Question 1

Define and give an example of how a spell of structural unemployment can begin.

Accepted Answer

Structural unemployment arises when chan

Question 2

A reduction in unemployment benefits will

Accepted Answer

A) decrease the amount of frictional unemployment. 
B) increase the amount of frictional unemployment. 
C) not change the amount of frictional unemployment because unemployment benefits affects only cyclical unemployment. 
D) not change the amount of frictional unemployment because unemployment benefits affects only structural unemployment. 
E) increase the amount of cyclical unemployment. 
A) decrease the amount of frictional unemployment. 
B) increase the amount of frictional unemployment. 
C) not change the amount of frictional unemployment because unemployment benefits affects only cyclical unemployment. 
D) not change the amount of frictional unemployment because unemployment benefits affects only structural unemployment. 
E) increase the amount of cyclical unemployment.

Question 3

After the passage of the North American Free Trade Agreement,which made it less expensive to import goods from Mexico,workers in some industries found their factories being relocated to Mexico to take advantage of lower labor costs.These workers experienced what type of unemployment?

Accepted Answer

A) cyclical 
B) trade 
C) structural 
D) frictional 
E) foreign 
A) cyclical 
B) trade 
C) structural 
D) frictional 
E) foreign

Question 4

The percentage of workers who work part time for noneconomic reasons

Accepted Answer

A) decreases during a recession as the number of discouraged workers increases. 
B) does not fluctuate much at all with the business cycle. 
C) fluctuates strongly with the business cycle. 
D) has decreased from 30 percent of the labor force in 1980 to 20 percent in 2011. 
E) has trended upward since 1980. 
A) decreases during a recession as the number of discouraged workers increases. 
B) does not fluctuate much at all with the business cycle. 
C) fluctuates strongly with the business cycle. 
D) has decreased from 30 percent of the labor force in 1980 to 20 percent in 2011. 
E) has trended upward since 1980.

Question 5

If the unemployment rate is less than the natural unemployment rate,then

Accepted Answer

A) there is no frictional unemployment. 
B) cyclical unemployment is greater than zero. 
C) real GDP is less than potential GDP. 
D) real GDP is greater than potential GDP. 
E) frictional unemployment is negative. 
A) there is no frictional unemployment. 
B) cyclical unemployment is greater than zero. 
C) real GDP is less than potential GDP. 
D) real GDP is greater than potential GDP. 
E) frictional unemployment is negative.

Question 6

In 2008 as the recession worsened,suppose discouraged workers were included as part of the unemployment rate.Which of the following would have occurred?

Accepted Answer

A) The unemployment rate would have increased. 
B) The unemployment rate would have decreased. 
C) The labor force participation rate would not have changed. 
D) The unemployment rate would not have changed. 
E) The labor force participation rate would have decreased. 
A) The unemployment rate would have increased. 
B) The unemployment rate would have decreased. 
C) The labor force participation rate would not have changed. 
D) The unemployment rate would not have changed. 
E) The labor force participation rate would have decreased.

Question 7

-Using the table above,the working-age population is

Accepted Answer

A) 155 million. 
B) 170 million. 
C) 195 million. 
D) 250 million. 
E) 220 million. 
A) 155 million. 
B) 170 million. 
C) 195 million. 
D) 250 million. 
E) 220 million.

Question 8

During a recession,the average duration of unemployment tends to

Accepted Answer

A) increase. 
B) decrease. 
C) remain constant. 
D) be unpredictable. 
E) be about the same as during an expansion. 
A) increase. 
B) decrease. 
C) remain constant. 
D) be unpredictable. 
E) be about the same as during an expansion.

Question 9

The working-age population includes

Accepted Answer

A) those in jails and hospitals. 
B) youngsters between the ages of 14 and 16 if they are working at least part time. 
C) employed and unemployed people over the age of 16. 
D) only employed people over the age of 16. 
E) people over the age of 16 who are in the Army. 
A) those in jails and hospitals. 
B) youngsters between the ages of 14 and 16 if they are working at least part time. 
C) employed and unemployed people over the age of 16. 
D) only employed people over the age of 16. 
E) people over the age of 16 who are in the Army.

