Question 1

At full employment there is no

Accepted Answer

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

Question 2

Which of the following would be considered unemployed as part of normal labor market turnover?
i. Juliet, who was fired when the company where she worked went bankrupt in a recession.
ii. Hannah, who quit her job to find one that better suited her skills.
iii. Charlotte, who started looking for a job upon graduation from high school.

Accepted Answer

A)  ii and iii. 
B)  i and ii. 
C)  i, ii and iii. 
D)  i and iii. 
E)  iii only. 
A)  ii and iii. 
B)  i and ii. 
C)  i, ii and iii. 
D)  i and iii. 
E)  iii only.

Question 3

To be considered unemployed, a worker must have had

Accepted Answer

A)  no employment during the week before the survey and be actively looking for a job. 
B)  part-time employment while actively looking for a full-time job. 
C)  no employment during the week before the survey and be actively looking for a job while a student. 
D)  no employment during the day before the survey and be actively looking for a job. 
E)  Both answers A and B are correct. 
A)  no employment during the week before the survey and be actively looking for a job. 
B)  part-time employment while actively looking for a full-time job. 
C)  no employment during the week before the survey and be actively looking for a job while a student. 
D)  no employment during the day before the survey and be actively looking for a job. 
E)  Both answers A and B are correct.

Question 4

Part-time workers are defined as people who are working

Accepted Answer

A)  less than 20 hours per week. 
B)  between 20 and 35 hours per week. 
C)  less than 35 hours per week. 
D)  more than 10 hours per week. 
E)  fewer hours than they would want. 
A)  less than 20 hours per week. 
B)  between 20 and 35 hours per week. 
C)  less than 35 hours per week. 
D)  more than 10 hours per week. 
E)  fewer hours than they would want.

Question 5

Which of the following statements is true regarding part-time workers?

Accepted Answer

A)  Part-time workers are divided those who voluntary choose part-time work and those who work part-time due to economic reasons. 
B)  The percentage of workers who are part time due to non-economic reasons rise significantly during recessions. 
C)  The percentage of workers who are part time due to economic reasons does not change much over the business cycle. 
D)  The percentage of workers who are part time due to non-economic reasons is about the same percentage as those who are voluntary reasons. 
E)  Part-time workers who are part-time for economic reasons are included in the unemployment rate, but part-time workers who are part time for noneconomic reasons are not included in the unemployment rate. 
A)  Part-time workers are divided those who voluntary choose part-time work and those who work part-time due to economic reasons. 
B)  The percentage of workers who are part time due to non-economic reasons rise significantly during recessions. 
C)  The percentage of workers who are part time due to economic reasons does not change much over the business cycle. 
D)  The percentage of workers who are part time due to non-economic reasons is about the same percentage as those who are voluntary reasons. 
E)  Part-time workers who are part-time for economic reasons are included in the unemployment rate, but part-time workers who are part time for noneconomic reasons are not included in the unemployment rate.

Question 6

If the number of employed people is 150 million, the number of unemployed people is 50 million, and the working-age population equals 285 million people, the labor force participation rate is

Accepted Answer

A)  70.2 percent. 
B)  81 percent. 
C)  17.5 percent. 
D)  25 percent. 
E)  52.6 percent. 
A)  70.2 percent. 
B)  81 percent. 
C)  17.5 percent. 
D)  25 percent. 
E)  52.6 percent.

Question 7

In the United States, a reason for the increase of the labor force participation rate for women is that

Accepted Answer

A)  an increase in wealth allowed men to retire early. 
B)  more women pursued a college education and received higher wages upon graduation. 
C)  improved Social Security benefits are available for women if they work. 
D)  there has been a decrease in jobs with flexible hours. 
E)  fewer women married. 
A)  an increase in wealth allowed men to retire early. 
B)  more women pursued a college education and received higher wages upon graduation. 
C)  improved Social Security benefits are available for women if they work. 
D)  there has been a decrease in jobs with flexible hours. 
E)  fewer women married.

Question 8

Since 1969, in the United States the labor force participation rate for men has ________ and for women has ________.

