Quiz 7

Which of the following causes of unemployment is NOT associated with a wage rate above the market equilibrium?

Job search

Cyclical unemployment is the result of ...

a slowdown in the economy (recession).

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills ...

frictional unemployment

Last year real GDP in the imaginary town of Springville was $9,075,000 and the population was 3,300. The year before, real GDP was $7,500,000 and the population was 3,000. What was the growth rate of real GDP per person during the year?

10%

If the economy of Country Z is growing at an annual rate of 5%, how long will it take for the size of this economy to double?

14 years

If GDP grew 3.5% in 1970, 2.2% in 1971 and 2.5% in 1972 then, what is the average annual growth rate over this period?

2.7%

Refer to Table 1 below. What is the U-2 measure of labor underutilization?

3.1%

Refer to Figure 1 below. If the government imposes a minimum wage of $8, how many workers will be unemployed?

4 million

Refer to Table 1 below. What is the U-4 measure of labor underutilization?

6.9%

Refer to Table 1 below. What is the U-6 measure of labor underutilization?

9.0%

If an economy is growing at 4% a year while the population is growing at 5% a year, what is true about this economy?

The standard of living is falling.

Which of the following is an example of a worker experiencing structural unemployment?

a worker who loses his job as a hand-drawn animator because of the popularity of computer-generated 3D animation.

Which of the following policies would reduce frictional unemployment?

improving an online job database that helps workers find jobs

A nation's standard of living is best measured by its ...

real GDP per person.

Economists consider full employment to occur when ...

the unemployment rate consists of only frictional and structural unemployment.