Question 1

Which of the following statements is FALSE for the United States?

Accepted Answer

A) most of the unemployed remain unemployed for more than half a year 
B) a significant amount of the turnover rate in the labor market is cyclical 
C) variations in unemployment rates across groups defined by age, race, and gender tend to be large 
D) almost 50 percent of the unemployed find a job in less than 14 weeks 
E) many jobs were permanently eliminated in the 1990s, so the search for new employment took longer than it had in the past 
A) most of the unemployed remain unemployed for more than half a year 
B) a significant amount of the turnover rate in the labor market is cyclical 
C) variations in unemployment rates across groups defined by age, race, and gender tend to be large 
D) almost 50 percent of the unemployed find a job in less than 14 weeks 
E) many jobs were permanently eliminated in the 1990s, so the search for new employment took longer than it had in the past

Question 2

The ill effects of unemployment are often more severe than official data suggest since

Accepted Answer

A) the natural rate of unemployment is not accounted for 
B) much of the unemployment that is reported is structural 
C) over 50 percent of the unemployed are unemployed for more than half a year 
D) the incidence of unemployment, both in frequency and duration, is spread unevenly throughout the population 
E) workers who enter the labor force for the first time are not counted as unemployed 
A) the natural rate of unemployment is not accounted for 
B) much of the unemployment that is reported is structural 
C) over 50 percent of the unemployed are unemployed for more than half a year 
D) the incidence of unemployment, both in frequency and duration, is spread unevenly throughout the population 
E) workers who enter the labor force for the first time are not counted as unemployed

Question 3

Which of the following can affect the frequency of unemployment?

Accepted Answer

A) the availability of unemployment benefits 
B)  the variability of the demand for labor across different employers 
C)  the rate at which new workers enter the labor force 
D) both A and B 
E) both B and C 
A) the availability of unemployment benefits 
B)  the variability of the demand for labor across different employers 
C)  the rate at which new workers enter the labor force 
D) both A and B 
E) both B and C

Question 4

Some research has found that a doubling of unemployment benefits can increase unemployment

Accepted Answer

A) by less than half a percentage point 
B) by exactly 1 percentage point 
C) by more than 2 percentage points 
D) significantly since many unemployed will feel less urgency about finding a new job 
E) none of the above 
A) by less than half a percentage point 
B) by exactly 1 percentage point 
C) by more than 2 percentage points 
D) significantly since many unemployed will feel less urgency about finding a new job 
E) none of the above

Question 5

Which of the following statements is FALSE?

Accepted Answer

A) there is a high turnover rate in the labor market 
B) a significant amount of the turnover rate in the labor market is cyclical 
C) there are large variations in unemployment rates across groups defined by age, race, and sex 
D) over 50 percent of the workers who became unemployed in 2009 remained unemployed for more than half a year 
E) many workers who are counted as unemployed will be (or have been)unemployed for several weeks 
A) there is a high turnover rate in the labor market 
B) a significant amount of the turnover rate in the labor market is cyclical 
C) there are large variations in unemployment rates across groups defined by age, race, and sex 
D) over 50 percent of the workers who became unemployed in 2009 remained unemployed for more than half a year 
E) many workers who are counted as unemployed will be (or have been)unemployed for several weeks

Question 6

Which of the following people has moved out of the pool of unemployment?

Accepted Answer

A) Peter, who just got hired as a part-time security guard 
B) Paul, who was laid off two months ago but just got a recall notice to resume his job at the assembly line starting the week after next 
C) Mary, who has given up looking for a job, leaving the work force permanently 
D) all of the above 
E) both Peter and Mary 
A) Peter, who just got hired as a part-time security guard 
B) Paul, who was laid off two months ago but just got a recall notice to resume his job at the assembly line starting the week after next 
C) Mary, who has given up looking for a job, leaving the work force permanently 
D) all of the above 
E) both Peter and Mary

Question 7

Which of these people could officially be counted as unemployed?

Accepted Answer

A) a garage attendant who got fired from his old job two months ago but will start a new job in two weeks 
B) a busboy who works only four hours a day, five days a week, but would prefer to work full-time as a waiter 
C) an accountant who quit her job when she had a baby two months ago 
D) a woman who joined the babysitters' union several months ago and averages about five customers a week at her $10/hour rate 
E) none of the above 
A) a garage attendant who got fired from his old job two months ago but will start a new job in two weeks 
B) a busboy who works only four hours a day, five days a week, but would prefer to work full-time as a waiter 
C) an accountant who quit her job when she had a baby two months ago 
D) a woman who joined the babysitters' union several months ago and averages about five customers a week at her $10/hour rate 
E) none of the above

Question 8

Which of the following statements is TRUE for the United States?

