Question 1

Ceteris paribus,if seasonal unemployment increases,the seasonally adjusted economy is

Accepted Answer

A) Outside the production possibilities curve. 
B) Inside the production possibilities curve. 
C) On the fixed production possibilities curve. 
D) On the production possibilities curve that shifts inward. 
A) Outside the production possibilities curve. 
B) Inside the production possibilities curve. 
C) On the fixed production possibilities curve. 
D) On the production possibilities curve that shifts inward.

Question 2

When unemployed people stop looking for jobs,the

Accepted Answer

A) Unemployment rate increases and the labor force increases. 
B) Unemployment rate decreases and the labor force decreases. 
C) Unemployment rate increases and the labor force decreases. 
D) Unemployment rate decreases and the labor force increases. 
A) Unemployment rate increases and the labor force increases. 
B) Unemployment rate decreases and the labor force decreases. 
C) Unemployment rate increases and the labor force decreases. 
D) Unemployment rate decreases and the labor force increases.

Question 3

People who get discouraged and no longer seek work are counted as unemployed.

Accepted Answer

A) True 
 B)False

Question 4

Unemployment was fairly low during all of the following periods except

Accepted Answer

A) World War II. 
B) The Korean War. 
C) The late 1990s. 
D) The Great Depression. 
A) World War II. 
B) The Korean War. 
C) The late 1990s. 
D) The Great Depression.

Question 5

Table 6.3: Population and Labor Force $\begin{array} { | l | c | r | } 
\hline & \text { Year 1 } & \text { Year 5 } \
\hline \text { Working Age Population } & 200 \mathrm { million } & 250 \mathrm { million } \
\hline \text { Labor Force } & 110 \mathrm { milli } \mathrm { on } & 145 \mathrm { million } \
\hline \text { Employed } & 106 \mathrm { milli on } & 135 \mathrm { million } \
\hline
\end{array}$ What is the unemployment rate in Year 5 in Table 6.3?

Accepted Answer

A) 7.4 percent. 
B) 6.9 percent. 
C) 4.0 percent. 
D) 54.0 percent. 
A) 7.4 percent. 
B) 6.9 percent. 
C) 4.0 percent. 
D) 54.0 percent.

Question 6

Nancy returns to school to study medicine.After graduating during an economic boom,she spends six months looking for a job.During this period,she is considered

Accepted Answer

A) Cyclically unemployed. 
B) Structurally unemployed. 
C) Frictionally unemployed. 
D) Seasonally unemployed. 
A) Cyclically unemployed. 
B) Structurally unemployed. 
C) Frictionally unemployed. 
D) Seasonally unemployed.

Question 7

During which one of the following decades was the goal of 4 percent unemployment set as an acceptable compromise between our full employment and inflation goals?

Accepted Answer

A) 1960s. 
B) 1970s. 
C) 1980s. 
D) 1990s. 
A) 1960s. 
B) 1970s. 
C) 1980s. 
D) 1990s.

Question 8

Why does the unemployment rate go down as more people become discouraged about the economy?

Accepted Answer

As people become discouraged,they stop l

Question 9

Table 6.4: Population and Employment in Nationland $\begin{array}{|l|r|r|r|}
\hline&1999&2000&2001\
\hline \text { Working Age Population } & 100 & 110 & 125 \
\hline\text { Employed } & 65 & 70 & 80 \
\hline\text { Unemployed } & 5 & 10 & 20 \
\hline \text { Discouraged Workers } & 2 & 3 & 5 \
\hline
\end{array}$

*all numbers are in millions
What was the labor force participation rate in Nationland in 2000?

Accepted Answer

A) 67.0 percent. 
B) 65.0 percent. 
C) 72.0 percent. 
D) 72.7 percent. 
A) 67.0 percent. 
B) 65.0 percent. 
C) 72.0 percent. 
D) 72.7 percent.

Question 10

Suppose that in a population of 50 million persons,40 million are in the labor force,36 million are employed,2 million are classified as unable to work,and 1 million are classified as unwilling to work.The unemployment rate is

Accepted Answer

A) 10.0 percent. 
B) 72.0 percent. 
C) 8.0 percent. 
D) 80.0 percent. 
A) 10.0 percent. 
B) 72.0 percent. 
C) 8.0 percent. 
D) 80.0 percent.

Question 11

Production possibilities are the

Accepted Answer

A) Alternative combinations of output that can be produced using all available resources and technology. 
B) Various production methods that producers can employ. 
C) Various types of input that each manufacturing facility can choose to employ. 
D) Percentage of output produced by each worker. 
A) Alternative combinations of output that can be produced using all available resources and technology. 
B) Various production methods that producers can employ. 
C) Various types of input that each manufacturing facility can choose to employ. 
D) Percentage of output produced by each worker.

Question 12

When there is a mismatch between the skills required for a job and the skills of job seekers,the unemployment that results is an example of

Accepted Answer

A) Frictional unemployment. 
B) Structural unemployment. 
C) Cyclical unemployment. 
D) Seasonal unemployment. 
A) Frictional unemployment. 
B) Structural unemployment. 
C) Cyclical unemployment. 
D) Seasonal unemployment.

Question 13

During an economic downturn,consumers spend considerably less on goods and services.This results in layoffs that are classified as

Accepted Answer

A) Cyclical. 
B) Structural. 
C) Frictional. 
D) Seasonal. 
A) Cyclical. 
B) Structural. 
C) Frictional. 
D) Seasonal.

Question 14

Ceteris paribus,if structural unemployment increases,the economy is

Accepted Answer

A) Outside the production possibilities curve. 
B) Inside the production possibilities curve. 
C) On the fixed production possibilities curve. 
D) On the production possibilities curve that shifts inward. 
A) Outside the production possibilities curve. 
B) Inside the production possibilities curve. 
C) On the fixed production possibilities curve. 
D) On the production possibilities curve that shifts inward.

