Question 1

How is the unemployment rate computed?

Accepted Answer

A) The unemployment rate is computed using the number of unemployment insurance claims filed. 
B) Each adult included in a survey is classified as employed, unemployed, or not in the labour force. Then, the unemployment rate is computed by dividing the number of unemployed persons to the number of persons in the labour force. 
C) The unemployment rate is computed by determining the number of unemployed in the population aged 18 and older. 
D) Every person who does not have a job is considered unemployed. 
A) The unemployment rate is computed using the number of unemployment insurance claims filed. 
B) Each adult included in a survey is classified as employed, unemployed, or not in the labour force. Then, the unemployment rate is computed by dividing the number of unemployed persons to the number of persons in the labour force. 
C) The unemployment rate is computed by determining the number of unemployed in the population aged 18 and older. 
D) Every person who does not have a job is considered unemployed.

Question 2

Employment insurance reduces hardships of unemployment but also increases the amount of structural unemployment.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following people would be included in the labour force?

Accepted Answer

A) Derrick, who is waiting for his new job to start 
B) Brett, who has become discouraged looking for a job and has quit looking for a while 
C) Homer, an unpaid homemaker 
D) A 20-year-old student who does not work and is not looking for work 
A) Derrick, who is waiting for his new job to start 
B) Brett, who has become discouraged looking for a job and has quit looking for a while 
C) Homer, an unpaid homemaker 
D) A 20-year-old student who does not work and is not looking for work

Question 4

Over one-half of the unemployed are recent entrants into the labour force.

Accepted Answer

A) True 
 B)False

Question 5

Even though most spells of unemployment are short, most unemployment results from long-term unemployment.

Accepted Answer

A) True 
 B)False

Question 6

The government operates programs for job training and job information intended to reduce unemployment. Which of the following best describes how economists feel about such programs?

Accepted Answer

A) Most economists agree that such programs are of no use. 
B) Most economists agree that such programs work very well. 
C) Some economists claim that the government can do these things no better than firms and individuals could do them for themselves. 
D) Some economists believe that the private sector has no role in the process of job search. 
A) Most economists agree that such programs are of no use. 
B) Most economists agree that such programs work very well. 
C) Some economists claim that the government can do these things no better than firms and individuals could do them for themselves. 
D) Some economists believe that the private sector has no role in the process of job search.

Question 7

Why might a favourable change to the economy such as technological change or a decrease in the price of imported oil be associated with an increase in frictional unemployment?

Accepted Answer

Even generally favourable changes will u

Question 8

Which of the following Canadian provinces has the highest percentage of unionized workers?

Accepted Answer

A) Ontario 
B) Quebec 
C) British Columbia 
D) Nova Scotia 
A) Ontario 
B) Quebec 
C) British Columbia 
D) Nova Scotia

Question 9

The unemployment rate reported by Statistics Canada clearly understates the true unemployment rate.

Accepted Answer

A) True 
 B)False

Question 10

If competition laws were applied to unions, which of the following would most likely happen to the natural rate of unemployment?

Accepted Answer

A) The natural rate of unemployment would increase, other things being the same. 
B) The natural rate of unemployment would decrease, other things being the same. 
C) The natural rate of unemployment would not change. 
D) The effect on the natural rate of unemployment is uncertain. 
A) The natural rate of unemployment would increase, other things being the same. 
B) The natural rate of unemployment would decrease, other things being the same. 
C) The natural rate of unemployment would not change. 
D) The effect on the natural rate of unemployment is uncertain.

Question 11

Statistics Canada uses data from each province's unemployment insurance agency to compute unemployment statistics.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following constitutes the labour force?

Accepted Answer

A) the number of people who are employed 
B) the number of people who are unemployed 
C) the number of people employed plus the number of people unemployed 
D) the adult population 
A) the number of people who are employed 
B) the number of people who are unemployed 
C) the number of people employed plus the number of people unemployed 
D) the adult population

Question 13

What impact do employment insurance and unions have on unemployment?

Accepted Answer

A) Unemployment insurance and unions both create structural unemployment. 
B) Unemployment insurance and unions both create frictional unemployment. 
C) Unemployment insurance creates frictional unemployment and unions create structural unemployment. 
D) Unemployment insurance creates structural unemployment and unions create frictional unemployment. 
A) Unemployment insurance and unions both create structural unemployment. 
B) Unemployment insurance and unions both create frictional unemployment. 
C) Unemployment insurance creates frictional unemployment and unions create structural unemployment. 
D) Unemployment insurance creates structural unemployment and unions create frictional unemployment.

Question 14

Table 28-1. This table shows the 2007 data for males and females aged 15 and over in the country of Dan.
  
-Refer to Table 28-1. What is the adult labour-force participation rate in Dan?

Accepted Answer

A) 4.12 percent 
B) 12.50 percent 
C) 37.50 percent 
D) 66.67 percent 
A) 4.12 percent 
B) 12.50 percent 
C) 37.50 percent 
D) 66.67 percent

Question 15

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

Accepted Answer

A) mismatch between skills and available jobs 
B) economic recession 
C) sectoral changes 
D) unions 
A) mismatch between skills and available jobs 
B) economic recession 
C) sectoral changes 
D) unions

Question 16

Under which of the following conditions will there be structural unemployment?

