Question 1

If the economy is expanding beyond its long-run capabilities,we know that

Accepted Answer

A)   we are in a depression.
B)   we are in a recession.
C)   actual unemployment is above its natural rate.
D)   actual unemployment is at its natural rate.
E)   actual unemployment is less than its natural rate.F) B) and E)
G) A) and C)

Question 2

During healthy economic periods,cyclical unemployment

Accepted Answer

A)   rises.
B)   will equal structural unemployment.
C)   falls toward zero.
D)   will equal frictional unemployment.
E)   will equal the natural rate of unemployment.F) C) and D)
G) All of the above

Question 3

How do the unemployment rates differ between adults and teenagers in the United States,holding all else constant? What are some reasons for this difference?

Accepted Answer

Holding all else constant,the unemployme...

Question 4

Which of the following equations represents the labor force?

Accepted Answer

A)   (number of unemployed / labor force) *100
B)   (unemployed+employed) 
C)   (number of employed / labor force) *100
D)   (number of unemployed / relevant population) * 100
E)   (labor force / relevant population) * 100F) B) and C)
G) A) and C)

Question 5

Individuals who are not working but are willing to work and who have looked for a job in the past 12 months but have not sought employment in the past four weeks are defined as

Accepted Answer

A)   unemployed.
B)   employed.
C)   unhappy workers.
D)   discouraged workers.
E)   retired.F) C) and D)
G) A) and B)

Question 6

What would one expect to happen to the labor force participation rate if the following situations occurred?
a.A large percentage of the workforce retires.
b.The government begins to subsidize current workers who go back to school full-time to attain advanced degrees.
c.The government offers a transfer payment to discouraged workers and to unemployed workers.

Accepted Answer

a.If a large percentage of the workforce...

Question 7

Refer to the following scenario to answer the following questions.
A government worker surveys a number of households and comes up with the following information: there were a total of 90 people in the households, 10 of the people were children under 16, 10 of the people were retired but still capable of working, 35 people had full-time jobs, 5 had part-time jobs, 5 were stay-at-home parents, 5 were full-time students over the age of 16, 5 were disabled people who could not work, 10 people had no job but were looking for jobs, and there were 5 people who wanted a job but were not looking for a job.
-According to the information in the survey,the labor force participation rate is

Accepted Answer

A)   73.3 percent.
B)   66.7 percent.
C)   76.9 percent.
D)   84.6 percent.
E)   55.6 percent.F) A) and E)
G) A) and D)

Question 8

Pietro quits his job in New York and moves to California.After two months he finds a job.This is an example of ________ unemployment.

Accepted Answer

A)   cyclical
B)   structural
C)   natural
D)   frictional
E)   seasonalF) B) and C)
G) None of the above

Question 9

If a large group of U.S.workers begins to retire,you can expect

Accepted Answer

A)   an increase in the labor force participation rate.
B)   an increase in the labor force.
C)   a decrease in the labor force participation rate.
D)   no effect on the labor force participation rate.
E)   no effect on the unemployment rate.F) A) and B)
G) A) and C)

Question 10

Which of the following statements about the composition of the labor force is correct?

Accepted Answer

A)   Since 1948,the percentage of men participating in the labor force has increased.
B)   Since 1948,the percentage of women participating in the labor force has decreased.
C)   Since 1948,the percentage of men participating in the labor force has decreased.
D)   Since 1948,the percentage of women participating in the labor force has remained the same.
E)   Since 1948,the labor force participation gap between males and females has risen.F) A) and E)
G) B) and D)

Question 11

Maria is a high school math teacher.When her husband is transferred to another state with his company,she quits her job so she can move with him.She can be classified as ________ unemployed.

Accepted Answer

A)   cyclically
B)   structurally
C)   naturally
D)   frictionally
E)   seasonallyF) B) and C)
G) A) and E)

Question 12

During normal economic times,unemployment in Europe tends to be ________ than in the United States mainly because of ________.