Question 15

The official unemployment statistics may exaggerate the significance of unemployment by including the

Accepted Answer

A) Underemployed. 
B) Phantom unemployed. 
C) Discouraged worker. 
D) High school dropout. 
A) Underemployed. 
B) Phantom unemployed. 
C) Discouraged worker. 
D) High school dropout.

Question 16

When migrant workers seek employment after the crops have been picked,the unemployment rate goes up.This situation is an example of

Accepted Answer

A) Frictional unemployment. 
B) Seasonal unemployment. 
C) Structural unemployment. 
D) Cyclical unemployment. 
A) Frictional unemployment. 
B) Seasonal unemployment. 
C) Structural unemployment. 
D) Cyclical unemployment.

Question 17

Who among the following is included in the labor force?

Accepted Answer

A) A hardworking homemaker who does not want to be employed outside the home. 
B) A man doing 10 years in prison for armed robbery. 
C) The president of Microsoft. 
D) A retired commander of the armed forces. 
A) A hardworking homemaker who does not want to be employed outside the home. 
B) A man doing 10 years in prison for armed robbery. 
C) The president of Microsoft. 
D) A retired commander of the armed forces.

Question 18

Based on Table 6.2,what was the labor force participation rate in 1998? Table 6.2
$\begin{array} { | l | c | c | c | } 
\hline & 1998 & 1999 & 2000 \
\hline \text { Working Age Population } & 85 \mathrm {~m} \text { illior } & 95 \text { million } & 110 \text { millior } \
\hline \text { Labor Force } & 60 \text { millior } & 65 \text { million } & 72 \text { millior } \
\hline \text { Unernployed } & 5 \text { millior } & 8 \text { millior } & 13 \text { millior } \
\hline
\end{array}$

Accepted Answer

A) 5.88 percent. 
B) 8.33 percent. 
C) 70.58 percent. 
D) 76.47 percent. 
A) 5.88 percent. 
B) 8.33 percent. 
C) 70.58 percent. 
D) 76.47 percent.

Question 19

Unemployment was particularly high during

Accepted Answer

A) The Great Depression. 
B) World War II. 
C) The Korean War. 
D) The 1980s. 
A) The Great Depression. 
B) World War II. 
C) The Korean War. 
D) The 1980s.

Question 20

A U.S.worker who loses his or her job in an import industry because the good is no longer produced would be classified as,ceteris paribus,

Accepted Answer

A) Frictionally unemployed. 
B) Cyclically unemployed. 
C) Seasonally unemployed. 
D) Structurally unemployed. 
A) Frictionally unemployed. 
B) Cyclically unemployed. 
C) Seasonally unemployed. 
D) Structurally unemployed.

Exam 6: Unemployment

Ceteris paribus,if seasonal unemployment increases,the seasonally adjusted economy is

When unemployed people stop looking for jobs,the

People who get discouraged and no longer seek work are counted as unemployed.

Unemployment was fairly low during all of the following periods except

Table 6.3: Population and Labor Force Year 1 Year 5 Working Age Population 200 250 Labor Force 110 145 Employed 106 135 What is the unemployment rate in Year 5 in Table 6.3?

Nancy returns to school to study medicine.After graduating during an economic boom,she spends six months looking for a job.During this period,she is considered

During which one of the following decades was the goal of 4 percent unemployment set as an acceptable compromise between our full employment and inflation goals?

Why does the unemployment rate go down as more people become discouraged about the economy?

Table 6.4: Population and Employment in Nationland 1999 2000 2001 Working Age Population 100 110 125 Employed 65 70 80 Unemployed 5 10 20 Discouraged Workers 2 3 5 *all numbers are in millions What was the labor force participation rate in Nationland in 2000?

Suppose that in a population of 50 million persons,40 million are in the labor force,36 million are employed,2 million are classified as unable to work,and 1 million are classified as unwilling to work.The unemployment rate is

Production possibilities are the

When there is a mismatch between the skills required for a job and the skills of job seekers,the unemployment that results is an example of

During an economic downturn,consumers spend considerably less on goods and services.This results in layoffs that are classified as

Ceteris paribus,if structural unemployment increases,the economy is

The official unemployment statistics may exaggerate the significance of unemployment by including the

When migrant workers seek employment after the crops have been picked,the unemployment rate goes up.This situation is an example of

Who among the following is included in the labor force?

Based on Table 6.2,what was the labor force participation rate in 1998? Table 6.2 1998 1999 2000 Working Age Population 85 illior 95 million 110 millior Labor Force 60 millior 65 million 72 millior Unernployed 5 millior 8 millior 13 millior

Unemployment was particularly high during

A U.S.worker who loses his or her job in an import industry because the good is no longer produced would be classified as,ceteris paribus,

Economics: the Core Issues

The Useconomy: a Global View

Supply and Demand

The Role of Government

National Income Accounting

Inflation

The Business Cycle

Aggregate Demand

Self-Adjustment or Instability

Fiscal Policy

Deficits and Debt

Money and Banks

The Federal Reserve System

Monetary Policy

Supply-Side Policy: Short-Run Options

Growth and Productivity: Long-Run Possibilities

Theory Versus Reality

Consumer Choice

Elasticity

The Costs of Production

The Competitive Firm

Competitive Markets

Monopoly

Oligopoly

Monopolistic Competition

Natural Monopolies: Deregulation

Environmental Protection

The Farm Problem

The Labor Market

Labor Unions

Financial Markets

Taxes: Equity Versus Efficiency

Transfer Payments: Welfare and Social Security

International Trade

International Finance

Global Poverty

Filters