Question 1

Nina has a part-time job as she finishes her degree in fashion design. After obtaining her degree she decides to quit her part-time job to search for a job that better fits her now-improved skill set. Nina has a few interviews, but it is taking time to find the job that suits her best. Nina would be considered:

Accepted Answer

A)   structurally unemployed.
B)   cyclically unemployed.
C)   frictionally unemployed.
D)   overemployed.
E)   a discouraged worker.F) A) and B)
G) A) and D)

Question 2

Which of the following people would be officially considered unemployed?

Accepted Answer

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 just 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 jobF) D) and E)
G) A) and B)

Question 3

Jamal works in a factory in Lake Zurich, Illinois, assembling toy trains. The factory owner updates the current equipment and installs new robots that can do Jamal's job. As a result, Jamal is laid off and is now unemployed. Jamal would be considered:

Accepted Answer

A)   structurally unemployed.
B)   cyclically unemployed.
C)   frictionally unemployed.
D)   overemployed.
E)   a discouraged worker.F) C) and E)
G) A) and D)

Question 4

If a jobless person has not sought a job in ____________ weeks, that person is not counted in the unemployment statistics.

Accepted Answer

A)   6
B)   4
C)   5
D)   1
E)   52F) C) and D)
G) A) and B)

Question 5

Daniel, Steven, and Chris work as engineers in Connecticut. The demand for engineers starts to decline as their company's profits start to decrease during a recession. As a result, Daniel and Steven are laid off from their jobs. Daniel and Steven would be classified as:

Accepted Answer

A)   frictionally unemployed.
B)   discouraged workers.
C)   structurally unemployed.
D)   overemployed.
E)   cyclically unemployed.F) None of the above
G) A) and B)

Question 6

The economic contraction from July 1981 to November 1982 was very similar to the Great Recession of 2007-2009 in terms of gross domestic product (GDP) growth and in terms of the unemployment rate. Although there were these similarities, one thing emerges as the main difference between these two recessions. Please discuss that difference and provide evidence.

Accepted Answer

The main difference between the 1982 rec...

Question 7

If the unemployment rate is 5.8% and the number of unemployed persons is 15 million, the labor force is approximately:

Accepted Answer

A)   258 million.
B)   25.8 million.
C)   87 million.
D)   870 million.
E)   2.6 million.F) B) and E)
G) A) and B)

Question 8

Wes recently has graduated from Penn State University and is in the process of finding a full-time job to start his career. He is currently considered to be unemployed because he is actively seeking employment.
a. What type of unemployment is Wes experiencing?
b. What is something the government can do to help limit this type of unemployment?

Accepted Answer

a. Wes is experiencing frictional unempl...

Question 9

When actual unemployment is less than its natural rate:

Accepted Answer

A)   the economy is in a recession.
B)   the economy is producing within its long-run capabilities.
C)   the numbers must be wrong because the actual unemployment rate can never be less than the natural rate.
D)   the economy is in an expansion.
E)   the economy must be experiencing high inflation.F) B) and E)
G) B) and D)

Question 10

One argument against unemployment insurance is that:

Accepted Answer

A)   unemployment insurance limits the effects of a recession.
B)   unemployment insurance is only available during recessions.
C)   unemployment insurance creates an indirect incentive that can make it less attractive for workers to stay unemployed.
D)   unemployment insurance can be extended by the government during times of recession.
E)   unemployment insurance creates an indirect incentive that can make it more attractive for workers to stay unemployed.F) B) and C)
G) A) and B)

Question 11

Which of the following individuals would NOT be considered part of the labor force?

Accepted Answer

A)   Jim, who is a full-time student working part-time
B)   Lisa, who is working part-time but wants to be working full-time
C)   Kimberly, who has retired from the military and now works at the post office
D)   Charles, who is in the marines and currently deployed to Iraq
E)   Thomas, who is unemployed but has given up searching for a job because he believes there are no jobs available for himF) C) and D)
G) D) and E)

Question 12

When it is difficult to hire employees, firms take ____________ to hire, which increases ____________ unemployment.

