Clemson Econ 2110 Quizzes for Final
Exam Review 2026 Guide
1. Which of the following would not be considered part B
of the adult noninstitutional civilian population when
calculating labor force participation?
a. Those who are unemployed and not seeking work
b. Employed Military Personnel
c. Retirees
d. These are all included in the relevant population
2. Jeremy was caught eating burgers and was fired. His B
unemployment would be counted under:
a. Cyclical unemployment
b. Frictional unemployment
c. Structural unemployment
d. Criminal unemployment
e. Unfair unemployment
3. Frictional unemployment always rises when D
a. Employment agencies help workers find jobs
b. Recessions occur
c. Changes in the industrial makeup of the economy
occur
d. Government policies increase job search time
4. Which of the following is an example of structural A
unemployment?
a. Alfred the VCR repairman is unemployed because
there are very few people who still own VCRs.
b. Bernie the construction worker is unemployed be-
cause no one is building houses right
, Clemson Econ 2110 Quizzes for Final
Exam Review 2026 Guide
c. Carl, the restaurant chef, is unemployed because he
and his wife recently moved to a new city
d. Alex, the economist, is unemployed because he
just finished his Ph.D. and is now applying to other
universities
5. Who is considered unemployed? B
a. Jean, a college student who is currently not working
b. Zoe, a recent college graduate who sent out job
applications but has yet to hear back from the busi-
nesses
c. Michael, a stay-at-home dad
d. All of the above
6. Which components of unemployment is the natural C
rate of unemployment made up of?
a. Cyclical and Structural
b. Cyclical, Structural, and Frictional
c. Structural and Frictional
d. Just Structural
7. If a discouraged worker reenters the labor force and D
begins searching for jobs but doesn't find one, the
unemployment rate will,
a. Go down because our economy is on the right track,
with more people wanting to work
b. Stay the same because the number of people with
jobs doesn't change
c. Stay the same because the worker isn't counted in
the labor force until they find a job again.
, Clemson Econ 2110 Quizzes for Final
Exam Review 2026 Guide
d. Increase because the percentage of labor force par-
ticipants with jobs has decreased
8. In 2012, John took out a 30-year bank mortgage loan A
at a fixed interest rate. He buys a house with the loan.
In 2014-2018, there was a large amount of inflation.
Who is hurt by this inflation and who is helped, ceteris
paribus?
a. John is helped, and the bank is hurt
b. The bank is helped, and John is hurt
c. John and the bank are both hurt
d. John and the bank are both helped
9. If the CPI in 1967 was 33.4 and the CPI in 1997 was A
160.5, what was the inflation rate?
a. 380.5%
b. 3.85%
c. 4.81%
d. 480.5%
10. Hall of Fame baseball player Babe Ruth earned C
$70,000 in 1927. Hall of Fame baseball player David
Ortiz earned $16,000,000 in the year 2015. According
to the Bureau of Labor Statistics, the annual average
CPI in 1927 was 17.4, and the annual average CPI in
2015 was 237.017. In 2015 dollars, how much more
was David Ortiz paid to play baseball than Babe Ruth?
a. $15,930,000
b. $953,516.67
, Clemson Econ 2110 Quizzes for Final
Exam Review 2026 Guide
c. $15,046,483.33
d. $1,174,599.29
11. Real GDP fell by 3% and there is no inflation, but the A
money supply grew by 5%. What is the implied change
in velocity?
a. -8%
b. -2%
c. 2%
d. 8%
12. When considering the quantity theory of money, what C
is the only thing that leads to inflation?
a. An increase in the velocity of money
b. An increase in real GDP
c. An increase in the money supply
d. An increase in corporate greed
13. If the CPI was 150 last year, and we experienced 5% C
inflation, what would we expect CPI to be this year?
a. 142.5
b. 150
c. 157.5
d. 165
14. Jeremy wants to loan his friend Mary money, but D
wants to make sure he gets a 5% real interest rate.
If he expects inflation to be at 4% next year, what
nominal interest rates should he charge?
