TOPIC 2: Inflation and Unemployment Flashcards
Human capital is
The knowledge and skills of workers that have economic value
If the number of employed people in the UK is 27 million, the number of unemployed people is 2.4 million, and the working-age population 40 million, what is the unemployment rate?
(State your answer as a percentage to 1 decimal place.)
8.2%
In the Ikean economy, the working-age population is equal to 104. In total, there are 45 people employed and 15 people unemployed.
What is the economic activity rate?
(State your answer as a percentage to 1 decimal place.)
60/104. x100. = 57.7%
If the number of employed people in the UK is 29 million, the number of unemployed people is 2.0 million, and the working-age population 44 million, what is the employment rate?
(State your answer as a percentage to 1 decimal place.
2/26 = 7.7
WRONG!!!!
Unemployment includes all the people in the working-age population without jobs.
True or false?
False
If the current value of the CPI is 94 and it changes to 111 in one year’s time, what is the annual inflation rate?
State your answer to 2 decimal places.
111-94. / 94 = 18.09%
Hyperinflation refers to
An inflation rate of 50% or more per month
In the economy of Dot, the working-age population is equal to 103. In total, there are 48 people employed and 14 people unemployed.
How many people in Dot are economically active?
62?
Tom is 27. He is currently without work. He says he would like a job, but there are none in his local community so he gave up searching two months ago.
Tom is currently unemployed?
False
Over the past 50 years, Moneyland had an average money supply growth rate of 24% and average real GDP growth of 3%. Find Moneyland’s average inflation rate over this period.
21%
To be unemployed, a person must fall into one of three categories. Choose these three from the list below:
Without work, but made specific efforts to find a job in the past four weeks
Waiting to start a new job within 30 days
Without work, but communicates to the interviewer that they would like a job
WRONG!!!!
According to RPI data, the cost of 100g of instant coffee has risen from 24p in 1967 to £2.65 in 2016.
1967 is the base year. Both your answers should be stated to two decimal places (e.g. 0.137 would become 0.14).
Complete the following sentence:
The RPI price index for coffee was equal to 100 in 1967 and 1066.67 in 2016.
100 & 1066.67
From 100 as the base year for 1967
and then working out that 2.56/0.24 = 1066.67
WRONG!!!