Question 1

What is the unemployment rate when the labour market is considered to be at 'full employment'?

Accepted Answer

A) The unemployment rate is zero. 
B) The unemployment rate is the sum of structural and cyclical unemployment. 
C) The unemployment rate is the amount of cyclical unemployment. 
D) The unemployment rate is the natural rate of unemployment 
A) The unemployment rate is zero. 
B) The unemployment rate is the sum of structural and cyclical unemployment. 
C) The unemployment rate is the amount of cyclical unemployment. 
D) The unemployment rate is the natural rate of unemployment

Question 2

Which of the following causes the official measure of the unemployment rate to understate the true extent of joblessness?

Accepted Answer

A) Many full-time workers really want to be part-time workers. 
B) People who collect unemployment benefits report themselves to be searching for a job. 
C) Discouraged workers are not counted as unemployed. 
D) Discouraged workers are counted as unemployed. 
A) Many full-time workers really want to be part-time workers. 
B) People who collect unemployment benefits report themselves to be searching for a job. 
C) Discouraged workers are not counted as unemployed. 
D) Discouraged workers are counted as unemployed.

Question 3

Jill lost her job six months ago and she's been actively looking for a new job ever since. How would the Australian Bureau of Statistics classify Jill?

Accepted Answer

A) a discouraged worker 
B) out of the labour force 
C) unemployed 
D) None of these options are correct. 
A) a discouraged worker 
B) out of the labour force 
C) unemployed 
D) None of these options are correct.

Question 4

Suzanne is a full-time student who is not looking for work. Suzanne is experiencing _____________ unemployment.

Accepted Answer

A) cyclical 
B) structural 
C) frictional 
D) Suzanne is not experiencing unemployment of any kind because she is not currently part of the labour force. 
A) cyclical 
B) structural 
C) frictional 
D) Suzanne is not experiencing unemployment of any kind because she is not currently part of the labour force.

Question 5

When an economy is at its natural rate of unemployment, which of the following will be true?

Accepted Answer

A) The unemployment rate will be 0%. 
B) The labour force participation rate will be 100%. 
C) The unemployment rate will be greater than 0%. 
D) Only structural unemployment as a result of technological change will exist in the economy. 
A) The unemployment rate will be 0%. 
B) The labour force participation rate will be 100%. 
C) The unemployment rate will be greater than 0%. 
D) Only structural unemployment as a result of technological change will exist in the economy.

Question 6

Unemployment benefits reduce the 'opportunity cost' of job search.

Accepted Answer

A) True 
 B)False

Question 7

How would the unemployment rate and the labour force participation rate change if discouraged workers were counted as 'unemployed' rather than as being in the 'not-in-the-labour force' category? Show this using the formula for both measurements.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

The unemployment rate is calculated as:

Question 8

Which of the following is most likely to reduce 'structural unemployment'?

Accepted Answer

A) lowering interest rates to stimulate investment 
B) advertising job opportunities on the Internet to improve communication between employers and job seekers 
C) reducing unemployment benefits to workers who do not actively seek employment 
D) the establishment of vocational training centres to help unemployed people learn marketable skills 
A) lowering interest rates to stimulate investment 
B) advertising job opportunities on the Internet to improve communication between employers and job seekers 
C) reducing unemployment benefits to workers who do not actively seek employment 
D) the establishment of vocational training centres to help unemployed people learn marketable skills

Question 9

If the number employed is 12 million, the working-age population is 16 million, and the number unemployed is 0.7 million, then the unemployment rate is:

Accepted Answer

A) 5.51%. 
B) 5.17%. 
C) 3.75%. 
D) 12%. 
A) 5.51%. 
B) 5.17%. 
C) 3.75%. 
D) 12%.

Question 10

Joe just told his boss that he thinks his boss is stupid. What type of unemployment is Joe likely to experience in the near future?

Accepted Answer

A) frictional 
B) cyclical 
C) permanent 
D) structural 
A) frictional 
B) cyclical 
C) permanent 
D) structural

Question 11

Which of the following groups of educational attainment in Australia has the highest level of long-term unemployment?

Accepted Answer

A) Those whose highest education level is completion of Year 10 schooling. 
B) Those whose highest education level is completion of Year 12 schooling. 
C) Those whose highest education level is completion of a TAFE certificate. 
D) Those whose highest education level is completion of a university degree. 
A) Those whose highest education level is completion of Year 10 schooling. 
B) Those whose highest education level is completion of Year 12 schooling. 
C) Those whose highest education level is completion of a TAFE certificate. 
D) Those whose highest education level is completion of a university degree.

Question 12

Which of following age groups is most likely to have the longest duration of continuous unemployment?

Accepted Answer

A) 15-19 years 
B) 20-24 years 
C) 45-54 years 
D) Over 55 years 
A) 15-19 years 
B) 20-24 years 
C) 45-54 years 
D) Over 55 years

Question 13

During an economic boom, many employees are asked to work more overtime hours each week. As a result of this:

Accepted Answer

A) the unemployment rate increases. 
B) the unemployment rate decreases. 
C) the labour force participation rate increases. 
D) neither the unemployment rate nor the labour force participation rate changes. 
A) the unemployment rate increases. 
B) the unemployment rate decreases. 
C) the labour force participation rate increases. 
D) neither the unemployment rate nor the labour force participation rate changes.

Question 14

How is 'long-term unemployment' defined?

Accepted Answer

A) As those in the labour force who have been unemployed continuously for 6 months or more. 
B) As those in the labour force who have been unemployed continuously for 2 years or more. 
C) As those in the labour force who have been unemployed continuously for 12 months or more. 
D) As people who are no longer in the workforce as they are discouraged workers. 
A) As those in the labour force who have been unemployed continuously for 6 months or more. 
B) As those in the labour force who have been unemployed continuously for 2 years or more. 
C) As those in the labour force who have been unemployed continuously for 12 months or more. 
D) As people who are no longer in the workforce as they are discouraged workers.