Exam Review 2026 Guide
1. Which of the following would not be considered part B
of the adult noninstitutional civilian population when
calculating labor force participation?
a. Those who are unemployed and not seeking work
b. Employed Military Personnel
c. Retirees
d. These are all included in the relevant population
2. Jeremy was caught eating burgers and was fired. His B
unemployment would be counted under:
a. Cyclical unemployment
b. Frictional unemployment
c. Structural unemployment
d. Criminal unemployment
e. Unfair unemployment
3. Frictional unemployment always rises when D
a. Employment agencies help workers find jobs
b. Recessions occur
c. Changes in the industrial makeup of the economy
occur
d. Government policies increase job search time
4. Which of the following is an example of structural A
unemployment?
a. Alfred the VCR repairman is unemployed because
there are very few people who still own VCRs.
b. Bernie the construction worker is unemployed be-
cause no one is building houses right
, Clemson Econ 2110 Quizzes for Final
Exam Review 2026 Guide
c. Carl, the restaurant chef, is unemployed because he
and his wife recently moved to a new city
d. Alex, the economist, is unemployed because he
just finished his Ph.D. and is now applying to other
universities
5. Who is considered unemployed? B
a. Jean, a college student who is currently not working
b. Zoe, a recent college graduate who sent out job
applications but has yet to hear back from the busi-
nesses
c. Michael, a stay-at-home dad
d. All of the above
6. Which components of unemployment is the natural C
rate of unemployment made up of?
a. Cyclical and Structural
b. Cyclical, Structural, and Frictional
c. Structural and Frictional
d. Just Structural
7. If a discouraged worker reenters the labor force and D
begins searching for jobs but doesn't find one, the
unemployment rate will,
a. Go down because our economy is on the right track,
with more people wanting to work
b. Stay the same because the number of people with
jobs doesn't change
c. Stay the same because the worker isn't counted in
the labor force until they find a job again.
, Clemson Econ 2110 Quizzes for Final
Exam Review 2026 Guide
d. Increase because the percentage of labor force par-
ticipants with jobs has decreased
8. In 2012, John took out a 30-year bank mortgage loan A
at a fixed interest rate. He buys a house with the loan.
In 2014-2018, there was a large amount of inflation.
Who is hurt by this inflation and who is helped, ceteris
paribus?
a. John is helped, and the bank is hurt
b. The bank is helped, and John is hurt
c. John and the bank are both hurt
d. John and the bank are both helped
9. If the CPI in 1967 was 33.4 and the CPI in 1997 was A
160.5, what was the inflation rate?
a. 380.5%
b. 3.85%
c. 4.81%
d. 480.5%
10. Hall of Fame baseball player Babe Ruth earned C
$70,000 in 1927. Hall of Fame baseball player David
Ortiz earned $16,000,000 in the year 2015. According
to the Bureau of Labor Statistics, the annual average
CPI in 1927 was 17.4, and the annual average CPI in
2015 was 237.017. In 2015 dollars, how much more
was David Ortiz paid to play baseball than Babe Ruth?
a. $15,930,000
b. $953,516.67
, Clemson Econ 2110 Quizzes for Final
Exam Review 2026 Guide
c. $15,046,483.33
d. $1,174,599.29
11. Real GDP fell by 3% and there is no inflation, but the A
money supply grew by 5%. What is the implied change
in velocity?
a. -8%
b. -2%
c. 2%
d. 8%
12. When considering the quantity theory of money, what C
is the only thing that leads to inflation?
a. An increase in the velocity of money
b. An increase in real GDP
c. An increase in the money supply
d. An increase in corporate greed
13. If the CPI was 150 last year, and we experienced 5% C
inflation, what would we expect CPI to be this year?
a. 142.5
b. 150
c. 157.5
d. 165
14. Jeremy wants to loan his friend Mary money, but D
wants to make sure he gets a 5% real interest rate.
If he expects inflation to be at 4% next year, what
nominal interest rates should he charge?
