Econ 545 Week6 Quiz (Set 2)

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ECON 545 (Business Economics - DeVry University) Week 6 Quiz Answers Set 1 Week 6 quiz |Question: |(TCO F) The size of the labor force in a community is 800, and 720 of these folks are gainfully employed. In | | |this community, 200 people over the age of 16 do not have a job, and are not looking for work. In addition, 100 | | |people in the community are under the age of 16. The unemployment rate is: | | | | |Your Answer: |Unemployment rate = unemployed/labor force x 100 (80/800) x 100 = 10% Unemplyment rate = 10% | |Instructor |The unemployment rate is calculated by dividing the number of unemployed by the labor force. The labor force is | |Explanation: |calculated by subtracting three things from the population (# under 16, # of institutionalized adults, and # not| | |looking for work). In this example, you are given the size of the labor force (800), and you are also told that | | |720 are employed. Therefore, 80 are unemployed, and the unemployment rate is simply 80/800 or 10%. | | | | | | | |Points Received: |15 of 15 | Dec 1 2 2. (TCO F) Suppose nominal GDP in 2005 was $14 trillion, and in 2006 it was $15 trillion. The general price index in 2005 was

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