Accepted Answer

A)   less time; frictional
B)   less time; structural
C)   longer; frictional
D)   longer; cyclical
E)   longer; structuralF) A) and D)
G) A) and C)

Question 13

Use the following table to answer the next questions: 
-According to the table, the unemployment rate in this economy is equal to:

Accepted Answer

A)   18.9%.
B)   36.9%.
C)   63.4%.
D)   10.1%.
E)   8.5%.F) B) and D)
G) A) and D)

Question 14

Which of the following equations represents the unemployment rate?

Accepted Answer

A)   (number of unemployed √ labor force)  * 100
B)   (unemployed + employed) 
C)   (number of employed √ labor force)  * 100
D)   (number of unemployed √ relevant population)  * 100
E)   (labor force √ relevant population)  * 100F) A) and E)
G) A) and D)

Question 15

What is the difference between a discouraged worker and an underemployed worker? Why is it important to understand both of these worker categories in order to fully understand the employment situation in an economy?

Accepted Answer

Discouraged workers are defined as those...

Question 16

An unemployment rate that is above the natural rate indicates ____________, and we say that the economy is producing at ____________.

Accepted Answer

A)   cyclical unemployment; more than the full-employment output level
B)   cyclical unemployment; the full-employment output level
C)   cyclical unemployment; less than the full-employment output level
D)   frictional unemployment; more than the full-employment output level
E)   frictional unemployment; the full-employment output levelF) C) and D)
G) A) and C)

Question 17

Since 1948, female labor force participation has __________ and male labor force participation has __________.

Accepted Answer

A)   risen; risen
B)   risen; fallen
C)   remained constant; fallen
D)   fallen; fallen
E)   fallen; risenF) B) and C)
G) B) and E)

Question 18

List and define the three different types of unemployment.

Accepted Answer

The three different types of unemploymen...

Question 19

What would one expect to happen to the labor force participation rate if the following situations occurred?
a. A large percentage of the workforce retires.
b. The government begins to subsidize current workers who go back to school full-time to attain an advanced degree.
c. The government offers a transfer payment to discouraged workers and to unemployed workers.

Accepted Answer

a. If a large percentage of the workforc...

Question 20

When actual unemployment is less than its natural rate:

Accepted Answer

A)   the economy is producing below its long-run capabilities.
B)   the economy is producing within its long-run capabilities.
C)   resources are employed at levels that are not sustainable in the long run.
D)   resources are employed at levels that are sustainable in the long run.
E)   output is less than full-employment output.F) A) and B)
G) None of the above

Exam 7: Unemployment

When actual unemployment is less than its natural rate:

Correct Answer
verified

Daniel, Steven, and Chris work as engineers in Connecticut. The demand for engineers starts to decline as their company's profits start to decrease during a recession. As a result, Daniel and Steven are laid off from their jobs. Daniel and Steven would be classified as:

Correct Answer
verified

If the unemployment rate is 5.8% and the number of unemployed persons is 15 million, the labor force is approximately:

Correct Answer
verified

Correct Answer
verified
The main difference between the 1982 rec...
View Answer

Which of the following equations represents the unemployment rate?

Correct Answer
verified

Which of the following people would be officially considered unemployed?

Correct Answer
verified

An unemployment rate that is above the natural rate indicates , and we say that the economy is producing at .

Correct Answer
verified

Correct Answer
verified

What is the difference between a discouraged worker and an underemployed worker? Why is it important to understand both of these worker categories in order to fully understand the employment situation in an economy?

Correct Answer
verified
Discouraged workers are defined as those...
View Answer

List and define the three different types of unemployment.

Correct Answer
verified
The three different types of unemploymen...
View Answer

One argument against unemployment insurance is that:

Correct Answer
verified

Since 1948, female labor force participation has and male labor force participation has .

