1)Robert received a $100 gift certificate to a bookstore a year ago. The economy has been in an inflationary period for the last year. This gift certificate is
A. not expressed in either real or nominal terms since it is not money.
B. adjusted in terms of the CPI.
C. expressed in nominal terms and is
worth less.
2)One criticism of the unemployment rate is that it
A. does not include the number of discouraged workers as unemployed.
B. is a stock measure.
C. does not include people who are not working and are not looking for work.
1) C
2) A
are u sure there right
1) The correct answer is C. The gift certificate is expressed in nominal terms and is worth less due to inflation.
To understand the reasoning behind this, let's break down the options:
A. This option states that the gift certificate is not expressed in either real or nominal terms since it is not money. Although a gift certificate is not considered actual money, it can still be expressed in nominal terms.
B. This option suggests that the gift certificate is adjusted in terms of the CPI (Consumer Price Index). However, there is no information given in the question about any adjustments made to the gift certificate in relation to the CPI. Therefore, this option is not applicable in this scenario.
C. This option correctly states that the gift certificate is expressed in nominal terms and is worth less. When the economy experiences inflation, the value of money decreases over time. This means that the purchasing power of the $100 gift certificate would be lower a year later due to the inflationary period.
2) The correct answer is A. One criticism of the unemployment rate is that it does not include the number of discouraged workers as unemployed.
To understand this criticism, let's examine the options:
A. This option points out that the unemployment rate does not include the number of discouraged workers, who are individuals who have given up looking for work because they believe no jobs are available for them. These individuals are not counted as part of the labor force and thus are not included in the unemployment rate. This omission can lead to a potential underestimation of the true level of unemployment.
B. This option states that the unemployment rate is a stock measure. A stock measure refers to a measure that captures a situation at a particular point in time. The unemployment rate is indeed a point-in-time measure that estimates the percentage of individuals in the labor force who are without a job and actively seeking employment.
C. This option suggests that the unemployment rate does not include people who are not working and not looking for work. This accurately describes the labor force requirement for being considered unemployed. To be counted as unemployed, an individual must be without a job, available for work, and actively seeking employment. Those who are not working but are not actively seeking employment are not included in the unemployment rate.