Question 1

Frictional unemployment goes up when

Accepted Answer

A) A student quits work to return to school at the end of the summer. 
B) A corporation transfers a worker to another city. 
C) A worker quits one job to search for another in the same line of work. 
D) There is inadequate demand for labor. 
A) A student quits work to return to school at the end of the summer. 
B) A corporation transfers a worker to another city. 
C) A worker quits one job to search for another in the same line of work. 
D) There is inadequate demand for labor.

Question 2

Tom worked at NASA for 13 years.In the 14th year,his job was automated,resulting in him losing his job.He looked for a new job for 18 months before finding a job in a different line of work that paid less.During his 18-month job search,Tom was considered to be

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 3

The macro consequence of unemployment is

Accepted Answer

A) Lost output for the economy. 
B) Lost income for the individual worker. 
C) A leftward shift in the production possibilities curve. 
D) A 1 percent decrease in GDP for every 1 percent decrease in unemployment. 
A) Lost output for the economy. 
B) Lost income for the individual worker. 
C) A leftward shift in the production possibilities curve. 
D) A 1 percent decrease in GDP for every 1 percent decrease in unemployment.

Question 4

Based on Table 6.2,what was the unemployment rate in 1999? 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) 8.42 percent. 
B) 12.31 percent. 
C) 68.42 percent. 
D) 76.84 percent. 
A) 8.42 percent. 
B) 12.31 percent. 
C) 68.42 percent. 
D) 76.84 percent.

Question 5

The production possibilities curve

Accepted Answer

A) Represents the different quantities of goods society can consume while operating at full employment. 
B) Must shift outward every year. 
C) Is another name for the aggregate demand curve. 
D) Tends to increase as the population grows. 
A) Represents the different quantities of goods society can consume while operating at full employment. 
B) Must shift outward every year. 
C) Is another name for the aggregate demand curve. 
D) Tends to increase as the population grows.

Question 6

An underemployed worker who is looking for a full-time job is

Accepted Answer

A) A discouraged worker. 
B) Phantom unemployed. 
C) Structurally unemployed. 
D) None of the choices are correct. 
A) A discouraged worker. 
B) Phantom unemployed. 
C) Structurally unemployed. 
D) None of the choices are correct.

Question 7

Underemployment refers to

Accepted Answer

A) The same thing as unemployment. 
B) A person who is lazy and not working hard at her job. 
C) A person who is not able to use her full capabilities in her job. 
D) A discouraged worker. 
A) The same thing as unemployment. 
B) A person who is lazy and not working hard at her job. 
C) A person who is not able to use her full capabilities in her job. 
D) A discouraged worker.

Question 8

Which of the following government policies or programs would be most appropriate to offset cyclical unemployment?

Accepted Answer

A) Those that stimulate more demand. 
B) More job training. 
C) Additional job placement services. 
D) Additional health services to counter the effects of unemployment. 
A) Those that stimulate more demand. 
B) More job training. 
C) Additional job placement services. 
D) Additional health services to counter the effects of unemployment.

Question 9

After the harvest,some farmhands lose their jobs.They are considered to be

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 10

Which of the following groups generally has the lowest unemployment rate?

Accepted Answer

A) High school dropouts. 
B) High school graduates with no further education. 
C) College dropouts. 
D) College graduates. 
A) High school dropouts. 
B) High school graduates with no further education. 
C) College dropouts. 
D) College graduates.

Question 11

The phantom unemployed are

Accepted Answer

A) Not part of the labor force because they do not desire to work. 
B) Unemployed and cause the unemployment statistic to overstate the level of unemployment. 
C) Discouraged and cause the unemployment statistic to understate the level of unemployment. 
D) Classified as cyclically unemployed. 
A) Not part of the labor force because they do not desire to work. 
B) Unemployed and cause the unemployment statistic to overstate the level of unemployment. 
C) Discouraged and cause the unemployment statistic to understate the level of unemployment. 
D) Classified as cyclically unemployed.

