Question 1

A discouraged worker ________ counted as officially unemployed and ________ counted as in the labor force.

Accepted Answer

A)  is; is 
B)  is; is not 
C)  is not; is 
D)  is not; is not 
A)  is; is 
B)  is; is not 
C)  is not; is 
D)  is not; is not

Question 2

Suppose there are currently 100 people unemployed, 1500 people employed, and 2000 people in the working age population. The labor force participation rate equals 100 times

Accepted Answer

A)  100/1500. 
B)  100/1600. 
C)  1500/2000. 
D)  1600/2000. 
A)  100/1500. 
B)  100/1600. 
C)  1500/2000. 
D)  1600/2000.

Question 3

The official U-3 unemployment rate

Accepted Answer

A)  includes persons without a job who have made efforts in the last week to find a job. 
B)  includes persons without a job, whether they are actively searching for work or not. 
C)  counts discouraged workers as unemployed. 
D)  counts people with part-time jobs who want full-time jobs as unemployed. 
A)  includes persons without a job who have made efforts in the last week to find a job. 
B)  includes persons without a job, whether they are actively searching for work or not. 
C)  counts discouraged workers as unemployed. 
D)  counts people with part-time jobs who want full-time jobs as unemployed.

Question 4

-In the table above, the official U-3 unemployment rate is

Accepted Answer

A)  50 percent. 
B)  15 percent. 
C)  10 percent. 
D)  5 percent. 
A)  50 percent. 
B)  15 percent. 
C)  10 percent. 
D)  5 percent.

Question 5

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

A)  9.0 percent 
B)  13.3 percent 
C)  11.4 percent 
D)  15.4 percent 
A)  9.0 percent 
B)  13.3 percent 
C)  11.4 percent 
D)  15.4 percent

Question 6

Hyperinflation is defined as

Accepted Answer

A)  declining inflation rates. 
B)  rising but low inflation rates. 
C)  very high inflation rates. 
D)  very low inflation rates. 
A)  declining inflation rates. 
B)  rising but low inflation rates. 
C)  very high inflation rates. 
D)  very low inflation rates.

Question 7

-The above table shows answers given by people interviewed in a government survey of households. Which individuals are considered unemployed using the official U-3 unemployment rate?

Accepted Answer

A)  A, B, and C 
B)  B, C, and D 
C)  A, C, and D 
D)  C and D 
A)  A, B, and C 
B)  B, C, and D 
C)  A, C, and D 
D)  C and D

Question 8

The official U-3 unemployment rate includes the total number of people who

Accepted Answer

A)  have jobs or are currently looking for jobs. 
B)  are available and looking for work but unable to find employment. 
C)  would like to have a job but have stopped seeking work. 
D)  would like to have a full-time job but are working part-time. 
A)  have jobs or are currently looking for jobs. 
B)  are available and looking for work but unable to find employment. 
C)  would like to have a job but have stopped seeking work. 
D)  would like to have a full-time job but are working part-time.

Question 9

The type of unemployment created by the normal rate of reentry and entry into the labor force is

Accepted Answer

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

Question 10

Cyclical unemployment

Accepted Answer

A)  is always present in an economy. 
B)  is higher during an expansion. 
C)  decreases during a recession. 
D)  fluctuates over the business cycle. 
A)  is always present in an economy. 
B)  is higher during an expansion. 
C)  decreases during a recession. 
D)  fluctuates over the business cycle.

Question 11

Can frictional unemployment ever be totally eliminated? Explain your answer.

Accepted Answer

Frictional unemployment arises from norm

Question 12

The natural unemployment rate

Accepted Answer

A)  estimated to be close to 9 percent in recent years in the United States. 
B)  has been estimated to range between 4 percent and 6 percent in the United States in recent years. 
C)  is attained whenever the unemployment rate is less than 5 percent because 95 percent employment is considered full employment. 
D)  occurs when 100 percent of the labor force is employed. 
A)  estimated to be close to 9 percent in recent years in the United States. 
B)  has been estimated to range between 4 percent and 6 percent in the United States in recent years. 
C)  is attained whenever the unemployment rate is less than 5 percent because 95 percent employment is considered full employment. 
D)  occurs when 100 percent of the labor force is employed.

Question 13

Which type of unemployment increases during a recession?

Accepted Answer

A)  cyclical unemployment 
B)  frictional unemployment 
C)  structural unemployment 
D)  the natural unemployment rate 
A)  cyclical unemployment 
B)  frictional unemployment 
C)  structural unemployment 
D)  the natural unemployment rate

Question 14

The unemployment rate will never equal zero percent because

Accepted Answer

A)  there are some people who do not want to work. 
B)  there will always be discouraged workers. 
C)  some portion of the labor force will always be between jobs. 
D)  cyclical unemployment will always exist. 
A)  there are some people who do not want to work. 
B)  there will always be discouraged workers. 
C)  some portion of the labor force will always be between jobs. 
D)  cyclical unemployment will always exist.

