Question 1

To be counted as employed by the BLS, in the week before the survey the person must have worked for pay ________.

Accepted Answer

A)  at least 1 hour 
B)  at least 5 hours 
C)  more than 20 hours 
D)  40 hours 
E)  None of the above are right because the BLS counts as employed anyone who works volunteer hours at a non-profit institution. 
A)  at least 1 hour 
B)  at least 5 hours 
C)  more than 20 hours 
D)  40 hours 
E)  None of the above are right because the BLS counts as employed anyone who works volunteer hours at a non-profit institution.

Question 2

Cyclical unemployment includes people who become unemployed from

Accepted Answer

A)  changes in the seasons. 
B)  changes in international competition. 
C)  technological changes. 
D)  changes in the business cycle. 
E)  normal labor market turnover. 
A)  changes in the seasons. 
B)  changes in international competition. 
C)  technological changes. 
D)  changes in the business cycle. 
E)  normal labor market turnover.

Question 3

$$\begin{array} { l c } 
{ \text { Category } } & \begin{array} { c } 
\text { Number of People } \
\text { (millions) }
\end{array} \
\hline \text { Population } & 280 \
\text { Workingage population } & 210 \
\text { Labor force } & 150 \
\text { Employed } & 135 \
\text { Unemployed } & 15 \
\hline
\end{array}$$
-Based on the above table, the unemployment rate is

Accepted Answer

A)  10 percent. 
B)  11.1 percent 
C)  7.1 percent. 
D)  5.4 percent. 
E)  8.6 percent. 
A)  10 percent. 
B)  11.1 percent 
C)  7.1 percent. 
D)  5.4 percent. 
E)  8.6 percent.

Question 4

In the United States, the percentage of part-time workers who are part time for noneconomic reasons

Accepted Answer

A)  has fallen by almost one half since 1979. 
B)  does not fluctuate much with the business cycle. 
C)  rises during an expansionary period and falls during a recessionary period. 
D)  has averaged about 33 percent of all workers. 
E)  has increased in most years since 1979. 
A)  has fallen by almost one half since 1979. 
B)  does not fluctuate much with the business cycle. 
C)  rises during an expansionary period and falls during a recessionary period. 
D)  has averaged about 33 percent of all workers. 
E)  has increased in most years since 1979.

Question 5

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.
-Bo's actions would

Accepted Answer

A)  have no impact on the September unemployment rate or the October unemployment rate. 
B)  raise the September unemployment rate and lower the October unemployment rate. 
C)  raise the September unemployment rate and not change the October unemployment rate. 
D)  classify him as out of the labor force in September. 
E)  raise the September unemployment rate and the October unemployment rate. 
A)  have no impact on the September unemployment rate or the October unemployment rate. 
B)  raise the September unemployment rate and lower the October unemployment rate. 
C)  raise the September unemployment rate and not change the October unemployment rate. 
D)  classify him as out of the labor force in September. 
E)  raise the September unemployment rate and the October unemployment rate.

Question 6

In calculating the unemployment rate, part-time workers over the age of 16 are counted as

Accepted Answer

A)  employed. 
B)  unemployed. 
C)  not in the labor force. 
D)  employed if they are part-time workers for noneconomic reasons and unemployed if they are involuntary part-time workers. 
E)  not in the working-age population. 
A)  employed. 
B)  unemployed. 
C)  not in the labor force. 
D)  employed if they are part-time workers for noneconomic reasons and unemployed if they are involuntary part-time workers. 
E)  not in the working-age population.

Question 7

Can frictional unemployment ever be totally eliminated?
 Explain your answer.

Accepted Answer

Frictional unemployment arises from norm

Question 8

Josh quit his job to care for his young daughter.Now that she has entered school, Josh is looking for a job. Josh is a

Accepted Answer

A)  job leaver. 
B)  job loser. 
C)  discouraged worker. 
D)  job market reentrant. 
E)  not unemployed because he quit his previous job. 
A)  job leaver. 
B)  job loser. 
C)  discouraged worker. 
D)  job market reentrant. 
E)  not unemployed because he quit his previous job.

Question 9

Potential GDP is the level of output produced when the unemployment rate is

Accepted Answer

A)  equal to the natural unemployment rate. 
B)  greater than the natural unemployment rate. 
C)  less than the natural unemployment rate. 
D)  zero. 
E)  made up of only cyclical unemployment. 
A)  equal to the natural unemployment rate. 
B)  greater than the natural unemployment rate. 
C)  less than the natural unemployment rate. 
D)  zero. 
E)  made up of only cyclical unemployment.

