Question 1

Which of the following elements reduces structural unemployment?

Accepted Answer

A)  the enhancement of worker retraining programs 
B)  the extension of unemployment benefits 
C)  the growth of labor unions 
D)  the existence of employment protection laws 
A)  the enhancement of worker retraining programs 
B)  the extension of unemployment benefits 
C)  the growth of labor unions 
D)  the existence of employment protection laws

Question 2

Following the great recession in 2010,the largest fraction of unemployment in the United States had lasted:

Accepted Answer

A)  less than 5 weeks. 
B)  between 5 and 14 weeks. 
C)  between 15 and 26 weeks. 
D)  more than 27 weeks. 
A)  less than 5 weeks. 
B)  between 5 and 14 weeks. 
C)  between 15 and 26 weeks. 
D)  more than 27 weeks.

Question 3

Consider countries A and B.In country A the minimum wage is 30% of the median wage,and in country B the minimum wage is 60% of the median wage.As a result,the minimum wage will affect more workers in country _____ and create more unemployment in country _____.

Accepted Answer

A)  A;A 
B)  A;B 
C)  B;B 
D)  B;A 
A)  A;A 
B)  A;B 
C)  B;B 
D)  B;A

Question 4

Laws that make it more difficult (and more expensive)to fire workers:

Accepted Answer

A)  lead to higher rates of long-term unemployment. 
B)  may raise unemployment rates but typically only in the short term. 
C)  lead to higher rates of employment. 
D)  typically lead to higher wages on average. 
A)  lead to higher rates of long-term unemployment. 
B)  may raise unemployment rates but typically only in the short term. 
C)  lead to higher rates of employment. 
D)  typically lead to higher wages on average.

Question 5

In 2010,over 46% of the unemployed had been unemployed for at least 6 months.

Accepted Answer

A) True 
 B)False

Question 6

Discouraged workers are counted as part of the:

Accepted Answer

A)  labor force. 
B)  unemployed. 
C)  employed. 
D)  adult population. 
A)  labor force. 
B)  unemployed. 
C)  employed. 
D)  adult population.

Question 7

In a nonrecession year,the majority of U.S.unemployment is:

Accepted Answer

A)  frictional. 
B)  structural. 
C)  cyclical. 
D)  recurrent. 
A)  frictional. 
B)  structural. 
C)  cyclical. 
D)  recurrent.

Question 8

What is one of the causes of frictional unemployment?

Accepted Answer

A)  uneducated work force 
B)  willingness to take lower level jobs 
C)  scarcity of information 
D)  overabundance of job vacancies 
A)  uneducated work force 
B)  willingness to take lower level jobs 
C)  scarcity of information 
D)  overabundance of job vacancies

Question 9

Which of the following is NOT true regarding the natural rate of unemployment?

Accepted Answer

A)  The natural rate of unemployment equals the sum of the frictional and structural rates. 
B)  If the economy is operating at the natural rate of unemployment,cyclical unemployment is equal to zero. 
C)  The natural rate of unemployment correlates positively with the level of GDP growth in an economy. 
D)  The actual rate of unemployment varies around the natural rate over time. 
A)  The natural rate of unemployment equals the sum of the frictional and structural rates. 
B)  If the economy is operating at the natural rate of unemployment,cyclical unemployment is equal to zero. 
C)  The natural rate of unemployment correlates positively with the level of GDP growth in an economy. 
D)  The actual rate of unemployment varies around the natural rate over time.

Question 10

Discouraged workers and underemployed workers are examples of:

Accepted Answer

A)  workers not included in the unemployment rate. 
B)  populations that cause higher unemployment taxes. 
C)  users of unemployment insurance. 
D)  poor national employment planning. 
A)  workers not included in the unemployment rate. 
B)  populations that cause higher unemployment taxes. 
C)  users of unemployment insurance. 
D)  poor national employment planning.

Question 11

The unemployment rate in the United States has typically been higher than the unemployment rate in Europe.

Accepted Answer

A) True 
 B)False

Question 12

A country's total civilian noninstitutionalized adult population is 1 million,and 500,000 people in this country are working,with another 20,000 people looking for work.Which of the following statements about the labor force statistics in this country is accurate?

Accepted Answer

A)  The employment rate is 50% and the unemployment rate is 2%. 
B)  The unemployment rate is 2% and the labor force participation rate is 52%. 
C)  The employment rate is 96.15% and the labor force participation rate is 52%. 
D)  The labor force is 500,000 and the labor force participation rate is 50%. 
A)  The employment rate is 50% and the unemployment rate is 2%. 
B)  The unemployment rate is 2% and the labor force participation rate is 52%. 
C)  The employment rate is 96.15% and the labor force participation rate is 52%. 
D)  The labor force is 500,000 and the labor force participation rate is 50%.

