devry econ312n Week 6 homework latest 2016 July.

1) The BLS reported that in November 2016November 2016?, the labor force was 158.5 ?million, employment was 151.0 ?million, and the? working-age population was 253.2 million.

Calculate the unemployment rate and the labor force participation rate.

The unemployment rate is ________ percent.

The labor force participation rate is _____ percent.

2) The BLS reported that in November 2016?, the labor force was 158.5 ?million, employment was 151.0 ?million, and the? working-age population was 253.2 million.

The BLS also reported that 17.9 percent of all employment in November 2016 was part time and that 6.4 million people worked part time for economic reasons.

How many people worked part time for noneconomic? reasons?

__________ million people worked part time for noneconomic reasons.

3) A BLS labor market survey interviewer recorded the facts about the 10 people in the four households shown in the table.

Choose the correct statement.

A. Ari is unemployed and Harry is unemployed.

B. Hank is unemployed and Ari is employed.

C. Mimi is unemployed and Kosta is not in the labor force.

D. Harry is not in the labor force and Mimi is not in the labor force.

E. Kosta is not in the labor force and Hank is unemployed.

Candy and Serena work part time for economics reasons.

A. True

B. False

4) The Bureau of Labor Statistics reported that in April, 2016?, the labor force was 158,466,000?, employment was 151,030,000?, and the? working-age population was 253,174,000.

Calculate for that month the labor force participation rate and the unemployment rate.

The labor force participation rate was _______ percent.

The unemployment rate was ____ percent.

5) The Bureau of Labor Statistics reported that in July 1998?, the labor force was 139.3 ?million, employment was 132.8 ?million, and the? working-age population was 205.3 million.

In July 1998?, what was the unemployment rate and the labor force participation? rate?

The unemployment rate in July 1998 was _____ percent.

The labor force participation rate in July 1998 was _____ percent.

6) Canada reported that in May 2003?, the Canadian labor force was 17.1 ?million, employment was 15.7 ?million, and the? working-age population was 25.1 million.

What was the Canadian unemployment rate and labor force participation rate in May 2003??

The Canadian unemployment rate in May 2003 was _____ percent.

The Canadian labor force participation rate in May 2003 was ________ percent.

7) The table gives information reported by the Bureau of Labor Statistics for February 2007.

What is the unemployment? rate?

The unemployment rate is _____ percent.

8) ?Real-Time Data Analysis? Exercise*?

Labor market variable

In May, 2016

?(thousands)

Civilian population over 16

253,174

Employment

151,030

Unemployment

7,436??

The table above and graph to the right provide information about the U.S. labor market in May, 2016.

In?, May comma 2016May, 2016?, the unemployment rate in the United States was 4.7 percent.?

?

9) ?Real-Time Data Analysis? Exercise*?????

Labor market variable in May, 2016

?(thousands)

Civilian population over 16

253,174

Employment

151,030

Unemployment

7,436

The table above and graph to the right provide information about the U.S. labor market in May, 2016.

In? May, 2016?, the labor force participation rate in the United States was _____ percent.

10) The graph shows the labor force participation rate of women in the U.S. labor market between 1970 and 2013.

The labor force participation rate of women increased most during the _________.

One of the reasons why this rapid increase occurred during this decade was that? ______.

A. the cost of child care fell

B. social attitudes changed

C. women had more time for paid employment

D. child tax credits increased

E. women could earn more than men

11) The U.S. labor force participation rate? ______.

A. increased from 59 percent in 1960 to 67 percent in 1999.

B. is calculated as the percentage of the working age population who are employed

C. decreases in expansions

D. has an upward trend that is mainly accounted for by the increasing participation of men in the labor market

12) Real-Time Data Analysis? Exercise*

?Month, year

Employment

Unemployment

?(thousands)

May comma 2015May, 2015

148,748

8,619

April, 2016

151,004

7,920

May, 2016

151,030

7,436

The table above provides information about the U.S. labor market in May, 2015?, April, 2016?, and May, 2016. The graph shows the unemployment rate since May, 2011.

In May, 2016 the number employed increased and the unemployment rate decreased.

Over the year since May comma 2015May, 2015 the number employed increased and the unemployment rate decreased.??

The change in the unemployment rate over the past year suggests that the U.S. economy? ______.

A. was in a recession

B. was in an expansion

C. went through a business cycle peak

D. went through a business cycle trough

13) The table and graph provide information about the U.S. labor market in May, 2016.

In May, 2016 the U.S. unemployment rate including all marginally attached workers was __ percent.????????

Amy wants a job. Two months? ago, she made frantic efforts to find a job but every time she found a job that she could? do, someone else got it. For the past month? she's stopped looking for a job but is still eager to work. ?????

Amy is? ______.

A. counted as unemployed in the official measure

B. both a discouraged worker and a marginally attached worker

C. a marginally attached worker who is not a discourage worker

D. a discouraged worker who is not a marginally attached worker

14) When the unemployment rate? ______ the natural unemployment? rate, real GDP? ______ potential GDP.