Question 15

An example of a 'seasonally unemployed' worker would be a:

Accepted Answer

A) software engineer who loses his job because of declining demand for the software he writes. 
B) child care provider who quits her job to go back to university. 
C) General Motors Holden employee who loses her job because the company is downsizing its workforce. 
D) worker employed at a beachside resort who loses his job in winter. 
A) software engineer who loses his job because of declining demand for the software he writes. 
B) child care provider who quits her job to go back to university. 
C) General Motors Holden employee who loses her job because the company is downsizing its workforce. 
D) worker employed at a beachside resort who loses his job in winter.

Question 16

The ________ is the total number of people aged 15 years and over, and the ________ is the number of people either employed or unemployed.

Accepted Answer

A) labour force participation rate; labour force 
B) working-age population; labour force 
C) labour force; working-age population 
D) working-age population; labour force participation rate 
A) labour force participation rate; labour force 
B) working-age population; labour force 
C) labour force; working-age population 
D) working-age population; labour force participation rate

Question 17

Explain how the rate of unemployment is measured and discuss the weaknesses of this method of measurement.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

The unemployment rate is measured based

Question 18

In 2016, the unemployment rate in Australia was highest for people in the age group:

Accepted Answer

A) 15-19 years. 
B) 20-24 years. 
C) 55-59 years. 
D) 60-64 years. 
A) 15-19 years. 
B) 20-24 years. 
C) 55-59 years. 
D) 60-64 years.

Question 19

Trade union membership in Australia in 2017 comprised approximately:

Accepted Answer

A) 90% of the workforce. 
B) 50% of the workforce. 
C) 15% of the workforce. 
A) 90% of the workforce. 
B) 50% of the workforce. 
C) 15% of the workforce.

Question 20

The official unemployment rate may understate the true rate of unemployment because of:

Accepted Answer

A) increases in worker productivity over time. 
B) discouraged workers who no longer actively look for work. 
C) workers who have more than one job. 
D) changes in the wage rates which may increase unemployment. 
A) increases in worker productivity over time. 
B) discouraged workers who no longer actively look for work. 
C) workers who have more than one job. 
D) changes in the wage rates which may increase unemployment.

What is the unemployment rate when the labour market is considered to be at 'full employment'?

Which of the following causes the official measure of the unemployment rate to understate the true extent of joblessness?

Jill lost her job six months ago and she's been actively looking for a new job ever since. How would the Australian Bureau of Statistics classify Jill?

Suzanne is a full-time student who is not looking for work. Suzanne is experiencing _____________ unemployment.

When an economy is at its natural rate of unemployment, which of the following will be true?

Unemployment benefits reduce the 'opportunity cost' of job search.

How would the unemployment rate and the labour force participation rate change if discouraged workers were counted as 'unemployed' rather than as being in the 'not-in-the-labour force' category? Show this using the formula for both measurements. _ _

Which of the following is most likely to reduce 'structural unemployment'?

If the number employed is 12 million, the working-age population is 16 million, and the number unemployed is 0.7 million, then the unemployment rate is:

Joe just told his boss that he thinks his boss is stupid. What type of unemployment is Joe likely to experience in the near future?

Which of the following groups of educational attainment in Australia has the highest level of long-term unemployment?

Which of following age groups is most likely to have the longest duration of continuous unemployment?

During an economic boom, many employees are asked to work more overtime hours each week. As a result of this:

How is 'long-term unemployment' defined?

An example of a 'seasonally unemployed' worker would be a:

The is the total number of people aged 15 years and over, and the is the number of people either employed or unemployed.

Explain how the rate of unemployment is measured and discuss the weaknesses of this method of measurement. _ _

In 2016, the unemployment rate in Australia was highest for people in the age group:

Trade union membership in Australia in 2017 comprised approximately:

The official unemployment rate may understate the true rate of unemployment because of:

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

What is the unemployment rate when the labour market is considered to be at 'full employment'?

Which of the following causes the official measure of the unemployment rate to understate the true extent of joblessness?

Jill lost her job six months ago and she's been actively looking for a new job ever since. How would the Australian Bureau of Statistics classify Jill?

Suzanne is a full-time student who is not looking for work. Suzanne is experiencing _____________ unemployment.

When an economy is at its natural rate of unemployment, which of the following will be true?

Unemployment benefits reduce the 'opportunity cost' of job search.

Which of the following is most likely to reduce 'structural unemployment'?

If the number employed is 12 million, the working-age population is 16 million, and the number unemployed is 0.7 million, then the unemployment rate is:

Joe just told his boss that he thinks his boss is stupid. What type of unemployment is Joe likely to experience in the near future?

Which of the following groups of educational attainment in Australia has the highest level of long-term unemployment?

Which of following age groups is most likely to have the longest duration of continuous unemployment?

During an economic boom, many employees are asked to work more overtime hours each week. As a result of this:

How is 'long-term unemployment' defined?

An example of a 'seasonally unemployed' worker would be a:

The ________ is the total number of people aged 15 years and over, and the ________ is the number of people either employed or unemployed.

Explain how the rate of unemployment is measured and discuss the weaknesses of this method of measurement. _____________________________________________________________________________________________ _____________________________________________________________________________________________

In 2016, the unemployment rate in Australia was highest for people in the age group:

Trade union membership in Australia in 2017 comprised approximately:

The official unemployment rate may understate the true rate of unemployment because of:

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

The is the total number of people aged 15 years and over, and the is the number of people either employed or unemployed.

Explain how the rate of unemployment is measured and discuss the weaknesses of this method of measurement. _ _