Accepted Answer

A) if some wages are kept above the equilibrium level 
B) if some people choose not to work at the equilibrium wage 
C) if some wages are below the equilibrium level 
D) if conditions for unemployment insurance benefits are relaxed 
A) if some wages are kept above the equilibrium level 
B) if some people choose not to work at the equilibrium wage 
C) if some wages are below the equilibrium level 
D) if conditions for unemployment insurance benefits are relaxed

Question 17

In 2000 in the United Kingdom, the adult population was about 46.5 million, the labour force participation rate was 63.5 percent, and the unemployment rate was 5.8 percent. What was the number of people unemployed?

Accepted Answer

A) 3.7 million 
B) 2.7 million 
C) 1.7 million 
D) 0.7 million 
A) 3.7 million 
B) 2.7 million 
C) 1.7 million 
D) 0.7 million

Question 18

What is the effect of unions on wages and employment?

Accepted Answer

A) Unions are unlikely to affect wages and employment. 
B) Unions raise wages above the competitive equilibrium level. 
C) Unions increase the level of employment in unionized firms. 
D) Unions decrease the level of employment in nonunionized firms. 
A) Unions are unlikely to affect wages and employment. 
B) Unions raise wages above the competitive equilibrium level. 
C) Unions increase the level of employment in unionized firms. 
D) Unions decrease the level of employment in nonunionized firms.

Question 19

Consider two people who are currently out of work. Deb is not currently looking for work but would like a job. Although she is not currently searching for work, she has done so at some time in the recent past. Ted is not looking for work, because he doesn't think there are jobs available for which he would qualify. Who does Statistics Canada consider to be a discouraged worker?

Accepted Answer

A) both Deb and Ted 
B) only Ted 
C) only Deb 
D) Neither Deb nor Ted 
A) both Deb and Ted 
B) only Ted 
C) only Deb 
D) Neither Deb nor Ted

Question 20

The U.S. Bureau of Labour Statistics recently reported that there were 48.6 million people over age 25 who had at least a bachelor's degree. Of this number, 38.0 million were in the labour force and 36.9 million were employed. What was the unemployment rate in this group?

Accepted Answer

A) about 21.8 percent 
B) about 24.1 percent 
C) about 2.9 percent 
D) about 2.3 percent 
A) about 21.8 percent 
B) about 24.1 percent 
C) about 2.9 percent 
D) about 2.3 percent

How is the unemployment rate computed?

Employment insurance reduces hardships of unemployment but also increases the amount of structural unemployment.

Which of the following people would be included in the labour force?

Over one-half of the unemployed are recent entrants into the labour force.

Even though most spells of unemployment are short, most unemployment results from long-term unemployment.

The government operates programs for job training and job information intended to reduce unemployment. Which of the following best describes how economists feel about such programs?

Why might a favourable change to the economy such as technological change or a decrease in the price of imported oil be associated with an increase in frictional unemployment?

Which of the following Canadian provinces has the highest percentage of unionized workers?

The unemployment rate reported by Statistics Canada clearly understates the true unemployment rate.

If competition laws were applied to unions, which of the following would most likely happen to the natural rate of unemployment?

Statistics Canada uses data from each province's unemployment insurance agency to compute unemployment statistics.

Which of the following constitutes the labour force?

What impact do employment insurance and unions have on unemployment?

Table 28-1. This table shows the 2007 data for males and females aged 15 and over in the country of Dan. -Refer to Table 28-1. What is the adult labour-force participation rate in Dan?

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

Under which of the following conditions will there be structural unemployment?

In 2000 in the United Kingdom, the adult population was about 46.5 million, the labour force participation rate was 63.5 percent, and the unemployment rate was 5.8 percent. What was the number of people unemployed?

What is the effect of unions on wages and employment?

The U.S. Bureau of Labour Statistics recently reported that there were 48.6 million people over age 25 who had at least a bachelor's degree. Of this number, 38.0 million were in the labour force and 36.9 million were employed. What was the unemployment rate in this group?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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Exam 9: Unemployment and Its Natural Rate

How is the unemployment rate computed?

Employment insurance reduces hardships of unemployment but also increases the amount of structural unemployment.

Which of the following people would be included in the labour force?

Over one-half of the unemployed are recent entrants into the labour force.

Even though most spells of unemployment are short, most unemployment results from long-term unemployment.

The government operates programs for job training and job information intended to reduce unemployment. Which of the following best describes how economists feel about such programs?

Why might a favourable change to the economy such as technological change or a decrease in the price of imported oil be associated with an increase in frictional unemployment?

Which of the following Canadian provinces has the highest percentage of unionized workers?

The unemployment rate reported by Statistics Canada clearly understates the true unemployment rate.

If competition laws were applied to unions, which of the following would most likely happen to the natural rate of unemployment?

Statistics Canada uses data from each province's unemployment insurance agency to compute unemployment statistics.

Which of the following constitutes the labour force?

What impact do employment insurance and unions have on unemployment?

Table 28-1. This table shows the 2007 data for males and females aged 15 and over in the country of Dan. -Refer to Table 28-1. What is the adult labour-force participation rate in Dan?

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

Under which of the following conditions will there be structural unemployment?

In 2000 in the United Kingdom, the adult population was about 46.5 million, the labour force participation rate was 63.5 percent, and the unemployment rate was 5.8 percent. What was the number of people unemployed?

What is the effect of unions on wages and employment?

The U.S. Bureau of Labour Statistics recently reported that there were 48.6 million people over age 25 who had at least a bachelor's degree. Of this number, 38.0 million were in the labour force and 36.9 million were employed. What was the unemployment rate in this group?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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