Econ Exam 2

22.14:FULL EMPLOYMENT is when there is no ____ unemployment or, equivalently, when all the unemployment is ___ or ___. A. structural; frictional; natural B. frictional;structural; cyclical C. cyclical;frictional;structural D. cyclical; structural; natural

C. cyclical; frictional; structural

22.2 :The LABOR FORCE is the number of people employed plus the _________. A. working-age population B. working-age population C. number of women employed D. number unemployed

D. number unemployed

22.16: The OUTPUT GAP is real GDP minus ____ expressed as a percentage of ______. A. interest rate; interest rate B. investment; potential GDP C. potential GDP; real GDP D. potential GDP; potential GDP

D. potential GDP; potential GDP

22.4: The LABOR FORCE PARTICIPATION RATE is the percentage of the ____ who are members of the labor force. A. number of women B. number of unemployed C. part-time workers D. working-age population

D. working-age population

22.5: A MARGINALLY ATTACHED WORKER is a person who does not have a job, is ____ and ___ to work, has ____ specific efforts to find a job within the previous ____ weeks, but has looked for work sometime in the recent past. A. available; willing; not made; four B. available; willing; not made; six C. not available; not willing; not made; four D. available; willing; made; six

A. available; willing; not made; four

22.8: Who in the following statements is a PART-TIME worker FOR ECONOMIC REASONS? A. Amy works at a community college for 6 hrs/day, only 2 days/week, to be able to spend time with her kids. B. Sherrie is graduate who started working at Safeway pharmacy for 4 hours/day, 3 days/week, as they don not currently have a full-time opening. C. Julie works at bank of America for 8 hrs/day, Mon-Fri. D. Meryl recently retired from work and started working at the public library for a couple of hours on weekends.

B. Sherrie

22.3: The UNEMPLOYMENT RATE is the percentage of the people in the _____ who are unemployed. A. age group 20-60 B. labor force C. number of disabled D. number of women and children

B. labor force

22.15: POTENTIAL GDP is the value or real GDP when all the economy's factors of production- ___, ____,____, and ___- are fully ___. A. wages; rent; interest; profits; optimized B. labor; capital; land; entrepreneurial ability; employed C. labor; capital; stocks ; bonds; employed D. average costs; marginal costs; variable costs; fixed costs; minimized

B. labor; capital; land; entrepreneurial ability; employed

22.6: Who in the following statements is a DISCOURAGED WORKER? A. Ned is available to work and has been sending job application whenever he sees any suitable opportunity. B. Rachel does not find her current job profile interesting and is looking for alternate opportunities. C. Dan is available to work but has not looked for a job in the past eight weeks because of repeated applications but no single offer. D. nick is changing his job because he has had differences with his co-workers in his current company.

C. Dan

22.7: Who in the following statements is a FULL-TIME worker and who is a PART-TIME worker? A. Dan works at a Subway for 6 hours each day from Mon-Fri. Ann works at Walgreen's pharmacy for 5 hours each day from Monday through Sunday. B. Ron works at Subway for 3 hours each day from Monday-Thursday. Ned works at Safeway pharmacy for 7 hours each day from Monday- Friday. C. Dan works at Subway for 8 hours each day from Mon-Fri. Mary works at Starbucks for 4 hours each day on weekends. D. Meg works at Walmart for 3 hours each day from Mon-Fri and at Starbucks for 4 hours each day on weekends. Rita works for 40 hours a week at a bank.

C. Dan; Mary

22.13:The NATURAL UNEMPLOYMENT RATE is the unemployment rate when the economy is _____. A. facing high inflation B. facing high interest rates C. at full employment D. not at full employment

C. at full employment

22.11:Which of the following statements illustrates STRUCTURAL UNEMPLOYMENT? A. Many women quit their jobs to raise their kids. B. Dell laid off many employees when the company's profits dropped during the recession. C. Outsourcing resulted in many job losses in the mid 2000's. D. Jen quit her current job and found another one with a better pay scale.

C. outsourcing

22.9: the GREAT DEPRESSION was a period of high ___, low ___, and extreme economic hardship that lasted from ___ to ____. A. Interest rates; incomes; 1925; 1935 B. inflation; consumption expenditure; 1925;1935 C. unemployment; incomes; 1929;1939 D. unemployment; incomes; 1928; 1938

C. unemployment; incomes; 1929; 1939

22.10:Which of the following statements illustrates FRICTIONAL UNEMPLOYMENT? A. Thousands of employees were laid off during the 2008-09 recession. B.Dave lost his job as he did not posses the technical skills required to do his duty. C. Many bank tellers lost their jobs due to the installation of ATM machines. D. Robin is quitting his current job to find another that has better prospects.

D. Robin

22.12:CYCLICAL UNEMPLOYMENT is the fluctuating unemployment over the business cycle that increases during __ and decreases during____. A. technological stagnation; technological advancements B. an expansion; a recession C. imports; exports D. a recession; an expansion

D. a recession; and expansion

Q22.1: The WORKING-AGE POPULATION is the total number of _____ aged ____ years and over who are not in jail, hospital, or some other form of institutional care of in the U.S. Armed forces. A. people; 15 B. workers; 18 C. people; 16 D. graduates; 20

c. people; 16