Accepted Answer

A)   higher; labor market regulations
B)   lower; labor market regulations
C)   higher; exchange rates
D)   longer; exchange rates
E)   higher; cyclical unemploymentF) A) and C)
G) A) and E)

Question 13

Asking whether people are unemployed for short spells or whether the duration of joblessness is long term is

Accepted Answer

A)   a question answered by the official unemployment rate.
B)   not an important question to answer in understanding the overall health of the labor market.
C)   a question that is impossible to answer.
D)   not a question on which the Bureau of Labor Statistics collects data.
E)   a question that can be answered because the Bureau of Labor Statistics keeps an alternative measure of unemployment that tracks the length of time workers have been unemployed.F) A) and C)
G) C) and D)

Question 14

Employment data is released

Accepted Answer

A)   the first Friday of every month.
B)   the third Friday of every month.
C)   the first Monday of every month.
D)   the third Monday of every month.
E)   quarterly.F) C) and D)
G) B) and D)

Question 15

You are given the following statistics about the economy:
Relevant population: 348 million
Employed: 228 million
Unemployed: 19 million
Answer the following questions to one decimal point:
a.What is the unemployment rate?
b.What is the labor force?
c.What is the labor force participation rate?

Accepted Answer

a.7.7 perc...

Question 16

What are the two types of unemployment that are consistent with a dynamic,growing economy?

Accepted Answer

A)   cyclical and structural
B)   real and nominal
C)   frictional and cyclical
D)   frictional and structural
E)   natural and cyclicalF) B) and D)
G) C) and E)

Question 17

Which of the following lists the three types of unemployment?

Accepted Answer

A)   frictional,structural,and practical
B)   practical,structural,and cyclical
C)   frictional,unavailable,and structural
D)   cyclical,practical,and unavailable
E)   frictional,structural,and cyclicalF) B) and E)
G) A) and C)

Question 18

When actual unemployment is less than its natural rate,the

Accepted Answer

A)   economy is expanding beyond its long-run capabilities.
B)   economy is producing within its long-run capabilities.
C)   numbers must be wrong because the actual unemployment rate can never be less than the natural rate.
D)   economy is in a recession.
E)   economy must be experiencing high inflation.F) A) and D)
G) B) and E)

Question 19

Which of the following conditions might cause the unemployment rate to be less than the natural rate of unemployment?

Accepted Answer

A)   Demand for products starts to decrease,so firms keep their factories open for additional hours of production to make up the difference.
B)   Demand for products is so high that firms keep their factories open for additional hours of production and pay their workers overtime.
C)   Demand for products is so high that firms raise their prices to take advantage of extra profits.
D)   The economy enters a recession,so firms start to produce more to help boost the economy.
E)   The government decreases unemployment benefits.F) C) and D)
G) B) and E)

Question 20

Consider an economy producing at its full employment output level.In this case the unemployment rate is equal to

Accepted Answer

A)   zero.
B)   the natural rate.
C)   the rate of cyclical unemployment.
D)   the rate of frictional unemployment.
E)   the rate of structural unemployment.F) B) and C)
G) D) and E)

Exam 20: Unemployment

Correct Answer
verified

If a large group of U.S.workers begins to retire,you can expect

Correct Answer
verified

Which of the following lists the three types of unemployment?

Correct Answer
verified

When actual unemployment is less than its natural rate,the

Correct Answer
verified

Which of the following conditions might cause the unemployment rate to be less than the natural rate of unemployment?

Correct Answer
verified

Asking whether people are unemployed for short spells or whether the duration of joblessness is long term is

Correct Answer
verified

Employment data is released

Correct Answer
verified

What are the two types of unemployment that are consistent with a dynamic,growing economy?

Correct Answer
verified

If the economy is expanding beyond its long-run capabilities,we know that

Correct Answer
verified

Pietro quits his job in New York and moves to California.After two months he finds a job.This is an example of ________ unemployment.