Question 10

The upward trend in the U.S.labor force participation rate the the past 50 years is explained by

Accepted Answer

A)  the increase in the population. 
B)  the increase in the male labor force participation rate. 
C)  the increase in the number of discouraged workers. 
D)  the increase in the female labor force participation rate. 
E)  Both answers B and D are correct. 
A)  the increase in the population. 
B)  the increase in the male labor force participation rate. 
C)  the increase in the number of discouraged workers. 
D)  the increase in the female labor force participation rate. 
E)  Both answers B and D are correct.

Question 11

The size of the labor force is

Accepted Answer

A)  equal to the size of the population. 
B)  less than the number of employed workers if the number of unemployed workers is small enough. 
C)  less than the number of unemployed workers if the number of employed workers is small enough. 
D)  greater than the number of employed workers as long as there are some unemployed workers. 
E)  equal to the working-age population. 
A)  equal to the size of the population. 
B)  less than the number of employed workers if the number of unemployed workers is small enough. 
C)  less than the number of unemployed workers if the number of employed workers is small enough. 
D)  greater than the number of employed workers as long as there are some unemployed workers. 
E)  equal to the working-age population.

Question 12

Suppose the current unemployment rate is 5 percent, the labor force is 400 million people, the labor force participation rate is 80 percent and the working-age population is 500 million people.What number of people are unemployed?

Accepted Answer

The number of unemployed peopl

Question 13

Joe is an unemployed worker.The LEAST likely cause of his unemployment is:

Accepted Answer

A)  He has lost his job. 
B)  He has just entered or reentered the labor force. 
C)  He has left his job voluntarily. 
D)  He is a discouraged worker. 
E)  Both answers A and B are correct because they are tied for the least likely cause of unemployment. 
A)  He has lost his job. 
B)  He has just entered or reentered the labor force. 
C)  He has left his job voluntarily. 
D)  He is a discouraged worker. 
E)  Both answers A and B are correct because they are tied for the least likely cause of unemployment.

Question 14

Since 1959, the labor force participation rate in the United States

Accepted Answer

A)  has remained remarkably stable. 
B)  has generally decrease. 
C)  has generally increased. 
D)  at first rose sharply and then gradually decreased. 
E)  at first gradually decreased and in recent years has risen sharply. 
A)  has remained remarkably stable. 
B)  has generally decrease. 
C)  has generally increased. 
D)  at first rose sharply and then gradually decreased. 
E)  at first gradually decreased and in recent years has risen sharply.

Question 15

Which of the following is true?

Accepted Answer

A)  Real GDP fluctuates around potential GDP. 
B)  Potential GDP fluctuates around real GDP. 
C)  Nominal GDP fluctuates around real GDP. 
D)  Real GDP fluctuates around nominal GDP. 
E)  When real GDP equals potential GDP, both equal nominal GDP. 
A)  Real GDP fluctuates around potential GDP. 
B)  Potential GDP fluctuates around real GDP. 
C)  Nominal GDP fluctuates around real GDP. 
D)  Real GDP fluctuates around nominal GDP. 
E)  When real GDP equals potential GDP, both equal nominal GDP.

Question 16

$$\begin{array} { l c } 
 { \text { Category } } & \begin{array} { c } 
\text { Number of people } \
\text { (millions) }
\end{array} \
\hline \text { Discouraged workers } & 5 \
\text { Unemployed workers } & 12 \
\text { Employed workers } & 48 \
\text { Working.age population } & 100 \
\hline
\end{array}$$
-From the table above, which gives data about the U.S.labor market in 1933, the unemployment rate is

Accepted Answer

A)  2 percent. 
B)  18 percent. 
C)  20 percent. 
D)  25 percent. 
E)  35 percent. 
A)  2 percent. 
B)  18 percent. 
C)  20 percent. 
D)  25 percent. 
E)  35 percent.

Question 17

Which type of unemployment is most likely to lead unemployed workers to retrain or relocate?

