Question 1

Suppose that some country had an adult population of about 46 million,a labor-force participation rate of 75 percent,and an unemployment rate of 8 percent.How many people were employed?

Accepted Answer

A) 2.76 million 
B) 31.74 million 
C) 34.5 million 
D) 42.32 million

Question 2

The deviation of unemployment from its natural rate is called

Accepted Answer

A) the normal rate of unemployment. 
B) deviant unemployment. 
C) cyclical unemployment. 
D) fluctuating unemployment.

Question 3

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

Accepted Answer

A) 600 households. 
B) 6,000 households. 
C) 60,000 households. 
D) 6,000,000 households.

Question 4

Which of the following is not an explanation for the existence of unemployment in the long run?

Accepted Answer

A) it takes time for workers to search for the jobs that are best suited for them 
B) minimum-wage laws 
C) unions 
D) the business cycle

Question 5

Scenario 28-1
Suppose that the Bureau of Labor Statistics reports that the entire adult population of Mankiwland can be categorized as follows: 25 million people employed,3 million people unemployed,1 million discouraged workers,and 1 million people who are either students,homemakers,retirees,or other people not seeking employment.
-Refer to Scenario 28-1.What is the labor-force participation rate?

Accepted Answer

A) 83.3% 
B) 86.7% 
C) 93.3% 
D) 96.7%

Question 6

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

Accepted Answer

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

Question 7

Esmerelda worked part-time for her mother's business without pay.Tabitha was absent from work because she had strep throat.Who is counted as "employed" by the Bureau of Labor Statistics?

Accepted Answer

A) Esmerelda but not Tabitha 
B) Tabitha but not Esmerelda 
C) both Esmerelda and Tabitha 
D) neither Esmerelda nor Tabitha

Question 8

Olga owns her own business.Sven is an unpaid worker in his family's business.Who is included in the Bureau of Labor Statistics' "employed" category?

Accepted Answer

A) only Olga 
B) only Sven 
C) both Olga and Sven 
D) neither Olga nor Sven

Question 9

Suppose that the adult population in some country is 225 million.If 40 million are unemployed and 100 million are employed,then the unemployment rate is approximately

Accepted Answer

A) 29%. 
B) 18%. 
C) 24%. 
D) 6%.

Question 10

Which of the following is the correct formula for calculating the labor force participation rate?

Accepted Answer

A)   
B)   
C)   
D)

Question 11

Just after World War II,the labor-force participation rate of men was

Accepted Answer

A) about 33 percent,and in 2015,it was about 50 percent. 
B) about 50 percent,and in 2015,it was about 60 percent. 
C) about 60 percent,and in 2015,it was about 60 percent. 
D) about 90 percent,and in 2015,it was about 70 percent.

Question 12

John is a stockbroker.He has had several job offers,but he has turned them down because he thinks he can find a firm that better matches his tastes and skills.Curtis has looked for work as an accountant for some time.While the demand for accountants does not appear to be falling,there seems to be more people applying than jobs available.

Accepted Answer

A) John and Curtis are both frictionally unemployed. 
B) John and Curtis are both structurally unemployed. 
C) John is frictionally unemployed,and Curtis is structurally unemployed. 
D) John is structurally unemployed,and Curtis is frictionally unemployed.

Question 13

A person who is counted as "unemployed" by the Bureau of Labor Statistics

Accepted Answer

A) is also in the labor force. 
B) must have recently looked for work or be on temporary layoff. 
C) must be at least 16 years old. 
D) All of the above are correct.

Question 14

According to 2014 data on the U.S.population,which of the following groups of adults of prime working age (ages 25-54)had the lowest unemployment rate?

Accepted Answer

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

Question 15

Matilda just graduated from college.In order to devote all her efforts to college,she didn't hold a job.She is going to tour around the country on her motorcycle for a month before she starts looking for work.Other things the same,the unemployment rate

Accepted Answer

A) increases,and the labor-force participation rate decreases. 
B) and the labor-force participation rate both increase. 
C) increases,and the labor-force participation rate is unaffected. 
D) and the labor-force participation rate are both unaffected.

Question 16

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

Accepted Answer

A) availability of reliable birth control 
B) men acquiring additional years of schooling before entering the labor force 
C) a preference for men to retire when younger 
D) changing social attitudes about stay-at-home fathers

Question 17

Karena was laid off,but she is expecting to be recalled.She has not looked for work since being laid off.Nathan is not employed,nor was he laid off.Who is counted as "unemployed" in the U.S.labor force statistics?

Accepted Answer

A) 1)Karena and 2)Nathan,even if Nathan has not looked for work during the previous four weeks 
B) 1)Karena and 2)Nathan,if Nathan has looked for work during the previous four weeks 
C) 1)not Karena but 2)Nathan,even if Nathan has not looked for work during the previous four weeks 
D) 1)not Karena but 2)Nathan,if Nathan has looked for work during the previous four weeks

Question 18

Suppose that the adult population is 6 million,the number of employed is 3.8 million,and the labor-force participation rate is 70%.What is the unemployment rate?

Accepted Answer

A) 6.7% 
B) 9.5% 
C) 10.5% 
D) 28%

Question 19

The natural unemployment rate includes

Accepted Answer

A) both frictional and structural unemployment. 
B) neither frictional nor structural unemployment. 
C) structural but not frictional unemployment. 
D) frictional but not structural unemployment.

Question 20

The adult population in the town of Shelbyville is 150 thousand.If 100 thousand people are employed and 20 thousand are unemployed,then the labor force participation rate is approximately

Accepted Answer

A) 67%. 
B) 80%. 
C) 16%. 
D) 13%.

Exam 15: Unemployment: Identifying Unemployment