Accepted Answer

A) the unemployment rate consistently tends to be slightly higher among males than among females 
B) the unemployment rate of teenagers tends to be much higher and more variable than that of people 20 years and older 
C) during the 1981/1982 recession, the unemployment rate among teenagers was nearly the same as the unemployment rate among workers over 20 
D) the highest unemployment rate in the post World War II period occurred in the 1974/75 recession 
E) the unemployment rate among minorities consistently remained above 10 percent over the last 5 decades 
A) the unemployment rate consistently tends to be slightly higher among males than among females 
B) the unemployment rate of teenagers tends to be much higher and more variable than that of people 20 years and older 
C) during the 1981/1982 recession, the unemployment rate among teenagers was nearly the same as the unemployment rate among workers over 20 
D) the highest unemployment rate in the post World War II period occurred in the 1974/75 recession 
E) the unemployment rate among minorities consistently remained above 10 percent over the last 5 decades

Question 9

Which of the following statements is FALSE?

Accepted Answer

A) the availability of unemployment benefits reduces the natural rate of unemployment 
B) the natural rate of unemployment can be reduced by policies designed to affect the composition of the labor force 
C) high rates of unemployment often have a way of perpetuating themselves 
D) the unemployment rate among white males 20 years and older is lower than the overall unemployment rate 
E) even when the economy is at the full-employment level of output, some frictional unemployment still exists 
A) the availability of unemployment benefits reduces the natural rate of unemployment 
B) the natural rate of unemployment can be reduced by policies designed to affect the composition of the labor force 
C) high rates of unemployment often have a way of perpetuating themselves 
D) the unemployment rate among white males 20 years and older is lower than the overall unemployment rate 
E) even when the economy is at the full-employment level of output, some frictional unemployment still exists

Question 10

Which of the following did NOT happen over the period from 2006 to 2011?

Accepted Answer

A) Germany's unemployment rate declined 
B) the official unemployment rate in Greece almost doubled 
C) Mexico's unemployment rate almost doubled reaching over 10 percent in 2011 
D) South Korea's unemployment rate stayed consistently below 4 percent 
E) Spain's unemployment rate went from below 10 percent to over 20 percent 
A) Germany's unemployment rate declined 
B) the official unemployment rate in Greece almost doubled 
C) Mexico's unemployment rate almost doubled reaching over 10 percent in 2011 
D) South Korea's unemployment rate stayed consistently below 4 percent 
E) Spain's unemployment rate went from below 10 percent to over 20 percent

Question 11

The spell of unemployment is

Accepted Answer

A) defined as the period during which a person remains continuously unemployed 
B) defined as the average length of time a person remains unemployed 
C) defined as the time it takes for the economy to reduce unemployment to its natural rate 
D) the same as the average duration of unemployment 
E) the average number of times a worker is laid off within a year 
A) defined as the period during which a person remains continuously unemployed 
B) defined as the average length of time a person remains unemployed 
C) defined as the time it takes for the economy to reduce unemployment to its natural rate 
D) the same as the average duration of unemployment 
E) the average number of times a worker is laid off within a year

Question 12

The fact that an increase in the unemployment rate by 1 percent will lead to a roughly 2 percent loss in output is referred to as

Accepted Answer

A) the sacrifice ratio 
B)  the replacement ratio 
C)  the misery index 
D) the Beveridge relationship 
E) Okun's law 
A) the sacrifice ratio 
B)  the replacement ratio 
C)  the misery index 
D) the Beveridge relationship 
E) Okun's law

Question 13

From 2006 to 2011, when the U.S.unemployment rate almost doubled,

Accepted Answer

A) unemployment in Greece nearly doubled as well 
B) the unemployment rate in Germany declined 
C) unemployment in Norway remained below 4 percent 
D) all of the above 
E) none of the above 
A) unemployment in Greece nearly doubled as well 
B) the unemployment rate in Germany declined 
C) unemployment in Norway remained below 4 percent 
D) all of the above 
E) none of the above

Question 14

Assume adult males have a 48% share of the work force and their unemployment rate is 7.0%; adult females' share is 45% and their unemployment rate is 6.8%; teenagers' share of the work force is 7% with an unemployment rate of 18.0%.What is the overall unemployment rate?

