Question 1

When you include discouraged workers and unemployed workers in calculations of the unemployment rate

Accepted Answer

A)   the difference between this alternate measure and the official unemployment rate increases significantly during recessions.
B)   the difference between this alternate measure and the official unemployment rate increases significantly during economic expansions.
C)   this alternate measure is much lower than the official unemployment rate.
D)   this alternate measure is the same as the official unemployment rate.
E)   this alternate measure is not useful in studying the macroeconomy.

Question 2

When actual unemployment is less than its natural rate, the

Accepted Answer

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

Question 3

Anything that lengthens the job search process _______ unemployment.

Accepted Answer

A)   increases structural
B)   increases frictional
C)   decreases frictional
D)   increases cyclical
E)   decreases structural

Question 4

The big difference between the Great Recession and the recession of 1982 was

Accepted Answer

A)   how the economy recovered after the recessions had officially ended.
B)   the increase in the unemployment rate that occurred during each recession.
C)   the quarterly real GDP growth rates at the official start of each recession.
D)   the length of each recession.
E)   the total decline in the economy during each recession.

Question 5

Why does the unemployment rate remain above zero percent during economic expansions? Is this a good or bad thing for the economy? Explain.

Accepted Answer

Even during economic expansions structur...

Question 6

Between 1979 and 2014 service industries employment in the United States

Accepted Answer

A)   stayed constant.
B)   fell by almost 50 percent.
C)   rose by almost 72 percent.
D)   rose by almost 90 percent.
E)   fell by only 10 percent.

Question 7

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)   52

Question 8

Natural unemployment is the

Accepted Answer

A)   average of frictional, structural, and cyclical unemployment.
B)   sum of frictional, structural, and cyclical unemployment.
C)   sum of frictional and cyclical unemployment.
D)   sum of structural and cyclical unemployment.
E)   sum of structural and frictional unemployment.

Question 9

Brian Murphy is a political consultant for a candidate in Massachusetts. Mr. Murphy's candidate is defeated in the November election, and as a result, Mr. Murphy finds himself unemployed. Mr. Murphy's unemployment is classified as _______ unemployment.

Accepted Answer

A)   discouraged
B)   structural
C)   frictional
D)   cyclical
E)   long-term

Question 10

The government adopts a new regulation that requires all firms to give their employees a raise each year that is not less than the rate of inflation. All else the same, we would expect _______ unemployment to_______.

Accepted Answer

A)   frictional; increase
B)   structural; decrease
C)   cyclical; decrease
D)   structural; increase
E)   frictional; decrease

Question 11

Some jobs in the economy are no longer needed after an advancement in technology. A person who loses his or her job this way would be considered

Accepted Answer

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

Question 12

The Internet has enabled workers and companies to find each other more quickly and to make better matches with substantially lower costs. The result is

Accepted Answer

A)   lower frictional unemployment.
B)   lower structural unemployment.
C)   higher frictional unemployment.
D)   lower cyclical unemployment.
E)   higher structural unemployment.

Question 13

During healthy economic periods, only _______ unemployment exist(s) .

Accepted Answer

A)   frictional and structural
B)   cyclical
C)   frictional
D)   structural
E)   structural and cyclical

Question 14

Which of the following is an example of frictional unemployment?

Accepted Answer

A)   Raymond loses his job as a steel worker 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 of 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.

Question 15

The Great Recession was most similar to which of the following downturns?

Accepted Answer

A)   the Great Depression
B)   the 2001 recession
C)   the 1990 recession
D)   the 1982 recession
E)   the 1930 recession

Question 16

Frictional unemployment is present in an economy because

Accepted Answer

A)   workers often need to update their skills.
B)   workers take time to decide which jobs are best for them.
C)   firms often lay off workers due to economic recession.
D)   the unemployment rate is too low.
E)   there are often changes in the industrial makeup of an economy.

Question 17

Discouraged workers are defined as individuals who are

Accepted Answer

A)   not working but are willing to work and who have looked for a job in the past 12 months but have not sought employment in the past four weeks.
B)   not working and have looked for a job in the past four weeks.
C)   working part-time but would rather be working full-time.
D)   working full-time for wages lower than they want to work for.
E)   not working because of a disability or child care issues.

Question 18

A member of the labor force is defined as someone who is

Accepted Answer

A)   employed.
B)   above the age of 16.
C)   employed on a part-time basis.
D)   already employed or actively seeking work.
E)   already employed on a full-time basis.

Question 19

Which of the following statements is true about the natural rate of unemployment?

Accepted Answer

A)   The actual unemployment rate can never be above the natural rate.
B)   The actual unemployment rate can never be at the natural rate.
C)   The natural rate of unemployment consists of both cyclical and structural unemployment.
D)   Sometimes the actual unemployment rate is below the natural rate.
E)   The natural rate of unemployment consists of both cyclical and frictional unemployment.

