Question 1

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

Accepted Answer

A) (500/11 000)× 100 = 4.55%. 
B) (500/22 000)× 100 = 2.27%. 
C) (500/10 400)× 100 = 4.81%. 
D) (500/11 500)× 100 = 4.34%. 
A) (500/11 000)× 100 = 4.55%. 
B) (500/22 000)× 100 = 2.27%. 
C) (500/10 400)× 100 = 4.81%. 
D) (500/11 500)× 100 = 4.34%.

Question 2

What effect does the payment of government unemployment benefits have on the unemployment rate?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

The payment of government unemployment b

Question 3

Outline the 'costs of unemployment'.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

The economic costs of unemployment inclu

Question 4

If the number employed is 11 million, the number unemployed is 0.6 million, and the working-age population is 16 million, then the labour force participation rate is:

Accepted Answer

A) 65.0%. 
B) 72.5%. 
C) 68.75%. 
D) 71.4%. 
A) 65.0%. 
B) 72.5%. 
C) 68.75%. 
D) 71.4%.

Question 5

In Australia in early 2016, approximately how many people were not in the labour force but were of working age?

Accepted Answer

A) 6.9 million. 
B) 12 million. 
C) 0.6 million. 
D) 11.4 million. 
A) 6.9 million. 
B) 12 million. 
C) 0.6 million. 
D) 11.4 million.

Question 6

Fluctuations in aggregate demand cause structural unemployment.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is an example of a worker experiencing 'frictional unemployment'?

Accepted Answer

A) A worker who quits his job at the post office to find more interesting work. 
B) A computer programmer who loses her job because it is outsourced to India. 
C) An employee who loses his job because the economy is suffering a recession. 
D) An airline pilot who loses her job because of lack of demand for air travel. 
A) A worker who quits his job at the post office to find more interesting work. 
B) A computer programmer who loses her job because it is outsourced to India. 
C) An employee who loses his job because the economy is suffering a recession. 
D) An airline pilot who loses her job because of lack of demand for air travel.

Question 8

In Australia in 2016, the proportion of unemployed people who were 'long-term unemployed' as measured by the Australian Bureau of Statistics (ABS)was approximately:

Accepted Answer

A) 5.7%. 
B) 7.6%. 
C) 22%. 
D) 24%. 
A) 5.7%. 
B) 7.6%. 
C) 22%. 
D) 24%.

Question 9

If people who have been looking for work give up actively looking for work, ceteris paribus, the:

Accepted Answer

A) unemployment rate increases. 
B) labour force participation rate increases. 
C) unemployment rate decreases. 
D) working-age population decreases. 
A) unemployment rate increases. 
B) labour force participation rate increases. 
C) unemployment rate decreases. 
D) working-age population decreases.

Question 10

How has the labour force participation rate changed for men and women over the past 30 years in Australia?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

Generally, the labour force pa

Question 11

Explain the three main types of unemployment and outline the types of policies that can be used to reduce each type.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

There are three main types of unemployme

Question 12

For purposes of unemployment, how is a full-time student who is not working categorised?

Accepted Answer

A) not in the labour force 
B) a discouraged worker 
C) employed 
D) unemployed 
A) not in the labour force 
B) a discouraged worker 
C) employed 
D) unemployed

Question 13

When is the labour market at 'full employment'?

Accepted Answer

A) When there is only cyclical unemployment in the economy. 
B) When there is only structural unemployment in the economy. 
C) When the unemployment rate is 0%. 
D) When there is no cyclical unemployment in the economy. 
A) When there is only cyclical unemployment in the economy. 
B) When there is only structural unemployment in the economy. 
C) When the unemployment rate is 0%. 
D) When there is no cyclical unemployment in the economy.

Question 14

Which of the following is true of 'discouraged workers'?

Accepted Answer

A) They are not considered part of the unemployed because they are not qualified to work. 
B) They are considered part of the unemployed because they are not working. 
C) They are considered part of the unemployed because they are still in the labour force. 
D) They are not considered part of the unemployed because they are not actively seeking work. 
A) They are not considered part of the unemployed because they are not qualified to work. 
B) They are considered part of the unemployed because they are not working. 
C) They are considered part of the unemployed because they are still in the labour force. 
D) They are not considered part of the unemployed because they are not actively seeking work.

Question 15

Explain why 'discouraged workers' are not measured as being 'unemployed'.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

They are not measured as unemp

Question 16

Unemployment benefits paid to the unemployed:

Accepted Answer

A) increases the amount of time the unemployed spend searching for a job. 
B) increases the level of frictional unemployment. 
C) helps the unemployed maintain their income and spending. 
D) All of these options are correct. 
A) increases the amount of time the unemployed spend searching for a job. 
B) increases the level of frictional unemployment. 
C) helps the unemployed maintain their income and spending. 
D) All of these options are correct.

