MacroEconomics Midterm Exam 2

The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least how old?

16 years old

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

60,000 households

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?

9.5%

Sheamous loses his job and decides to sit on the beach rather than look for work during the next few months. Other things the same, the unemployment rate: A. Increases and the labor-force participation rate decreases. B. increases and the labor force participation rate is unaffected. C. is unaffected and the labor force participation rate decreases. D. an the labor force participation rate are both unaffected.

A

Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category? A. Cemal, a full-time student who is not looking for work. B. Halim, who is on temporary layoff. C. Seynep, who has retired and is not looking for work. D. All of the above are correct.

B

Which of the following is not a requirement for the Bureau of Labor Statistics to place someone in the "Unemployed" category? A. the person must not have been employed. B. the person must not have been fired from their previous job. C. the person must have tried to find employment during the previous 4 weeks. D. The person must have been available for work.

B.

Satchel loses his job and immediately begins looking for another. Other things the same, the unemployment rate: A. Increases and the labor-force participation rate decreases. B. and the labor force participation rate both increases C. increases and the labor force participation rate is unaffected. D. is unaffected and the labor force participation rate decreases.

C

Which of the following is not correct? A. Across countries there are large differences in the average income per person. These differences are reflected in large differences in the quality of life. B. With a growth rate of about 2 percent per year, average income per person doubles about every 35 years. C. The ranking of countries by average income changes very little over time. D. In some countries real income per person has changed very little over many years.

C

In 2004, based on concepts similar to those used to estimate US employment figures, the Swedish adult non institutionalized population was 6.712 million, the labor force was 4.576 million, and the number of people employed was 4.276 million. According to these numbers, the Swedish labor-force participation rate and unemployment rate were about: A. 63.7% and 4.5 % B. 63.7% and 6.6% C. 68.2% and 6.6% D. 68.2% and 6.6%

D

Jai Li just lost her job, and she hasn't yet started looking for a new one. The Bureau of Labor Statistics counts Jai Li as: A. unemployed and in the labor force. B. unemployed, but no in the labor force. C. in the labor force, but not unemployed. D. neither in the labor force nor unemployed

D

President Bigego is running for re-election against Senator Pander. Bigego proclaims that more people are working now that when he took office. Pander says that the unemployment rate is higher now that when Bigego took office. You conclude that: A. On of them must be lying. B. Both of them could be telling the truth if the labor force and employment grew at the exact same rate. C. both of them could be telling the truth if the labor force grew slower than employment. D. both of them could be telling the truth if the labor force grew faster than employment.

D

Who of the following would necessarily be included in the Bureau of Labor Statistics' "unemployed" category? A. Anique, who did not work during the previous 4 weeks. B. Evelien, who tried to find new employment during the previous 4 weeks. C. Renate, who was an unpaid worker during the previous 4 weeks. D. None of the above

D

Waldo works eight hours and produces 7 units of goods per hour. Emerson works six hours and produces 10 units of goods per hour. Who's productivity and output is greater?

Emerson has higher productivity and output

Acarapi is a full time homemaker not currently searching for other work. Ximena 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?

Only Acarapi

Egzon is working part-time. Dijana is on temporary layoff. Who is included int he Bureau of Labor Statistics' "employed" category?

Only Egzon

The quantity of goods and services produced from each unit of labor input is called

Productivity

Discouraged workers

are counted as unemployed but should be counted as out of the labor force.

Suppose that some people are counted as unemployed when, to maintain unemployment compensation, they search for work only at places where thy are unlikely to be hired. If these individuals were counted as out of the labor force instead of as unemployed, then

both the unemployment rate and labor force participation rate would be higher.

In 2007, Modern Electronics, Inc. produced 60,000 calculators, employing 80 workers, each of whom worked 8 hours per day. In 2008, the same firm produced 76,500 calculators, employing 85 workers, each of whom worked 10 hours per day. Between 2007 and 2008, productivity at Modern Electronics

decreased by 4 percent

Productivity

explains most of the differences in the standard of living across countries.

Despite its status as one of the richest countries in the world, Japan

has few natural resources.

Technological Knowledge

is a determinant of productivity.

Suppose that a large number of men who used to work or seek work now no longer do either. Other things the same, this makes

the number of people unemployed rise but makes the labor force fall.