Chapter 6: Jobs and Unemployment

Who in the following statements is a discouraged worker​? A. Ned is available to work and has been sending job applications whenever he sees any suitable opportunity. B. 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. C. Nick is changing his job because he has had differences with his​ co-workers in his current company. D. Rachel does not find her current job profile interesting and is looking for alternate opportunities.

B. 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

Cyclical unemployment is the fluctuating unemployment over the business cycle that increases during​ _____ and decreases during​ _____. A. an​ expansion; a recession B. technological​ stagnation; technological advancements C. a​ recession; an expansion D. imports; exports

C. a​ recession; an expansion

What is the natural unemployment​ rate? The natural unemployment rate​ _______. A. is equal to the amount of cyclical unemployment divided by the labor force B. is always less than the actual unemployment rate C. is the unemployment rate when there is no cyclical unemployment D. always equals zero

C. is the unemployment rate when there is no cyclical unemployment

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 or in the U.S. Armed Forces. A. people; 15 B. graduates; 20 C. people; 16 D. workers; 18

C. people; 16

Full employment is when there is no​ _____ unemployment​ or, equivalently, when all the unemployment is​ _____ or​ _____. A. frictional; structural; cyclical B. structural; frictional; natural C. cyclical; structural; natural D. cyclical; frictional; structural

D. cyclical; frictional; structural

The output gap is real GDP minus​ _____ expressed as a percentage of​ _____. A. potential​ GDP; real GDP B. investment; potential GDP C. interest​ rate; interest rate D. potential​ GDP; potential GDP

D. potential​ GDP; potential GDP

What is a discouraged​ worker? A discouraged worker​ _______. A.is someone who works part time but would like a full-time job B.is considered in the population survey to be unemployed C.is included in the labor force D.is a marginally attached worker who has not made specific efforts to find a job within the previous four weeks because previous unsuccessful attempts were discouraging

D.is a marginally attached worker who has not made specific efforts to find a job within the previous four weeks because previous unsuccessful attempts were discouraging

Who in the following statements is a ​part-time worker for economic reasons​? A. Sherrie is a graduate who started working at Safeway pharmacy for 4 hours each​ day, three days a​ week, as they do not currently have a​ full-time opening. B. Julie works at Bank of America for 8 hours each day from Monday through Friday. C. Meryl recently retired from work and started working at the public library for a couple of hours on weekdays. D. Amy works at a community college for 6 hours each​ day, only two days a​ week, to be able to spend time with her kids.

A. Sherrie is a graduate who started working at Safeway pharmacy for 4 hours each​ day, three days a​ week, as they do not currently have a​ full-time opening.

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. available; willing;​ made; six D. not​ available; not​ willing; not​ made; four

A. available; willing; not​ made; four

The labor force is the number of people employed plus the​ _____. A. number unemployed B. working-age population C. number of women unemployed D. working-age population

A. number unemployed

The labor force participation rate is the percentage of the​ _____ who are members of the labor force. A. working-age population B. number unemployed C. part-time workers D. number of women

A. working-age population

What is the unemployment that arises from normal labor turnover—from people entering and leaving the labor force—and from the ongoing creation and destruction of jobs​? The unemployment that arises from normal labor turnover—from people entering and leaving the labor force— and from the ongoing creation and destruction of jobs is​ ______. A.frictional unemployment B.natural unemployment C. cyclical unemployment D. structural unemployment

A.frictional unemployment

Who in the following statements is a ​full-time worker and who is a ​part-time worker​? A. Dan works at Subway for 6 hours each day from Monday through Friday. Ann works at​ Walgreens' pharmacy for 5 hours each day from Monday through Sunday. B. Dan works at Subway for 8 hours each day from Monday through Friday. Mary works at​ Starbucks' for 4 hours each day on weekends. C. Meg works at Walmart for 3 hours each day from Monday through Friday and at​ Starbucks' for 4 hours each day on weekends. Rita works for 40 hours a week at a bank. D. Ron works at Subway for 3 hours each day from Monday through Thursday. Ned works at Safeway pharmacy for 7 hours each day from Monday through Friday.

B. Dan works at Subway for 8 hours each day from Monday through Friday. Mary works at​ Starbucks' for 4 hours each day on weekends.

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

B. Outsourcing resulted in many job losses in the mid 2000s.

Which statement describes unemployment in the United​ States? A. Unemployment increases in an expansion and decreases in a recession. B. There is always someone without a job who is searching for​ one, so there is always some unemployment. C. A healthy U.S. economy has zero unemployment. D. A primary goal of the U.S. government is to eliminate unemployment.

B. There is always someone without a job who is searching for​ one, so there is always some unemployment.

The natural unemployment rate is the unemployment rate when the economy is​ _____. A. facing high inflation B. at full employment C. not at full employment D. facing high interest rates

B. at full employment

What is the relationship between the unemployment rate and the natural unemployment​ rate, and real GDP and potential​ GDP? When the unemployment rate​ _______ the natural unemployment​ rate, real GDP​ _______ potential GDP. A. is greater than; is greater than B. equals​; equals C.is less than; is less than D. equals; is greater than

B. equals​; equals

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

B. labor force

Potential GDP is the value of 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. average​ costs; marginal​ costs; variable​ costs; fixed​ costs; minimized D. labor; capital;​ stocks; bonds; employed

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

The Great Depression was a period of high​ _____, low​ _____, and extreme economic hardship that lasted from​ _____ to​ _____. A. unemployment; incomes;​ 1928; 1938 B. unemployment; incomes;​ 1929; 1939 C. interest​ rates; incomes;​ 1925; 1935 D. inflation; consumption​ expenditure; 1925; 1935

B. unemployment; incomes;​ 1929; 1939

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

B.Robin is quitting his current job to find another that has better prospects.

What is a characteristic of an economy at full​ employment? A. All unemployment is structural and cyclical. B. The unemployment rate is less than the natural unemployment rate. C. The unemployment rate equals the natural unemployment rate. D. All unemployment is cyclical.

C. The unemployment rate equals the natural unemployment rate.