Question 20

Use the following table to answer the next questions:   Group  #inMillions  Relevant population 215 Employed 138 Unemployed 9\begin{array} { l r } \hline 	ext { Group } & 	ext { \#inMillions } \\hline 	ext { Relevant population } & 215 \	ext { Employed } & 138 \	ext { Unemployed } & 9 \\hline\end{array} Group  Relevant population  Employed  Unemployed ​ #inMillions 2151389​​ 
-According to the table, the number of people NOT in the labor force is equal to

Accepted Answer

A)   138 million.
B)   215 million.
C)   77 million.
D)   147 million.
E)   68 million.

Exam 7: Unemployment

When you include discouraged workers and unemployed workers in calculations of the unemployment rate

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

The Internet has enabled workers and companies to find each other more quickly and to make better matches with substantially lower costs. The result is

Correct Answer
verified

Anything that lengthens the job search process _______ unemployment.

Correct Answer
verified

Correct Answer
verified

Brian Murphy is a political consultant for a candidate in Massachusetts. Mr. Murphy's candidate is defeated in the November election, and as a result, Mr. Murphy finds himself unemployed. Mr. Murphy's unemployment is classified as _______ unemployment.

Correct Answer
verified

Natural unemployment is the

Correct Answer
verified

Some jobs in the economy are no longer needed after an advancement in technology. A person who loses his or her job this way would be considered

Correct Answer
verified

Which of the following is an example of frictional unemployment?

Correct Answer
verified

Between 1979 and 2014 service industries employment in the United States

Correct Answer
verified

Why does the unemployment rate remain above zero percent during economic expansions? Is this a good or bad thing for the economy? Explain.

Correct Answer
verified
Even during economic expansions structur...
View Answer

During healthy economic periods, only _______ unemployment exist(s) .

Correct Answer
verified

The big difference between the Great Recession and the recession of 1982 was

Correct Answer
verified

Discouraged workers are defined as individuals who are

Correct Answer
verified

A member of the labor force is defined as someone who is

Correct Answer
verified

The government adopts a new regulation that requires all firms to give their employees a raise each year that is not less than the rate of inflation. All else the same, we would expect _ unemployment to_.

Correct Answer
verified

Frictional unemployment is present in an economy because

Correct Answer
verified

The Great Recession was most similar to which of the following downturns?

Correct Answer
verified

Which of the following statements is true about the natural rate of unemployment?

Correct Answer
verified

When actual unemployment is less than its natural rate, the

Correct Answer
verified

Exam 7: Unemployment

When you include discouraged workers and unemployed workers in calculations of the unemployment rate

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

The Internet has enabled workers and companies to find each other more quickly and to make better matches with substantially lower costs. The result is

Correct AnswerverifiedShow Answer

Anything that lengthens the job search process _______ unemployment.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Brian Murphy is a political consultant for a candidate in Massachusetts. Mr. Murphy's candidate is defeated in the November election, and as a result, Mr. Murphy finds himself unemployed. Mr. Murphy's unemployment is classified as _______ unemployment.

Correct AnswerverifiedShow Answer

Natural unemployment is the

Correct AnswerverifiedShow Answer

Some jobs in the economy are no longer needed after an advancement in technology. A person who loses his or her job this way would be considered

Correct AnswerverifiedShow Answer

Which of the following is an example of frictional unemployment?

Correct AnswerverifiedShow Answer

Between 1979 and 2014 service industries employment in the United States

Correct AnswerverifiedShow Answer

Why does the unemployment rate remain above zero percent during economic expansions? Is this a good or bad thing for the economy? Explain.

Correct AnswerverifiedEven during economic expansions structur...View AnswerShow Answer

During healthy economic periods, only _______ unemployment exist(s) .

Correct AnswerverifiedShow Answer

The big difference between the Great Recession and the recession of 1982 was

Correct AnswerverifiedShow Answer

Discouraged workers are defined as individuals who are

Correct AnswerverifiedShow Answer

A member of the labor force is defined as someone who is

Correct AnswerverifiedShow Answer

The government adopts a new regulation that requires all firms to give their employees a raise each year that is not less than the rate of inflation. All else the same, we would expect _______ unemployment to_______.

Correct AnswerverifiedShow Answer

Frictional unemployment is present in an economy because

Correct AnswerverifiedShow Answer

The Great Recession was most similar to which of the following downturns?

Correct AnswerverifiedShow Answer

Which of the following statements is true about the natural rate of unemployment?

Correct AnswerverifiedShow Answer

When actual unemployment is less than its natural rate, the

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Even during economic expansions structur...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The government adopts a new regulation that requires all firms to give their employees a raise each year that is not less than the rate of inflation. All else the same, we would expect _ unemployment to_.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified