Question 1

Which of the following is included in the labor force?

Accepted Answer

A) A student who is still in school but not working or looking for work. 
B) A part-time store clerk who is looking for another job. 
C) A person who runs a charity as a volunteer. 
D) A person who spends the entire day taking care of his or her own young children at home. 
A) A student who is still in school but not working or looking for work. 
B) A part-time store clerk who is looking for another job. 
C) A person who runs a charity as a volunteer. 
D) A person who spends the entire day taking care of his or her own young children at home.

Question 2

When an economy enters a recession,the

Accepted Answer

A) Duration of unemployment rises. 
B) Cost of unemployment falls. 
C) Number of unemployed falls. 
D) Number of discouraged workers falls. 
A) Duration of unemployment rises. 
B) Cost of unemployment falls. 
C) Number of unemployed falls. 
D) Number of discouraged workers falls.

Question 3

The proportion of the labor force that is unemployed is the

Accepted Answer

A) Employment index. 
B) Underemployed rate. 
C) Unemployment rate. 
D) Okun's Law. 
A) Employment index. 
B) Underemployed rate. 
C) Unemployment rate. 
D) Okun's Law.

Question 4

Suppose a country has 1 billion people.75 percent of its citizens are in the labor force,with 90 million unemployed.Full employment occurs at 2 percent.Based on this information,by what percentage has real output failed to reach its potential according to the revised Okun's Law?

Accepted Answer

A) 2 percent. 
B) 10 percent. 
C) 12 percent. 
D) 24 percent. 
A) 2 percent. 
B) 10 percent. 
C) 12 percent. 
D) 24 percent.

Question 5

Most household and volunteer workers are not included in the labor force.

Accepted Answer

A) True 
 B)False

Question 6

If workers do not have the skills that are required in the job market,which of the following will occur?

Accepted Answer

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

Question 7

If there is a prolonged recession and,at the same time,technological advances change the skill sets of some jobs and eliminate others,what type of unemployment gets larger?

Accepted Answer

A) Frictional. 
B) Structural. 
C) Seasonal. 
D) None of the choices are correct. 
A) Frictional. 
B) Structural. 
C) Seasonal. 
D) None of the choices are correct.

Exam 6: Unemployment

Which of the following is included in the labor force?

When an economy enters a recession,the

The proportion of the labor force that is unemployed is the

Suppose a country has 1 billion people.75 percent of its citizens are in the labor force,with 90 million unemployed.Full employment occurs at 2 percent.Based on this information,by what percentage has real output failed to reach its potential according to the revised Okun's Law?

Most household and volunteer workers are not included in the labor force.

If workers do not have the skills that are required in the job market,which of the following will occur?

If there is a prolonged recession and,at the same time,technological advances change the skill sets of some jobs and eliminate others,what type of unemployment gets larger?

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

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