CH 30 - 32 dont know

(Table: Labor Data) According to the accompanying labor data, the unemployment rate is: Answers: A. 5.6%. B. 7.5%. C. 0.7%. D. 7%.

1. CorrectB. 7.5%.

Which type of unemployment is likely to be higher when real GDP growth is lower? Answers: A. frictional unemployment B. cyclical unemployment C. structural unemployment D. natural unemployment

1. CorrectB. cyclical unemployment

Higher implicit tax rates tend to cause labor force participation rates to: Answers: A. remain constant. B. decrease. C. increase. D. behave unpredictably.

1. CorrectB. decrease.

(Figure: Labor Supply and Demand) Refer to the figure. What is the unemployment rate caused by the labor union's action to increase its wage demands to $11 an hour? Answers: A. 60% B. 75.6% C. 40% D. 66.7%

1. CorrectC. 40%

An unexpected increase in money growth leads to increased inflation in: Answers: A. both the short run and the long run. B. the long run only. C. neither the short run nor the long run. D. the short run only.

A. both the short run and the long run.

A country has 50 million people, 30 million of whom are adults. Of the adults, 5 million are not interested in working, another 5 million are interested in working but have given up looking for work, and 5 million are still looking for work. Of those who do have jobs, 5 million are working part time but would like to work full time, and the remaining 10 million are working full time. What is this country's underemployment rate? A. 40% B. 60% C. 20% D. 25%

B. 60%

A positive real shock causes the aggregate demand curve to: Answers: A. shift inward. B. not shift at all. C. shift outward. D. shift outward and become flatter.

B. not shift at all.

A country has 50 million people, 30 million of whom are adults. Of the adults, 5 million are not interested in working, another 5 million are interested in working but have given up looking for work, and 5 million are still looking for work. Of those who do have jobs, 5 million are working part time but would like to work full time, and the remaining 10 million are working full time. What is this country's labor force participation rate? Answers: A. 50% B. 83.3% C. 66.7% D. 75%

C. 66.7%

A country's total civilian noninstitutionalized adult population is 1 million, and 500,000 people in this country are working, with another 20,000 people looking for work. Which of the following statements about the labor force statistics in this country is accurate? Answers: A. The employment rate is 50% and the unemployment rate is 2%. B. The labor force is 500,000 and the labor force participation rate is 50%. C. The employment rate is 96.15% and the labor force participation rate is 52%. D. The unemployment rate is 2% and the labor force participation rate is 52%.

C. The employment rate is 96.15% and the labor force participation rate is 52%.

The shift toward more of a service economy and less of a manufacturing economy in the United States has caused an increase in: Answers: A. structural unemployment. B. frictional unemployment. C. seasonal unemployment. D. cyclical unemployment.

CorrectA. structural unemployment.

(Figure: Labor Market) Refer to the figure. What is the unemployment rate in this market as a result of the implementation of a $10 minimum wage? A. 25% B. 50% C. 100% D. 20%

CorrectB. 50%

If a national government improves its unemployment benefits, its unemployment rate will most likely: Answers: A. follow the global trend, regardless of national policy. B. decrease. C. increase. D. remain the same.

CorrectC. increase.

(Figure: Labor Market) Refer to the figure. If this market is initially in equilibrium when a $10 minimum wage is imposed, the quantity of labor employed will fall by: A. 60. B. 80. C. 40. D. 20

D. 20

A country has a population of 160 million. Thirty million of its people are under the age of 16 and 10% of the population is either in the military or institutionalized. Seventy million people have jobs, and five million are looking for work. What is the labor force participation rate in this country? Answers: A. 70% B. 62% C. 52% D. 66%

D. 66%

When workers lose their jobs and become officially unemployed, the number of people in the labor force: Answers: A. decreases. B. increases. C. becomes difficult to predict. D. remains constant.

D. remains constant.

During the Great Depression, the long-run aggregate supply curve: Answers: A. became flatter. B. did not shift at all. C. shifted outward. D. shifted inward.

D. shifted inward.

An unexpected outward shift of the economy's AD curve will cause real GDP growth to increase in: Answers: A. both the short run and the long run. B. the long run only. C. neither the short run nor the long run. D. the short run only.

D. the short run only.