Question 1

Refer to the following table.
 
All of the following mathematical calculations are correct. The unemployment rate is approximately:

Accepted Answer

A) (600/8 000)× 100 = 7.25%. 
B) (600/7 500)× 100 = 8.00%. 
C) (600/8 600)× 100 = 7.05%. 
D) (600/4 000)× 100 = 15.00%. 
A) (600/8 000)× 100 = 7.25%. 
B) (600/7 500)× 100 = 8.00%. 
C) (600/8 600)× 100 = 7.05%. 
D) (600/4 000)× 100 = 15.00%.

Question 2

In Australia between 2006 and 2016:

Accepted Answer

A) the fastest job growth was experienced in the full-time job category. 
B) the fastest job growth was experienced in the part-time job category. 
C) total net jobs growth fell. 
D) the unemployment rate rose. 
A) the fastest job growth was experienced in the full-time job category. 
B) the fastest job growth was experienced in the part-time job category. 
C) total net jobs growth fell. 
D) the unemployment rate rose.

Question 3

Establishing employment agencies that speed up the process of matching unemployed workers with unfilled jobs is an attempt to lower:

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 4

Which groups of people in Australia are more likely to experience higher levels of unemployment?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

The groups of people in Australia who ar

Question 5

The 'labour force' is the:

Accepted Answer

A) number of people employed minus the number of people unemployed. 
B) number of people employed plus the number of people unemployed. 
C) ratio of the number of people employed to the number of people unemployed. 
D) ratio of the number of people employed to the working-age population. 
A) number of people employed minus the number of people unemployed. 
B) number of people employed plus the number of people unemployed. 
C) ratio of the number of people employed to the number of people unemployed. 
D) ratio of the number of people employed to the working-age population.

Question 6

What is the 'non-accelerating inflation rate of unemployment' (NAIRU)?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

This is the level of unemploym

Question 7

Why might firms pay wages that are above the 'equilibrium wage' in a market?

Accepted Answer

A) to increase the productivity of their workers 
B) to reduce the unemployment rate 
C) to encourage workers to form trade unions 
D) to reduce profit 
A) to increase the productivity of their workers 
B) to reduce the unemployment rate 
C) to encourage workers to form trade unions 
D) to reduce profit

Question 8

Why is 'frictional unemployment' unavoidable?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

Frictional unemployment is short-term un

Question 9

If a part-time worker becomes a full-time worker, the:

Accepted Answer

A) official unemployment rate will fall. 
B) official unemployment rate will not change. 
C) economy will move closer toward full employment. 
D) economy will move closer toward the natural rate of unemployment. 
A) official unemployment rate will fall. 
B) official unemployment rate will not change. 
C) economy will move closer toward full employment. 
D) economy will move closer toward the natural rate of unemployment.

Question 10

Discuss the likely impact of each of the following on the unemployment rate.
a.The length of time workers are eligible to receive unemployment benefit payments is reduced.
b.The government passes a law making trade unions illegal.
c.The minimum wage is raised by 50%.
d.The government funds an Internet site where companies can post job openings at no charge.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

a.The unemployment rate will likely decr

Question 11

Which of the following would reduce the labour force participation rate, all else equal?

Accepted Answer

A) An increase in the number of people in the labour force. 
B) An increase in the unemployment rate. 
C) A decrease in the unemployment rate. 
D) An increase in the working-age population. 
A) An increase in the number of people in the labour force. 
B) An increase in the unemployment rate. 
C) A decrease in the unemployment rate. 
D) An increase in the working-age population.

Question 12

What is one of the questions asked when the Australian Bureau of Statistics conducts surveys to estimate the rate of unemployment?

Accepted Answer

A) Is the person currently available to start work? 
B) Has the person looked for work during the past year? 
C) Does the person have any skills? 
D) Has the person worked for 10 hours or more in the past week? 
A) Is the person currently available to start work? 
B) Has the person looked for work during the past year? 
C) Does the person have any skills? 
D) Has the person worked for 10 hours or more in the past week?

Question 13

What is the 'natural rate of unemployment' and what types of unemployment constitute the 'natural rate of unemployment'?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

The natural rate of unemployment is thou

Question 14

The natural rate of unemployment:

Accepted Answer

A) always fluctuates with the rate of inflation. 
B) is equal to cyclical unemployment. 
C) is a constant figure of about 4%. 
D) occurs at a full-employment equilibrium. 
A) always fluctuates with the rate of inflation. 
B) is equal to cyclical unemployment. 
C) is a constant figure of about 4%. 
D) occurs at a full-employment equilibrium.