A. equals; is less than

B. is less than; equals

C. is greater than?; is less than

D. is less than; is less than

15) When cyclical unemployment increases and other things remain the? same, ______.

A. the amount of frictional unemployment increases

B. the natural unemployment rate increases

C. the amount of structural unemployment decreases

D. the natural unemployment rate does not change

16) The graph on the right shows the data on unemployment rates by reason for being unemployed. The table below shows the data for May comma 2016May, 2016.

??

Reason

Percentage of

labor force

Job losers

2.3

Job leavers

0.5

Entrants and? re-entrants

1.9

The ______ line in the graph is job? losers, the ____ line is job? leavers, and the ____ line is entrants and? re-entrants.

?______ are the most cyclical component of unemployment and? ______ are the most stable source of frictional unemployment.

A.

Entrants and? re-entrants; job leavers

B. Job? losers; job leavers

C. Entrants and? re-entrants; job losers

D. Job? leavers; job losers

17) The tables to the right show the unemployment rate and the natural unemployment rate from May 2015 to May 2016?, and real GDP ?, and potential GDP from the first quarter of 2015 to the first quarter of 2016.

In May 2016?, the U.S. the unemployment rate was? ______ the natural unemployment rate and in the first quarter of 2016 the output gap was? ______.

A. below?; zero

B. above?; negative

C. below?; negative

D. equal to?; positive

18) Real-time data provided by Federal Reserve Economic Data? (FRED), Federal Reserve Bank of Saint Louis. The graphs show the unemployment rate? (red), the natural unemployment rate? (black) and the output gap? (blue).

U.S. Unemployment

Q1: 12

Q1: 14

Q1: 16

0

2

4

6

8

10

Quarter: Year

Unemployment rate (percentage of labor force)

x y graph???????????????????

U.S. Output gap

Q1: 12

Q1: 14

Q1: 16

-7

-5

-3

-1

1

Quarter: Year

Output gap (percentage of potential GDP)

x y graph

Over the past two? years, U.S. cyclical unemployment? ______ and? ________.

A. was negative?; there was an inflationary gap

B. was zero?; there was a recessionary gap

C. was positive?; there was no output gap

D. was positive?; there was a recessionary gap

19) Two? countries, Sahara and? Arctica, conduct consumer surveys.??

In? Sahara, consumers buy 66 units of bottled? water, 22 units of? food, and 6 units of housing.

In? Arctica , consumers buy no bottled water? (they suck free? icicles), 83 units of? housing, and 20 units of food. The prices in these two countries are the same.??

In the reference base? year, water is ?$3 a? unit, food is ?$4 a? unit, and housing is ?$10 a unit.

In the current? year, water is ?$6 a? unit, food is ?$5 a? unit, and housing is ?$11 a unit.

In the current? year, the CPI in Sahara is________ and the CPI in Arctica is_______???

Between the base year and the current? year, the inflation rate in Sahara is________ percent and the

inflation rate in Arctica is ___________ percent.

The CPI rose faster in ____________.???

The CPI rose faster in one country because? ______.

A. the prices of bottled water and food that increased most have a greater influence on the CPI of Sahara

B. the prices of food and housing that increased most have a greater influence on the CPI of Arctica

C. the prices of bottled water and housing that increased most have a greater influence on the CPI of Sahara

D. the prices of food and housing that increased most have a greater influence on the CPI of Sahara

20) Looking at some travel? magazines, you read that the CPI in Uruguay in 2008 was 319 and in Kazakstan?, it was 246.

You do some further investigating and discover that the reference base period in Uruguay is 2000 and in Kazakstan it is 2001. ??

The CPI in Kazakstan in 2000 was 36.??

By what percentage did the CPI in Uruguay rise between 2000 and? 2008? By what percentage did the CPI in Kazakstan rise between 2000 and? 2008??

The CPI in Uruguay rose _________ percent between 2000 and 2008.

The CPI in Kazakstan rose _______ percent between 2000 and 2008.

21) A Consumer Expenditure Survey in the city of Firestorm shows that people buy only firecrackers and bandages.

A Consumer Expenditure Survey in 2011 shows that the average household spent $474 on firecrackers and ?$10 on bandages. ?

In? 2011, the reference base? year, the price of a firecracker was ?$6?, and the price of bandages was ?$2.00 a pack. In the current? year, 2012, firecrackers are ?$7 each and bandages are ?$1.00 a pack.

Calculate the CPI in 2012 and the inflation rate in 2012.

The CPI in 2012 is __________.

The inflation rate in 2012 is ______ percent.

22) In Virtual? Reality, time travel became possible only in 3006. Economists in the Statistics Bureau decided to conduct a Consumer Expenditure Survey in both 3005 and 3006 to check the substitution bias of the CPI.

The table shows the results of the survey. It shows the items that consumers buy and their prices. The Statistics Bureau fixes the reference base year as 3005.Calculate the CPI in 3006 and the inflation rate measured by the CPI in 3006.

??The CPI in 3006 using the 3005 CPI market basket is ______.

