Question 1

During a recession, cyclical unemployment ________ and real GDP ________.

Accepted Answer

A) increases; increases 
B) increases; decreases 
C) decreases; decreases 
D) decreases; increases 
E) does not change; decreases 
A) increases; increases 
B) increases; decreases 
C) decreases; decreases 
D) decreases; increases 
E) does not change; decreases

Question 2

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 3

The purpose of the Current Population Survey is to determine the

Accepted Answer

A) number of people in the population. 
B) employment status of the population. 
C) age structure of the population. 
D) income level of the population. 
E) prices consumers pay for the goods and services they buy. 
A) number of people in the population. 
B) employment status of the population. 
C) age structure of the population. 
D) income level of the population. 
E) prices consumers pay for the goods and services they buy.

Question 4

Suppose the population is 220 million people, the labor force is 150 million people, the number of people employed is 130 million and the working-age population is 175 million people. What is the unemployment rate?

Accepted Answer

The unemployment rat

Question 5

As firms search for the best employee to fill an opening and the unemployed search for the job that best fits their skills, the economy experiences

Accepted Answer

A) structural unemployment. 
B) frictional unemployment. 
C) cyclical unemployment. 
D) changes in the business cycle. 
E) avoidable unemployment. 
A) structural unemployment. 
B) frictional unemployment. 
C) cyclical unemployment. 
D) changes in the business cycle. 
E) avoidable unemployment.

Question 6

The unemployment rates during the last 10 years in the Eurozone was

Accepted Answer

A) constantly lower than the unemployment rate in the United States and not rising toward the U.S. unemployment rate. 
B) constantly lower than the unemployment rate in the United States but were rising toward the U.S. unemployment rate. 
C) more or less constant at 3 percent. 
D) generally higher than the U.S. unemployment rate. 
E) approximately equal to those in the United States, with some years the U.S. unemployment rate being slightly higher and in other years the U.S. unemployment rate being slightly lower. 
A) constantly lower than the unemployment rate in the United States and not rising toward the U.S. unemployment rate. 
B) constantly lower than the unemployment rate in the United States but were rising toward the U.S. unemployment rate. 
C) more or less constant at 3 percent. 
D) generally higher than the U.S. unemployment rate. 
E) approximately equal to those in the United States, with some years the U.S. unemployment rate being slightly higher and in other years the U.S. unemployment rate being slightly lower.

Question 7

Which of the following statements about the United States is (are)correct?
I. The labor force is larger than the number of employed people.
Ii. The labor force is larger than the number of unemployed people.
Iii. The number of unemployed people is larger than the number of employed people.

Accepted Answer

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

Question 8

Mary has decided that the she does not like Iowa and has decided to quit her job as a medical technician and move to Arizona. Mary's unemployment as she searches for a new job is best classified as

Accepted Answer

A) cyclical. 
B) distance. 
C) structural. 
D) frictional. 
E) traveling. 
A) cyclical. 
B) distance. 
C) structural. 
D) frictional. 
E) traveling.

Question 9

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 10

In a country with a working-age population of 200 million, 140 million people are employed and 20 million are unemployed. The size of the labor force is

Accepted Answer

A) 200 million. 
B) 160 million. 
C) 140 million. 
D) 20 million. 
E) 120 million. 
A) 200 million. 
B) 160 million. 
C) 140 million. 
D) 20 million. 
E) 120 million.

Question 11

The labor force participation rate is equal to

Accepted Answer

A) (labor force ÷ population)× 100. 
B) (labor force ÷ working-age population)× 100. 
C) (number of employed workers ÷ labor force)× 100. 
D) (number of employed workers ÷ working-age population)× 100. 
E) (number of employed workers ÷ population)× 100. 
A) (labor force ÷ population)× 100. 
B) (labor force ÷ working-age population)× 100. 
C) (number of employed workers ÷ labor force)× 100. 
D) (number of employed workers ÷ working-age population)× 100. 
E) (number of employed workers ÷ population)× 100.

Question 12

From 1948 to 2011, the average unemployment rate in the United States was approximately

Accepted Answer

A) 3.1 percent. 
B) 5.8 percent. 
C) 12.0 percent. 
D) 24.4 percent. 
E) 9.6 percent. 
A) 3.1 percent. 
B) 5.8 percent. 
C) 12.0 percent. 
D) 24.4 percent. 
E) 9.6 percent.

Question 13

During a recession, the unemployment rate ________ and the percentage of part-time workers who are involuntary part-time workers ________.