Question 15

An article in the Financial Times reports on a trend by college students to take a year off after graduation given the lack of success in finding a job. "In a survey published last month by TMP Worldwide... 54 per cent of the final-year undergraduate interviewees were thinking about taking a gap year and one in 10 was planning to wait for a year to escape the financial chaos and wait for the economy to either improve or for the picture to become clearer."
Www)ft.com, 10/13/2008
These choices add to the fluctuations seen in the ________ as workers leave the labor force given their unsuccessful job searches.

Accepted Answer

A)  labor force participation rate 
B)  employment rate 
C)  efficiency wage 
D)  inflation rate 
A)  labor force participation rate 
B)  employment rate 
C)  efficiency wage 
D)  inflation rate

Question 16

The natural unemployment rate

Accepted Answer

A)  occurs when the unemployment rate is 0 percent. 
B)  is the unemployment rate when there is no structural unemployment. 
C)  is the unemployment rate at full employment. 
D)  is the unemployment rate when there is only cyclical unemployment. 
A)  occurs when the unemployment rate is 0 percent. 
B)  is the unemployment rate when there is no structural unemployment. 
C)  is the unemployment rate at full employment. 
D)  is the unemployment rate when there is only cyclical unemployment.

Question 17

Suppose the country of Quasiland experienced a decrease in real GDP and people were laid off from their jobs. The people would be considered part of

Accepted Answer

A)  frictional unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  discouraged workers. 
A)  frictional unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  discouraged workers.

Question 18

-In the above table, the labor force participation rate is

Accepted Answer

A)  55 percent. 
B)  44 percent. 
C)  62 percent. 
D)  69 percent. 
A)  55 percent. 
B)  44 percent. 
C)  62 percent. 
D)  69 percent.

Question 19

The ________ is calculated as the number of people ________ divided by the labor force multiplied by 100.

Accepted Answer

A)  unemployment rate; unemployed 
B)  employment-to-population ratio; unemployed 
C)  employment rate; employed 
D)  employment-to-population ratio; in the working age population 
A)  unemployment rate; unemployed 
B)  employment-to-population ratio; unemployed 
C)  employment rate; employed 
D)  employment-to-population ratio; in the working age population

Question 20

Cyclical unemployment

Accepted Answer

A)  is the major part of the natural unemployment rate. 
B)  decreases during economic expansions. 
C)  rises as a result of increased international competition. 
D)  falls when unemployment compensation payments are increased. 
A)  is the major part of the natural unemployment rate. 
B)  decreases during economic expansions. 
C)  rises as a result of increased international competition. 
D)  falls when unemployment compensation payments are increased.

A discouraged worker counted as officially unemployed and counted as in the labor force.

Suppose there are currently 100 people unemployed, 1500 people employed, and 2000 people in the working age population. The labor force participation rate equals 100 times

The official U-3 unemployment rate

-In the table above, the official U-3 unemployment rate is

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?

Hyperinflation is defined as

-The above table shows answers given by people interviewed in a government survey of households. Which individuals are considered unemployed using the official U-3 unemployment rate?

The official U-3 unemployment rate includes the total number of people who

The type of unemployment created by the normal rate of reentry and entry into the labor force is

Cyclical unemployment

Can frictional unemployment ever be totally eliminated? Explain your answer.

The natural unemployment rate

Which type of unemployment increases during a recession?

The unemployment rate will never equal zero percent because

The natural unemployment rate

Suppose the country of Quasiland experienced a decrease in real GDP and people were laid off from their jobs. The people would be considered part of

-In the above table, the labor force participation rate is

The is calculated as the number of people divided by the labor force multiplied by 100.

Cyclical unemployment

What Is Economics?

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 5: Monitoring Jobs and Inflation

A discouraged worker ________ counted as officially unemployed and ________ counted as in the labor force.

Suppose there are currently 100 people unemployed, 1500 people employed, and 2000 people in the working age population. The labor force participation rate equals 100 times

The official U-3 unemployment rate

-In the table above, the official U-3 unemployment rate is

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?

Hyperinflation is defined as

-The above table shows answers given by people interviewed in a government survey of households. Which individuals are considered unemployed using the official U-3 unemployment rate?

The official U-3 unemployment rate includes the total number of people who

The type of unemployment created by the normal rate of reentry and entry into the labor force is

Cyclical unemployment

Can frictional unemployment ever be totally eliminated? Explain your answer.

The natural unemployment rate

Which type of unemployment increases during a recession?

The unemployment rate will never equal zero percent because

The natural unemployment rate

Suppose the country of Quasiland experienced a decrease in real GDP and people were laid off from their jobs. The people would be considered part of

-In the above table, the labor force participation rate is

The ________ is calculated as the number of people ________ divided by the labor force multiplied by 100.

Cyclical unemployment

What Is Economics?

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

A discouraged worker counted as officially unemployed and counted as in the labor force.

The is calculated as the number of people divided by the labor force multiplied by 100.