Accepted Answer

A) 7)0% 
B) 7)2% 
C) 7)7% 
D) 8)4% 
E) 9)6% 
A) 7)0% 
B) 7)2% 
C) 7)7% 
D) 8)4% 
E) 9)6%

Question 15

Some evidence suggests that prolonged periods of high unemployment actually increase the natural unemployment rate.This phenomenon is known as

Accepted Answer

A) Okun's law 
B) structural unemployment 
C) unemployment hysteresis 
D) the misery effect 
E) the long-term unemployment effect 
A) Okun's law 
B) structural unemployment 
C) unemployment hysteresis 
D) the misery effect 
E) the long-term unemployment effect

Question 16

Which of the following people is in the unemployment pool?

Accepted Answer

A) Chris, who quit her job to look for other employment 
B) Jack, who has been temporarily laid off by his employer, but who expects to be called back after one or two months 
C) Lesley, who lost her job because her firm had to shut down 
D) all of the above 
E) only A and C 
A) Chris, who quit her job to look for other employment 
B) Jack, who has been temporarily laid off by his employer, but who expects to be called back after one or two months 
C) Lesley, who lost her job because her firm had to shut down 
D) all of the above 
E) only A and C

Question 17

Frictional unemployment is

Accepted Answer

A) the unemployment that exists even at the full-employment level of output 
B) unemployment that results from an increase in the GDP gap 
C) unemployment that occurs as a result of a supply shock 
D) the result of discouraged workers leaving the work force 
E) mostly the result of a high minimum wage rate 
A) the unemployment that exists even at the full-employment level of output 
B) unemployment that results from an increase in the GDP gap 
C) unemployment that occurs as a result of a supply shock 
D) the result of discouraged workers leaving the work force 
E) mostly the result of a high minimum wage rate

Question 18

In 2009, the mean duration of unemployment was about

Accepted Answer

A) 11.4 weeks 
B) 12.6 weeks 
C) 19.5 weeks 
D) 22.4 weeks 
E) 31.5 weeks 
A) 11.4 weeks 
B) 12.6 weeks 
C) 19.5 weeks 
D) 22.4 weeks 
E) 31.5 weeks

Question 19

Which recessionary period below caused the highest unemployment rate the U.S.?

Accepted Answer

A) 1974/75 
B) 1981/22 
C) 1990/91 
D) 2001-02 
E) 2007-09 
A) 1974/75 
B) 1981/22 
C) 1990/91 
D) 2001-02 
E) 2007-09

Question 20

If we look at U.S.unemployment by duration we can see that in 2009

Accepted Answer

A) more than half of the unemployed stayed unemployed for more than half a year 
B) less than 20 percent of the unemployed were unemployed for more than half a year 
C) the mean duration of unemployment was less than 12 weeks 
D) the mean duration of unemployment was more than 24 weeks 
E) none of the above 
A) more than half of the unemployed stayed unemployed for more than half a year 
B) less than 20 percent of the unemployed were unemployed for more than half a year 
C) the mean duration of unemployment was less than 12 weeks 
D) the mean duration of unemployment was more than 24 weeks 
E) none of the above

Exam 7: Unemployment

Which of the following statements is FALSE for the United States?

The ill effects of unemployment are often more severe than official data suggest since

Which of the following can affect the frequency of unemployment?

Some research has found that a doubling of unemployment benefits can increase unemployment

Which of the following statements is FALSE?

Which of the following people has moved out of the pool of unemployment?

Which of these people could officially be counted as unemployed?

Which of the following statements is TRUE for the United States?

Which of the following statements is FALSE?

Which of the following did NOT happen over the period from 2006 to 2011?

The spell of unemployment is

The fact that an increase in the unemployment rate by 1 percent will lead to a roughly 2 percent loss in output is referred to as

From 2006 to 2011, when the U.S.unemployment rate almost doubled,

Assume adult males have a 48% share of the work force and their unemployment rate is 7.0%; adult females' share is 45% and their unemployment rate is 6.8%; teenagers' share of the work force is 7% with an unemployment rate of 18.0%.What is the overall unemployment rate?

Some evidence suggests that prolonged periods of high unemployment actually increase the natural unemployment rate.This phenomenon is known as

Which of the following people is in the unemployment pool?

Frictional unemployment is

In 2009, the mean duration of unemployment was about

Which recessionary period below caused the highest unemployment rate the U.S.?

If we look at U.S.unemployment by duration we can see that in 2009

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