Question 12

The quote,"I don't prefer 7% unemployment,but I can deal with it," reflects the point that

Accepted Answer

A) Not everyone experiences the effects of unemployment equally. 
B) Everyone agrees that unemployment should be the top priority for government action. 
C) No one can avoid unemployment or the effects of unemployment. 
D) It is good to be an independent analyst because those types of jobs are always in demand. 
A) Not everyone experiences the effects of unemployment equally. 
B) Everyone agrees that unemployment should be the top priority for government action. 
C) No one can avoid unemployment or the effects of unemployment. 
D) It is good to be an independent analyst because those types of jobs are always in demand.

Question 13

Cyclical unemployment stems from an insufficient level of demand in the economy.

Accepted Answer

A) True 
 B)False

Question 14

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
If discouraged workers were included in the labor force,what would the unemployment rate be for 2000?

Accepted Answer

A) 18.6 percent. 
B) 3.8 percent. 
C) 4.3 percent. 
D) 15.7 percent. 
A) 18.6 percent. 
B) 3.8 percent. 
C) 4.3 percent. 
D) 15.7 percent.

Question 15

When the U.S.unemployment rate decreased in the late 1990s,all of the following decreased as well except

Accepted Answer

A) The poverty rate. 
B) Income per capita. 
C) Child abuse. 
D) None of the choices are correct. 
A) The poverty rate. 
B) Income per capita. 
C) Child abuse. 
D) None of the choices are correct.

Question 16

How can the outsourcing of jobs cause production possibilities to expand?

Accepted Answer

Businesses choose to outsource jobs or m

Question 17

The phantom unemployed are

Accepted Answer

A) People who report that they are actively seeking a job even when they have little or no intention of finding one. 
B) People who want a job but aren't looking because they don't expect to find one. 
C) People who lack the skills to be employed. 
D) Workers with very high rates of absenteeism. 
A) People who report that they are actively seeking a job even when they have little or no intention of finding one. 
B) People who want a job but aren't looking because they don't expect to find one. 
C) People who lack the skills to be employed. 
D) Workers with very high rates of absenteeism.

Question 18

The labor force participation rate is the percentage of the labor force that is actually participating or employed.

Accepted Answer

A) True 
 B)False

Question 19

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
If discouraged workers were included in the labor force,what would the unemployment rate be for 1999?

Accepted Answer

A) 3.0 percent. 
B) 9.7 percent. 
C) 10.8 percent. 
D) 2.8 percent. 
A) 3.0 percent. 
B) 9.7 percent. 
C) 10.8 percent. 
D) 2.8 percent.

Question 20

When there's a shortage in the number of jobs available when teenagers look for summer jobs,the type of unemployment that arises is called

Accepted Answer

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

Exam 6: Unemployment

Frictional unemployment goes up when

Tom worked at NASA for 13 years.In the 14th year,his job was automated,resulting in him losing his job.He looked for a new job for 18 months before finding a job in a different line of work that paid less.During his 18-month job search,Tom was considered to be

The macro consequence of unemployment is

Based on Table 6.2,what was the unemployment rate in 1999? 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

The production possibilities curve

An underemployed worker who is looking for a full-time job is

Underemployment refers to

Which of the following government policies or programs would be most appropriate to offset cyclical unemployment?

After the harvest,some farmhands lose their jobs.They are considered to be

Which of the following groups generally has the lowest unemployment rate?

The phantom unemployed are

The quote,"I don't prefer 7% unemployment,but I can deal with it," reflects the point that

Cyclical unemployment stems from an insufficient level of demand in 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 If discouraged workers were included in the labor force,what would the unemployment rate be for 2000?

When the U.S.unemployment rate decreased in the late 1990s,all of the following decreased as well except

How can the outsourcing of jobs cause production possibilities to expand?

The phantom unemployed are

The labor force participation rate is the percentage of the labor force that is actually participating or employed.

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 If discouraged workers were included in the labor force,what would the unemployment rate be for 1999?

When there's a shortage in the number of jobs available when teenagers look for summer jobs,the type of unemployment that arises is called

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