Question 1

During the last 30 years, the U.S.unemployment rate peaked during

Accepted Answer

A)  the 2008 to 2009 recession. 
B)  the 1990 to 1991 recession. 
C)  the recession in the 1996. 
D)  the expansion in the 1990s. 
E)  the 2001 recession. 
A)  the 2008 to 2009 recession. 
B)  the 1990 to 1991 recession. 
C)  the recession in the 1996. 
D)  the expansion in the 1990s. 
E)  the 2001 recession.

Question 2

Structural unemployment includes people who become unemployed from

Accepted Answer

A)  changes in the seasons. 
B)  normal changes in the labor force. 
C)  technological changes. 
D)  changes in the business cycle. 
E)  going back to school. 
A)  changes in the seasons. 
B)  normal changes in the labor force. 
C)  technological changes. 
D)  changes in the business cycle. 
E)  going back to school.

Question 3

The labor force participation rate is the

Accepted Answer

A)  labor force divided by the working-age population, then multiplied by 100. 
B)  number of people employed divided by the labor force, then multiplied by 100. 
C)  labor force divided by the population, then multiplied by 100. 
D)  discouraged workers divided by the labor force, then multiplied by 100. 
E)  number of people employed divided by the population, then multiplied by 100. 
A)  labor force divided by the working-age population, then multiplied by 100. 
B)  number of people employed divided by the labor force, then multiplied by 100. 
C)  labor force divided by the population, then multiplied by 100. 
D)  discouraged workers divided by the labor force, then multiplied by 100. 
E)  number of people employed divided by the population, then multiplied by 100.

Question 4

$$\begin{array} { l c } 
 { \text { Category } } & \begin{array} { c } 
\text { Number of People } \
\text { (millions) }
\end{array} \
\hline \text { Marginally attached w orkers } & 2.1 \
\text { Unemployed w orkers } & 12.1 \
\text { Employed workers } & 140.0 \
\text { Workingage population } & 250.0 \
\hline
\end{array}$$
-Using the data in the above table, the labor force participation rate is

Accepted Answer

A)  60.8 percent. 
B)  56 percent. 
C)  4.8 percent. 
D)  61.6 percent. 
E)  64.4 percent. 
A)  60.8 percent. 
B)  56 percent. 
C)  4.8 percent. 
D)  61.6 percent. 
E)  64.4 percent.

Question 5

________ unemployment changes slowly and depends on ________.

Accepted Answer

A)  Frictional; the skills of the unemployed 
B)  Seasonal; the rate at which people enter and reenter the labor force 
C)  Frictional; the rate at which people enter and reenter the labor force 
D)  Structural; the rate at which people enter the labor force 
E)  Structural; the inflation rate 
A)  Frictional; the skills of the unemployed 
B)  Seasonal; the rate at which people enter and reenter the labor force 
C)  Frictional; the rate at which people enter and reenter the labor force 
D)  Structural; the rate at which people enter the labor force 
E)  Structural; the inflation rate

Question 6

An employee who is fired from his or her job because he or she lacks the skills required to accomplish the task, is part of ________ unemployment.

Accepted Answer

A)  frictional 
B)  cyclical 
C)  unskilled 
D)  structural 
E)  withdrawal 
A)  frictional 
B)  cyclical 
C)  unskilled 
D)  structural 
E)  withdrawal

Question 7

Frictional unemployment is the result of

Accepted Answer

A)  technological change or foreign competition. 
B)  normal labor market turnover. 
C)  a slowdown in the rate of economic expansion. 
D)  the economy entering a strong expansion. 
E)  changes in the weather. 
A)  technological change or foreign competition. 
B)  normal labor market turnover. 
C)  a slowdown in the rate of economic expansion. 
D)  the economy entering a strong expansion. 
E)  changes in the weather.

Question 8

Over the last 50 years, the U.S.labor force participation rate of men has ________ by ________ the labor force participation of women has ________.As a result, the overall U.S.labor force participation has ________.

Accepted Answer

A)  decreased; less than; increased; increased 
B)  decreased; more than; increased; decreased 
C)  decreased; about the same rate as; increased; remained steady 
D)  increased; less than; decreased; decreased 
E)  increased; more than; decreased; increased 
A)  decreased; less than; increased; increased 
B)  decreased; more than; increased; decreased 
C)  decreased; about the same rate as; increased; remained steady 
D)  increased; less than; decreased; decreased 
E)  increased; more than; decreased; increased

Question 9

Integrative Questions
Consider the following people:
Chris quits his job as an automobile mechanic to pursue his college education full-time.
Arrelo is temporarily laid off from her technical support job because of a strike by production workers.
Schurita graduated from college in May and is currently looking for a job.
Bo quit his job on September 1 and then, after looking for a new job, will begin his new job on October 1.
Terri retired from his job on May 1.
Vicki works part-time at Bainen Press to help pay her college tuition.
-Chris would be classified as

Accepted Answer

A)  a job leaver. 
B)  a job loser. 
C)  an entrant. 
D)  unemployed. 
E)  Both answers A and D are correct. 
A)  a job leaver. 
B)  a job loser. 
C)  an entrant. 
D)  unemployed. 
E)  Both answers A and D are correct.

