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Structural unemployment is:


A) unemployment caused by time delays in matching available jobs with workers.
B) unemployment caused by changes in the industrial makeup of an economy.
C) unemployment caused by economic downturns.
D) when a worker stop looking for a job because he feels no job is available for him.
E) not one of the three types of unemployment.

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Frictional unemployment is present in an economy because:


A) workers often need to update their skills.
B) workers take time to decide which job is 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.

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If the relevant population is 268 million people and the number of people in the labor force is 148 million, the number of people NOT in the labor force is equal to:


A) 268 million.
B) 148 million.
C) 120 million.
D) 316 million.
E) 55.2 million.

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The Great Depression lasted most of which decade?


A) the 1920s
B) the 1930s
C) the 1940s
D) the 1910s
E) the 1950s

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One misconception that people often have about unemployment is that:


A) unemployment is a macroeconomic topic.
B) unemployment is important to the economy.
C) as a nation, we should aim for zero unemployment.
D) the unemployment rate does not tell the whole story about the employment situation.
E) discouraged workers are not included in the official unemployment rate.

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You are given the following information about an economy: Labor force: 167 million Not in the labor force: 33 million Employed: 145 million Answer the following questions to one decimal point: a. What is the unemployment rate? b. What is the relevant population? c. What is the labor force participation rate?

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a. 13.2%
b...

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The government can assist in reducing the level of structural unemployment by:


A) providing unemployment benefits.
B) establishing government regulations on hiring employees.
C) subsidizing the relocation of workers who lose their jobs.
D) instituting a minimum-wage law.
E) incentivizing companies to move their production overseas.

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Use the following table to answer the next questions: Use the following table to answer the next questions:   -According to the table, the labor force participation rate is: A)  64.2%. B)  68.4%. C)  35.8%. D)  31.6%. E)  6.1%. -According to the table, the labor force participation rate is:


A) 64.2%.
B) 68.4%.
C) 35.8%.
D) 31.6%.
E) 6.1%.

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


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

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Structural, frictional, and cyclical are all types of:


A) jobs.
B) price levels.
C) firm structures.
D) unemployment.
E) economic models.

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Joanna was laid off from her job 11 months ago. After searching for a job for months, Joanna finds a job but is only offered part-time work. Joanna would rather be working full-time. Economists would classify Joanna as:


A) unemployed.
B) a discouraged worker.
C) overemployed.
D) underpaid.
E) underemployed.

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Joe Jones is running for governor of your home state. He has hired you to help him run his campaign. Mr. Jones has decided to make his campaign slogan "Vote for Joe! I'll make the unemployment rate zero!" Would you advise Mr. Jones to use this slogan? Why or why not?

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Mr. Jones should not use this slogan. A ...

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Which of the following statements about unemployment is true?


A) Unemployment rates across races are very similar.
B) Unemployment rates across ages are very similar.
C) Unemployment rates vary widely between the sexes.
D) Unemployment rates vary widely across age and race.
E) The official unemployment rate includes discouraged workers.

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One shortcoming of the official unemployment rate is that:


A) it is very stable through recessions and is unreliable as an economic indicator.
B) it includes only workers who have no job and are actively seeking work.
C) it accounts for underemployed workers and discouraged workers.
D) it only indicates the length of unemployment.
E) it is unreliable because it is easily manipulated by the government.

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Natural unemployment is:


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

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During periods of recession:


A) the unemployment rate declines.
B) the unemployment rate rises.
C) household income rises.
D) output rises.
E) real gross domestic product (GDP) rises.

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Which of the following statements about the composition of the labor force is correct?


A) Since 1948, the percentage of men participating in the labor force has increased.
B) Since 1948, the percentage of women participating in the labor force has decreased.
C) Since 1948, the percentage of men participating in the labor force has decreased.
D) Since 1948, the percentage of women participating in the labor force has remained the same.
E) Since 1948, the labor force participation gap between males and females has risen.

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Between 1979 and 2012, manufacturing employment in the United States has:


A) stayed constant.
B) fallen by almost 50%.
C) risen by almost 50%.
D) risen by almost 90%.
E) fallen by only 10%.

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Knowing the length of unemployment is important because:


A) if most unemployment is long term, we might not be as concerned with higher unemployment because unemployment will consist mostly of structural unemployment.
B) if most unemployment is short term, we might not be as concerned with a higher unemployment rate, because this indicates that the unemployment is a temporary situation, rather than a long-term problem.
C) if most unemployment is short term, the government can easily reduce the unemployment rate through government programs.
D) the length of unemployment dictates the official unemployment rate.
E) if most unemployment is short term, we might be concerned that businesses are quickly laying off workers.

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Explain the relationship between the unemployment rate and the business cycle.

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The unemployment rate spikes up during t...

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