Question 1

Unemployment that is of a short duration to allow time to find a new job is:

Accepted Answer

A)  structural unemployment. 
B)  cyclical unemployment. 
C)  frictional unemployment. 
D)  durational unemployment. 
A)  structural unemployment. 
B)  cyclical unemployment. 
C)  frictional unemployment. 
D)  durational unemployment.

Question 2

An individual who is employed part time, but is looking for a full-time job, is classified as:

Accepted Answer

A)  frictionally unemployed. 
B)  cyclically unemployed. 
C)  structurally unemployed. 
D)  employed. 
A)  frictionally unemployed. 
B)  cyclically unemployed. 
C)  structurally unemployed. 
D)  employed.

Question 3

An example of frictional unemployment is a(n):

Accepted Answer

A)  textile worker permanently laid off due to jobs lost to imports. 
B)  engineer permanently laid off due to advances in technology. 
C)  fast-food restaurant worker who quits work and attends college. 
D)  computer programmer who leaves one job and accepts a new job. 
A)  textile worker permanently laid off due to jobs lost to imports. 
B)  engineer permanently laid off due to advances in technology. 
C)  fast-food restaurant worker who quits work and attends college. 
D)  computer programmer who leaves one job and accepts a new job.

Question 4

Which of the following offers an example of structural unemployment?

Accepted Answer

A)  The rise in unemployment for stable workers after the development of gasoline-powered automobiles and the resulting long-term decline in horse-and- buggy transportation. 
B)  The rise in unemployment among farm workers after harvest. 
C)  The unemployment associated with workers changing jobs. 
D)  The increase in unemployment during recessions. 
A)  The rise in unemployment for stable workers after the development of gasoline-powered automobiles and the resulting long-term decline in horse-and- buggy transportation. 
B)  The rise in unemployment among farm workers after harvest. 
C)  The unemployment associated with workers changing jobs. 
D)  The increase in unemployment during recessions.

Question 5

Full employment means which of the following is zero?

Accepted Answer

A)  structural unemployment 
B)  cyclical unemployment 
C)  frictional unemployment 
D)  aggregate unemployment 
A)  structural unemployment 
B)  cyclical unemployment 
C)  frictional unemployment 
D)  aggregate unemployment

Question 6

Exhibit 6-1 Business cycle
 
In Exhibit 6-1, the recession phase of the business cycle can be represented by point(s):

Accepted Answer

A)  CDE. 
B)  BCD. 
C)  EFG. 
D)  A and E. 
A)  CDE. 
B)  BCD. 
C)  EFG. 
D)  A and E.

Question 7

Mallory Trammell is a homemaker. Last week, she was busy with her normal household chores. She is:

Accepted Answer

A)  not a member of the labor force. 
B)  a member of the civilian labor force who is unemployed. 
C)  a member of the civilian labor force who is underemployed. 
D)  a member of the civilian labor force who is employed. 
A)  not a member of the labor force. 
B)  a member of the civilian labor force who is unemployed. 
C)  a member of the civilian labor force who is underemployed. 
D)  a member of the civilian labor force who is employed.

Question 8

Unemployment that occurs from fundamental technological changes in the production, or from the substitution of new goods for customary ones, is known as:

Accepted Answer

A)  cyclical unemployment. 
B)  seasonal unemployment. 
C)  frictional unemployment. 
D)  structural unemployment. 
A)  cyclical unemployment. 
B)  seasonal unemployment. 
C)  frictional unemployment. 
D)  structural unemployment.

Question 9

Someone was just laid off from a job. Given what you know about the unequal distribution of civilian unemployment, to which of the following groups does this person  most likely belong?

Accepted Answer

A)  white male with a bachelor's degree 
B)  African American female with a bachelor's degree 
C)  Hispanic female with a high school diploma 
D)  African American male teenager with less than a high school diploma 
A)  white male with a bachelor's degree 
B)  African American female with a bachelor's degree 
C)  Hispanic female with a high school diploma 
D)  African American male teenager with less than a high school diploma

Question 10

Exhibit 16-2 Unemployment categories
 
Using the information in Exhibit 16-2, the number of individuals included in the natural rate of unemployment is

Accepted Answer

A)  20. 
B)  35. 
C)  55. 
D)  60. 
A)  20. 
B)  35. 
C)  55. 
D)  60.

Question 11

The presence of discouraged workers may cause:

Accepted Answer

A)  GDP to be too large. 
B)  the employment rate to be understated. 
C)  the unemployment rate to be overstated. 
D)  the unemployment rate to be understated. 
A)  GDP to be too large. 
B)  the employment rate to be understated. 
C)  the unemployment rate to be overstated. 
D)  the unemployment rate to be understated.

Question 12

If the GDP gap is -$3.5 trillion, then

Accepted Answer

A)  workers are employed overtime. 
B)  the economy is experiencing a boom. 
C)  the economy is in a recession. 
D)  cyclical unemployment is negative. 
A)  workers are employed overtime. 
B)  the economy is experiencing a boom. 
C)  the economy is in a recession. 
D)  cyclical unemployment is negative.

