unemployment quiz

an increase in the unemployment rate.

An increase in cyclical unemployment will result in a decrease in frictional unemployment. an increase in structural unemployment. an increase in the natural rate of unemployment. an increase in the unemployment rate.

cyclical unemployment.

Workers laid off as a result of a recession suffer seasonal unemployment. natural unemployment. frictional unemployment. structural unemployment. cyclical unemployment.

the natural rate of unemployment will decrease.

If the federal government implements programs so that the unemployed are more quickly matched with jobs, then the natural rate of unemployment could either increase or decrease. the natural rate of unemployment will increase. the natural rate of unemployment will decrease. the natural rate of unemployment will not change.

not in the labor force

Someone who is available for work but has not actively looked for work in the previous four weeks would be classified as not in the working-age population. unemployed. not in the labor force. employed.

frictional unemployment

The advice to "keep searching, there are plenty of jobs around here for which you are qualified," would be most appropriate for which of the following types of unemployment? seasonal unemployment frictional unemployment cyclical unemployment structural unemployment

structural unemployment

The advice to "retrain" would be most appropriate for which of the following types of unemployment? core unemployment structural unemployment cyclical unemployment frictional unemployment

there is only cyclical unemployment in the economy.

When the labor market is at full employment there is only cyclical unemployment in the economy. there is no cyclical unemployment in the economy. there is only structural unemployment in the economy. the unemployment rate is 0%.

not in the labor force.

A full-time student who is not working is categorized as a discouraged worker. not in the labor force. frictionally unemployed. employed. unemployed.

False

Counting part-time workers who are looking for full-time work as employed overstates the degree of joblessness in the economy. True False

a slowdown in the economy.

Cyclical unemployment is the result of a slowdown in the economy. the search process of matching workers with jobs. a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs. the ups and downs in inflation.

the search process of matching workers with jobs.

Frictional unemployment is the result of the search process of matching workers with jobs. a slowdown in the economy. the ups and downs in inflation. a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs.

workers who have stopped looking for work because they believe there are no jobs for them.

Discouraged workers are workers who find their current jobs unfulfilling and are considering a job change. workers who have consistently been looking for work for more than 4 weeks. workers who have stopped looking for work because they believe there are no jobs for them. workers who have a part-time job but want a full-time job.

the unemployment rate fell.

During the month of May, 10 million workers moved from being classified as "unemployed" to being classified as "employed." As a result, the labor force participation rate fell. the unemployment rate rose. the labor force participation rate rose. the unemployment rate fell.

False

Eliminating frictional unemployment would be good for the economy. True False

False

Eliminating structural unemployment would be good for the economy. True False

seasonal

Emma is a road construction worker. During the winter months, Emma finds it more difficult to get work. The unemployment Emma experiences in the winter is cyclical. seasonal. structural. functional.

motivate workers to increase their productivity.

If firms pay what are called "efficiency wages," they pay wages that are lower than average to ensure maximum profit. will eventually lower the unemployment rate. are mandated by the government. motivate workers to increase their productivity.

decrease the measured unemployment rate.

If the BLS counted persons that are on active military service in the totals for employment, the labor force, or the working-age population, this would decrease the measured labor force participation rate. decrease the number of persons in the working-age population. decrease the number of persons in the labor force. decrease the measured unemployment rate.

5%.

If the number employed is 190 million, the working-age population is 230 million, and the number unemployed is 10 million, then the unemployment rate is 8%. 50%. 5%. 10%. 5.2%.

4% = 19/labor force 19/4= 4.75 475 million

If the number of unemployed workers is 19 million, the number in the working-age population is 500 million, and the unemployment rate is 4%, how many workers are in the labor force? 475 million 20 million 481 million 1 million

=19/0.04=475 million Labour force participation rate = Labour Force / Population = 475/500=95% 95%

If the number of unemployed workers is 19 million, the number in the working-age population is 500 million, and the unemployment rate is 4%, what is the labor force participation rate? 7.8% 96.2% 95% 4.75%

40%

If the number of unemployed workers is 200 million, and the number in the labor force is 500 million, what is the unemployment rate? 40% 0.4% 4% 14%

structural unemployment.