Accepted Answer

A)  cyclical 
B)  seasonal 
C)  structural 
D)  frictional 
E)  search 
A)  cyclical 
B)  seasonal 
C)  structural 
D)  frictional 
E)  search

Question 18

Structural unemployment usually lasts ________ period of time ________ unemployment

Accepted Answer

A)  a longer ; than frictional 
B)  a shorter; than frictional 
C)  a shorter; than seasonal 
D)  a shorter; than cyclical 
E)  the same; as seasonal 
A)  a longer ; than frictional 
B)  a shorter; than frictional 
C)  a shorter; than seasonal 
D)  a shorter; than cyclical 
E)  the same; as seasonal

Question 19

$$\begin{array}{l}
\text { Labor Market Flows }\
\begin{array} { l c } 
\quad \text { During 2009 } & \text { Number of People } \
\hline \text { Hires and recalls } & 1,000 \
\text { Job losers } & 500 \
\text { Job leavers } & 300 \
\text { Entrants } & 200 \
\text { Reentrants } & 300 \
\text { Withdraw als } & 300
\end{array}
\end{array}$$
-On December 31, 2008, on a remote northern island there were 18,000 people employed, 2,000 people unemployed, and 5,000 people not in the labor force.The table above gives information taken from a labor survey on a remote northern island.If the working-age population does not change during 2009, then the labor force participation rate at the end of 2009 is

Accepted Answer

A)  80 percent. 
B)  81 percent. 
C)  0.08 percent. 
D)  less than at the end of 2005. 
E)  10 percent. 
A)  80 percent. 
B)  81 percent. 
C)  0.08 percent. 
D)  less than at the end of 2005. 
E)  10 percent.

Question 20

Explain how the labor force participation rate, the unemployment rate, and the percentage of the labor force employed part time change in a recession.

Accepted Answer

The labor force participation rate tends

To be counted as employed by the BLS, in the week before the survey the person must have worked for pay ________.

Cyclical unemployment includes people who become unemployed from

Category Number of People (millions) Population 280 Workingage population 210 Labor force 150 Employed 135 Unemployed 15 -Based on the above table, the unemployment rate is

In the United States, the percentage of part-time workers who are part time for noneconomic reasons

In calculating the unemployment rate, part-time workers over the age of 16 are counted as

Can frictional unemployment ever be totally eliminated? Explain your answer.

Josh quit his job to care for his young daughter.Now that she has entered school, Josh is looking for a job. Josh is a

Potential GDP is the level of output produced when the unemployment rate is

The upward trend in the U.S.labor force participation rate the the past 50 years is explained by

The size of the labor force is

Suppose the current unemployment rate is 5 percent, the labor force is 400 million people, the labor force participation rate is 80 percent and the working-age population is 500 million people.What number of people are unemployed?

Joe is an unemployed worker.The LEAST likely cause of his unemployment is:

Since 1959, the labor force participation rate in the United States

Which of the following is true?

Category Number of people (millions) Discouraged workers 5 Unemployed workers 12 Employed workers 48 Working.age population 100 -From the table above, which gives data about the U.S.labor market in 1933, the unemployment rate is

Which type of unemployment is most likely to lead unemployed workers to retrain or relocate?

Structural unemployment usually lasts period of time unemployment

Explain how the labor force participation rate, the unemployment rate, and the percentage of the labor force employed part time change in a recession.

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

To be counted as employed by the BLS, in the week before the survey the person must have worked for pay ________.

Cyclical unemployment includes people who become unemployed from

Category Number of People (millions) Population 280 Workingage population 210 Labor force 150 Employed 135 Unemployed 15 -Based on the above table, the unemployment rate is

In the United States, the percentage of part-time workers who are part time for noneconomic reasons

In calculating the unemployment rate, part-time workers over the age of 16 are counted as

Can frictional unemployment ever be totally eliminated? Explain your answer.

Josh quit his job to care for his young daughter.Now that she has entered school, Josh is looking for a job. Josh is a

Potential GDP is the level of output produced when the unemployment rate is

The upward trend in the U.S.labor force participation rate the the past 50 years is explained by

The size of the labor force is

Suppose the current unemployment rate is 5 percent, the labor force is 400 million people, the labor force participation rate is 80 percent and the working-age population is 500 million people.What number of people are unemployed?

Joe is an unemployed worker.The LEAST likely cause of his unemployment is:

Since 1959, the labor force participation rate in the United States

Which of the following is true?

Category Number of people (millions) Discouraged workers 5 Unemployed workers 12 Employed workers 48 Working.age population 100 -From the table above, which gives data about the U.S.labor market in 1933, the unemployment rate is

Which type of unemployment is most likely to lead unemployed workers to retrain or relocate?

Structural unemployment usually lasts ________ period of time ________ unemployment

Explain how the labor force participation rate, the unemployment rate, and the percentage of the labor force employed part time change in a recession.

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

Structural unemployment usually lasts period of time unemployment