Question 1

When the unemployment rate is ________ the natural unemployment rate,real GDP is ________.

Accepted Answer

A) above;increasing 
B) above;above potential GDP 
C) below;above potential GDP 
D) below;increasing 
E) equal to;either equal to potential GDP or above potential GDP 
A) above;increasing 
B) above;above potential GDP 
C) below;above potential GDP 
D) below;increasing 
E) equal to;either equal to potential GDP or above potential GDP

Question 2

Across developed and newly industrialized economies,since 1989 the United States has generally had

Accepted Answer

A) a higher unemployment rate than Japan and Hong Kong and a lower unemployment rate than the Eurozone countries. 
B) a lower unemployment rate than Japan and Hong Kong. 
C) a higher unemployment rate than the Eurozone countries. 
D) the same unemployment rate as Canada. 
E) a lower unemployment rate than Hong Kong and a higher unemployment rate than Japan and the Eurozone countries. 
A) a higher unemployment rate than Japan and Hong Kong and a lower unemployment rate than the Eurozone countries. 
B) a lower unemployment rate than Japan and Hong Kong. 
C) a higher unemployment rate than the Eurozone countries. 
D) the same unemployment rate as Canada. 
E) a lower unemployment rate than Hong Kong and a higher unemployment rate than Japan and the Eurozone countries.

Question 3

An employee who is fired from his or her job because he or she lacks the skills required to accomplish the task,is part of ________ unemployment.

Accepted Answer

A) frictional 
B) cyclical 
C) unskilled 
D) structural 
E) withdrawal 
A) frictional 
B) cyclical 
C) unskilled 
D) structural 
E) withdrawal

Question 4

A marginally attached worker
I.does not have a job and has not looked for one in the last month.
Ii.is available and willing to work.
Iii.must work at least 1 hour per week.

Accepted Answer

A) iii only 
B) ii only 
C) ii and iii 
D) i and ii 
E) i only 
A) iii only 
B) ii only 
C) ii and iii 
D) i and ii 
E) i only

Question 5

Jane is a 25-year-old,full-time student.She works part time in her school library and is paid $7 an hour.She is considered to be

Accepted Answer

A) unemployed. 
B) not in the labor force. 
C) in the labor force but not working. 
D) employed. 
E) not in the working-age population because she is in college. 
A) unemployed. 
B) not in the labor force. 
C) in the labor force but not working. 
D) employed. 
E) not in the working-age population because she is in college.

Question 6

In January of 2001,the population of the United States was 276.8 million,the working-age population was 210.2 million,the total number of people employed was 140 million,and the total number of people unemployed was 5.0 million.What was the labor force participation rate?

Accepted Answer

A) 78 percent 
B) 56 percent 
C) 69 percent 
D) 90 percent 
E) 67 percent 
A) 78 percent 
B) 56 percent 
C) 69 percent 
D) 90 percent 
E) 67 percent

Question 7

The labor force is defined as the number of people who

Accepted Answer

A) are employed plus the number of people who are unemployed. 
B) are available and looking for work but are 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. 
E) are employed minus the number of people who are unemployed. 
A) are employed plus the number of people who are unemployed. 
B) are available and looking for work but are 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. 
E) are employed minus the number of people who are unemployed.

Question 8

Higher ________ in Canada than in the United States help(s)explain why ________ unemployment is higher in Canada than in the United States.

Accepted Answer

A) unemployment benefits;frictional 
B) unemployment benefits;structural 
C) prices;frictional 
D) prices;structural 
E) investment;structural 
A) unemployment benefits;frictional 
B) unemployment benefits;structural 
C) prices;frictional 
D) prices;structural 
E) investment;structural

Question 9

When the unemployment rate equals the natural unemployment rate,most likely the economy is producing

Accepted Answer

A) on the production possibilities frontier. 
B) within the production possibilities frontier. 
C) beyond the production possibilities frontier. 
D) either on or within the production possibilities frontier. 
E) either on or beyond the production possibilities frontier. 
A) on the production possibilities frontier. 
B) within the production possibilities frontier. 
C) beyond the production possibilities frontier. 
D) either on or within the production possibilities frontier. 
E) either on or beyond the production possibilities frontier.

Question 10

During a recession,the duration of unemployment ________ and the unemployment rate is ________ the natural rate of unemployment.

Accepted Answer

A) lengthens;greater than 
B) lengthens;less than 
C) shortens;greater than 
D) shortens;equal to 
E) does not change;equal to 
A) lengthens;greater than 
B) lengthens;less than 
C) shortens;greater than 
D) shortens;equal to 
E) does not change;equal to

Question 11

Which type of unemployment is the consequence of downturns in the business cycle?

Accepted Answer

A) cyclical 
B) expansionary 
C) structural 
D) frictional 
E) natural 
A) cyclical 
B) expansionary 
C) structural 
D) frictional 
E) natural

Question 12

As firms search for the best employee to fill an opening and the unemployed search for the job that best fits their skills,the economy experiences

Accepted Answer

A) structural unemployment. 
B) frictional unemployment. 
C) cyclical unemployment. 
D) changes in the business cycle. 
E) avoidable unemployment. 
A) structural unemployment. 
B) frictional unemployment. 
C) cyclical unemployment. 
D) changes in the business cycle. 
E) avoidable unemployment.

Question 13

Producing an amount of GDP equal to potential GDP is most consistent with the economy producing

Accepted Answer

A) on the production possibilities frontier. 
B) within the production possibilities frontier. 
C) beyond the production possibilities frontier. 
D) either on or within the production possibilities frontier. 
E) either on or beyond the production possibilities frontier. 
A) on the production possibilities frontier. 
B) within the production possibilities frontier. 
C) beyond the production possibilities frontier. 
D) either on or within the production possibilities frontier. 
E) either on or beyond the production possibilities frontier.

Question 14

Which of the following people would be classified as employed in the Current Population Survey?

Accepted Answer

A) Rich,who is working 20 hours a week but wants a full-time job 
B) Misty,who just quit her job to return full time to school 
C) April,who just graduated from college and is looking for work 
D) Jason,who was laid off from work less than 6 months ago but who has stopped looking for work 
E) Laura,who is unpaid but is working 10 hours a week in the family business she and her husband run 
A) Rich,who is working 20 hours a week but wants a full-time job 
B) Misty,who just quit her job to return full time to school 
C) April,who just graduated from college and is looking for work 
D) Jason,who was laid off from work less than 6 months ago but who has stopped looking for work 
E) Laura,who is unpaid but is working 10 hours a week in the family business she and her husband run

Question 15

Suppose there are 180 million employed people and 20 million unemployed people.
a.What is the unemployment rate?
b.Suppose that 5 million unemployed people give up their search for jobs and become discouraged workers.What is the new unemployment rate?

Accepted Answer

a.The unemployment rate is (20

Question 16

As the unemployment rate increases,

Accepted Answer

A) potential GDP decreases. 
B) real GDP decreases. 
C) both real GDP and potential GDP decrease. 
D) potential GDP increases. 
E) full employment GDP decreases. 
A) potential GDP decreases. 
B) real GDP decreases. 
C) both real GDP and potential GDP decrease. 
D) potential GDP increases. 
E) full employment GDP decreases.

Question 17

Which of the following help explain the increase in the U.S.labor force participation rate for women?
I.There was a significant fall in the number of children women were choosing to have.
Ii.There was an increase in the educational level of women.
Iii.Technological change in the home increased the time available for work outside the home.

Accepted Answer

A) i only 
B) ii only 
C) i and ii 
D) ii and iii 
E) i,ii,and iii 
A) i only 
B) ii only 
C) i and ii 
D) ii and iii 
E) i,ii,and iii

Question 18

In 2012,real GDP in the United States was below potential GDP.This fact definitely means that

Accepted Answer

A) the unemployment rate was near 10 percent. 
B) the unemployment rate was above the natural unemployment rate. 
C) the economy was in an expansion. 
D) cyclical unemployment had been decreasing. 
E) frictional unemployment was negative. 
A) the unemployment rate was near 10 percent. 
B) the unemployment rate was above the natural unemployment rate. 
C) the economy was in an expansion. 
D) cyclical unemployment had been decreasing. 
E) frictional unemployment was negative.

Question 19

The type of unemployment that arises from a decrease in real GDP is called

Accepted Answer

A) frictional unemployment. 
B) structural unemployment. 
C) non-expansion unemployment. 
D) cyclical unemployment. 
E) downturn unemployment. 
A) frictional unemployment. 
B) structural unemployment. 
C) non-expansion unemployment. 
D) cyclical unemployment. 
E) downturn unemployment.