Correct Answer
verified

Consider an economy producing at its full employment output level.In this case the unemployment rate is equal to

Correct Answer
verified

During healthy economic periods,cyclical unemployment

Correct Answer
verified

During normal economic times,unemployment in Europe tends to be than in the United States mainly because of .

Correct Answer
verified

How do the unemployment rates differ between adults and teenagers in the United States,holding all else constant? What are some reasons for this difference?

Correct Answer
verified
Holding all else constant,the unemployme...
View Answer

Correct Answer
verified
a.If a large percentage of the workforce...
View Answer

Individuals who are not working but are willing to work and who have looked for a job in the past 12 months but have not sought employment in the past four weeks are defined as

Correct Answer
verified

Maria is a high school math teacher.When her husband is transferred to another state with his company,she quits her job so she can move with him.She can be classified as ________ unemployed.

Correct Answer
verified

Which of the following statements about the composition of the labor force is correct?

Correct Answer
verified

You are given the following statistics about the economy: Relevant population: 348 million Employed: 228 million Unemployed: 19 million Answer the following questions to one decimal point: a.What is the unemployment rate? b.What is the labor force? c.What is the labor force participation rate?

Correct Answer
verified
a.7.7 perc...
View Answer

Which of the following equations represents the labor force?

Correct Answer
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Exam 20: Unemployment

Correct AnswerverifiedShow Answer

If a large group of U.S.workers begins to retire,you can expect

Correct AnswerverifiedShow Answer

Which of the following lists the three types of unemployment?

Correct AnswerverifiedShow Answer

When actual unemployment is less than its natural rate,the

Correct AnswerverifiedShow Answer

Which of the following conditions might cause the unemployment rate to be less than the natural rate of unemployment?

Correct AnswerverifiedShow Answer

Asking whether people are unemployed for short spells or whether the duration of joblessness is long term is

Correct AnswerverifiedShow Answer

Employment data is released

Correct AnswerverifiedShow Answer

What are the two types of unemployment that are consistent with a dynamic,growing economy?

Correct AnswerverifiedShow Answer

If the economy is expanding beyond its long-run capabilities,we know that

Correct AnswerverifiedShow Answer

Pietro quits his job in New York and moves to California.After two months he finds a job.This is an example of ________ unemployment.

Correct AnswerverifiedShow Answer

Consider an economy producing at its full employment output level.In this case the unemployment rate is equal to

Correct AnswerverifiedShow Answer

During healthy economic periods,cyclical unemployment

Correct AnswerverifiedShow Answer

During normal economic times,unemployment in Europe tends to be ________ than in the United States mainly because of ________.

Correct AnswerverifiedShow Answer

How do the unemployment rates differ between adults and teenagers in the United States,holding all else constant? What are some reasons for this difference?

Correct AnswerverifiedHolding all else constant,the unemployme...View AnswerShow Answer

Correct Answerverifieda.If a large percentage of the workforce...View AnswerShow Answer

Individuals who are not working but are willing to work and who have looked for a job in the past 12 months but have not sought employment in the past four weeks are defined as

Correct AnswerverifiedShow Answer

Maria is a high school math teacher.When her husband is transferred to another state with his company,she quits her job so she can move with him.She can be classified as ________ unemployed.

Correct AnswerverifiedShow Answer

Which of the following statements about the composition of the labor force is correct?

Correct AnswerverifiedShow Answer

You are given the following statistics about the economy: Relevant population: 348 million Employed: 228 million Unemployed: 19 million Answer the following questions to one decimal point: a.What is the unemployment rate? b.What is the labor force? c.What is the labor force participation rate?

Correct Answerverifieda.7.7 perc...View AnswerShow Answer

Which of the following equations represents the labor force?

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During normal economic times,unemployment in Europe tends to be than in the United States mainly because of .

Correct Answer
verified

Correct Answer
verified
Holding all else constant,the unemployme...
View Answer

Correct Answer
verified
a.If a large percentage of the workforce...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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a.7.7 perc...
View Answer

Correct Answer
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