LESSON 2 FINALS

Question 1

refers to a single price, such as the price of apples or
the price of oranges.

Answer 1

Price

Question 2

is a weighted average of the prices of all goods
and services.

Answer 2

Price Level

Question 3

Economists measure the price level by constructing a?

Answer 3

Price index

Question 4

is the weighted average of prices of a
specific set of goods and services

Answer 4

Consumer Price Index

Question 5

is the benchmark year that
serves as a basis of comparison for prices in other years.

Answer 5

Base year

Question 6

is an increase in the price level and is usually measured on an annual
basis.

Answer 6

Inflation

Question 7

is the positive percentage change in the price level on an
annual basis.

Answer 7

Inflation rate

Question 8

is a person’s nominal income (or current dollar
amount of income) adjusted for any change in prices.

Answer 8

Real income

Question 9

Computing the Price Level using CPI? WHATS THE FORMULA

Answer 9

[(CPIlater year – CPIearlier year)/ CPIearlier year]x100%

Question 10

WHATS THE FORMULA FOR CUMPUTING REAL INCOME

Answer 10

Real Income = (Nominal Income/CPI) x 100

Question 11

is the percentage of the civilian labor force that is unemployed. It is
equal to the number of unemployed persons divided by the civilian labor force

Answer 11

unemployment rate

Question 12

sometimes referred to as the employment/population ratio, is the
percentage of the civilian noninstitutional population that is employed

Answer 12

employment rate

Question 13

is the percentage of the civilian non-institutional
population that is in the civilian labor force

Answer 13

labor force participation rate (LFPR)

Question 14

If U = 25%, that doesn’t mean that E = 75%. T OR F

Answer 14

TRUE

Question 15

this person was employed in the civilian labor force and was
either fired or laid off. Most unemployed persons fall in this category

Answer 15

Job loser

Question 16

this person was employed in the civilian labor force and quit
the job.

Answer 16

Job leaver

Question 17

This person was previously employed, hasn’t worked for some
time, and is currently reentering the labor force

Answer 17

Reentrant

Question 18

this person has never held a full-time job for two weeks or
longer and is now in the civilian labor force looking for a job

Answer 18

New entrant