Question 20

According to the scenario above,in which of the following groups are all the people cyclically unemployed?

Accepted Answer

A) Jung 
B) Darrelo 
C) Jung and Rita 
D) Jung and Thorton 
E) Thorton 
A) Jung 
B) Darrelo 
C) Jung and Rita 
D) Jung and Thorton 
E) Thorton

When the unemployment rate is the natural unemployment rate,real GDP is .

Across developed and newly industrialized economies,since 1989 the United States has generally had

An employee who is fired from his or her job because he or she lacks the skills required to accomplish the task,is part of ________ unemployment.

A marginally attached worker I.does not have a job and has not looked for one in the last month. Ii.is available and willing to work. Iii.must work at least 1 hour per week.

Jane is a 25-year-old,full-time student.She works part time in her school library and is paid $7 an hour.She is considered to be

In January of 2001,the population of the United States was 276.8 million,the working-age population was 210.2 million,the total number of people employed was 140 million,and the total number of people unemployed was 5.0 million.What was the labor force participation rate?

The labor force is defined as the number of people who

Higher in Canada than in the United States help(s)explain why unemployment is higher in Canada than in the United States.

When the unemployment rate equals the natural unemployment rate,most likely the economy is producing

During a recession,the duration of unemployment and the unemployment rate is the natural rate of unemployment.

Which type of unemployment is the consequence of downturns in the business cycle?

As firms search for the best employee to fill an opening and the unemployed search for the job that best fits their skills,the economy experiences

Producing an amount of GDP equal to potential GDP is most consistent with the economy producing

Which of the following people would be classified as employed in the Current Population Survey?

Suppose there are 180 million employed people and 20 million unemployed people. a.What is the unemployment rate? b.Suppose that 5 million unemployed people give up their search for jobs and become discouraged workers.What is the new unemployment rate?

As the unemployment rate increases,

In 2012,real GDP in the United States was below potential GDP.This fact definitely means that

The type of unemployment that arises from a decrease in real GDP is called

According to the scenario above,in which of the following groups are all the people cyclically unemployed?

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

When the unemployment rate is ________ the natural unemployment rate,real GDP is ________.

Across developed and newly industrialized economies,since 1989 the United States has generally had

An employee who is fired from his or her job because he or she lacks the skills required to accomplish the task,is part of ________ unemployment.

A marginally attached worker I.does not have a job and has not looked for one in the last month. Ii.is available and willing to work. Iii.must work at least 1 hour per week.

Jane is a 25-year-old,full-time student.She works part time in her school library and is paid $7 an hour.She is considered to be

In January of 2001,the population of the United States was 276.8 million,the working-age population was 210.2 million,the total number of people employed was 140 million,and the total number of people unemployed was 5.0 million.What was the labor force participation rate?

The labor force is defined as the number of people who

Higher ________ in Canada than in the United States help(s)explain why ________ unemployment is higher in Canada than in the United States.

When the unemployment rate equals the natural unemployment rate,most likely the economy is producing

During a recession,the duration of unemployment ________ and the unemployment rate is ________ the natural rate of unemployment.

Which type of unemployment is the consequence of downturns in the business cycle?

As firms search for the best employee to fill an opening and the unemployed search for the job that best fits their skills,the economy experiences

Producing an amount of GDP equal to potential GDP is most consistent with the economy producing

Which of the following people would be classified as employed in the Current Population Survey?

Suppose there are 180 million employed people and 20 million unemployed people. a.What is the unemployment rate? b.Suppose that 5 million unemployed people give up their search for jobs and become discouraged workers.What is the new unemployment rate?

As the unemployment rate increases,

In 2012,real GDP in the United States was below potential GDP.This fact definitely means that

The type of unemployment that arises from a decrease in real GDP is called

According to the scenario above,in which of the following groups are all the people cyclically unemployed?

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

When the unemployment rate is the natural unemployment rate,real GDP is .

Higher in Canada than in the United States help(s)explain why unemployment is higher in Canada than in the United States.

During a recession,the duration of unemployment and the unemployment rate is the natural rate of unemployment.