Econ Lesson 8

A person who works part-time is considered to be: a. employed. b. unemployed. c. out of the labor force. d. overemployed.

a. employed.

A welder who quits his job and moves from Houston to Buffalo to try to get a better welding job is said to be: a. frictionally unemployed. b. underemployed. c. cyclically unemployed. d. structurally unemployed.

a. frictionally unemployed

​Kathryn chooses to go to college full-time rather than to work. Kathryn: a. is not part of the labor force. b. is part of the labor force and what economists call a discouraged worker. c. is part of the labor force, but not actively seeking work. d. is considered employed.

a. is not part of the labor force.

Sam looked for work for six months but could not find a job to his liking. He now spends his time at the beach. For purposes of employment he is considered: a. out of the labor force. b. unemployed. c. employed in the underground economy. d. underemployed.

a. out of the labor force

Persons who do not hold a job and are not actively seeking work are considered: a. out of the labor force. b. unemployable, and not counted in official statistics. c. underemployed. d. unemployed.

a. out of the labor force.

Unemployment resulting from normal turnover in the labor market is called: a. frictional unemployment. b. cyclical unemployment. c. structural unemployment. d. seasonal unemployment.

a. frictional unemployment.

​A college student who is enrolled in school full-time and not seeking employment is considered: a. out of the labor force. b. unemployable, and not counted in official statistics. c. employed in leisure. d. underemployed.

a. out of the labor force

Frictional unemployment occurs when: a. there is friction between an employer and employee. b. a worker decides to quit to seek a different job. c. a large corporation transfers a worker to another city. d. college students go back to school at the end of the summer.

b. a worker decides to quit to seek a different job

Persons who do not hold a job, but are actively seeking work are considered: a. out of the labor force. b. unemployed. c. unemployable, and not counted in official statistics. d. underemployed.

b. unemployed.

Structural unemployment includes: a. unemployment caused by workers who leave positions to seek better jobs. b. unemployment caused by automation that displaces workers from their jobs. c. unemployment caused by a decline in the economy's total production. d. unemployment caused by the geographical and occupational mobility of the labor force.

b. unemployment caused by automation that displaces workers from their jobs.

A marginally attached worker (fallen out of the labor force) is: a. Sue who works part time b. Bill didn't get a job offer after he graduated from college. He is now taking time to enjoy life while hiking through the Andes mountains c. A farm worker picking this year's pumpkin crop d. Edward who was lost his job during the recession and can't find another one after sending out hundreds of resumes. ​

b. Bill didn't get a job offer after he graduated from college. He is now taking time to enjoy life while hiking through the Andes mountains

Unemployment caused by a contraction or recession in the economy is called: a. frictional unemployment. b. cyclical unemployment. c. structural unemployment. d. seasonal unemployment.

b. cyclical unemployment.

If the unemployment rate is 8 percent, this means: a. 8 percent of the population is unemployed. b. 8 percent of the population over age 16 is unemployed. c. 8 percent of the labor force is unemployed. d. the number of unemployed persons equals 8 percent of the employed persons.

c. 8 percent of the labor force is unemployed.

If the economy is operating with full employment, which of the following is essentially eliminated? a. frictional unemployment b. structural unemployment c. cyclical unemployment d. all of the above

c. cyclical unemployment

​A person who works 25 hours per week: a. is considered to be a discouraged worker. b. is considered to be unemployed. c. is considered to part of the labor force. d. none of the above

c. is considered to part of the labor force.

The total labor force equals: a. the number of officially employed persons. b. the number of officially unemployed persons. c. the number of officially employed plus unemployed persons. d. the number of persons aged sixteen and over in the population.

c. the number of officially employed plus unemployed persons.

The unemployment rate is calculated as: a. the number of officially unemployed persons divided by the number of officially employed persons. b. the number of officially employed persons divided by the number of officially unemployed persons. c. the number of officially unemployed persons divided by the number of officially employed plus unemployed persons. d. the number of officially unemployed persons divided by the population.

c. the number of officially unemployed persons divided by the number of officially employed plus unemployed persons.

​Unemployment that results from technological changes that renders some people's skills obsolete is called: a. frictional unemployment. b. cyclical unemployment. c. structural unemployment. d. seasonal unemployment.

c. structural unemployment.

​A discouraged worker is someone who: a. has a job, but wants to get a different one. b. is unemployed and looking for work. c. quits a job and is unable to collect unemployment compensation. d. gives up looking for work during a recession, and is no longer counted as unemployed.

d. gives up looking for work during a recession, and is no longer counted as unemployed.