Well the
Homework #2
Due date: Feb. 25th (Due in the beginning of the class)
Choose the one alternative that best completes the statement or answers the question. (Multiple choice question are worth 1 point each)
1) An advantage of the establishment survey over the household survey of the labor market is that the establishment survey
A) is based on actual payrolls, rather than on unverified answers.
2) In March 2009, the Seattle Post-Intelligencer newspaper converted to an online-only format. In making this transition, it laid off 145 of its 165 employees. The laid-off employees who were not able to find jobs at another newspaper due to a permanent decline in business in the newspaper industry would be considered
D) cyclically unemployed.
3) According to the text, economists consider full employment to occur when
D) the unemployment rate consists of only frictional and structural unemployment.
4) An increase in unemployment insurance payments would, in effect, ________ the amount of time spent searching for a job, which would increase ________ unemployment.
A) increase; cyclical
B) increase; frictional
C) decrease; cyclical
D) decrease; frictional
5) To reduce the bias in the consumer price index, the Bureau of Labor Statistics
A) updates the market basket every two years, rather than every 10 years.
B) updates the market basket every 10 years, rather than every two years.
C) incorporates substitutions by consumers when prices of specific products rise rapidly.
D) incorporates substitutions by consumers when prices of specific products fall rapidly.
q
Table 8-2
Base Year (2004)
2009
Product
Quantity
Price
Price
Milk 50
$1.20
$1.50
Bread
100 1.00 1.10
6) Refer to Table 8-2. Assume the market basket for the consumer price index has two products – bread and milk – with the following values in 2004 and 2009 for price and quantity: The Consumer Price Index for 2009 equals
Due date: Feb. 25th (Due in the beginning of the class)
Choose the one alternative that best completes the statement or answers the question. (Multiple choice question are worth 1 point each)
1) An advantage of the establishment survey over the household survey of the labor market is that the establishment survey
A) is based on actual payrolls, rather than on unverified answers.
2) In March 2009, the Seattle Post-Intelligencer newspaper converted to an online-only format. In making this transition, it laid off 145 of its 165 employees. The laid-off employees who were not able to find jobs at another newspaper due to a permanent decline in business in the newspaper industry would be considered
D) cyclically unemployed.
3) According to the text, economists consider full employment to occur when
D) the unemployment rate consists of only frictional and structural unemployment.
4) An increase in unemployment insurance payments would, in effect, ________ the amount of time spent searching for a job, which would increase ________ unemployment.
A) increase; cyclical
B) increase; frictional
C) decrease; cyclical
D) decrease; frictional
5) To reduce the bias in the consumer price index, the Bureau of Labor Statistics
A) updates the market basket every two years, rather than every 10 years.
B) updates the market basket every 10 years, rather than every two years.
C) incorporates substitutions by consumers when prices of specific products rise rapidly.
D) incorporates substitutions by consumers when prices of specific products fall rapidly.
q
Table 8-2
Base Year (2004)
2009
Product
Quantity
Price
Price
Milk 50
$1.20
$1.50
Bread
100 1.00 1.10
6) Refer to Table 8-2. Assume the market basket for the consumer price index has two products – bread and milk – with the following values in 2004 and 2009 for price and quantity: The Consumer Price Index for 2009 equals