Question 10

The working-age population consists of all the people in the population

Accepted Answer

A) aged 16 and over. 
B) aged 16 to 65. 
C) aged 16 and over who are not in jail,hospital,or an institution or in the U.S.Armed Forces. 
D) aged 21 and over who are not in jail,hospital,or an institution or in the U.S.Armed Forces. 
E) who are employed plus the unemployed people. 
A) aged 16 and over. 
B) aged 16 to 65. 
C) aged 16 and over who are not in jail,hospital,or an institution or in the U.S.Armed Forces. 
D) aged 21 and over who are not in jail,hospital,or an institution or in the U.S.Armed Forces. 
E) who are employed plus the unemployed people.

Question 11

Who is cyclically unemployed?

Accepted Answer

A) Casey,who lost his job because the technology changed so he was no longer needed 
B) Katrina,an assistant manager who quit her job to search for a better job closer to home 
C) Kathy,a steelworker who was laid off but has stopped looking for a new job because she can't find a new job 
D) David,a new car salesman who lost his job because the economy went into a recession 
E) Samantha,who quit her job to return to college to earn her MBA 
A) Casey,who lost his job because the technology changed so he was no longer needed 
B) Katrina,an assistant manager who quit her job to search for a better job closer to home 
C) Kathy,a steelworker who was laid off but has stopped looking for a new job because she can't find a new job 
D) David,a new car salesman who lost his job because the economy went into a recession 
E) Samantha,who quit her job to return to college to earn her MBA

Question 12

Which of the following lowers frictional unemployment?

Accepted Answer

A) more young people in the economy 
B) decreasing unemployment benefits 
C) increasing the pace of technological change 
D) increasing the minimum wage 
E) None of the above answers are correct because all of the answers raise frictional unemployment. 
A) more young people in the economy 
B) decreasing unemployment benefits 
C) increasing the pace of technological change 
D) increasing the minimum wage 
E) None of the above answers are correct because all of the answers raise frictional unemployment.

Question 13

Suppose the population is 300 million people,the labor force is 200 million people,the number of people employed is 185 million,and the working-age population is 170 million people.What is the unemployment rate?

Accepted Answer

A) 92.5 percent 
B) 7.5 percent 
C) 8.8 percent 
D) 5 percent 
E) 20 percent 
A) 92.5 percent 
B) 7.5 percent 
C) 8.8 percent 
D) 5 percent 
E) 20 percent

Define and give an example of how a spell of structural unemployment can begin.

A reduction in unemployment benefits will

After the passage of the North American Free Trade Agreement,which made it less expensive to import goods from Mexico,workers in some industries found their factories being relocated to Mexico to take advantage of lower labor costs.These workers experienced what type of unemployment?

The percentage of workers who work part time for noneconomic reasons

If the unemployment rate is less than the natural unemployment rate,then

In 2008 as the recession worsened,suppose discouraged workers were included as part of the unemployment rate.Which of the following would have occurred?

-Using the table above,the working-age population is

During a recession,the average duration of unemployment tends to

The working-age population includes

The working-age population consists of all the people in the population

Who is cyclically unemployed?

Which of the following lowers frictional unemployment?

Suppose the population is 300 million people,the labor force is 200 million people,the number of people employed is 185 million,and the working-age population is 170 million people.What is the unemployment rate?

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 15: Jobs and Unemployment

Define and give an example of how a spell of structural unemployment can begin.

A reduction in unemployment benefits will

After the passage of the North American Free Trade Agreement,which made it less expensive to import goods from Mexico,workers in some industries found their factories being relocated to Mexico to take advantage of lower labor costs.These workers experienced what type of unemployment?

The percentage of workers who work part time for noneconomic reasons

If the unemployment rate is less than the natural unemployment rate,then

In 2008 as the recession worsened,suppose discouraged workers were included as part of the unemployment rate.Which of the following would have occurred?

-Using the table above,the working-age population is

During a recession,the average duration of unemployment tends to

The working-age population includes

The working-age population consists of all the people in the population

Who is cyclically unemployed?

Which of the following lowers frictional unemployment?

Suppose the population is 300 million people,the labor force is 200 million people,the number of people employed is 185 million,and the working-age population is 170 million people.What is the unemployment rate?

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters