Question 1

A main reason for the low unemployment rate from 1995 through most of the 2000s was because of

Accepted Answer

A) higher oil prices. 
B) the government's policy of tightening immigration policies. 
C) the rapid development of the Internet industry and other new technologies. 
D) government's more liberal social benefit programs. 
E) increased defense expenditures by the government. 
A) higher oil prices. 
B) the government's policy of tightening immigration policies. 
C) the rapid development of the Internet industry and other new technologies. 
D) government's more liberal social benefit programs. 
E) increased defense expenditures by the government.

Question 2

The average duration of unemployment

Accepted Answer

A) decreases during recessions and increases during expansions. 
B) increases during recessions and decreases during expansions. 
C) does not vary with the business cycle. 
D) decreases all the time. 
E) increases all the time. 
A) decreases during recessions and increases during expansions. 
B) increases during recessions and decreases during expansions. 
C) does not vary with the business cycle. 
D) decreases all the time. 
E) increases all the time.

Question 3

________ unemployment changes slowly and depends on ________.

Accepted Answer

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

Question 4

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

Accepted Answer

A) 9.3 percent. 
B) 8.6 percent. 
C) 8.0 percent. 
D) 4.8 percent. 
E) 4.6 percent. 
A) 9.3 percent. 
B) 8.6 percent. 
C) 8.0 percent. 
D) 4.8 percent. 
E) 4.6 percent.

Question 5

When the economy is at full employment, the

Accepted Answer

A) natural unemployment rate is equal to 0 percent. 
B) natural unemployment rate equals the unemployment rate. 
C) natural unemployment rate is equal to 10 percent. 
D) unemployment rate is equal to 0 percent. 
E) frictional unemployment rate is equal to 0 percent. 
A) natural unemployment rate is equal to 0 percent. 
B) natural unemployment rate equals the unemployment rate. 
C) natural unemployment rate is equal to 10 percent. 
D) unemployment rate is equal to 0 percent. 
E) frictional unemployment rate is equal to 0 percent.

Question 6

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 7

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.

Question 8

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 9

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

Accepted Answer

A) 80 million. 
B) 46 million. 
C) 42 million. 
D) 40 million. 
E) 34 million. 
A) 80 million. 
B) 46 million. 
C) 42 million. 
D) 40 million. 
E) 34 million.

Question 10

What are the reasons some people choose to be part-time workers?

Accepted Answer

Some people are part-time workers for ec

Question 11

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 12

During the recessions of 2001 and 2008-09,

Accepted Answer

A) all measures of the unemployment rate (U-1 through U-6)increased. 
B) only the broader measures of the unemployment rate increased. 
C) only the narrower measures of the unemployment rate increased. 
D) the labor force participation rate for women increased. 
E) the labor force participation rate for men increased. 
A) all measures of the unemployment rate (U-1 through U-6)increased. 
B) only the broader measures of the unemployment rate increased. 
C) only the narrower measures of the unemployment rate increased. 
D) the labor force participation rate for women increased. 
E) the labor force participation rate for men increased.

Question 13

If the working-age population is 20 million and labor force is 13 million, the labor force participation rate is

Accepted Answer

A) 65 percent. 
B) 35 percent. 
C) 153 percent. 
D) 60 percent. 
E) impossible to calculate because data on the number of employed workers is needed. 
A) 65 percent. 
B) 35 percent. 
C) 153 percent. 
D) 60 percent. 
E) impossible to calculate because data on the number of employed workers is needed.

Question 14

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

Question 15

In the United States, over the past 50 years the total labor force participation rate

Accepted Answer

A) has increased. 
B) has decreased. 
C) has remained more or less constant. 
D) has fluctuated substantially. 
E) first decreased slightly and then increased significantly. 
A) has increased. 
B) has decreased. 
C) has remained more or less constant. 
D) has fluctuated substantially. 
E) first decreased slightly and then increased significantly.

Question 16

Which of the following help explain the increase in the U.S. labor force participation rate for women?
I. There was a significant fall in the number of children women were choosing to have.
Ii. There was an increase in the educational level of women.
Iii. Technological change in the home increased the time available for work outside the home.

