Question 1

Over the last 50 years, the U.S. labor force participation rate of men has ________ by ________ the labor force participation of women has ________. As a result, the overall U.S. labor force participation has ________.

Accepted Answer

A) decreased; less than; increased; increased 
B) decreased; more than; increased; decreased 
C) decreased; about the same rate as; increased; remained steady 
D) increased; less than; decreased; decreased 
E) increased; more than; decreased; increased

Question 2

Between 1960 and 2010, the labor force participation rate for men

Accepted Answer

A) increased in most years. 
B) decreased in most years. 
C) did not change. 
D) fluctuated, first rising until about 1989 and after that, then falling. 
E) did not change until 1992, after which it generally increased.

Question 3

$$\begin{array} { c c c c } 
\begin{array} { c } 
\text { Total } \
\text { Population } \
\text { (millions) }
\end{array} & \begin{array} { c } 
\text { Currently } \
\text { Employed } \
\text { (millions) }
\end{array} & \begin{array} { c } 
\text { Not Working and } \
\text { Looking for Work } \
\text { ( millions) }
\end{array} & \begin{array} { c } 
\text { Want to Work } \
\text { But No Longer } \
\text { Looking for Work } \
\text { (millions) }
\end{array} \
\hline 80 & 40 & 2 & 4
\end{array}$$
-In the table above, the unemployment rate is

Accepted Answer

A) 50.0 percent. 
B) 15.0 percent. 
C) 10.0 percent. 
D) 4.8 percent. 
E) 5.0 percent.

Question 4

Joann has just lost her job because her company was faced with more foreign competition and decided to restructure, which reduced the number of jobs at the company. Joann is

Accepted Answer

A) frictionally unemployed. 
B) structurally unemployed. 
C) transported unemployed. 
D) cyclically unemployed. 
E) internationally unemployed.

Question 5

Which is true concerning U-2?
i. It does not count marginally attached workers as unemployed.
ii. It counts as unemployed workers who were laid off.
iii. It is smaller than U-3.

Accepted Answer

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

Question 6

Bo's actions would

Accepted Answer

A) have no impact on the September unemployment rate or the October unemployment rate. 
B) raise the September unemployment rate and lower the October unemployment rate. 
C) raise the September unemployment rate and not change the October unemployment rate. 
D) classify him as out of the labor force in September. 
E) raise the September unemployment rate and the October unemployment rate.

Question 7

During the Great Depression, the unemployment rate rose to a maximum of about

Accepted Answer

A) 10 percent. 
B) 13 percent. 
C) 25 percent. 
D) 50 percent. 
E) 67 percent.

Question 8

$$\begin{array} { l c } 
\text { Category } & \text { Number of people } \
\hline \text { Labor force } & 10,000 \
\text { Employed } & 9,000 \
\text { Under } 16 \text { years of age } & 2,000 \
\text { Working-age population } & 12,000
\end{array}$$
-In the table above, the unemployment rate is

Accepted Answer

A) 12 percent. 
B) 10 percent. 
C) 8 percent. 
D) 6 percent. 
E) 11 percent.

Question 9

As technology advancements have led to more white collar jobs,

Accepted Answer

A) the unemployment rate has steadily fallen. 
B) the labor force participation rate for men and women have increased. 
C) a higher percentage of men of working age have entered the labor force. 
D) the labor force participation rate for women has increased over the last 50 years. 
E) the labor force participation rate for women has decreased since 1960.

Question 10

Which of the following is true?

Accepted Answer

A) Real GDP fluctuates around potential GDP. 
B) Potential GDP fluctuates around real GDP. 
C) Nominal GDP fluctuates around real GDP. 
D) Real GDP fluctuates around nominal GDP. 
E) When real GDP equals potential GDP, both equal nominal GDP.

Question 11

The unemployment rate generally ________ during recessions and generally ________ during expansions.

Accepted Answer

A) increases; decreases 
B) decreases; increases 
C) increases; increases 
D) decreases; decreases 
E) increases; does not change

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.

Question 13

Suppose the current unemployment rate is 5 percent, the labor force is 400 million people, the labor force participation rate is 80 percent and the working-age population is 500 million people. What number of people are unemployed?

Accepted Answer

The answer of Suppose the current unemployment rate is 5...

Question 14

After 15 years with Ford Motor Corporation, one summer Cameron loses his job. His boss explained that his position has been downsized after the technological advances in automobile production. Cameron is best considered

Accepted Answer

A) not in the labor force. 
B) frictionally unemployed. 
C) structurally unemployed. 
D) cyclically unemployed. 
E) avoidably unemployed.

Question 15

The unemployment that fluctuates over the business cycle is called

Accepted Answer

A) frictional unemployment. 
B) structural unemployment. 
C) full unemployment. 
D) cyclical unemployment. 
E) natural unemployment.

Question 16

During the Great Depression of the 1930s when the unemployment rate was exceptionally high due to the Great Depression, the government had employment programs, such as the Civilian Conservation Corps, which built campsites and planted trees. These programs were aimed at reducing which type of unemployment?

Accepted Answer

A) Cyclical 
B) Avoidable 
C) Structural 
D) Frictional 
E) Discouraged

Question 17

After graduating from college, Yunis, age 22, started working for his parents' real estate business as an unpaid assistant. He works 25 hours a week helping manage rental units. In the Current Population Survey, Yunis is considered

Accepted Answer

A) part of the labor force and unemployed. 
B) part of the labor force and employed. 
C) not part of the labor force. 
D) a discouraged worker. 
E) part of the labor force but not part of the working-age population.

Question 18

People who are working up to 34 hours per week but would like to work more are considered ________ .

Accepted Answer

A) involuntary part-time workers 
B) discouraged workers 
C) job leavers 
D) job seekers 
E) unemployed

Question 19

Suppose the population of Timmy Town is 1000 people and the working-age population is 800. If 200 of these people are unemployed, the unemployment rate in Timmy Town is

Accepted Answer

A) 2 percent. 
B) 1/5 × 100. 
C) 1/8 × 100. 
D) 1/4 × 100. 
E) There is not enough information provided to calculate the unemployment rate.

Question 20

During the 2008 - 09 recession, the U-6 measure of the unemployment rate

Accepted Answer

A) which counts marginally attached workers and discouraged workers as unemployed, reached 17 percent. 
B) which counts marginally attached workers and discouraged workers as employed, reached 10 percent. 
C) which counts marginally attached workers as unemployed but does not count discouraged workers as unemployed, reached 17 percent. 
D) which counts all part time workers as employed, reached 12 percent. 
E) which counts discouraged workers as unemployed but does not count marginally attached workers as unemployed, reached 17 percent.

Exam 15: Jobs and Unemployment

Over the last 50 years, the U.S. labor force participation rate of men has by the labor force participation of women has . As a result, the overall U.S. labor force participation has .