Study guide #3

C) not included in the labor force.

According to official statistics, discouraged workers are: A) included in the employment statistics. B) included in the labor force. C) not included in the labor force. D) treated just like the underemployed.

C) number of people actively working, either full-time or part-time.

Employment is the total: A) labor force. B) population of working age. C) number of people actively working, either full-time or part-time. D) number of people not unemployed.

A) euro.

In 2002, France replaced its national currency, the franc, with the: A) euro. B) U.S. dollar. C) British pound. D) Chinese yuan.

B) increase unemployment.

Increases in unemployment compensation: A) reduce unemployment. B) increase unemployment. C) increase the number of jobs available. D) decrease the number of jobs available.

B) increased; fluctuated

Since the 1960s, the U.S. price level has _____ and the inflation rate has _____. A) remained constant; increased B) increased; fluctuated C) decreased; decreased D) fluctuated; remained constant

D) supply; increase

Suppose that immigration laws are relaxed and many workers from other nations enter the U.S. labor force. The _____ for labor will _____. A) demand; increase B) demand; decrease C) supply; decrease D) supply; increase

C) discouraged workers.

The official unemployment rate ignores: A) people with professional jobs. B) people who work on commission. C) discouraged workers. D) people with professional jobs, people who work on commission, and discouraged workers.

B) number of people not working but looking for work by the number of people not working but looking for work plus the number of people employed.

The rate of unemployment is found by dividing the: A) number of people looking for work by the population. B) number of people not working but looking for work by the number of people not working but looking for work plus the number of people employed. C) labor force by the number of people looking for work. D) unemployed and discouraged workers by the labor force.

D) unemployed; labor force

The unemployment rate equals the number _____ divided by the number _____ times 100. A) unemployed; employed B) unemployed; population C) employed; labor force D) unemployed; labor force

A) percent of the labor force that is unemployed.

The unemployment rate is the: A) percent of the labor force that is unemployed. B) number of people unemployed. C) the labor force minus the number of people unemployed. D) average length of time someone is unemployed.

D) unemployment benefits are more generous in Europe than in the United States.

Unemployment rates are usually higher in Europe than in the United States because: A) the minimum wage is higher in the United States than in Europe. B) U.S. economic policy is much more effective than European economic policy. C) there are more unskilled, uneducated workers in Europe than in the United States. D) unemployment benefits are more generous in Europe than in the United States.

C) frictional

Unemployment that occurs because it takes workers and employees time to find each other is _____ unemployment. A) cyclical B) structural C) frictional D) discouraged

B) increases in the unemployment rate.

When the unemployment rate is high, there is political demand to increase the benefit period for unemployment compensation. In a standard analysis, this will lead to: A) reductions in unemployment. B) increases in the unemployment rate. C) more job creation. D) more job destruction.