The inflation rate in 3006 using the 3005 CPI market basket is _____ percent.

23) Once a? month, the Bureau of? ______ Statistics calculates the Consumer Price? Index, which is a measure of the? ______ consumers for a fixed basket of consumer goods and services.

A. Consumer?; retail prices paid by all???

B. ?Labor; average of the prices paid by urban

C. Labor?; non-discounted prices paid by urban

D. Labor?; non-discounted prices paid by urban

24) In the United? States, the CPI basket consists of items that? ______.

?______ has the greatest weight in the CPI basket.

A. all households? buy; Transportation

B. a? middle-income household? buys; Food and beverages

C. an average American household? buys; Medical care

D. an average urban household? buys; Housing

25) The people who live on? Shangri-La Island consume only rice and fish.

Last? year, which was the reference base? year, the price of rice was ?$5 a? pound, the price of fish was ?$4 a? pound, and the average urban household spent ?$45 on rice and ?$40 on fish.

This? year, the price of rice is ?$8 a pound and the price of fish is ?$3 a pound.

What is the CPI in the current? year?

The CPI in the current year is __________.

26) The reference base period for the CPI is? 1982-1984.

In January 1998?, the CPI was 161.6.

This number tells us that the? ______ of the prices paid by urban consumers for a fixed basket of consumer goods and services was? ______.

A. inflation? rate; 61.6 percent per year

B. ?average; 161.6 percent higher in January 1998 than the average of? 1982-1984

C. ?average; 61.6 percent higher in January 1998 than the average of? 1982-1984

D. inflation? rate; 61.6 percent per year

27) The table provides information about the U.S. CPI for April each year from 2010 to 2016.

The numbers in the table are __________.

The reference base year for the CPI is ____________.

The CPI for April 2016April 2016 tells us that since the reference base? year, the price level has increased by ______ percent.

In the year to April 2016April 2016?, the inflation rate measured by the CPI was ____ percent.

28) Economists in the Statistics Bureau decide to check the substitution bias in the CPI. To do? so, they conduct a Consumer Expenditure Survey in both 2012 and 2013.

The table shows the results of the survey. It shows the items that consumers buy and their prices.

The Statistics Bureau fixes the reference base year as 2012.

Calculate the CPI in 2013 if the CPI basket contains the 2012 quantities.

The CPI in 2013 if the CPI basket contains the 2012 quantities is _________.

29) Economists in the Statistics Bureau decide to check the substitution bias in the CPI. To do? so, they conduct a Consumer Expenditure Survey in both 2012 and 2013.

The table shows the results of the survey. It shows the items that consumers buy and their prices.

The Statistics Bureau fixes the reference base year as 2012.

There ____ a commodity substitution bias when the CPI is calculated in 2013 using the 2012 basket.

The reason is that people switch from the relatively more expensive ________ to the relatively less expensive _________.

The CPI that uses the 2012 basket _____________ the inflation rate in 2013.

30) Choose the statement that is incorrect.

A. To reduce the bias in the CPI comma the BLS is experimenting with a chained CPI.

B. The bias in the CPI decreases government outlays.

C. To reduce the bias in the CPI comma the BLS now undertakes consumer spending surveys at more frequent intervals.

D. A bias of 1.1 percent a year accumulated over a decade adds up to almost a trillion dollars of additional expenditures.

31) The table shows some beef prices and the CPI for four years.

The reference base period is? 1982-1984.

Calculate the real price of beef in each year in? 1982-1984 dollars and enter your numbers in the table.??

In which of the four years was beef the most costly in real? terms? 1981

In which of the four years was beef the least costly in real? terms? 2001

32) The interest rate is 19 percent a year in Argentina and 0.01 percent a year in Japan.

The inflation rate is 39 percent a year in Argentina and negative ?0.9 percent a year in Japan.

Calculate the real interest rate in Argentina and Japan.

The real interest rate in Argentina is ____ percent a year.

The real interest rate in Japan is _____ percent a year.

33) In 1934?, the average wage rate was ?$0.55 an hour and in 2004 the average wage rate was ?$15.67 an hour.

The CPI in 1934 was 13.4 and in 2004 it was 188.9.

The 2004 nominal wage rate that is equivalent to ?$0.55 an hour in 1934 is ?$_____ an hour.

The real wage rate in 1934 is ?$___.

The real wage rate in 2004 is ?$_____.

Which gives the higher wage? rate: ?$0.55 an hour in 1934 or ?$15.67 an hour in 2004??

____________

34) Juanita worked hard all year so that she could go to nursing school the following year. ??

She put her savings into a mutual fund that paid a nominal interest rate of 5 percent a year. ??

The CPI was 175 at the beginning of the year and 182 at the end of the year.

What was the real interest rate that Juanita? earned ?

Juanita earned a real interest rate of __ percent per year.

35) The table provides information about the money wage rate and the CPI in the United States for the past five years.

During the year ended April 2016?, the nominal wage rate changed by ___ percent.

During the year ended April 2016?, the real wage rate changed by ___ percent.