Accepted Answer

A) rises; rises 
B) rises; falls 
C) falls; rises 
D) falls; falls 
E) rises; does not change 
A) rises; rises 
B) rises; falls 
C) falls; rises 
D) falls; falls 
E) rises; does not change

Question 14

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 15

Since 1980 the percentage of part-time workers who are part time for economic reasons

Accepted Answer

A) has steadily decreased. 
B) has steadily increased. 
C) at first increased then generally decreased. 
D) generally increased in recessions and decreased in expansions. 
E) has remained approximately constant. 
A) has steadily decreased. 
B) has steadily increased. 
C) at first increased then generally decreased. 
D) generally increased in recessions and decreased in expansions. 
E) has remained approximately constant.

Question 16

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

Accepted Answer

A) frictional unemployment. 
B) structural unemployment. 
C) non-expansion unemployment. 
D) cyclical unemployment. 
E) downturn unemployment. 
A) frictional unemployment. 
B) structural unemployment. 
C) non-expansion unemployment. 
D) cyclical unemployment. 
E) downturn unemployment.

Question 17

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

Question 18

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 19

Using the table above, the Current Population Survey classifies the group of individuals who are left after subtracting from the total population groups 1, 2, 3, 4, 5, and 6 as

Accepted Answer

A) not in the labor force. 
B) the labor force. 
C) employed. 
D) unemployed. 
E) discouraged workers. 
A) not in the labor force. 
B) the labor force. 
C) employed. 
D) unemployed. 
E) discouraged workers.

Question 20

During a recession, the unemployment rate

Accepted Answer

A) is, by definition, above 25 percent. 
B) is, by definition, above 10 percent. 
C) usually increases but not necessarily to 10 percent or 25 percent. 
D) remains constant. 
E) usually decreases. 
A) is, by definition, above 25 percent. 
B) is, by definition, above 10 percent. 
C) usually increases but not necessarily to 10 percent or 25 percent. 
D) remains constant. 
E) usually decreases.

During a recession, cyclical unemployment and real GDP .

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

The purpose of the Current Population Survey is to determine the

Suppose the population is 220 million people, the labor force is 150 million people, the number of people employed is 130 million and the working-age population is 175 million people. What is the unemployment rate?

As firms search for the best employee to fill an opening and the unemployed search for the job that best fits their skills, the economy experiences

The unemployment rates during the last 10 years in the Eurozone was

Which of the following statements about the United States is (are)correct? I. The labor force is larger than the number of employed people. Ii. The labor force is larger than the number of unemployed people. Iii. The number of unemployed people is larger than the number of employed people.

Mary has decided that the she does not like Iowa and has decided to quit her job as a medical technician and move to Arizona. Mary's unemployment as she searches for a new job is best classified as

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

In a country with a working-age population of 200 million, 140 million people are employed and 20 million are unemployed. The size of the labor force is

The labor force participation rate is equal to

From 1948 to 2011, the average unemployment rate in the United States was approximately

During a recession, the unemployment rate and the percentage of part-time workers who are involuntary part-time workers .

The size of the labor force is

Since 1980 the percentage of part-time workers who are part time for economic reasons

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

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

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

Using the table above, the Current Population Survey classifies the group of individuals who are left after subtracting from the total population groups 1, 2, 3, 4, 5, and 6 as

During a recession, the unemployment rate

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

During a recession, cyclical unemployment ________ and real GDP ________.

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

The purpose of the Current Population Survey is to determine the

Suppose the population is 220 million people, the labor force is 150 million people, the number of people employed is 130 million and the working-age population is 175 million people. What is the unemployment rate?

As firms search for the best employee to fill an opening and the unemployed search for the job that best fits their skills, the economy experiences

The unemployment rates during the last 10 years in the Eurozone was

Which of the following statements about the United States is (are)correct? I. The labor force is larger than the number of employed people. Ii. The labor force is larger than the number of unemployed people. Iii. The number of unemployed people is larger than the number of employed people.

Mary has decided that the she does not like Iowa and has decided to quit her job as a medical technician and move to Arizona. Mary's unemployment as she searches for a new job is best classified as

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

In a country with a working-age population of 200 million, 140 million people are employed and 20 million are unemployed. The size of the labor force is

The labor force participation rate is equal to

From 1948 to 2011, the average unemployment rate in the United States was approximately

During a recession, the unemployment rate ________ and the percentage of part-time workers who are involuntary part-time workers ________.

The size of the labor force is

Since 1980 the percentage of part-time workers who are part time for economic reasons

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

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

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

Using the table above, the Current Population Survey classifies the group of individuals who are left after subtracting from the total population groups 1, 2, 3, 4, 5, and 6 as

During a recession, the unemployment rate

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

During a recession, cyclical unemployment and real GDP .

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

During a recession, the unemployment rate and the percentage of part-time workers who are involuntary part-time workers .

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