Accepted Answer

A)  increased; increased 
B)  increased; decreased 
C)  decreased; increased 
D)  decreased; decreased 
E)  not changed; increased 
A)  increased; increased 
B)  increased; decreased 
C)  decreased; increased 
D)  decreased; decreased 
E)  not changed; increased

Question 9

Joe has been unable to find a job because he lacks the necessary computer skills.Joe is

Accepted Answer

A)  frictionally unemployed. 
B)  structurally unemployed. 
C)  seasonally unemployed. 
D)  cyclically unemployed. 
E)  skill-set unemployed. 
A)  frictionally unemployed. 
B)  structurally unemployed. 
C)  seasonally unemployed. 
D)  cyclically unemployed. 
E)  skill-set unemployed.

Question 10

What is the definition of the unemployment rate?
 How are part-time workers and discouraged workers treated when calculating the unemployment rate?

Accepted Answer

The definition of the unemployment rate

Question 11

Which of the following correctly describes "frictional unemployment"?

Accepted Answer

A)  Frictional unemployment includes only people who are job losers. 
B)  Frictional unemployment includes only people who are job leavers. 
C)  Frictional unemployment occurs mainly during recessions. 
D)  Frictional unemployment is a normal occurrence in a growing economy. 
E)  Frictional unemployment falls in recessions and rises in expansions. 
A)  Frictional unemployment includes only people who are job losers. 
B)  Frictional unemployment includes only people who are job leavers. 
C)  Frictional unemployment occurs mainly during recessions. 
D)  Frictional unemployment is a normal occurrence in a growing economy. 
E)  Frictional unemployment falls in recessions and rises in expansions.

Question 12

Over the past two decades, the unemployment rates in

Accepted Answer

A)  the Eurozone have been less than U.S.unemployment rates. 
B)  the Eurozone have been greater than U.S.unemployment rates. 
C)  the United Kingdom have almost always been much greater than the U.S.unemployment rates. 
D)  Canada are less than the U.S.unemployment rates. 
E)  Japan are much larger than those in the United States. 
A)  the Eurozone have been less than U.S.unemployment rates. 
B)  the Eurozone have been greater than U.S.unemployment rates. 
C)  the United Kingdom have almost always been much greater than the U.S.unemployment rates. 
D)  Canada are less than the U.S.unemployment rates. 
E)  Japan are much larger than those in the United States.

Question 13

Higher ________ in Canada than in the United States help explain why ________ unemployment is higher in Canada than in the United States.

Accepted Answer

A)  unemployment benefits; frictional 
B)  unemployment benefits; structural. 
C)  prices; frictional. 
D)  prices; seasonal. 
E)  unemployment benefits; structural 
A)  unemployment benefits; frictional 
B)  unemployment benefits; structural. 
C)  prices; frictional. 
D)  prices; seasonal. 
E)  unemployment benefits; structural

Question 14

Bo is available and willing to work but has not actively looked for work in the past month.Bo is ________ of the labor force and are ________.

Accepted Answer

A)  part; counted as unemployed 
B)  part; not counted as unemployed 
C)  not part; not counted as unemployed 
D)  not part; counted as unemployed only if he has had a job within the last 12 months 
E)  not part; counted as unemployed regardless of whether or not he has had a job within the last 12 months 
A)  part; counted as unemployed 
B)  part; not counted as unemployed 
C)  not part; not counted as unemployed 
D)  not part; counted as unemployed only if he has had a job within the last 12 months 
E)  not part; counted as unemployed regardless of whether or not he has had a job within the last 12 months

Question 15

Consider the following scenario.Initially the economy has 90 million people working, 10 million people unemployed, and 20 million people not in the labor force.Then prospects for the economy improve.Five million people who previously were not in the labor force now join the 10 million previously unemployed in looking for work.For now, the economy remains with 90 million workers.What happens to the unemployment rate?

Accepted Answer

The unemployment rate rises fr

Question 16

The percentage of workers who work part time for noneconomic reasons

Accepted Answer

A)  decreases during a recession as the number of discouraged workers increases. 
B)  does not fluctuate much at all with the business cycle. 
C)  fluctuates strongly with the business cycle. 
D)  has decreased from 30 percent of the labor force in 1977 to 20 percent in 2007. 
E)  has trended upward since 1977. 
A)  decreases during a recession as the number of discouraged workers increases. 
B)  does not fluctuate much at all with the business cycle. 
C)  fluctuates strongly with the business cycle. 
D)  has decreased from 30 percent of the labor force in 1977 to 20 percent in 2007. 
E)  has trended upward since 1977.

Question 17

The highest unemployment rate in U.S.history was about

Accepted Answer

A)  10.2 percent in 2009. 
B)  5.9 percent in 1972. 
C)  10 percent in 1982. 
D)  25 percent in 1933. 
E)  52 percent in 1939. 
A)  10.2 percent in 2009. 
B)  5.9 percent in 1972. 
C)  10 percent in 1982. 
D)  25 percent in 1933. 
E)  52 percent in 1939.

Question 18

Full employment means that

Accepted Answer

A)  100 percent of the labor force have jobs. 
B)  only those who are willing, able and looking for work are unemployed. 
C)  the cyclical unemployment rate is zero. 
D)  the natural unemployment rate is zero. 
E)  the frictional unemployment rate is zero. 
A)  100 percent of the labor force have jobs. 
B)  only those who are willing, able and looking for work are unemployed. 
C)  the cyclical unemployment rate is zero. 
D)  the natural unemployment rate is zero. 
E)  the frictional unemployment rate is zero.

Question 19

What is the relationship over the business cycle of potential GDP and real GDP?

Accepted Answer

The level of output that the economy wou

Question 20

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.
-Vicki would be classified as

Accepted Answer

A)  a voluntary part-time worker. 
B)  unemployed. 
C)  an involuntary part-time work. 
D)  not in the labor force because she is a full-time student. 
E)  a discouraged worker. 
A)  a voluntary part-time worker. 
B)  unemployed. 
C)  an involuntary part-time work. 
D)  not in the labor force because she is a full-time student. 
E)  a discouraged worker.

At full employment there is no

To be considered unemployed, a worker must have had

Part-time workers are defined as people who are working

Which of the following statements is true regarding part-time workers?

If the number of employed people is 150 million, the number of unemployed people is 50 million, and the working-age population equals 285 million people, the labor force participation rate is

In the United States, a reason for the increase of the labor force participation rate for women is that

Since 1969, in the United States the labor force participation rate for men has and for women has .

Joe has been unable to find a job because he lacks the necessary computer skills.Joe is

What is the definition of the unemployment rate? How are part-time workers and discouraged workers treated when calculating the unemployment rate?

Which of the following correctly describes "frictional unemployment"?

Over the past two decades, the unemployment rates in

Higher in Canada than in the United States help explain why unemployment is higher in Canada than in the United States.

Bo is available and willing to work but has not actively looked for work in the past month.Bo is of the labor force and are .

The percentage of workers who work part time for noneconomic reasons

The highest unemployment rate in U.S.history was about

Full employment means that

What is the relationship over the business cycle of potential GDP and real GDP?

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

At full employment there is no

To be considered unemployed, a worker must have had

Part-time workers are defined as people who are working

Which of the following statements is true regarding part-time workers?

If the number of employed people is 150 million, the number of unemployed people is 50 million, and the working-age population equals 285 million people, the labor force participation rate is

In the United States, a reason for the increase of the labor force participation rate for women is that

Since 1969, in the United States the labor force participation rate for men has ________ and for women has ________.

Joe has been unable to find a job because he lacks the necessary computer skills.Joe is

What is the definition of the unemployment rate? How are part-time workers and discouraged workers treated when calculating the unemployment rate?

Which of the following correctly describes "frictional unemployment"?

Over the past two decades, the unemployment rates in

Higher ________ in Canada than in the United States help explain why ________ unemployment is higher in Canada than in the United States.

Bo is available and willing to work but has not actively looked for work in the past month.Bo is ________ of the labor force and are ________.

The percentage of workers who work part time for noneconomic reasons

The highest unemployment rate in U.S.history was about

Full employment means that

What is the relationship over the business cycle of potential GDP and real GDP?

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

Since 1969, in the United States the labor force participation rate for men has and for women has .

Higher in Canada than in the United States help explain why unemployment is higher in Canada than in the United States.

Bo is available and willing to work but has not actively looked for work in the past month.Bo is of the labor force and are .