CH 15.1 quiz review

Cyclical unemployment refers to a. short-run fluctuations around the natural rate of unemployment b. the portion of unemployment created by wages set above the equilibrium level c. the portion of unemployment created by job search d. changes in unemployment due to changes in the natural rate of unemployment.

a. short-run fluctuations around the natural rate of unemployment

In June 2009 the Bureau of Labor Statistics reported an adult population of 9 million, a labor force of 154 million and employment of 141.6 million. Based on these numbers the unemployment rate was a. 12.4/154 b. 12.4/234.9 c. 93.3/234.9 d. 93.3/154

a. 12.4/154

Tatiana is waiting to be recalled to a job from which she was laid off. Ivan was fired but has not looked for work during the last two months. Who does the Bureau of Labor Statistics count as "unemployed"? a. Tatiana but not Ivan b. Both Ivan and Tatiana c. Neither Ivan nor Tatiana d. Ivan but not Tatiana

a. Tatiana but not Ivan

To be counted as "employed" in the U.S. labor force statistics, a person a. does not have to be working for pay if they are working for a family business and does not have to be working full time b. must be working for pay and be working full time c. must be working for pay but does not have to be working full time d. does not have to be working for pay if they are working for a family business but must be employed full time.

a. does not have to be working for pay if they are working for a family business and does not have to be working full time

Gwen is an unpaid worker in her family's restaurant. The Bureau of Labor Statistics counts Gwen as a. employed and in the labor force b. unemployed and in the labor force c. a marginally attached worker d. a discouraged worker.

a. employed and in the labor force

Which of the following is not one of the categories into which the Bureau of Labor Statistics places each adult of each surveyed household? a. underemployed b. not in labor force c. employed d. unemployed

a. underemployed

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 a. 16% b. 80% c. 13% d. 67%.

b. 80%

Suppose that some country had an adult population of about 50 million, a labor-force participation rate of 60 percent, and an unemployment rate of 5 percent. How many people were employed? a. 47.5 million b. 1.5 million c. 28.5 million d. 30 million

c. 28.5 million

The natural rate of unemployment is the a. difference between the long-run and short-run unemployment rates b. rate associated with the highest possible level of GDP c. amount of unemployment that the economy normally experiences d. unemployment rate that would prevail with zero inflation.

c. amount of unemployment that the economy normally experiences

The labor force equals the a. number of people employed plus the number of people unemployed plus teenagers between ages 14 and 16 who work at least 10 hours a week b. number of people employed c. number of people employed plus the number of people unemployed d. adult population.

c. number of people employed plus the number of people unemployed

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 a. frictional unemployment b. the natural rate of unemployment c. structural unemployment d. cyclical unemployment.

c. structural unemployment

The labor-force participation rate measures the percentage of the a. labor force that is either employed or unemployed b. total adult population that is employed c. total adult population that is in the labor force d. labor force that is employed.

c. total adult population that is in the labor force

The amount of unemployment varies a. little over time but substantially across countries b. little over time and across countries c.substantially over time and across countries d.substantially over time but little across countries.

c.substantially over time and across countries

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 unemployed? a.3.68 million b. 2.54 million c.8 million d. 2.76 million

d. 2.76 million

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 a. 35 million are in the labor force b. 75 million are in the labor force c. 35 million are not in the labor force d. 30 million are not in the labor force.

d. 30 million are not in the labor force.

Who of the following is not included in the Bureau of Labor Statistics' "employed" category? a. Those who were temporarily absent from work because of vacation b. Those who worked in their own business c. Those who worked as unpaid workers in a family member's business d. Those waiting to be recalled to a job from which they had been laid off

d. Those waiting to be recalled to a job from which they had been laid off

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 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.

d. and the labor-force participation rate are both unaffected.

If an unemployed person quits looking for work, then, eventually the unemployment rate a. decreases, and the labor-force participation rate is unaffected b.is unaffected, and the labor-force participation rate decreases c. and the labor-force participation rate are both unaffected d. and the labor-force participation rate both decrease.

d. and the labor-force participation rate both decrease.

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called a. structural unemployment b. cyclical unemployment c. the natural rate of unemployment d. frictional unemployment.

d. frictional unemployment

Josh is a full-time college student who is not working or looking for a job. The Bureau of Labor Statistics counts Josh as a. unemployed b. marginally attached worker c. employed d. not in the labor force.

d. not in the labor force.