Question 17

The demand for new motor vehicles falls when the economy enters a downturn and as a result, motor vehicle manufacturers sack some workers. This would be an example of:

Accepted Answer

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

Question 18

Which of the following is not an advantage of labour market deregulation?

Accepted Answer

A) Improved work practices can lead to higher wages. 
B) Wages can more readily respond to changes in the demand for and supply of labour. 
C) Increased labour market flexibility may disadvantage low paid people. 
D) It can encourage dispute resolution at the workplace level. 
A) Improved work practices can lead to higher wages. 
B) Wages can more readily respond to changes in the demand for and supply of labour. 
C) Increased labour market flexibility may disadvantage low paid people. 
D) It can encourage dispute resolution at the workplace level.

Question 19

The natural rate of unemployment consists of frictional unemployment plus cyclical unemployment.

Accepted Answer

A) True 
 B)False

Question 20

When is the labour market considered to be at 'full employment'?

Accepted Answer

A) When there are no unemployed workers. 
B) When all unemployment is frictional or structural. 
C) When all unemployment is voluntary. 
D) When there are more unemployed workers than job vacancies. 
A) When there are no unemployed workers. 
B) When all unemployment is frictional or structural. 
C) When all unemployment is voluntary. 
D) When there are more unemployed workers than job vacancies.

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

What effect does the payment of government unemployment benefits have on the unemployment rate? _ _

Outline the 'costs of unemployment'. _ _

If the number employed is 11 million, the number unemployed is 0.6 million, and the working-age population is 16 million, then the labour force participation rate is:

In Australia in early 2016, approximately how many people were not in the labour force but were of working age?

Fluctuations in aggregate demand cause structural unemployment.

Which of the following is an example of a worker experiencing 'frictional unemployment'?

In Australia in 2016, the proportion of unemployed people who were 'long-term unemployed' as measured by the Australian Bureau of Statistics (ABS)was approximately:

If people who have been looking for work give up actively looking for work, ceteris paribus, the:

How has the labour force participation rate changed for men and women over the past 30 years in Australia? _ _

Explain the three main types of unemployment and outline the types of policies that can be used to reduce each type. _ _

For purposes of unemployment, how is a full-time student who is not working categorised?

When is the labour market at 'full employment'?

Which of the following is true of 'discouraged workers'?

Explain why 'discouraged workers' are not measured as being 'unemployed'. _ _

Unemployment benefits paid to the unemployed:

The demand for new motor vehicles falls when the economy enters a downturn and as a result, motor vehicle manufacturers sack some workers. This would be an example of:

Which of the following is not an advantage of labour market deregulation?

The natural rate of unemployment consists of frictional unemployment plus cyclical unemployment.

When is the labour market considered to be at 'full employment'?

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:

What effect does the payment of government unemployment benefits have on the unemployment rate? _____________________________________________________________________________________________ _____________________________________________________________________________________________

Outline the 'costs of unemployment'. _____________________________________________________________________________________________ _____________________________________________________________________________________________

If the number employed is 11 million, the number unemployed is 0.6 million, and the working-age population is 16 million, then the labour force participation rate is:

In Australia in early 2016, approximately how many people were not in the labour force but were of working age?

Fluctuations in aggregate demand cause structural unemployment.

Which of the following is an example of a worker experiencing 'frictional unemployment'?

In Australia in 2016, the proportion of unemployed people who were 'long-term unemployed' as measured by the Australian Bureau of Statistics (ABS)was approximately:

If people who have been looking for work give up actively looking for work, ceteris paribus, the:

How has the labour force participation rate changed for men and women over the past 30 years in Australia? _____________________________________________________________________________________________ _____________________________________________________________________________________________

For purposes of unemployment, how is a full-time student who is not working categorised?

When is the labour market at 'full employment'?

Which of the following is true of 'discouraged workers'?

Explain why 'discouraged workers' are not measured as being 'unemployed'. _____________________________________________________________________________________________ _____________________________________________________________________________________________

Unemployment benefits paid to the unemployed:

The demand for new motor vehicles falls when the economy enters a downturn and as a result, motor vehicle manufacturers sack some workers. This would be an example of:

Which of the following is not an advantage of labour market deregulation?

The natural rate of unemployment consists of frictional unemployment plus cyclical unemployment.

When is the labour market considered to be at 'full employment'?

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

What effect does the payment of government unemployment benefits have on the unemployment rate? _ _

Outline the 'costs of unemployment'. _ _

How has the labour force participation rate changed for men and women over the past 30 years in Australia? _ _

Explain why 'discouraged workers' are not measured as being 'unemployed'. _ _