Question 1

Which of the following groups of people are members of the labor force?

Accepted Answer

A)  People in prison. 
B)  Full-time students. 
C)  People over 16 years of age who are employed. 
D)  Anyone not actively looking for work during the past 30 days. 
A)  People in prison. 
B)  Full-time students. 
C)  People over 16 years of age who are employed. 
D)  Anyone not actively looking for work during the past 30 days. C

Question 2

Which of the following demographic groups in the U.S.has the highest unemployment rates?

Accepted Answer

A)  College graduates. 
B)  White working-age people. 
C)  African-American teenage males. 
D)  All working-age people with a high school diploma but no college. 
A)  College graduates. 
B)  White working-age people. 
C)  African-American teenage males. 
D)  All working-age people with a high school diploma but no college. C

Question 3

Unemployment that occurs from fundamental technological changes in the production,or from the substitution of new goods for customary ones,is known as:

Accepted Answer

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

Question 4

The civilian labor force consists of all the:

Accepted Answer

A)  people in the economy who are not retired. 
B)  people in the economy over 16 years of age. 
C)  adults in the economy between 18 and 65 years old who are able to work. 
D)  noninstitutionalized adults in the economy who hold jobs or are looking for them. 
E)  citizens in the economy who are graduates of high school. 
A)  people in the economy who are not retired. 
B)  people in the economy over 16 years of age. 
C)  adults in the economy between 18 and 65 years old who are able to work. 
D)  noninstitutionalized adults in the economy who hold jobs or are looking for them. 
E)  citizens in the economy who are graduates of high school.

Question 5

The economy is fully employed when there is no:

Accepted Answer

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

Question 6

Which one of the following people is not a member of the civilian labor force?

Accepted Answer

A)  A full-time student who devotes all her time to her classes. 
B)  A person who works 30 hours a week at Burger King and goes to school at night. 
C)  The man who was fired last week and is searching for a new job. 
D)  The President of the United States. 
E)  A professional athlete. 
A)  A full-time student who devotes all her time to her classes. 
B)  A person who works 30 hours a week at Burger King and goes to school at night. 
C)  The man who was fired last week and is searching for a new job. 
D)  The President of the United States. 
E)  A professional athlete.

Question 7

What generally causes the business cycle? What are the four phases of a single business cycle? What are the problems associated with the business cycle?

Accepted Answer

Changes in total spending (aggregate dem

Question 8

Cyclical unemployment is the result of the business cycle.

Accepted Answer

A) True 
 B)False

Question 9

The business cycle consists of four phases.At the top we have:

Accepted Answer

A)  recovery, followed by peak, and then recession followed by a recession. 
B)  recovery, followed by a recession, and then peak followed by recession. 
C)  peak, then an upturn followed by a recession, and then recession. 
D)  peak, then a recession followed by expansionary, and then recession. 
E)  peak, then a recession followed by recession, and finally, expansionary. 
A)  recovery, followed by peak, and then recession followed by a recession. 
B)  recovery, followed by a recession, and then peak followed by recession. 
C)  peak, then an upturn followed by a recession, and then recession. 
D)  peak, then a recession followed by expansionary, and then recession. 
E)  peak, then a recession followed by recession, and finally, expansionary.

Question 10

Exclusion of which of the following tends to understate the true level of unemployment in the economy?

Accepted Answer

A)  Children. 
B)  Retired persons. 
C)  Students. 
D)  People who do not want to work. 
E)  Discouraged workers. 
A)  Children. 
B)  Retired persons. 
C)  Students. 
D)  People who do not want to work. 
E)  Discouraged workers.

Question 11

Actual GDP will be below potential GDP:

Accepted Answer

A)  when the economy is at full employment. 
B)  during an economic boom. 
C)  when resources are fully utilized. 
D)  during a recession. 
A)  when the economy is at full employment. 
B)  during an economic boom. 
C)  when resources are fully utilized. 
D)  during a recession.

Question 12

In the United States,the unemployment rate for blacks is roughly the same as the unemployment rate for whites.

Accepted Answer

A) True 
 B)False

Question 13

The civilian labor force includes only the employed.

Accepted Answer

A) True 
 B)False

Question 14

A discouraged worker is one who:

Accepted Answer

A)  is underqualified for the current job. 
B)  dislikes the current job but is afraid to quit. 
C)  drops out of the civilian labor force because he/she cannot find a job. 
D)  quits his/her job because the possibility of advancement was very low. 
E)  is overqualified for the current job. 
A)  is underqualified for the current job. 
B)  dislikes the current job but is afraid to quit. 
C)  drops out of the civilian labor force because he/she cannot find a job. 
D)  quits his/her job because the possibility of advancement was very low. 
E)  is overqualified for the current job.

Question 15

If Sam Jackson voluntarily quits one job,possesses marketable skills,and expects to find a new job in a few weeks,then Mr.Jackson is considered:

Accepted Answer

A)  frictionally unemployed. 
B)  cyclically unemployed. 
C)  seasonally unemployed. 
D)  structurally unemployed. 
E)  unwise to quit his job without already having another one. 
A)  frictionally unemployed. 
B)  cyclically unemployed. 
C)  seasonally unemployed. 
D)  structurally unemployed. 
E)  unwise to quit his job without already having another one.

Question 16

The point at which real GDP reaches a maximum during a business cycle is called the:

Accepted Answer

A)  peak. 
B)  recession. 
C)  recovery. 
D)  trough. 
A)  peak. 
B)  recession. 
C)  recovery. 
D)  trough.

Question 17

Which of the following people would be officially counted as unemployed?

Accepted Answer

A)  A person who works only 5 hours per week for pay. 
B)  A full-time college student who chooses not to have a paying job. 
C)  A family member who works 20 hours per week without pay. 
D)  A jobless high-school graduate who is actively looking for work. 
A)  A person who works only 5 hours per week for pay. 
B)  A full-time college student who chooses not to have a paying job. 
C)  A family member who works 20 hours per week without pay. 
D)  A jobless high-school graduate who is actively looking for work.

Question 18

A long and deep recession in the business cycle is:

Accepted Answer

A)  unemployment. 
B)  a trough. 
C)  a recession. 
D)  a depression 
E)  unavoidable. 
A)  unemployment. 
B)  a trough. 
C)  a recession. 
D)  a depression 
E)  unavoidable.

Question 19

Frictional unemployment refers to:

Accepted Answer

A)  unemployment related to the ups and downs of the business cycle. 
B)  workers who are between jobs. 
C)  people who spend relatively long periods out of work. 
D)  people who are out of work and have no job skills. 
A)  unemployment related to the ups and downs of the business cycle. 
B)  workers who are between jobs. 
C)  people who spend relatively long periods out of work. 
D)  people who are out of work and have no job skills.

Question 20

Louise is unemployed due to a decrease in the demand for workers with a knowledge of a certain word processing language.This is an example of:

Accepted Answer

A)  cyclical unemployment. 
B)  frictional unemployment. 
C)  involuntary unemployment. 
D)  structural unemployment. 
A)  cyclical unemployment. 
B)  frictional unemployment. 
C)  involuntary unemployment. 
D)  structural unemployment.

Exam 12: Business Cycles and Unemployment

Which of the following groups of people are members of the labor force?

Which of the following demographic groups in the U.S.has the highest unemployment rates?

Unemployment that occurs from fundamental technological changes in the production,or from the substitution of new goods for customary ones,is known as:

The civilian labor force consists of all the:

The economy is fully employed when there is no:

Which one of the following people is not a member of the civilian labor force?

What generally causes the business cycle? What are the four phases of a single business cycle? What are the problems associated with the business cycle?

Cyclical unemployment is the result of the business cycle.

The business cycle consists of four phases.At the top we have:

Exclusion of which of the following tends to understate the true level of unemployment in the economy?

Actual GDP will be below potential GDP:

In the United States,the unemployment rate for blacks is roughly the same as the unemployment rate for whites.

The civilian labor force includes only the employed.

A discouraged worker is one who:

If Sam Jackson voluntarily quits one job,possesses marketable skills,and expects to find a new job in a few weeks,then Mr.Jackson is considered:

The point at which real GDP reaches a maximum during a business cycle is called the:

Which of the following people would be officially counted as unemployed?

A long and deep recession in the business cycle is:

Frictional unemployment refers to:

Louise is unemployed due to a decrease in the demand for workers with a knowledge of a certain word processing language.This is an example of:

Introducing the Economic Way of Thinking

A: Appendix: Applying Graphs to Economics

Production Possibilities,Opportunity Cost,and Economic Growth

Part 1: Market Demand and Supply

Part 2: Market Demand and Supply

Markets in Action

Price Elasticity of Demand

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets and Income Distribution

Gross Domestic Product

Inflation

Aggregate Demand and Supply

A: Appendix: The Self-Correcting Aggregate Demand and Supply Model

Fiscal Policy

The Public Sector

Federal Deficits,Surpluses,and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

A: Appendix: Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Filters