Question 10

Which of the following people would be considered unemployed?

Accepted Answer

A)  Sam, a part-time worker who wishes to work full time 
B)  Pat, who gave up looking for a job because he was discouraged about his job prospects 
C)  Victoria, who does not have a job and has been actively searching for work, but turned down a job paying less than she desired 
D)  Shirley, who is working but expects to be laid off at the end of the month 
E)  Bobby, a full-time student in his last term before he graduates and who has not yet started to look for a job 
A)  Sam, a part-time worker who wishes to work full time 
B)  Pat, who gave up looking for a job because he was discouraged about his job prospects 
C)  Victoria, who does not have a job and has been actively searching for work, but turned down a job paying less than she desired 
D)  Shirley, who is working but expects to be laid off at the end of the month 
E)  Bobby, a full-time student in his last term before he graduates and who has not yet started to look for a job

Question 11

Most unemployed workers are

Accepted Answer

A)  job losers. 
B)  job leavers. 
C)  new entrants or reentrants into the labor market. 
D)  discouraged workers. 
E)  withdrawals. 
A)  job losers. 
B)  job leavers. 
C)  new entrants or reentrants into the labor market. 
D)  discouraged workers. 
E)  withdrawals.

Question 12

Natural unemployment equals the sum of

Accepted Answer

A)  cyclical and frictional unemployment. 
B)  cyclical, seasonal, and structural unemployment. 
C)  frictional, seasonal, and structural unemployment. 
D)  seasonal and cyclical unemployment. 
E)  cyclical, frictional, seasonal, and structural unemployment. 
A)  cyclical and frictional unemployment. 
B)  cyclical, seasonal, and structural unemployment. 
C)  frictional, seasonal, and structural unemployment. 
D)  seasonal and cyclical unemployment. 
E)  cyclical, frictional, seasonal, and structural unemployment.

Question 13

Full employment occurs when the

Accepted Answer

A)  unemployment rate equals the natural unemployment rate. 
B)  structural unemployment rate equals the frictional unemployment rate. 
C)  natural unemployment rate equals the frictional unemployment rate. 
D)  cyclical unemployment rate equals the natural unemployment rate. 
E)  structural unemployment rate equals zero. 
A)  unemployment rate equals the natural unemployment rate. 
B)  structural unemployment rate equals the frictional unemployment rate. 
C)  natural unemployment rate equals the frictional unemployment rate. 
D)  cyclical unemployment rate equals the natural unemployment rate. 
E)  structural unemployment rate equals zero.

Question 14

Suppose the working-age population is 500 million, the labor force is 200 million, and the unemployment rate is 15 percent.The number of unemployed people is

Accepted Answer

A)  30 million. 
B)  75 million. 
C)  45 million. 
D)  105 million. 
E)  15 million. 
A)  30 million. 
B)  75 million. 
C)  45 million. 
D)  105 million. 
E)  15 million.

Question 15

Part-time workers for noneconomic reasons are people who

Accepted Answer

A)  work less than 35 hours a week but would like to work more than 35 hours a week. 
B)  work more than 35 hours a week but would like to work less than 35 hours a week. 
C)  have lost their jobs within the last four weeks and are seeking another job. 
D)  do not want to work full time. 
E)  are discouraged workers. 
A)  work less than 35 hours a week but would like to work more than 35 hours a week. 
B)  work more than 35 hours a week but would like to work less than 35 hours a week. 
C)  have lost their jobs within the last four weeks and are seeking another job. 
D)  do not want to work full time. 
E)  are discouraged workers.

Question 16

Consider the following people:
Chris quits his job as an automobile mechanic to pursue his college education full-time.
Darrelo was laid off from her technical support job because of a strike by production workers and is currently looking for a new job.
Rita graduated from college and is currently looking for a job.
Armondo quit his old job and will begin his new job in four days.
Thorton was fired from his job as a steel worker because of massive imports of steel and he is looking for a new job.
Valery is a ski instructor from December to April and she is currently sailing for enjoyment, which is what she does the rest of the year.
Jung was laid off from his job as an appraiser because the firm's business declined because of a general downturn in the economy and he is currently looking for a new job as an appraiser.
-According to the scenario above, in which of the following groups are all the people cyclically unemployed?

Accepted Answer

A)  Jung 
B)  Darrelo 
C)  Jung and Valery 
D)  Jung and Thorton 
E)  Thorton 
A)  Jung 
B)  Darrelo 
C)  Jung and Valery 
D)  Jung and Thorton 
E)  Thorton

Question 17

Unemployment rates in the United States during the past 40 years

Accepted Answer

A)  have remained between 4 and 6 percent. 
B)  have risen and fallen in a range between approximately 10 and 25 percent. 
C)  have risen and fallen in a range between approximately 4 and 10 percent. 
D)  have fallen steadily from approximately 10 percent 40 years ago to near 2 percent today. 
E)  have risen steadily and today are near all-time highs. 
A)  have remained between 4 and 6 percent. 
B)  have risen and fallen in a range between approximately 10 and 25 percent. 
C)  have risen and fallen in a range between approximately 4 and 10 percent. 
D)  have fallen steadily from approximately 10 percent 40 years ago to near 2 percent today. 
E)  have risen steadily and today are near all-time highs.

Question 18

Structural unemployment is the result of

Accepted Answer

A)  voluntary job quitting by workers. 
B)  changing labor needs by firms during the year. 
C)  technology changes or foreign competition. 
D)  changes in the family structure. 
E)  downturns in the business cycle. 
A)  voluntary job quitting by workers. 
B)  changing labor needs by firms during the year. 
C)  technology changes or foreign competition. 
D)  changes in the family structure. 
E)  downturns in the business cycle.

Question 19

As the unemployment rate increases,

Accepted Answer

A)  potential GDP decreases. 
B)  real GDP decreases. 
C)  both real GDP and potential GDP decrease. 
D)  potential GDP increases. 
E)  full employment GDP decreases. 
A)  potential GDP decreases. 
B)  real GDP decreases. 
C)  both real GDP and potential GDP decrease. 
D)  potential GDP increases. 
E)  full employment GDP decreases.

Question 20

Consider the following statement: "Real GDP and potential GDP are always equal." Is this statement true or false?
 Explain your answer.

Accepted Answer

Real GDP often differs from potential GD

During the last 30 years, the U.S.unemployment rate peaked during

Structural unemployment includes people who become unemployed from

The labor force participation rate is the

Category Number of People (millions) Marginally attached w orkers 2.1 Unemployed w orkers 12.1 Employed workers 140.0 Workingage population 250.0 -Using the data in the above table, the labor force participation rate is

unemployment changes slowly and depends on .

An employee who is fired from his or her job because he or she lacks the skills required to accomplish the task, is part of ________ unemployment.

Frictional unemployment is the result of

Over the last 50 years, the U.S.labor force participation rate of men has by the labor force participation of women has .As a result, the overall U.S.labor force participation has .

Which of the following people would be considered unemployed?

Most unemployed workers are

Natural unemployment equals the sum of

Full employment occurs when the

Suppose the working-age population is 500 million, the labor force is 200 million, and the unemployment rate is 15 percent.The number of unemployed people is

Part-time workers for noneconomic reasons are people who

Unemployment rates in the United States during the past 40 years

Structural unemployment is the result of

As the unemployment rate increases,

Consider the following statement: "Real GDP and potential GDP are always equal." Is this statement true or false? Explain your answer.

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Gdp: a Measure of Total Production and Income

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Economic Growth

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

Exam 6: Jobs and Unemployment

During the last 30 years, the U.S.unemployment rate peaked during

Structural unemployment includes people who become unemployed from

The labor force participation rate is the

Category Number of People (millions) Marginally attached w orkers 2.1 Unemployed w orkers 12.1 Employed workers 140.0 Workingage population 250.0 -Using the data in the above table, the labor force participation rate is

________ unemployment changes slowly and depends on ________.

An employee who is fired from his or her job because he or she lacks the skills required to accomplish the task, is part of ________ unemployment.

Frictional unemployment is the result of

Over the last 50 years, the U.S.labor force participation rate of men has ________ by ________ the labor force participation of women has ________.As a result, the overall U.S.labor force participation has ________.

Which of the following people would be considered unemployed?

Most unemployed workers are

Natural unemployment equals the sum of

Full employment occurs when the

Suppose the working-age population is 500 million, the labor force is 200 million, and the unemployment rate is 15 percent.The number of unemployed people is

Part-time workers for noneconomic reasons are people who

Unemployment rates in the United States during the past 40 years

Structural unemployment is the result of

As the unemployment rate increases,

Consider the following statement: "Real GDP and potential GDP are always equal." Is this statement true or false? Explain your answer.

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Gdp: a Measure of Total Production and Income

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Economic Growth

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

unemployment changes slowly and depends on .

Over the last 50 years, the U.S.labor force participation rate of men has by the labor force participation of women has .As a result, the overall U.S.labor force participation has .