ECN 211 MIDTERM 1 PREMIUM REVIEW SET 2026
TESTED MATERIALS
◉ Producer Price Index (PPI). Answer: Measures change in costs of
market basket of goods and services purchased by firms
an average of the prices received by producers of goods and services
at all stages of the production process
◉ PPT 9. Answer: PPT 9
◉ Unemployment. Answer: THE BUREAU OF LABOR STATISTICS
USES THE CURRENT POPULATION SURVEY TO CALCULATE THE
UNEMPLOYMENT RATE
◉ Three cateogries of unemployment. Answer: 1.) Employed (good)
2.) Unemployed (bad)
3.) Not in the Labor Force (neutral) (must be 16 to be in the labor
force)
◉ Unemployment Rate. Answer: Number of Employed / Number in
the Labor Force
,◉ 1. Paul quit his job last week to take a higher paying job.
His new job starts in two weeks. He is using the time to
build a new deck on his patio.. Answer: Unemployed
◉ 2. Fred is a retired senior citizen. He works part-time (5
hours/week)
for pay delivering food to patients at the local hospital.. Answer:
Employed
◉ Marge's husband owns a photography business that he runs out of
his home.
She keeps his books for him (@ 20 hours/week), but is not paid for
her help.. Answer: Employed
◉ Kathy has been out of work ever since she graduated from college
four months ago.
She is looking for a job that pays at least $100,000, gives her the
summers off, and doesn't require her to come to work until noon..
Answer: Unemployed
◉ . Angela got fired from her job at the jewelry store
last week for stealing.. Answer: Unemployed
◉ Pete got laid off from the factory because of a recession.
He got frustrated trying to find a job and hasn't looked for one
in six weeks.. Answer: Not in Labor Force
,◉ Jimmy is 15-years old and has a newspaper route. He spends
three hours each morning delivering newspapers for pay.. Answer:
Not in Labor Force
◉ Brad got laid off at his factory last week. He expects to be
recalled at the end of the month, so he's not looking for work..
Answer: Unemployed
◉ Employed in the Labor Force. Answer: People are considered
employed if they worked at all for pay in the previous week.
This includes persons who have jobs but did not work because they
were ill, on vacation, experiencing child care problems, on
maternity/paternity leave, taking care of a family/personal
obligation, involved in a labor dispute, or prevented from working by
bad weather.
A person is also considered employed if they worked at least 15
hours unpaid in a family business.
◉ Unemployed in the Labor Force. Answer: People are considered
unemployed if they did not meet the definition of employed, but
searched for a job at least once in the past four weeks.
Workers on temporary layoff who expect to be called back are
considered unemployed even if they haven't been actively seeking
work.
, Actively seeking work includes submitting resumes/applications,
contacting an employer, signing up with an employment agency, etc.
"Passive" job-seeking (i.e. reading the "Help Wanted" section of the
newspaper) does not count.
◉ Not in the Labor Force. Answer: Without a job, but have not
sought work in the past four weeks.
Most persons not in the labor force are under 16 years of age,
retired, full-time students, or homemakers
◉ Unemployment Benefits. Answer: In general, the unemployed
person has to have worked continually for a specified period of time
and earned a specific amount of money
You are usually not eligible if you quit your job or were fired with
cause
Most states allow you to be eligible for benefits for up to six months
Most states allow you to be eligible for up to 50% of your previous
pay
In serious recessions, the benefits period may be extended
(sometimes the federal government provides the benefits)
2. Must maintain an active job search while drawing benefits
3. Can remain eligible for up to six months
4. Maximum weekly benefit: $240
TESTED MATERIALS
◉ Producer Price Index (PPI). Answer: Measures change in costs of
market basket of goods and services purchased by firms
an average of the prices received by producers of goods and services
at all stages of the production process
◉ PPT 9. Answer: PPT 9
◉ Unemployment. Answer: THE BUREAU OF LABOR STATISTICS
USES THE CURRENT POPULATION SURVEY TO CALCULATE THE
UNEMPLOYMENT RATE
◉ Three cateogries of unemployment. Answer: 1.) Employed (good)
2.) Unemployed (bad)
3.) Not in the Labor Force (neutral) (must be 16 to be in the labor
force)
◉ Unemployment Rate. Answer: Number of Employed / Number in
the Labor Force
,◉ 1. Paul quit his job last week to take a higher paying job.
His new job starts in two weeks. He is using the time to
build a new deck on his patio.. Answer: Unemployed
◉ 2. Fred is a retired senior citizen. He works part-time (5
hours/week)
for pay delivering food to patients at the local hospital.. Answer:
Employed
◉ Marge's husband owns a photography business that he runs out of
his home.
She keeps his books for him (@ 20 hours/week), but is not paid for
her help.. Answer: Employed
◉ Kathy has been out of work ever since she graduated from college
four months ago.
She is looking for a job that pays at least $100,000, gives her the
summers off, and doesn't require her to come to work until noon..
Answer: Unemployed
◉ . Angela got fired from her job at the jewelry store
last week for stealing.. Answer: Unemployed
◉ Pete got laid off from the factory because of a recession.
He got frustrated trying to find a job and hasn't looked for one
in six weeks.. Answer: Not in Labor Force
,◉ Jimmy is 15-years old and has a newspaper route. He spends
three hours each morning delivering newspapers for pay.. Answer:
Not in Labor Force
◉ Brad got laid off at his factory last week. He expects to be
recalled at the end of the month, so he's not looking for work..
Answer: Unemployed
◉ Employed in the Labor Force. Answer: People are considered
employed if they worked at all for pay in the previous week.
This includes persons who have jobs but did not work because they
were ill, on vacation, experiencing child care problems, on
maternity/paternity leave, taking care of a family/personal
obligation, involved in a labor dispute, or prevented from working by
bad weather.
A person is also considered employed if they worked at least 15
hours unpaid in a family business.
◉ Unemployed in the Labor Force. Answer: People are considered
unemployed if they did not meet the definition of employed, but
searched for a job at least once in the past four weeks.
Workers on temporary layoff who expect to be called back are
considered unemployed even if they haven't been actively seeking
work.
, Actively seeking work includes submitting resumes/applications,
contacting an employer, signing up with an employment agency, etc.
"Passive" job-seeking (i.e. reading the "Help Wanted" section of the
newspaper) does not count.
◉ Not in the Labor Force. Answer: Without a job, but have not
sought work in the past four weeks.
Most persons not in the labor force are under 16 years of age,
retired, full-time students, or homemakers
◉ Unemployment Benefits. Answer: In general, the unemployed
person has to have worked continually for a specified period of time
and earned a specific amount of money
You are usually not eligible if you quit your job or were fired with
cause
Most states allow you to be eligible for benefits for up to six months
Most states allow you to be eligible for up to 50% of your previous
pay
In serious recessions, the benefits period may be extended
(sometimes the federal government provides the benefits)
2. Must maintain an active job search while drawing benefits
3. Can remain eligible for up to six months
4. Maximum weekly benefit: $240
