Question 1

Lori Field is homemaker.Last week,she was busy with her normal household chores.She is:

Accepted Answer

A)  a member of the civilian labor force who is employed. 
B)  a member of the civilian labor force who is unemployed. 
C)  a member of the civilian labor force who is underemployed. 
D)  a discouraged worker who is not a member of the labor force. 
E)  not a member of the labor force. 
A)  a member of the civilian labor force who is employed. 
B)  a member of the civilian labor force who is unemployed. 
C)  a member of the civilian labor force who is underemployed. 
D)  a discouraged worker who is not a member of the labor force. 
E)  not a member of the labor force.

Question 2

The official unemployment rate can be criticized for both understating and overstating the true number of unemployed.

Accepted Answer

A) True 
 B)False

Question 3

When macroeconomics refers to "full employment," what do they mean?

Accepted Answer

A)  Full employment occurs when the unemployment rate equals zero. 
B)  Full employment occurs when there is only frictional unemployment, and all other types of unemployment have been eliminated. 
C)  Full employment occurs when there is only structural unemployment, and all other types of unemployment have been eliminated. 
D)  Full employment occurs when there is only frictional unemployment, structural, and cyclical unemployment has been eliminated. 
A)  Full employment occurs when the unemployment rate equals zero. 
B)  Full employment occurs when there is only frictional unemployment, and all other types of unemployment have been eliminated. 
C)  Full employment occurs when there is only structural unemployment, and all other types of unemployment have been eliminated. 
D)  Full employment occurs when there is only frictional unemployment, structural, and cyclical unemployment has been eliminated.

Question 4

Consider an economy made up of 100 people,60 of whom hold jobs,10 of whom are looking for work,and 15 of whom are retired.The number of people in the civilian labor force is:

Accepted Answer

A)  30. 
B)  60. 
C)  85. 
D)  90. 
E)  70. 
A)  30. 
B)  60. 
C)  85. 
D)  90. 
E)  70.

Question 5

When the rate of cyclical unemployment is zero,the:

Accepted Answer

A)  natural rate of unemployment must also be zero. 
B)  rate of frictional unemployment must be negative. 
C)  economy must have entered a recessionary stage. 
D)  Keynesian aggregate supply curve must be horizontal. 
E)  economy is considered to be at full employment. 
A)  natural rate of unemployment must also be zero. 
B)  rate of frictional unemployment must be negative. 
C)  economy must have entered a recessionary stage. 
D)  Keynesian aggregate supply curve must be horizontal. 
E)  economy is considered to be at full employment.

Question 6

Business cycles are recurring periods of economic growth and decline in an economy's real GDP.

Accepted Answer

A) True 
 B)False

Question 7

The civilian labor force excludes anyone not actively seeking a job.

Accepted Answer

A) True 
 B)False

Question 8

Brian Vargo,an auto repair mechanic who remains unemployed because he refuses to work for less than $1,000 an hour,is:

Accepted Answer

A)  counted as part of the labor force. 
B)  considered frictionally unemployed. 
C)  an underemployed worker. 
D)  not counted as part of the labor force. 
E)  considered as productively active. 
A)  counted as part of the labor force. 
B)  considered frictionally unemployed. 
C)  an underemployed worker. 
D)  not counted as part of the labor force. 
E)  considered as productively active.

Question 9

Economists use the phrase "business cycle" when referring to fluctuations in:

Accepted Answer

A)  real GDP. 
B)  the chain price index. 
C)  the consumer price index. 
D)  the general level of prices. 
A)  real GDP. 
B)  the chain price index. 
C)  the consumer price index. 
D)  the general level of prices.

Question 10

The number of people officially unemployed is not the same as the number of people who can't find a job because:

Accepted Answer

A)  the armed forces is included. 
B)  some people have jobs but continue to look for a better one. 
C)  some people who can't find a job become discouraged and quit looking. 
D)  none of the above. 
A)  the armed forces is included. 
B)  some people have jobs but continue to look for a better one. 
C)  some people who can't find a job become discouraged and quit looking. 
D)  none of the above.

Question 11

What is full employment? What are the different kinds of unemployment? What constitutes the natural (normal)rate of unemployment?

Accepted Answer

Full employment exists when approximatel

Question 12

Which of the following is not a coincident indicator?

Accepted Answer

A)  Personal income. 
B)  Industrial production. 
C)  Manufacturing and trade sales. 
D)  All of the above. 
A)  Personal income. 
B)  Industrial production. 
C)  Manufacturing and trade sales. 
D)  All of the above.

Question 13

In an economic expansion,people used their charge cards to purchase many goods.Now the economy is in a recession and people must use much of their reduced incomes to pay back debts.If employees manufacturing the goods people used to buy are laid off,they will suffer from:

Accepted Answer

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

Question 14

John Steinbeck's Cannery Row describes a character who takes his own life because of poor job prospects.If he was an unemployed person who gave up looking for work,he would be considered:

Accepted Answer

A)  chronically unemployed. 
B)  a discouraged worker. 
C)  a member of the labor force. 
D)  frictionally unemployed. 
A)  chronically unemployed. 
B)  a discouraged worker. 
C)  a member of the labor force. 
D)  frictionally unemployed.