Question 15

The demand for new motor vehicles falls due to high oil prices and a move by people toward a greater use of public transport. As a result, motor vehicle manufacturers sack some workers. This would be an example of:

Accepted Answer

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

Question 16

The 'unemployment rate' is measured as the:

Accepted Answer

A) number of unemployed people divided by the number of employed people, multiplied by 100. 
B) number of unemployed people divided by the labour force, multiplied by 100. 
C) number of unemployed people divided by the total population, multiplied by 100. 
D) labour force minus the number of unemployed, multiplied by 100. 
A) number of unemployed people divided by the number of employed people, multiplied by 100. 
B) number of unemployed people divided by the labour force, multiplied by 100. 
C) number of unemployed people divided by the total population, multiplied by 100. 
D) labour force minus the number of unemployed, multiplied by 100.

Question 17

When would 'structural unemployment' increase?

Accepted Answer

A) When the economy enters a recession. 
B) When the number of individuals who quit their job to find another increases. 
C) When discouraged workers drop out of the work force. 
D) When workers are replaced by machines and the workers do not have the skills to perform new jobs. 
A) When the economy enters a recession. 
B) When the number of individuals who quit their job to find another increases. 
C) When discouraged workers drop out of the work force. 
D) When workers are replaced by machines and the workers do not have the skills to perform new jobs.

Question 18

Eliminating 'structural unemployment' would be good for the economy.

Accepted Answer

A) True 
 B)False

Question 19

For most of the twentieth century, Australia had a system of wage determination know as:

Accepted Answer

A) compulsory arbitration. 
B) enterprise bargaining 
C) closed union shop. 
D) open union shop. 
A) compulsory arbitration. 
B) enterprise bargaining 
C) closed union shop. 
D) open union shop.

Question 20

The Australian Bureau of Statistics counts as 'employed', those people who work part-time but would prefer to work full-time. Suppose the people who had part-time jobs, but wanted full-time jobs, were counted as 'unemployed'. Explain how the unemployment rate and the labour force participation rate would change.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

The unemployment rate would increase and

Refer to the following table. All of the following mathematical calculations are correct. The unemployment rate is approximately:

In Australia between 2006 and 2016:

Establishing employment agencies that speed up the process of matching unemployed workers with unfilled jobs is an attempt to lower:

Which groups of people in Australia are more likely to experience higher levels of unemployment? _ _

The 'labour force' is the:

What is the 'non-accelerating inflation rate of unemployment' (NAIRU)? _ _

Why might firms pay wages that are above the 'equilibrium wage' in a market?

Why is 'frictional unemployment' unavoidable? _ _

If a part-time worker becomes a full-time worker, the:

Which of the following would reduce the labour force participation rate, all else equal?

What is one of the questions asked when the Australian Bureau of Statistics conducts surveys to estimate the rate of unemployment?

What is the 'natural rate of unemployment' and what types of unemployment constitute the 'natural rate of unemployment'? _ _

The natural rate of unemployment:

The demand for new motor vehicles falls due to high oil prices and a move by people toward a greater use of public transport. As a result, motor vehicle manufacturers sack some workers. This would be an example of:

The 'unemployment rate' is measured as the:

When would 'structural unemployment' increase?

Eliminating 'structural unemployment' would be good for the economy.

For most of the twentieth century, Australia had a system of wage determination know as:

Economics: Foundations and Models

Choices and Trade Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Gdp: Measuring Total Production, Income and Economic Growth

Economic Growth, the Financial System and Business Cycles

Long-Run Economic Growth: Sources and Policies

Inflation

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 7: Unemployment

Refer to the following table. All of the following mathematical calculations are correct. The unemployment rate is approximately:

In Australia between 2006 and 2016:

Establishing employment agencies that speed up the process of matching unemployed workers with unfilled jobs is an attempt to lower:

Which groups of people in Australia are more likely to experience higher levels of unemployment? _____________________________________________________________________________________________ _____________________________________________________________________________________________

The 'labour force' is the:

What is the 'non-accelerating inflation rate of unemployment' (NAIRU)? _____________________________________________________________________________________________ _____________________________________________________________________________________________

Why might firms pay wages that are above the 'equilibrium wage' in a market?

Why is 'frictional unemployment' unavoidable? _____________________________________________________________________________________________ _____________________________________________________________________________________________

If a part-time worker becomes a full-time worker, the:

Which of the following would reduce the labour force participation rate, all else equal?

What is one of the questions asked when the Australian Bureau of Statistics conducts surveys to estimate the rate of unemployment?

The natural rate of unemployment:

The demand for new motor vehicles falls due to high oil prices and a move by people toward a greater use of public transport. As a result, motor vehicle manufacturers sack some workers. This would be an example of:

The 'unemployment rate' is measured as the:

When would 'structural unemployment' increase?

Eliminating 'structural unemployment' would be good for the economy.

For most of the twentieth century, Australia had a system of wage determination know as:

Economics: Foundations and Models

Choices and Trade Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Gdp: Measuring Total Production, Income and Economic Growth

Economic Growth, the Financial System and Business Cycles

Long-Run Economic Growth: Sources and Policies

Inflation

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Which groups of people in Australia are more likely to experience higher levels of unemployment? _ _

What is the 'non-accelerating inflation rate of unemployment' (NAIRU)? _ _

Why is 'frictional unemployment' unavoidable? _ _