macro test 1 unemployment

When unemployment rises above the natural rate it reflects the existence of ____ unemployment.

cyclical

If the economy is operating at the natural rate of unemployment, which of the following is essentially eliminated?

cyclical unemployment

The type of unemployment that occurs because of a recession is called:

cyclical unemployment.

Unemployment caused by a contraction in the economy is called:

cyclical unemployment.

If the unemployment rate is 8 percent, this means:

8 percent of the labor force is unemployed.

Suppose that an economy is at Point A where unmeployment is serious. The Phillips curve suggests that a government effort to lower unemployment will end up with ________. :

B

The first formal acknowledgement of the primary macroeconomic goals of price stability, high employment, and promoting economic growth in the United States came with passage of the:

The Employment Act of 1946.

Which of the following is false?

The labor force includes those people over the age of 14 who are either employed or unemployed.

Which of the following statements is incorrect?

The typical unemployment compensation in the United States is one's full salary for up to 26 weeks.

Which of the following is not true in the measurement of unemployment rate?

There are only 2 types of adults, employed adults and unemployed adults.

The term full employment implies an unemployment rate of:

approximately 5%

A healthy economy would be characterized by a relatively ____ unemployment rate and a relatively ____ labor force participation rate.

low; high

Persons who do not hold a job and are not actively seeking work are considered:

out of the labor force.

Which of the following goal is the macroeconomic goal?

reducing unemployment

Unemployment that results from technological changes that renders some people's skills obsolete is called:

structural unemployment.

Which of the following people is most likely to be structurally unemployed?

Clem, a skilled corset maker, lost his job when his factory shut down due to a permanent reduction in the demand for corsets.

____ experience lower rates of unemployment than do ____.

College graduates; high school graduates

An individual who voluntarily leaves one job and spends a period of time seeking another is considered:

frictionally unemployed

A discouraged worker is someone who:

gives up looking for work, and is no longer counted as unemployed.

Offering employees an efficiency wage may:

reduce turnover. attract the most productive workers. lead to a reduction in training costs. (all of the above)

The total labor force equals:

the number of officially employed plus unemployed persons.

The unemployment rate is defined as:

the percentage of the labor force that is unemployed.

If firms offer an efficiency wage:

the quantity of labor supplied will exceed the quantity of labor demanded.

Soldiers are considered to be employed.

false

Unemployment rises and falls in the same direction as output over the business cycle.

false

Please answer correctly about a firm's labor demand below;

A firm wants to hire 10 workers if wages are $30

What would happen to unemployment rate if the U.S government reduces her military force.

It would increase.

____ experience lower rates of unemployment than do ____.

Skilled workers; unskilled workers

Labor ________ shows that firms want to hire less labor as wages rise while labor _________ shows taht the households want to provide more labor as wages rise.

demand; supply

Which of the following groups will have the highest unemployment rate?

less than high school diploma

The Bureau of Labor Statistics calculates U-6 (alternative measure of unemployment rate) in the following way: (Unemployed adults + Discouraged workers + ______) / labor force.

part- time workers

If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals:

25 percent.

In recent years, economists have come to believe that full employment in the U.S. economy occurs at an unemployment rate between:

4.5 and 5.5 percent.

Hometown, USA, has a labor force of 78,567 persons and employment of 74,382. The unemployment rate for the city is:

5.3 percent.

The table below shows the time trend of the labor force participation rate. From the table, we can find that the labor force participation rate declined recently. Why did it decline?

As baby boomers began to retire.

Discouraged workers are considered to be unemployed.

False

A mircoeconomic approach says that the reason for unemployment is that wages are too high. What are the factors which affect high wages?

Minimum wage Labor unions Efficiency wages -(All of the above.) -

Which piece of legislation committed the government to pursuing unemployment policies that are consistent with maintaining price stability?

The Employment Act of 1946

As of July 2018, unemployment rate among men is 3.8% while unemployment rate among women is 3.9%. What would happen to unemployment rates if an economic situation deteriorates.

Unemployment rate among men will increase faster than unemployment rate among women.

Frictional unemployment occurs when:

a worker decides to quit to seek a different job.

The Employment Act of 1946 dictated the U.S. goal of maintaining high employment through high economic growth but did not specify any goals with regard to the price level.

false

A discouraged worker is:

one who opts to quit searching for work after unsuccessfully seeking employment.

The unemployment rate may overestimate the true extent of unemployment if:

people falsely claim that they are actively seeking work in order to receive unemployment benefits.

Each person in the population can be classified as employed, unemployed, or not in the labor force.

true

Economists refer to the "typical" rate of unemployment as the natural rate of unemployment.

true

Billy loses his job as a road construction worker and cannot find another position with equivalent pay and benefits. As a result, he is still checking the want ads and reporting to the unemployment office on a weekly basis. He is considered to be:

unemployed