Question 1

What is a "marginally attached worker"?

Accepted Answer

A marginally attached worker is a person

Question 2

The type of unemployment that arises from a decrease in real GDP is called

Accepted Answer

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

Question 3

The labor force consists of

Accepted Answer

A)  the number of people who are employed. 
B)  the number of people who unemployed and who are actively seeking work. 
C)  the number of people in the working-age population who are employed or unemployed. 
D)  all people in the population aged 16 and over who are not in jail, a hospital, or an institution or in the U.S.Armed Forces. 
E)  the number of people who are employed minus the number of the people who are unemployed. 
A)  the number of people who are employed. 
B)  the number of people who unemployed and who are actively seeking work. 
C)  the number of people in the working-age population who are employed or unemployed. 
D)  all people in the population aged 16 and over who are not in jail, a hospital, or an institution or in the U.S.Armed Forces. 
E)  the number of people who are employed minus the number of the people who are unemployed.

Question 4

Explain the relationship(s) between full employment, cyclical unemployment, the natural unemployment rate, and potential GDP.

Accepted Answer

The economy is at full employment when t

Question 5

Cyclical unemployment

Accepted Answer

A)  is always a constant amount of unemployment. 
B)  is higher during an expansion. 
C)  decreases during a recession. 
D)  fluctuates over the business cycle. 
E)  fluctuates but not in response to the business cycle. 
A)  is always a constant amount of unemployment. 
B)  is higher during an expansion. 
C)  decreases during a recession. 
D)  fluctuates over the business cycle. 
E)  fluctuates but not in response to the business cycle.

Question 6

An increase in unemployment benefits ________ and an increase in international competition that changes the location of jobs ________.

Accepted Answer

A)  increases structural unemployment; decreases frictional unemployment 
B)  decreases structural unemployment; decreases cyclical unemployment 
C)  decreases cyclical unemployment; decreases cyclical unemployment 
D)  increases frictional unemployment; increases structural unemployment 
E)  decreases cyclical unemployment; increases cyclical unemployment 
A)  increases structural unemployment; decreases frictional unemployment 
B)  decreases structural unemployment; decreases cyclical unemployment 
C)  decreases cyclical unemployment; decreases cyclical unemployment 
D)  increases frictional unemployment; increases structural unemployment 
E)  decreases cyclical unemployment; increases cyclical unemployment

Question 7

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

Accepted Answer

A)  48 million. 
B)  60 million. 
C)  65 million. 
D)  100 million. 
E)  12 million. 
A)  48 million. 
B)  60 million. 
C)  65 million. 
D)  100 million. 
E)  12 million.

Question 8

When the unemployment rate is ________ the natural unemployment rate, real GDP is ________.

Accepted Answer

A)  above; increasing 
B)  above; above potential GDP 
C)  below; above potential GDP 
D)  below; increasing 
E)  equal to; either equal to potential GDP or above potential GDP 
A)  above; increasing 
B)  above; above potential GDP 
C)  below; above potential GDP 
D)  below; increasing 
E)  equal to; either equal to potential GDP or above potential GDP

Question 9

If 160 million people are employed, 15 million people are unemployed, and the population is 280 million people; the unemployment rate is

Accepted Answer

A)  57 percent. 
B)  62.5 percent. 
C)  9.4 percent. 
D)  8.6 percent. 
E)  not possible to calculate without data on the labor force. 
A)  57 percent. 
B)  62.5 percent. 
C)  9.4 percent. 
D)  8.6 percent. 
E)  not possible to calculate without data on the labor force.

Question 10

$\begin{array}{lc}
{\text { Category }} & \begin{array}{c}
\text { Number of people } \
\text { (millions) }
\end{array} \
\hline \text { Total population } & 250 \
\text { Less than 16 years of age } & 30 \
\text { Institutionalized } & 15 \
\text { Part-time workers } & 20 \
\text { Full-time workers } & 145 \
\text { Looking for work in the past 4 weeks } & 10 \
\text { In U.S. Armed Forces } & 10
\end{array}$
-Using the table above, the working-age population is

Accepted Answer

A)  155 million. 
B)  170 million. 
C)  195 million. 
D)  250 million. 
E)  220 million. 
A)  155 million. 
B)  170 million. 
C)  195 million. 
D)  250 million. 
E)  220 million.

Question 11

$\begin{array}{cccc}
\begin{array}{c}
\text { Total } \
\text { Population } \
\text { (millions) }
\end{array} & \begin{array}{c}
\text { Currently } \
\text { Employed } \
\text { (millions) }
\end{array} & \begin{array}{c}
\text { Not Working and } \
\text { Looking for Work } \
\text { ( millions) }
\end{array} & \begin{array}{c}
\text { Want to Work } \
\text { But No Longer } \
\text { (millions) }
\end{array} \
\hline 80 & 40 & 2 & 4
\end{array}$
-In the table above, the unemployment rate is

Accepted Answer

A)  50.0 percent. 
B)  15.0 percent. 
C)  10.0 percent. 
D)  4.8 percent. 
E)  5.0 percent. 
A)  50.0 percent. 
B)  15.0 percent. 
C)  10.0 percent. 
D)  4.8 percent. 
E)  5.0 percent.

Question 12

Julie works part-time for economic reasons.She would be considered

Accepted Answer

A)  an involuntary part-time worker. 
B)  a discouraged worker. 
C)  a job seeker. 
D)  not in the labor force. 
E)  unemployed as calculated by the Bureau of Labor statistics. 
A)  an involuntary part-time worker. 
B)  a discouraged worker. 
C)  a job seeker. 
D)  not in the labor force. 
E)  unemployed as calculated by the Bureau of Labor statistics.

Question 13

The natural unemployment rate is

Accepted Answer

A)  equal to the sum of frictional, cyclical, and seasonal unemployment. 
B)  not known with certainty. 
C)  equal to zero. 
D)  the same for all industrialized countries. 
E)  equal to the sum of frictional, structural, cyclical, and seasonal unemployment. 
A)  equal to the sum of frictional, cyclical, and seasonal unemployment. 
B)  not known with certainty. 
C)  equal to zero. 
D)  the same for all industrialized countries. 
E)  equal to the sum of frictional, structural, cyclical, and seasonal unemployment.

Question 14

When the unemployment rate is greater than the natural unemployment rate, real GDP is

Accepted Answer

A)  greater than potential GDP. 
B)  less than potential GDP. 
C)  unrelated to potential GDP. 
D)  equal to potential GDP. 
E)  greater than full employment GDP. 
A)  greater than potential GDP. 
B)  less than potential GDP. 
C)  unrelated to potential GDP. 
D)  equal to potential GDP. 
E)  greater than full employment GDP.

Question 15

Potential GDP is reached when

Accepted Answer

A)  unemployment is zero. 
B)  there is no cyclical unemployment. 
C)  unemployment is above full employment. 
D)  unemployment is below full employment. 
E)  the natural unemployment rate equals zero. 
A)  unemployment is zero. 
B)  there is no cyclical unemployment. 
C)  unemployment is above full employment. 
D)  unemployment is below full employment. 
E)  the natural unemployment rate equals zero.

Question 16

Suppose that Mel (who is 27) is not working, but looked for a job as recently as 2 months ago. Mel would like a job and he is available for work.He is considered

Accepted Answer

A)  unemployed. 
B)  a member of the labor force and unemployed. 
C)  a member of the labor force, but not unemployed. 
D)  a member of the working-age population 
E)  a marginally attached worker. 
A)  unemployed. 
B)  a member of the labor force and unemployed. 
C)  a member of the labor force, but not unemployed. 
D)  a member of the working-age population 
E)  a marginally attached worker.

Question 17

Harry works at the video rental store for 20 hours per week. He's asked his boss to allow him to work 40 hours per week, but has been told that business is too slow. Harry is considered

Accepted Answer

A)  a discouraged worker. 
B)  an involuntary part-time worker. 
C)  a marginally attached worker. 
D)  not in the labor force. 
E)  a job seeker. 
A)  a discouraged worker. 
B)  an involuntary part-time worker. 
C)  a marginally attached worker. 
D)  not in the labor force. 
E)  a job seeker.

Question 18

A marginally attached worker is

Accepted Answer

A)  a worker who is unhappy at his or her job. 
B)  a worker who is looking for a job but can't find one. 
C)  a worker who does not have a job and is available and wants one but has not made any efforts to find a job within the previous four weeks. 
D)  a person who only works part time but wants full-time work. 
E)  counted as unemployed in the official labor market statistics. 
A)  a worker who is unhappy at his or her job. 
B)  a worker who is looking for a job but can't find one. 
C)  a worker who does not have a job and is available and wants one but has not made any efforts to find a job within the previous four weeks. 
D)  a person who only works part time but wants full-time work. 
E)  counted as unemployed in the official labor market statistics.

Question 19

An economic recession produces

Accepted Answer

A)  an increase in cyclical unemployment. 
B)  an increase in structural unemployment. 
C)  an increase in seasonal unemployment. 
D)  a decrease in cyclical unemployment. 
E)  a decrease in seasonal unemployment. 
A)  an increase in cyclical unemployment. 
B)  an increase in structural unemployment. 
C)  an increase in seasonal unemployment. 
D)  a decrease in cyclical unemployment. 
E)  a decrease in seasonal unemployment.

Question 20

$\begin{array}{lc}
{\text { Category }} & \begin{array}{c}
\text { Number of people } \
\text { (millions) }
\end{array} \
\hline \text { Total population } & 250 \
\text { Less than 16 years of age } & 30 \
\text { Institutionalized } & 15 \
\text { Part-time workers } & 20 \
\text { Full-time workers } & 145 \
\text { Looking for work in the past 4 weeks } & 10 \
\text { In U.S. Armed Forces } & 10
\end{array}$
-Using the table above, the unemployment rate is

Accepted Answer

A)  5.13 percent. 
B)  5.88 percent. 
C)  6.45 percent. 
D)  6.90 percent. 
E)  5.71 percent. 
A)  5.13 percent. 
B)  5.88 percent. 
C)  6.45 percent. 
D)  6.90 percent. 
E)  5.71 percent.

What is a "marginally attached worker"?

The type of unemployment that arises from a decrease in real GDP is called

The labor force consists of

Explain the relationship(s) between full employment, cyclical unemployment, the natural unemployment rate, and potential GDP.

Cyclical unemployment

An increase in unemployment benefits and an increase in international competition that changes the location of jobs .

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 labor force is

When the unemployment rate is the natural unemployment rate, real GDP is .

If 160 million people are employed, 15 million people are unemployed, and the population is 280 million people; the unemployment rate is

Category Number of people (millions) Total population 250 Less than 16 years of age 30 Institutionalized 15 Part-time workers 20 Full-time workers 145 Looking for work in the past 4 weeks 10 In U.S. Armed Forces 10 -Using the table above, the working-age population is

Total Population (millions) Currently Employed (millions) Not Working and Looking for Work ( millions) Want to Work But No Longer (millions) 80 40 2 4 -In the table above, the unemployment rate is

Julie works part-time for economic reasons.She would be considered

The natural unemployment rate is

When the unemployment rate is greater than the natural unemployment rate, real GDP is

Potential GDP is reached when

Suppose that Mel (who is 27) is not working, but looked for a job as recently as 2 months ago. Mel would like a job and he is available for work.He is considered

Harry works at the video rental store for 20 hours per week. He's asked his boss to allow him to work 40 hours per week, but has been told that business is too slow. Harry is considered

A marginally attached worker is

An economic recession produces

Category Number of people (millions) Total population 250 Less than 16 years of age 30 Institutionalized 15 Part-time workers 20 Full-time workers 145 Looking for work in the past 4 weeks 10 In U.S. Armed Forces 10 -Using the table above, the unemployment rate is

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

What is a "marginally attached worker"?

The type of unemployment that arises from a decrease in real GDP is called

The labor force consists of

Explain the relationship(s) between full employment, cyclical unemployment, the natural unemployment rate, and potential GDP.

Cyclical unemployment

An increase in unemployment benefits ________ and an increase in international competition that changes the location of jobs ________.

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 labor force is

When the unemployment rate is ________ the natural unemployment rate, real GDP is ________.

If 160 million people are employed, 15 million people are unemployed, and the population is 280 million people; the unemployment rate is

Category Number of people (millions) Total population 250 Less than 16 years of age 30 Institutionalized 15 Part-time workers 20 Full-time workers 145 Looking for work in the past 4 weeks 10 In U.S. Armed Forces 10 -Using the table above, the working-age population is

Total Population (millions) Currently Employed (millions) Not Working and Looking for Work ( millions) Want to Work But No Longer (millions) 80 40 2 4 -In the table above, the unemployment rate is

Julie works part-time for economic reasons.She would be considered

The natural unemployment rate is

When the unemployment rate is greater than the natural unemployment rate, real GDP is

Potential GDP is reached when

Suppose that Mel (who is 27) is not working, but looked for a job as recently as 2 months ago. Mel would like a job and he is available for work.He is considered

Harry works at the video rental store for 20 hours per week. He's asked his boss to allow him to work 40 hours per week, but has been told that business is too slow. Harry is considered

A marginally attached worker is

An economic recession produces

Category Number of people (millions) Total population 250 Less than 16 years of age 30 Institutionalized 15 Part-time workers 20 Full-time workers 145 Looking for work in the past 4 weeks 10 In U.S. Armed Forces 10 -Using the table above, the unemployment rate is

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

An increase in unemployment benefits and an increase in international competition that changes the location of jobs .

When the unemployment rate is the natural unemployment rate, real GDP is .