Question 13

The unemployment rate will increase whenever there is a(n):

Accepted Answer

A)  increase in the number of persons classified as unemployed. 
B)  increase in the number of unemployed persons relative to the size of the labor force. 
C)  increase in the size of the U.S. population and there is no change in the number of persons classified as employed. 
D)  reduction in the size of the labor force. 
A)  increase in the number of persons classified as unemployed. 
B)  increase in the number of unemployed persons relative to the size of the labor force. 
C)  increase in the size of the U.S. population and there is no change in the number of persons classified as employed. 
D)  reduction in the size of the labor force.

Question 14

Sally lost her job when her company went out of business because of a recession. This is an example of:

Accepted Answer

A)  frictional unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  technological unemployment. 
A)  frictional unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  technological unemployment.

Question 15

A person who voluntarily quits his/her job in New York and expects to get a similar job in Los Angeles is an example of:

Accepted Answer

A)  structural unemployment. 
B)  cyclical unemployment. 
C)  durational unemployment. 
D)  frictional unemployment. 
A)  structural unemployment. 
B)  cyclical unemployment. 
C)  durational unemployment. 
D)  frictional unemployment.

Question 16

How do we measure economic growth?

Accepted Answer

A)  increases in the price level, as indicated by the GDP chain price index 
B)  increases in nominal GDP 
C)  increases in real GDP 
D)  increases in the labor force 
A)  increases in the price level, as indicated by the GDP chain price index 
B)  increases in nominal GDP 
C)  increases in real GDP 
D)  increases in the labor force

Question 17

If a sizable number of workers were switched from full-time to half-time employment, then the official unemployment rate would:

Accepted Answer

A)  rise. 
B)  fall. 
C)  remain unchanged. 
D)  react unpredictably. 
A)  rise. 
B)  fall. 
C)  remain unchanged. 
D)  react unpredictably.

Question 18

The period of growth in real GDP between the trough of the business cycle and the next peak is called the:

Accepted Answer

A)  recessionary phase. 
B)  recovery phase. 
C)  contractionary phase. 
D)  cyclical phase. 
A)  recessionary phase. 
B)  recovery phase. 
C)  contractionary phase. 
D)  cyclical phase.

Question 19

The unemployment rate equals the number of persons:

Accepted Answer

A)  unemployed divided by the number employed. 
B)  unemployed divided by the number in the labor force. 
C)  unemployed divided by the population age 16 and over. 
D)  not working divided by the population age 16 and over. 
A)  unemployed divided by the number employed. 
B)  unemployed divided by the number in the labor force. 
C)  unemployed divided by the population age 16 and over. 
D)  not working divided by the population age 16 and over.

Question 20

The type of unemployment that occurs because of a recession is called:

Accepted Answer

A)  frictional unemployment. 
B)  seasonal unemployment. 
C)  natural unemployment. 
D)  cyclical unemployment. 
A)  frictional unemployment. 
B)  seasonal unemployment. 
C)  natural unemployment. 
D)  cyclical unemployment.

Exam 16: Business Cycles and Unemployment

Unemployment that is of a short duration to allow time to find a new job is:

An individual who is employed part time, but is looking for a full-time job, is classified as:

An example of frictional unemployment is a(n):

Which of the following offers an example of structural unemployment?

Full employment means which of the following is zero?

Exhibit 6-1 Business cycle In Exhibit 6-1, the recession phase of the business cycle can be represented by point(s):

Mallory Trammell is a homemaker. Last week, she was busy with her normal household chores. She is:

Unemployment that occurs from fundamental technological changes in the production, or from the substitution of new goods for customary ones, is known as:

Someone was just laid off from a job. Given what you know about the unequal distribution of civilian unemployment, to which of the following groups does this person most likely belong?

Exhibit 16-2 Unemployment categories Using the information in Exhibit 16-2, the number of individuals included in the natural rate of unemployment is

The presence of discouraged workers may cause:

If the GDP gap is -$3.5 trillion, then

The unemployment rate will increase whenever there is a(n):

Sally lost her job when her company went out of business because of a recession. This is an example of:

A person who voluntarily quits his/her job in New York and expects to get a similar job in Los Angeles is an example of:

How do we measure economic growth?

If a sizable number of workers were switched from full-time to half-time employment, then the official unemployment rate would:

The period of growth in real GDP between the trough of the business cycle and the next peak is called the:

The unemployment rate equals the number of persons:

The type of unemployment that occurs because of a recession is called:

Introducing the Economic Way of Thinking

Production Possibilities Opportunity Cost and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand and Supply

Consumer Choice Theory

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution Poverty and Discrimination

Antitrust and Regulation

Environmental Economics

Gross Domestic Product

Inflation

The Keynesian Model

The Keynesian Model in Action

Aggregate Demand and Supply

Fiscal Policy

The Public Sector

Federal Deficits Surpluses and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

The Phillips Curve and Expectations Theory

International Trade and Finance

Economies in Transition

Growth and the Less Developed Countries

Understanding Direct and Inverse Relationships between Variables

Filters