Question 15

Stephen Moreno reported to the government interviewer that he worked 40 hours last week as a stocker at a Target department store.He is:

Accepted Answer

A)  a member of the civilian labor force who is employed. 
B)  a member of the civilian labor force who is unemployed. 
C)  a member of the civilian labor force who is underemployed. 
D)  a discouraged worker who is not a member of the labor force. 
E)  not a member of the labor force. 
A)  a member of the civilian labor force who is employed. 
B)  a member of the civilian labor force who is unemployed. 
C)  a member of the civilian labor force who is underemployed. 
D)  a discouraged worker who is not a member of the labor force. 
E)  not a member of the labor force.

Question 16

A principal cause of the business cycle is the changes in total spending that occur in the overall economy.

Accepted Answer

A) True 
 B)False

Question 17

An example of frictional unemployment is a(n):

Accepted Answer

A)  textile worker permanently laid off due to jobs lost to imports. 
B)  engineer permanently laid off due to advances in technology. 
C)  fast-food restaurant worker who quits work and attends college. 
D)  computer programmer who leaves one job and accepts a new job. 
A)  textile worker permanently laid off due to jobs lost to imports. 
B)  engineer permanently laid off due to advances in technology. 
C)  fast-food restaurant worker who quits work and attends college. 
D)  computer programmer who leaves one job and accepts a new job.

Question 18

Which of the following people is counted in the labor force?

Accepted Answer

A)  Jerry, who lost his job and last looked for work three months ago. 
B)  Bob, who holds an MBA in management but can only find part-time employment at a fast-food restaurant. 
C)  Phil, who would like to work as a stockbroker but is now a househusband. 
D)  Mickey, who thinks he could easily become a millionaire, despite the opinion of the psychiatrist at the state hospital where he is a patient. 
E)  Donna Jean, age 90, who is enjoying her retirement in Montana. 
A)  Jerry, who lost his job and last looked for work three months ago. 
B)  Bob, who holds an MBA in management but can only find part-time employment at a fast-food restaurant. 
C)  Phil, who would like to work as a stockbroker but is now a househusband. 
D)  Mickey, who thinks he could easily become a millionaire, despite the opinion of the psychiatrist at the state hospital where he is a patient. 
E)  Donna Jean, age 90, who is enjoying her retirement in Montana.

Question 19

Which of the following is not a variable in the index of leading indicators?

Accepted Answer

A)  Average work week. 
B)  Duration of unemployment. 
C)  Unemployment claims. 
D)  New businesses. 
A)  Average work week. 
B)  Duration of unemployment. 
C)  Unemployment claims. 
D)  New businesses.

Question 20

Workers who may be between jobs are considered:

Accepted Answer

A)  frictionally unemployed. 
B)  structurally unemployed. 
C)  cyclically unemployed. 
D)  unemployable. 
E)  discouraged workers. 
A)  frictionally unemployed. 
B)  structurally unemployed. 
C)  cyclically unemployed. 
D)  unemployable. 
E)  discouraged workers.

Exam 12: Business Cycles and Unemployment

Lori Field is homemaker.Last week,she was busy with her normal household chores.She is:

The official unemployment rate can be criticized for both understating and overstating the true number of unemployed.

When macroeconomics refers to "full employment," what do they mean?

Consider an economy made up of 100 people,60 of whom hold jobs,10 of whom are looking for work,and 15 of whom are retired.The number of people in the civilian labor force is:

When the rate of cyclical unemployment is zero,the:

Business cycles are recurring periods of economic growth and decline in an economy's real GDP.

The civilian labor force excludes anyone not actively seeking a job.

Brian Vargo,an auto repair mechanic who remains unemployed because he refuses to work for less than $1,000 an hour,is:

Economists use the phrase "business cycle" when referring to fluctuations in:

The number of people officially unemployed is not the same as the number of people who can't find a job because:

What is full employment? What are the different kinds of unemployment? What constitutes the natural (normal)rate of unemployment?

Which of the following is not a coincident indicator?

In an economic expansion,people used their charge cards to purchase many goods.Now the economy is in a recession and people must use much of their reduced incomes to pay back debts.If employees manufacturing the goods people used to buy are laid off,they will suffer from:

John Steinbeck's Cannery Row describes a character who takes his own life because of poor job prospects.If he was an unemployed person who gave up looking for work,he would be considered:

Stephen Moreno reported to the government interviewer that he worked 40 hours last week as a stocker at a Target department store.He is:

A principal cause of the business cycle is the changes in total spending that occur in the overall economy.

An example of frictional unemployment is a(n):

Which of the following people is counted in the labor force?

Which of the following is not a variable in the index of leading indicators?

Workers who may be between jobs are considered:

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

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