Question 1

In 2014,the Italian adult non-institutionalized population was 38.8 million,the labor force was 25.4 million,and the number of people employed was 22 million.According to these numbers,the Italian labor-force participation rate and unemployment rate were about

Accepted Answer

A) 65.5% and 13.4% 
B) 65.5% and 8.8% 
C) 56.7% and 13.4% 
D) 56.7% and 8.8%

Question 2

Unemployment that results because the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one is called

Accepted Answer

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

Question 3

Which of the following is the correct formula for calculating the unemployment rate?

Accepted Answer

A)   
B)   
C)   
D)

Question 4

Which of the following includes everyone in the adult population that the Bureau of Labor Statistics counts as "unemployed"?

Accepted Answer

A) anyone who is not employed 
B) anyone who is not employed,is available for work,and has looked for work in the past four weeks 
C) anyone who is not employed,is available for work,has looked for work in the past four weeks,and anyone who is waiting to be recalled from a job from which they have been laid off 
D) anyone who is not employed,is available for work,has looked for work in the past four weeks,anyone who is waiting to be recalled from a job from which they have been laid off,and anyone who is employed part time and has searched for full time employment in the past 4 weeks

Question 5

Figure 28-1 
-Refer to Figure 28-1.Which of the following correctly identifies lines A and B?

Accepted Answer

A) Line A is the unemployment rate,and line B is the natural rate of unemployment. 
B) Line A is the labor force participation rate,and line B is the adult population. 
C) Line A is the employment rate,and line B is the adult population. 
D) Line A is the labor force participation rate,and line B is the unemployment rate.

Question 6

Maury did not work last week because fire forced an evacuation of his workplace.The Bureau of Labor Statistics counts Maury as

Accepted Answer

A) unemployed and in the labor force. 
B) unemployed and not in the labor force. 
C) employed and in the labor force. 
D) employed and not in the labor force.

Question 7

Who is included in the labor force by the Bureau of Labor Statistics?

Accepted Answer

A) Tina,who worked most of the week in a steel factory 
B) Kelly,who is temporarily laid off but expects to be recalled 
C) DJ,who does not have a job but is looking for work 
D) All of the above are correct.

Question 8

Josh is a full-time college student who is not working or looking for a job.The Bureau of Labor Statistics counts Josh as

Accepted Answer

A) unemployed and in the labor force. 
B) unemployed but not in the labor force. 
C) in the labor force but not unemployed. 
D) neither in the labor force nor unemployed.

Question 9

Consider two people who are currently out of work.Tim is not looking for work because there have been many job cuts where he lives,and he doesn't think it likely that he will find work.Bev is not currently looking for work,but she would like a job,and she has looked for work in the past.The Bureau of Labor Statistics considers

Accepted Answer

A) both Tim and Bev to be marginally attached workers. 
B) neither Tim nor Bev to be marginally attached workers. 
C) only Tim to be a marginally attached worker. 
D) only Bev to be a marginally attached worker.

Question 10

According to 2014 data on the U.S.population,which of the following groups of teenagers (ages 16-19)had the highest labor-force participation rate?

Accepted Answer

A) white males 
B) white females 
C) black males 
D) black females

Question 11

Which of the following is correct?

Accepted Answer

A) Typically more than one-third of the unemployed are new entrants into the job market. 
B) Most spells of unemployment are short. 
C) Most unemployment observed at any time is long term. 
D) All of the above are correct.

Question 12

Which of the following is not a commonly-cited explanation for the dramatically increasing labor-force participation rates for women from 1950 to the present?

Accepted Answer

A) availability of reliable birth control 
B) invention of household labor-saving devices such as dishwashers and microwave ovens 
C) an increasing number of women who work to support their parents 
D) changing social attitudes about working mothers

Question 13

Noah is an unpaid stay-at-home father who is not currently searching for paid work.Pete is a full-time student who is not looking for a job.Who is included in the labor force by the Bureau of Labor Statistics?

Accepted Answer

A) only Noah 
B) only Pete 
C) both Noah and Pete 
D) neither Noah nor Pete

Question 14

Suppose that the adult population in the country of Atlantis is 115 million.If 80 million people are employed and 5 million are unemployed,then

Accepted Answer

A) 30 million are not in the labor force. 
B) 35 million are in the labor force. 
C) 75 million are in the labor force. 
D) 35 million are not in the labor force.

Question 15

The Bureau of Labor Statistics places people in the "employed" category if they

Accepted Answer

A) are without a job,but are available for work and have tried to find a job during the previous four weeks. 
B) work without pay in a family member's business. 
C) are waiting to be recalled to a job from which they had been laid off. 
D) All of the above are correct.

Question 16

Suppose that a well-respected study published in Child Psychology Today finds that a very high proportion of children raised by stay-at-home fathers are accepted to Harvard University.If a large number of previously working fathers quit their jobs and become stay-at-home dads,which of the following will occur,all else equal?
(i) The unemployment rate will decrease.
(ii) The size of the labor force will decrease.
(iii) The number of unemployed people will increase.
(iv) The unemployment rate will increase.

Accepted Answer

A) (i)and (ii)only 
B) (ii)and (iv)only 
C) (i), (ii),and (iii)only 
D) (ii), (iii),and (iv)only

Question 17

Frictional unemployment results from

Accepted Answer

A) job searching.It is often thought to explain relatively short spells of unemployment. 
B) job searching.It is often thought to explain relatively long spells of unemployment 
C) a surplus in the some labor markets.It is often thought to explain relatively short spells of unemployment. 
D) a surplus in some labor markets.It is often thought to explain relatively long spells of unemployment.

Question 18

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of households called the

Accepted Answer

A) Census. 
B) Labor Survey. 
C) Survey of Economic Indicators. 
D) Current Population Survey.

Question 19

In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million,unemployment of 12.4 million,and employment of 141.6 million.Based on these numbers the labor-force participation rate was

Accepted Answer

A) 154/234.9. 
B) 141.6/234.9. 
C) 141.6/154. 
D) None of the above is correct.

Question 20

Spells of unemployment end about

Accepted Answer

A) 1/5 of the time with the person leaving the labor force. 
B) 1/4 of the time with the person leaving the labor force. 
C) 1/3 of the time with the person leaving the labor force. 
D) 1/2 of the time with the person leaving the labor force.

Exam 15: Unemployment: Identifying Unemployment