Accepted Answer

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

Question 17

A marginally attached worker i) does not have a job and has not looked for one in the last month.
Ii) is available and willing to work.
Iii) must work at least 1 hour per week.

Accepted Answer

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

Question 18

Rob is considered unemployed in the Current Population Survey if he

Accepted Answer

A) has looked for a job in the last four weeks but has not found a job. 
B) has worked at least 1 hour but not more than 15 hours as a paid employee during the last week. 
C) does not have a job and stopped looking for a job at least two months ago. 
D) has a part-time job but would like a full-time job. 
E) is in his last term of college before he graduates. 
A) has looked for a job in the last four weeks but has not found a job. 
B) has worked at least 1 hour but not more than 15 hours as a paid employee during the last week. 
C) does not have a job and stopped looking for a job at least two months ago. 
D) has a part-time job but would like a full-time job. 
E) is in his last term of college before he graduates.

Question 19

The natural unemployment rate occurs

Accepted Answer

A) at the full employment level of unemployment. 
B) when the structural unemployment rate equals zero. 
C) when the frictional unemployment rate equals zero. 
D) when the sum of frictional and structural unemployment equals zero. 
E) when the unemployment rate equals zero. 
A) at the full employment level of unemployment. 
B) when the structural unemployment rate equals zero. 
C) when the frictional unemployment rate equals zero. 
D) when the sum of frictional and structural unemployment equals zero. 
E) when the unemployment rate equals zero.

Question 20

When the unemployment rate equals the natural unemployment rate, most likely the economy is producing

Accepted Answer

A) on the production possibilities frontier. 
B) within the production possibilities frontier. 
C) beyond the production possibilities frontier. 
D) either on or within the production possibilities frontier. 
E) either on or beyond the production possibilities frontier. 
A) on the production possibilities frontier. 
B) within the production possibilities frontier. 
C) beyond the production possibilities frontier. 
D) either on or within the production possibilities frontier. 
E) either on or beyond the production possibilities frontier.

A main reason for the low unemployment rate from 1995 through most of the 2000s was because of

The average duration of unemployment

unemployment changes slowly and depends on .

Category Number of People (millions) Marginally attached workers 2.1 Unemployed workers 12.1 Employed workers 140.0 Working-age population 250.0 -Using the data in the above table, the unemployment rate is

When the economy is at full employment, the

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

Vicki would be classified as

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

What are the reasons some people choose to be part-time workers?

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

During the recessions of 2001 and 2008-09,

If the working-age population is 20 million and labor force is 13 million, the labor force participation rate is

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

In the United States, over the past 50 years the total labor force participation rate

A marginally attached worker i) does not have a job and has not looked for one in the last month. Ii) is available and willing to work. Iii) must work at least 1 hour per week.

Rob is considered unemployed in the Current Population Survey if he

The natural unemployment rate occurs

When the unemployment rate equals the natural unemployment rate, most likely the economy is producing

Getting Started

The Us and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 15: Jobs and Unemployment

A main reason for the low unemployment rate from 1995 through most of the 2000s was because of

The average duration of unemployment

________ unemployment changes slowly and depends on ________.

Category Number of People (millions) Marginally attached workers 2.1 Unemployed workers 12.1 Employed workers 140.0 Working-age population 250.0 -Using the data in the above table, the unemployment rate is

When the economy is at full employment, the

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

Vicki would be classified as

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

What are the reasons some people choose to be part-time workers?

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

During the recessions of 2001 and 2008-09,

If the working-age population is 20 million and labor force is 13 million, the labor force participation rate is

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

In the United States, over the past 50 years the total labor force participation rate

A marginally attached worker i) does not have a job and has not looked for one in the last month. Ii) is available and willing to work. Iii) must work at least 1 hour per week.

Rob is considered unemployed in the Current Population Survey if he

The natural unemployment rate occurs

When the unemployment rate equals the natural unemployment rate, most likely the economy is producing

Getting Started

The Us and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

unemployment changes slowly and depends on .