ECON 1115 Study Guide - Opportunity Cost, Gdp Deflator, Unemployment

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sangriagoat944

3 May 2014

School

Northeastern University

Department

Economics

Course

ECON 1115

Professor

Peter Simon

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Document Summary

Business cycle, unemployment, and inflation: business cycle (bc): fluctuation of rgdp overtime, two key components are inflation and deflation (recession). 1: everything above the line is inflation; everything below the line is deflation or recession, as long as the economy starts to grow, the recession is over; The only way to get out of recession is increase spending: unemployment: the measurement of unemployment is. Must know: a slightly decrease (from 7% to 6. 8%)in ur is not necessary a good thing, it could be because the increase in discouraged workers. Cpi is the same way calculated as gdp deflator, but the cpi reflect the consumers behavior, since the goods and services in the basket of cpi is different from those in the basket of gdp deflator. Women"s rights, cleaned chlorinated water, and adequate sewage facilities (also, he said you won"t be asking this type of question on the exam)

Related Questions

Unemployment and its types, and the Natural Rate of Unemployment.

1) Frictional unemployment is the result of

A) an economic recession.

B) the economic decline of major industries.

C) the normal process of jobs being created and destroyed.

D) people not getting along (having friction) with their employers.

E) changing weather throughout the year.

2) Bill has graduated with his degree in economics. Through Career Services he submitted his resume to several companies and he will visit them during the next two weeks. Bill is considered

A) not in the labor force.

B) frictionally unemployed.

C) structurally unemployed.

D) cyclically unemployed.

E) employed because he is visiting firms.

3) Structural unemployment includes people who become unemployed from

A) changes in the seasons.

B) normal changes in the labor force.

C) technological changes.

D) changes in the business cycle.

E) going back to school.

4) An employee who is fired from his or her job because he or she lacks the skills required to accomplish the task, is part of ________ unemployment.

A) frictional

B) cyclical

C) unskilled

D) structural

E) withdrawal

5) How would you best describe a manufacturing employee who has been fired because he was replaced by a robot (new technology) and does not have the skills necessary to help operate the robot?

A) job leaver

B) entrant/reentrant

C) cyclically unemployed

D) structurally unemployed

E) withdrawal

6) Seasonal unemployment includes people who become unemployed from

A) the seasonal weather patterns.

B) normal changes in the labor force.

C) technological changes.

D) changes in the business cycle.

E) changes in international competition.

7) Cyclical unemployment includes people who become unemployed from

A) changes in the seasons.

B) changes in international competition.

C) technological changes.

D) changes in the business cycle.

E) normal labor market turnover.

8) The type of unemployment that arises from a decrease in real GDP is called

A) frictional unemployment.

B) structural unemployment.

C) seasonal unemployment.

D) cyclical unemployment.

E) downturn unemployment.

9) John has been laid off from his job because of a general downturn in the economy. John's unemployment is best classified as

A) cyclical.

B) seasonal.

C) structural.

D) frictional.

E) avoidable.

10) Full employment means that

A) 100 percent of the labor force have jobs.

B) only those who are willing, able and looking for work are unemployed.

C) the cyclical unemployment rate is zero.

D) the natural unemployment rate is zero.

E) the frictional unemployment rate is zero.

11) The natural unemployment rate is the unemployment rate that exists when there is no

A) structural unemployment.

B) frictional unemployment.

C) cyclical unemployment.

D) cyclical or structural unemployment.

E) seasonal unemployment.

12) The natural unemployment rate equals the sum of

A) cyclical and frictional unemployment.

B) cyclical, seasonal, and structural unemployment.

C) frictional, seasonal, and structural unemployment.

D) seasonal and cyclical unemployment.

E) cyclical, frictional, seasonal, and structural unemployment.

browncamel558

Severe unemployment is socially catastrophic. Mark all items below that can occur due to unemployment.

Increased Spending

Increased work hours for other family members

Increased Savings

Uninterrupted schooling

Increased Stress

Postponed medical care

Utilities cut off

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Question 51 pts

What years was the unemployment rate equal to or great than 10%?

1929-1933, 1937-1938, 1981-1982, 2007-2009

1928-1932, 1936-1937, 1980-1981, 2008-2010

1929-1933, 1936-1937, 1980-1981, 2007-2009

1928-1930, 1937-1938, 1981-1982, 2008-2010

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Question 61 pts

The unemployment rate is understated due to:

None of the above.

Part-time workers being counted as unemployed

Discouraged workers not counted in the labor force

Underemployed workers being counted an unemployed

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Question 71 pts

True or False. The Labor force participation rate is the percentage of adults in an economy who are either employed or who are unemployed and looking for a job.

True

False

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Question 81 pts

True or False. The Bureau of Labor Statistics reports the percentage of labor force unemployed utilizing the current population survey.

True

False

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Question 91 pts

Mark all that apply. Over time the unemployment rate.....

does not fluctuate over time

an upward or downward trend in unemployment rates is apparent

never falls all the way to zero

the timing of rises and falls in unemployment do not match the timing of upswings and downswings in the overall economy

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Question 101 pts

According to the graphs presented by the author in this chapter, which group had the highest unemployment rate in 2010?

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Question 111 pts

According to the information presented by the author in this chapter, which group had the highest unemployment rate in 2015?

New entrants

Re-entrants

Job Losers: non-temporary

Job Leavers

Job Losers: temporary

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Question 121 pts

According to the information presented by the author in this chapter, which group had the highest unemployment rate in 2015?

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Question 131 pts

True or False. An international comparison of unemployment rates across countries can be easily accomplished.

True

False

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Question 141 pts

Mark all that apply. Wages are sticky downward due to:

Implicit contract

Insider-outsider model

Efficiency Wage Theory

Adverse selection of wage cuts argument

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Question 151 pts

Match the word to the correct definition.

Cyclical

[ Choose ] unemployment that occurs as workers move between jobs unemployment that occurs because individuals lack skills valued by employers or the Geographic distribution of jobs changes unemployment closely tied to the business cycle, like higher unemployment during a recession

Frictional

Structural

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Question 161 pts

A financial analyst who quits his/her job in Chicago and is pursuing similar work in Arizona. What type of unemployment occurred?

Structural

Cyclical

Frictional

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Question 171 pts

True or False. With productivity low, average levels of unemployment will tend to be somewhat higher on average.

True

False

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Question 181 pts

True or False. Unemployment benefits in the United States are only federally controlled.

True

False

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Question 191 pts

True or False. The natural rate of unemployment will never be zero due to cyclical and frictional unemployment.

True

False

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Question 201 pts

True or False. Public policies to assist the unemployed as it relates to the supply side of the labor market affect how eager people are to find work

True

False

crimsoncrab890

The three people described in the following table are categorized as unemployed by the Bureau of Labor Statistics. Identify them as structurally, frictionally, or cyclically unemployed.

1. Automobile demand has fallen in a recent recession, and Bob has been laid off from his job on the assembly line.

2. Jake became a dance instructor during the swing dance craze of the late 1990âs.However the fad had passed and heâs unable to find enough students to maintain his business.Heâs thinking about starting a yoga studio instead.

3. Hilary just Graduated from college and is looking for a full-time position with an investment banking firm.

Suppose the following table shows data on frictional, cyclical, structural, and total unemployment for an economy.

Unemployment type			Percent
Frictional			1
Cyclical			1.1
Structural			4.1
Total unemployment			6.2

True or False: This economy is at full employment.

indigohamster684

ECON 1115 Study Guide - Opportunity Cost, Gdp Deflator, Unemployment

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