1. The
labor force consists of all
|
a. |
the people in the economy who are not retired |
|
b. |
people in the economy over 16 years of age |
|
c. |
the adults in the economy between 18 and 65 years old who are able to |
|
d. |
the noninstitutionalized population over 16 in the economy who hold |
|
e. |
the citizens in the economy who are graduates of high school |
2. Which
of the following people would be counted in the labor force?
|
a. |
Chou, who lost his job and last looked for work three months ago |
|
b. |
Stephanie, who holds a Ph.D. in history, but can only find part-time |
|
c. |
Jordan, who would like to work as a stockbroker but is now a |
|
d. |
Stefan, who thinks he could easily earn $100,000 per year, despite the |
|
e. |
Monique, age 90, who is enjoying her retirement in Montana |
3. With a total population of 1,000, in the country of
Fictivia: 250 people are working, 150 are retired, 45 people are not working
but they are actively looking for a job, 101 are children too young to work, 20
people dropped out of the labor force because they won the lottery. How many
people are considered unemployed?
|
a. |
20 |
|
b. |
45 |
|
c. |
150 |
|
d. |
250 |
|
e. |
295 |
4. People
who are not currently employed, but say they want a job, are counted as
unemployed only if they
|
a. |
have previously held a job |
|
b. |
are actively seeking employment |
|
c. |
are willing to accept a reasonable offer |
|
d. |
are between 16 and 65 years of age |
|
e. |
are willing to accept any offer of employment |
5. A
discouraged worker is one who
|
a. |
is under qualified for his current job |
|
b. |
dislikes his current job but is afraid to quit |
|
c. |
drops out of the labor force because he cannot find a job |
|
d. |
quits his job because the possibility of advancement was very low |
|
e. |
is overqualified for his current job |
6. Suppose
the official unemployment rate is 10 percent. We can conclude without question
that
|
a. |
the same 10 percent of the people in the economy were out of work for |
|
b. |
one of every ten people in the labor force is currently unemployed |
|
c. |
the same 10 percent of the people in the labor force were out of work |
|
d. |
every person in the labor force was out of work for 10 percent of the |
|
e. |
10 percent of the people in the economy were each out of work for 10 |
7. The
labor force participation rate for women in the United States has
|
a. |
stayed the same over the last 30 years |
|
b. |
increased significantly since the 1950s |
|
c. |
been influenced by decreasing real wages since 1960 |
|
d. |
fluctuated substantially both upward and downward since the 1950s |
|
e. |
increased only very slightly since the 1950s |
8. The
labor force participation rate is the number of people
|
a. |
employed divided by the adult population |
|
b. |
employed divided by the number of people in the labor force |
|
c. |
in the labor force divided by the adult population |
|
d. |
unemployed divided by the number of people in the labor force |
|
e. |
in the labor force divided by the number of people employed |
9. Different
demographic groups
|
a. |
have identical durations of unemployment |
|
b. |
have identical unemployment rates |
|
c. |
are weighted equally in the official unemployment rate |
|
d. |
have different unemployment rates |
|
e. |
are weighted more heavily in the official unemployment rate if they |
10. Juanita
earned a B.S. in engineering and went to work for a defense contractor. When
the government cut spending, Juanita and 99 others were laid off. The only
other business in the town is growing grapes, but the growers refuse to hire
laid-off engineers, knowing they will leave at the first opportunity. The
unemployment Juanita is experiencing is
|
a. |
Cyclical |
|
b. |
Structural |
|
c. |
Seasonal |
|
d. |
Frictional |
|
e. |
Voluntary |
11. Frictional
unemployment refers to unemployment that results from
|
a. |
a mismatch of skills |
|
b. |
being in the wrong geographical location |
|
c. |
taking the time to find the best job |
|
d. |
seasonal decreases in demand for labor |
|
e. |
a recession in the economy |
12. Seasonal
unemployment refers to unemployment that results from
|
a. |
a mismatch of skills |
|
b. |
being in the wrong geographical location |
|
c. |
taking the time to find the best job |
|
d. |
seasonal decreases in demand for labor |
|
e. |
a recession in the economy |
13. Structural unemployment refers to
unemployment that results from
|
a. |
inefficiencies in the market for labor that prolong the job search |
|
b. |
being in the wrong geographical location |
|
c. |
taking the time to find the best job |
|
d. |
seasonal decreases in demand for labor |
|
e. |
a recession in the economy |
14. Cyclical
unemployment results from
|
a. |
a mismatch of skills |
|
b. |
being in the wrong geographical location |
|
c. |
taking the time to find the best job |
|
d. |
seasonal decreases in demand for labor |
|
e. |
a recession in the economy |
15. Which
of the following types of unemployment is the hardest to reduce?
|
a. |
Cyclical |
|
b. |
Structural |
|
c. |
Voluntary |
|
d. |
involuntary |
|
e. |
speculative |
16. Which
type of unemployment is likely to increase the most in a recession?
|
a. |
frictional unemployment |
|
b. |
seasonal unemployment |
|
c. |
structural unemployment |
|
d. |
cyclical unemployment |
|
e. |
employment |
17. Full
employment
|
a. |
exists when everyone in the economy has a job |
|
b. |
exists when everyone who wants a job has one |
|
c. |
exists when the unemployment rate is zero |
|
d. |
exists when everyone in the labor force has a job |
|
e. |
will always include some unemployment |
18. Which
of the following is not consistent with full employment?
|
a. |
an unemployment rate of 5 percent or 6 percent |
|
b. |
seasonal unemployment |
|
c. |
structural unemployment |
|
d. |
cyclical unemployment |
|
e. |
frictional unemployment |
19. One consequence of an increase in the unemployment
benefits is a reduced incentive to find a job.
|
a. |
True |
|
b. |
False |
20. Because of the way discouraged workers
and part-time employment are measured, the official unemployment rate
|
a. |
overstates the unemployment problem |
|
b. |
understates the unemployment problem |
|
c. |
truly reflects the level of unemployment |
|
d. |
overstates the size of the labor force |
|
e. |
understates the size of the labor force |
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