Quiz 10 Unemployment- Macroeconomics

Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category? A. Marisa, who neither has a job nor is looking for one B. Miguel, who is on temporary layoff C. Reta, who worked only 15 hours last week D. None of the above is correct.

B. Miguel, who is on temporary layoff

Evidence from research studies by economists A. shows that increased unemployment benefits decrease the job search efforts of the unemployed. B. shows that increased unemployment benefits increase the job search efforts of the unemployed. C. shows that increased unemployment benefits have virtually no effect on the job search efforts of the unemployed. D. is conflicting on what increased unemployment benefits do to the job search efforts of the unemployed.

A. shows that increased unemployment benefits decrease the job search efforts of the unemployed.

To maintain their standard of living, most people rely on A. their labor earnings. B. their personal savings. C. government assistance. D. rental income.

A. their labor earnings.

Table 28-6 Civilian labor force 100 million Persons unemployed 15 weeks or longer 1.6 million Job losers and persons who have completed temporary jobs (excludes job leavers) 3.1 million Total unemployed 6.2 million Total unemployed plus discouraged workers 7.0 million Total unemployed plus all marginally attached workers 8.1 million Total unemployed plus all marginally attached workers plus total employed part-time for economic reasons 9.2 million Refer to Table 28-6. What is the U-2 measure of labor underutilization? A. 3.1% B. 1.5% C. 6.2% D. 4.7%

A. 3.1%

The amount of unemployment that an economy normally experiences is called the A. natural rate of unemployment. B. average rate of unemployment. C. typical rate of unemployment. D. cyclical rate of unemployment.

A. natural rate of unemployment.

Sam has no job but keeps applying to get a job with a business that is unionized. He is qualified and he finds the pay attractive, but the firm is not hiring. Sam is A. frictionally unemployed. Frictional unemployment does not exist in the long run. B. structurally unemployed. Structural unemployment exists even in the long run. C. structurally unemployed. Structural unemployment does not exist in the long run. D. frictionally unemployed. Frictional unemployment exists even in the long run.

B. structurally unemployed. Structural unemployment exists even in the long run.

The Bureau of Labor Statistics reported in 2005 that there were 59.98 million people over age 25 whose highest level of education was a high school degree or equivalent, 36.40 million of whom were employed and 1.93 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group? A. 60.7% and 3.2% B. 60.7% and 5.0% C. 63.9% and 5.0% D. 63.9% and 3.2%

C. 63.9% and 5.0%

In the 1990's Ireland made unemployment benefits less generous. This change would likely have reduced A. both structural unemployment and the natural rate of unemployment. B. structural unemployment but not the natural rate of unemployment. C. both frictional unemployment and the natural rate of unemployment. D. frictional unemployment but not the natural rate of unemployment.

C. both frictional unemployment and the natural rate of unemployment.

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 unemployed? A. 5 million B. 2.5 million C. 1.425 million D. 1.5 million

D. 1.5 million

For the Bureau of Labor Statistics to place someone in the "unemployed" category, that person must A. have tried to find employment during the previous year. B. have worked no more than 10 hours during the past week.. C. not have been laid off. D. None of the above is correct.

D. None of the above is correct.

Most spells of unemployment are short, and most unemployment observed at any given time is long-term. a. TRUE b. FALSE

TRUE

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then job search would not be a problem. a. TRUE b. FALSE

a. TRUE

Three possible reasons for an above-equilibrium wage are minimum-wage laws, unions, and efficiency wages. a. TRUE b. FALSE

a. TRUE

When a country keeps its workers as fully employed as possible, it achieves a higher level of GDP than if many of its workers were idle. a. TRUE b. FALSE

a. TRUE

Most people rely primarily on income other than their labor earnings to maintain their standard of living. a. TRUE b. FALSE

b. FALSE