there is 0 unemployment (C) the rate of unemployment after all workers and employers have fully adjusted to all changes in the economy (D) the rate of unemployment when there is no frictional or cyclical unemployment
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(C) the rate of unemployment after all workers and employers have fully adjusted to all changes in the economy
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Which of the following is most likely to GAIN from unanticipated inflation? (A) a consumer with a 5 year auto loan (B) a senior citizen who receives Social Security payments (C) a bank that specializes in mortgage lending (D) a restaurant that has printed menus
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(A) a consumer with a 5 year auto loan
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James worked for an automobile plant that has now closed, as the parts produced are no longer needed. Which type of unemployment is this? (A) seasonal (B) frictional (C) cyclical (D) structural
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(D) structural
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Which person is a discouraged worker? (A) now that the kids are in school for a full day, this person is looking for work and has interviewed for 3 jobs during the past 2 weeks (B) this person has been laid off from a job but expects to be called back as soon as the economy improves (C) this person has just graduated from college and will start a new job in 3 weeks. in the meantime this person will tour the great American beaches (D) this person was laid off last year when new equipment was installed at the plant, reducing the # of workers needed. shortly after being laid off, this person looked for a new job, was unable to find one, and then stopped looking for work
answer
Person (D)