Econ 102 Chapter 8

A discouraged worker ______ counted as officially unemployed and ______ counted as in the labor force A) is not; is not B) is; is not C) is; is D) is not; is

A

Andrew just lost his job as a corkscrew operator since his company has found a machine to perform his work tasks. Andrew did not have the skills needed to operate the machine. Andrew has searched for a new job for 6 months and continues to search. Therefore, Andrew is considered to be A) structurally unemployed. B) frictionally unemployed. C) a discouraged worker. D) cyclically unemployed

A

Cyclical unemployment A) fluctuates over the business cycle B) decreases during a recession C) is higher during an expansion D) is always present in an economy

A

Cyclical unemployment _____ during expansions and _______ during recessions A) decreases; increases B) increases; increases C) decreases; decreases D) increases; decreases

A

Frictional unemployment is A) unemployment associated with the changing of jobs in a changing economy B) unemployment associated with business cycle recessions C) unemployment associated with declining industries D) long-term unemployment

A

From 1980 to 2000 the employment-to-population ratio generally ______ and from 2000 to 2015 the ratio generally _______ A) increased; decreased B) decreased; increased C) increased; increased D) decreased; decreased

A

Full employment occurs A) only if the unemployment rate is equal to the natural unemployment rate B) only if unemployment is equal to structural unemployment plus cyclical unemployment C) only if the unemployment rate is zero D) none of the above

A

If the population is 300 million, with 70 million under the age of 16 and institutionalized, another 70 million not in the labor force, 10 million unemployed, and 150 million employed, the employment-to-population rate is A) 65.2 percent. B) 53.3 percent. C) 87.5 percent. D) 46.7 percent

A

Suppose that the natural unemployment rate is 4.5% and the actual unemployment rate is 3.5%. Then cyclical unemployment is A) -1% B) 0% C) 1% D) 8%

A

Suppose the country of Quasiland experienced a decrease in real GDP and people were laid off their jobs. The people would be considered part of A) cyclical unemployment B) downtime unemployment C) discouraged workers D) frictional unemployment

A

The labor force participation rate is percentage of the _______ who are in the labor force A) working-age population B) people over age 16 C) people under age 65 D) population

A

The official U-3 unemployment rate A) includes persons without a job who have made efforts in the last week to find a job B) counts discouraged workers as unemployed C) counts people with part-time jobs who want full-time jobs as unemployed D) includes persons without a job, whether they are actively searching or work or not

A

The official U-3 unemployment rate includes the total number of people who A) are available and looking for work but unable to find employment B) would like to have a full-time job but are working part-time C) have jobs or are currently looking for jobs D would like to have a job but have stopped seeking work

A

Unemployment that is the result of recessions is called A) cyclical unemployment B) downtime unemployment C) structural unemployment D) frictional unemployment

A

When the economy is operating at full employment, the natural unemployment rate consists of only A) frictional and structural unemployment B) frictional and cyclical unemployment C) cyclical unemployment D) structural and cyclical unemployment

A

An individual who has stopped looking for a job but has looked in the past and still wants a job is referred to as A) a productive worker B) a marginally attached worker C) a contingent worker D) an unemployed worker

B

From 1980 to 2000 the labor force participation rate generally ______ and from 2000 to 2015 the rate generally ________ A) decreased; decreased B) increased; decreased C) increased; increased D) decreased; increased

B

In a country with a working-age population of 100 million, 70 million workers are employed and 5 million workers are unemployed. What is the labor force participation rate? A) 70 percent B) 75 percent C) 5 percent D) 7 percent

B

Structural unemployment is A) associated with the changing of jobs in a dynamic economy B) associated with changes in technology that change require job skills C) very short-term unemployment D) associated with general downturns in the economy

B

Suppose that Matt quits a job with the XYZ Corporation in order to look for more rewarding employment. Matt is best to be considered as A) included in the economy's "hidden unemployment" B) frictionally unemployed C) cyclically unemployed D) still being employed

B

The natural employment rate A) is the unemployment rate when there is only cyclical unemployment B) is the unemployment rate at full employment C) is the unemployment rate when there is no structural unemployment D) occurs when the unemployment rate is 0%