People who lost their jobs as hand-drawn animators because of the popularity of computer-generated 3D animation are examples of persons who are suffering unnatural unemployment. frictional unemployment. structural unemployment. cyclical unemployment. seasonal unemployment.

the labor force participation rate to decrease.

Suppose the government launches a successful advertising campaign that convinces workers with high school degrees to quit their jobs and become full time college students. This would cause the number of discouraged workers to increase. the unemployment rate to decrease. no change in the unemployment rate. the labor force participation rate to decrease.

(20/100) × 100.

Suppose the working-age population of a fictional economy falls into the following categories: 90 are retired or homemakers; 60 have full-time employment; 20 have part-time employment; 20 do not have employment, but are actively looking for employment; and 10 would like employment but do not have employment and are not actively looking for employment. The official unemployment rate as calculated by the U.S. Bureau of Labor would equal (20/60) × 100. (20/100) × 100. (30/80) × 100. (20/80) × 100.

employed

The Bureau of Labor Statistics would categorize a person as ________ if they were temporarily away from their job because they were ill. out of the labor force unemployed employed a discouraged worker

out of the labor force.

The Bureau of Labor Statistics would categorize a retiree who is not working as employed. out of the labor force. a discouraged worker. unemployed.

employed workers and unemployed workers.

The labor force is the sum of employed workers and individuals not looking for work. employed workers and discouraged workers. employed workers and unemployed workers. employed workers and the working age population. unemployed workers and the working age population.

(labor force divided by working-age population) × 100.

The labor force participation rate equals the (labor force divided by the number of people not in the labor force) × 100. (number of employed divided by the labor force) × 100. (labor force divided by the total population) × 100. (labor force divided by working-age population) × 100.

the percentage of the working-age population in the labor force.

The labor force participation rate is defined as the percentage of the labor force that is employed. the percentage of the labor force that is unemployed. the percentage of the working-age population in the labor force. the percentage of the working-age population that is employed. the percentage of the working-age population that is unemployed.

False

The natural rate of unemployment consists of frictional unemployment plus cyclical unemployment. True False

frictional and structural unemployment.

The natural rate of unemployment is made up of seasonal and structural unemployment. cyclical and structural unemployment. frictional, cyclical, and structural unemployment. frictional and cyclical unemployment. frictional and structural unemployment.

frictional unemployment.

The short-term unemployment arising from the process of matching workers with jobs is called unnatural unemployment. seasonal unemployment. structural unemployment. cyclical unemployment. frictional unemployment.

unemployed persons falsely report themselves to be actively looking for a job

Which of the following cause the unemployment rate as measured by the Bureau of Labor Statistics to overstate the true extent of joblessness? discouraged workers counting people as employed who are working part time, although they would prefer to be working full time inflation unemployed persons falsely report themselves to be actively looking for a job

discouraged workers

Which of the following cause the unemployment rate as measured by the Bureau of Labor Statistics to understate the true extent of joblessness? discouraged workers inflation people employed in the underground economy unemployed persons falsely report themselves to be actively looking for a job

Discouraged workers are not counted as unemployed.

Which of the following causes the unemployment rate to understate the true extent of joblessness? A drug dealer reports herself as unemployed. Discouraged workers are counted as unemployed. Persons who collect unemployment benefits report themselves to be searching for a job. Many full time workers really want to be part time workers. Discouraged workers are not counted as unemployed.

A worker quits his job at the Post Office to find more interesting work.

Which of the following is an example of a worker experiencing frictional unemployment? A computer programmer loses her job because it is outsourced to India. An employee is laid off because the economy is suffering a recession. A United Airlines pilot loses her job because of lack of demand for air travel. A worker quits his job at the Post Office to find more interesting work.

an increase in unemployment insurance payments

Which of the following would increase the unemployment rate? a law making it illegal to work more than 35 hours per week an increase in unemployment insurance payments a decrease in the minimum wage a cut in unemployment compensation

an increase in the working-age population

Which of the following would reduce the labor force participation rate, all else equal? an increase in the number of people in the labor force an increase in the working-age population an increase in the unemployment rate a decrease in the unemployment rate