Economic Test 3 Review

Official unemployment is identified as when a worker

... who is not currently employed is searching for a job unsuccessfully

Macroeconomics is the study of:

...The broader economy

In November 2009, the United States was in a deep recession. To help keep the economy afloat, the government extended the period of time one could receive unemployment insurance to 99 weeks. This policy had an unintended consequence because: a. Workers searched for jobs for longer, which reduced the unemployment rate. b. Many workers quit their jobs so they could receive unemployment insurance. c. Workers spent more time searching for the perfect job, which increased frictional unemployment. d. Employers were more hesitant to fire workers, which reduced the unemployment rate.

C. Workers spent more time searching for the perfect job, which increased frictional unemployment.

One argument against unemployment insurance is that it:

Creates an incentive that can make it more attractive for workers to stay unemployed.

4. Which of the following people would officially be considered unemployed? a. Mitchell, who is a full-time student working part-time at the bookstore. b. Janice, who is actively seeking a full-time job while currently working at a part-time job. c. Jade, who has stopped looking for a job because she feels there are no jobs available for her. d. Jenna, who graduated college and is searching for a job that fits her graphic-design skills. e. Ralph, who is a stay-at-home father and is not currently looking for a job.

D. Jenna, who graduated college and is searching for a job that fits her graphic-design skills.

5. Workers who lose their jobs because the skill sets they possess are no longer required in the economy are considered to be:

Structurally unemployment

Structural, frictional, and cyclical are all types of:

Unemployment

Frictional unemployment is:

Unemployment caused by time delays in matching available jobs and workers.

Which of the following is an example of frictional unemployment? a. Raymond loses his job as a steelworker because the economy is in a downturn. b. Chad graduates with his master's degree in economics and is searching for an analyst job. c. Edith has decided to retire after 35 years working at the state prison. d. Cameron quits his job at the circus to volunteer for the Red Cross. e. Jasmine loses her job as a newspaper editor because the publication has gone digital.

b. Chad graduates with his master's degree in economics and is searching for an analyst job.

Which of the following is an example of structural unemployment? a. Raymond loses his job as a steelworker because the economy is in a downturn. b. Chad graduates with his master's degree in economics and is searching for an analyst job in Oklahoma. c. Edith has decided to retire after 35 years of working at the state prison. d. Cameron quits his job because he wants to become an astronaut. e. Jasmine loses her job as a newspaper editor because the publication has gone digital.

e. Jasmine loses her job as a newspaper editor because the publication has gone digital.