B

The percentage of people employed aged 16 years and older divided by the working-age population is known as the A) labor force participation rate B) employment-to-population ratio C) working-age population ratio D) employment rate

B

The type of unemployment created by the normal rate of reentry and entry into the labor force is A) seasonal unemployment B) frictional unemployment C) cyclical unemployment D) structural unemployment

B

Which of the following is NOT considered to be in the labor force? A) a person who is not working but who has tried to find a job in the past week B) a person who is not working and who has not tried to find a job C) a student who works part-time D) a person who is waiting to start a new job in the next 30 days

B

From September 2013 to September 2014, the employment-to-population ratio increased from 58.6 percent to 59.0 percent. This change could have been the result of A) discouraged workers starting to look for jobs again B) unemployed workers becoming discouraged workers C) a decrease in the working-age population D) unemployed workers becoming part-time workers

C

If unemployment equals the natural unemployment rate, then there A) is zero unemployment B) are no job openings existing at the time C) is only frictional or structural unemployment D) is less than full unemployment

C

Suppose that the unemployment rate equals 4.5% and that the natural unemployment rate is 5.5%. We can conclude that A) the output gap equals zero B) we have mismeasured the natural unemployment rate C) the output gap is positive D) the output gap is negative

C

The three types of unemployment are A) frictional, part-time, and involuntary B) voluntary, involuntary, and structural C) frictional, structural, and cyclical D) voluntary, part-time, and cyclical

C

Which labor market statistic tends to rise during recessions and fall during expansions? A) aggregate hours B) the employment-to-population ratio C) the unemployment rate D) the labor-force participation rate

C

Bob inherits a large sum of money from his dead uncle's estate. Bob decides to retire young, so he quits his job and heads to the Bahamas. Bob is an example of A) structural unemployment B) cyclical unemployment C) frictional unemployment D) None of the above

D

Catherine quit her job to find a new one. therefore she is best considered as A) cyclically unemployed B) structurally unemployed C) seasonally unemployed D) frictionally unemployed

D

Full employment occurs when A) there is no frictional unemployment B) the unemployment rate is less than 5 percent C) there is no unemployment D) there is no cyclical unemployment

D

In September 2014, the official U-3 unemployment rate dropped from 6.1 to 5.9 percent. This change could have been caused by A) workers who had perviously given up looking for a job starting to look again B) part-time workers getting a full-time job C) full-time workers become part-time workers D) unemployed workers giving up looking for a job

D

Marginally attached workers fall into which of the following population categories? A) unemployed B) employed C) labor force D) not in the labor force

D

Suppose that the number of jobs in the fishing industry decreases but the number of jobs in the travel industry increases. Initially, A) there is a shortage of workers in both sectors B) cyclical unemployment increases C) the economy remains at full employment D) structural unemployment increases

D

Suppose the population of Tiny Town is 100 people and the working age population is 70. If 10 of these people are unemployed, the unemployment rate in Tiny Town is A) 10/80 * 100 B) 10 percent C) 10/70 *100 There is not enough information provided to calculate the unemployment rate

D

The labor force is defined as A) number or people who are working B) number of people in blue-collar jobs C) number of people over 16 years of age D) sum of employed and unemployed people

D

The natural unemployment rate A) is attained whenever the unemployment rate is less than 5 percent because 95 percent employment is considered full employment B) estimated to be close to 9 percent in recent years in the United States C) occurs when 100 percent of the labor force is employed D) has been estimated to range between 4% and 6% in the United States in recent years

D

The unemployment rate is measured as A) an indicator for potential inflation B) the number of people that want to work but cannot find jobs our of the entire population C) an indicator to determine long-term economic growth D) the percentage of people in the labor force who are unemployed

D

Using the definition of unemployment, which of the following individuals would be unemployed? A) Because of the increased level of automobile imports, an employee of General Motors is laid off but expects to be called back to work soon. B) Because of a reduction in the military budget, your next door neighbor loses her job in a plant where nuclear warheads are made and must look for a new job. C) A full-time student quits school, enters the labor market for the first time, and searches for employment. D) All of these individuals are unemployed.

D

labor force participation rate shows the percentage of A) people not working, but who want to work B) new entrants into the labor force C) people who are not actively participating in meaningful economic activity D) non-institutionalized working-age people who are actually working or seeking employment

D