Correct Answer
verified

If a jobless person has not sought a job in ____________ weeks, that person is not counted in the unemployment statistics.

Correct Answer
verified

When it is difficult to hire employees, firms take to hire, which increases unemployment.

Correct Answer
verified

Use the following table to answer the next questions: -According to the table, the unemployment rate in this economy is equal to:

Correct Answer
verified

Jamal works in a factory in Lake Zurich, Illinois, assembling toy trains. The factory owner updates the current equipment and installs new robots that can do Jamal's job. As a result, Jamal is laid off and is now unemployed. Jamal would be considered:

Correct Answer
verified

Correct Answer
verified
a. If a large percentage of the workforc...
View Answer

Which of the following individuals would NOT be considered part of the labor force?

Correct Answer
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Correct Answer
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a. Wes is experiencing frictional unempl...
View Answer

When actual unemployment is less than its natural rate:

Correct Answer
verified

Exam 7: Unemployment

When actual unemployment is less than its natural rate:

Correct AnswerverifiedShow Answer

Daniel, Steven, and Chris work as engineers in Connecticut. The demand for engineers starts to decline as their company's profits start to decrease during a recession. As a result, Daniel and Steven are laid off from their jobs. Daniel and Steven would be classified as:

Correct AnswerverifiedShow Answer

If the unemployment rate is 5.8% and the number of unemployed persons is 15 million, the labor force is approximately:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe main difference between the 1982 rec...View AnswerShow Answer

Which of the following equations represents the unemployment rate?

Correct AnswerverifiedShow Answer

Which of the following people would be officially considered unemployed?

Correct AnswerverifiedShow Answer

An unemployment rate that is above the natural rate indicates ____________, and we say that the economy is producing at ____________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What is the difference between a discouraged worker and an underemployed worker? Why is it important to understand both of these worker categories in order to fully understand the employment situation in an economy?

Correct AnswerverifiedDiscouraged workers are defined as those...View AnswerShow Answer

List and define the three different types of unemployment.

Correct AnswerverifiedThe three different types of unemploymen...View AnswerShow Answer

One argument against unemployment insurance is that:

Correct AnswerverifiedShow Answer

Since 1948, female labor force participation has __________ and male labor force participation has __________.

Correct AnswerverifiedShow Answer

If a jobless person has not sought a job in ____________ weeks, that person is not counted in the unemployment statistics.

Correct AnswerverifiedShow Answer

When it is difficult to hire employees, firms take ____________ to hire, which increases ____________ unemployment.

Correct AnswerverifiedShow Answer

Use the following table to answer the next questions: -According to the table, the unemployment rate in this economy is equal to:

Correct AnswerverifiedShow Answer

Jamal works in a factory in Lake Zurich, Illinois, assembling toy trains. The factory owner updates the current equipment and installs new robots that can do Jamal's job. As a result, Jamal is laid off and is now unemployed. Jamal would be considered:

Correct AnswerverifiedShow Answer

Correct Answerverifieda. If a large percentage of the workforc...View AnswerShow Answer

Which of the following individuals would NOT be considered part of the labor force?

Correct AnswerverifiedShow Answer

Correct Answerverifieda. Wes is experiencing frictional unempl...View AnswerShow Answer

When actual unemployment is less than its natural rate:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The main difference between the 1982 rec...
View Answer

Correct Answer
verified

Correct Answer
verified

An unemployment rate that is above the natural rate indicates , and we say that the economy is producing at .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Discouraged workers are defined as those...
View Answer

Correct Answer
verified
The three different types of unemploymen...
View Answer

Correct Answer
verified

Since 1948, female labor force participation has and male labor force participation has .

Correct Answer
verified

Correct Answer
verified

When it is difficult to hire employees, firms take to hire, which increases unemployment.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a. If a large percentage of the workforc...
View Answer

Correct Answer
verified

Correct Answer
verified
a. Wes is experiencing frictional unempl...
View Answer

Correct Answer
verified