Question 13

How do wage and employment regulations in Western Europe regarding unemployment benefits,minimum wages,and labor unions differ from those in the United States? How do those differences impact the rigidity of employment index?

Accepted Answer

Certain countries in Western Europe have

Question 14

The unemployment rate is defined as the percentage of the adult population without a job.

Accepted Answer

A) True 
 B)False

Question 15

Explain the impact of unemployment benefits on the unemployment rate.

Accepted Answer

The presence of unemployment benefits re

Question 16

Higher GDP growth is generally associated with:

Accepted Answer

A)  decreases in the unemployment rate. 
B)  increases in the unemployment rate. 
C)  no change in the unemployment rate. 
D)  random fluctuations in the unemployment rate. 
A)  decreases in the unemployment rate. 
B)  increases in the unemployment rate. 
C)  no change in the unemployment rate. 
D)  random fluctuations in the unemployment rate.

Question 17

If the number of unemployed workers is 9.5 million and the number of employed workers is 146 million,what is the unemployment rate?

Accepted Answer

The answer of If the number of unemployed workers is...

Question 18

The natural rate of unemployment is defined as the rate of:

Accepted Answer

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

Question 19

Which of the following is NOT a reason why unemployment rises during recessions?

Accepted Answer

A)  because of labor reallocation among affected industries in response to real economic shocks 
B)  because wages do not fall as fast as prices 
C)  because of increases in aggregate demand 
D)  firms cannot afford to employ as many workers 
A)  because of labor reallocation among affected industries in response to real economic shocks 
B)  because wages do not fall as fast as prices 
C)  because of increases in aggregate demand 
D)  firms cannot afford to employ as many workers

Question 20

Which of the following would the BLS define as a discouraged worker?

Accepted Answer

A)  Quinton,who has a doctorate in chemistry,but works full time as a taxi driver 
B)  Robert,a retired teacher,who works full time as a greeter at a discount store 
C)  Mary,who was laid off last year and who was looking for a full-time job until last month 
D)  Susan,who has been unemployed for the past three years and is looking for a part-time job 
A)  Quinton,who has a doctorate in chemistry,but works full time as a taxi driver 
B)  Robert,a retired teacher,who works full time as a greeter at a discount store 
C)  Mary,who was laid off last year and who was looking for a full-time job until last month 
D)  Susan,who has been unemployed for the past three years and is looking for a part-time job

Exam 11: Unemployment and Labor Force Participation

Which of the following elements reduces structural unemployment?

Following the great recession in 2010,the largest fraction of unemployment in the United States had lasted:

Consider countries A and B.In country A the minimum wage is 30% of the median wage,and in country B the minimum wage is 60% of the median wage.As a result,the minimum wage will affect more workers in country _____ and create more unemployment in country _____.

Laws that make it more difficult (and more expensive)to fire workers:

In 2010,over 46% of the unemployed had been unemployed for at least 6 months.

Discouraged workers are counted as part of the:

In a nonrecession year,the majority of U.S.unemployment is:

What is one of the causes of frictional unemployment?

Which of the following is NOT true regarding the natural rate of unemployment?

Discouraged workers and underemployed workers are examples of:

The unemployment rate in the United States has typically been higher than the unemployment rate in Europe.

A country's total civilian noninstitutionalized adult population is 1 million,and 500,000 people in this country are working,with another 20,000 people looking for work.Which of the following statements about the labor force statistics in this country is accurate?

How do wage and employment regulations in Western Europe regarding unemployment benefits,minimum wages,and labor unions differ from those in the United States? How do those differences impact the rigidity of employment index?

The unemployment rate is defined as the percentage of the adult population without a job.

Explain the impact of unemployment benefits on the unemployment rate.

Higher GDP growth is generally associated with:

If the number of unemployed workers is 9.5 million and the number of employed workers is 146 million,what is the unemployment rate?

The natural rate of unemployment is defined as the rate of:

Which of the following is NOT a reason why unemployment rises during recessions?

Which of the following would the BLS define as a discouraged worker?

The Big Ideas

The Power of Trade

Supply and Demand

Equilibrium- How Supply and Demand

Price Ceilings and Floors

GDP and the Measurement of Progress

The Wealth of Nations and Economic Growth

Growth,capital Accumulation

Saving,investment,and the Financial System

Stock Markets and Personal Finance

Inflation and the Quantity Theory of Money

Business Fluctuations

Transmission and Amplification Mechanisms

The Federal Reserve System

Monetary Policy

The Federal Budget- Taxes and Spending

Fiscal Policy

International Trade

International Finance

Political Economy and Public Choice

Filters

Consider countries A and B.In country A the minimum wage is 30% of the median wage,and in country B the minimum wage is 60% of the median wage.As a result,the minimum wage will affect more workers in country _ and create more unemployment in country _.