Deck 5: Monitoring Jobs and Inflation

Question 1

In a country with a working- age population of 30 million, 20 million are employed, 2 million are unemployed, and 2 million of the employed are working part- time, half of whom wish to work full- time.The labour force participation rate is

A)73.3 percent.
B)20 percent.
C)60 percent.
D)66.7 percent.
E)53.3 percent.

Answer 1

73.3 percent.

Question 2

In a country with a working- age population of 22 million, 18 million are employed, 2 million are unemployed, and 1 million of the employed are working part- time, half of whom wish to work full- time.The employment rate is

A)81.8 percent.
B)75.5 percent.
C)72.7 percent.
D)90.0 percent.
E)90.9 percent.

Answer 2

81.8 percent.

Question 3

Who of the following would be counted as unemployed in Canada?

A)Vik, who has been staying at home watching reruns of "Hockey Night in Canada" and not searching since he was laid off at the flour mill.
B)Youngmin, who is a part- time hamburger flipper looking for a full- time job.
C)Caitlin, who is 14 years old and looking for a babysitting job.
D)Emmanuel, who lost his job at the steel plant when an automated assembly line was introduced six months ago, and has been job searching every day.
E)James, who is a full- time student looking for a part- time job.

Answer 3

Emmanuel, who lost his job at the steel plant when an automated assembly line was introduced six months ago, and has been job searching every day.

Question 4

The unemployment rate is defined as

A)100 minus the employment rate.
B)the number of unemployed people divided by the number of people in the country.
C)the number of unemployed people divided by the number of employed people.
D)the number of unemployed people divided by the working- age population.
E)the number of unemployed people divided by the sum of the people employed and the people unemployed.

Question 5

Which one of the following people would be counted as unemployed in Canada?

A)a person who will be starting a new job in 6 months
B)a person who expects to be laid off by the end of the month before next month's survey can be completed
C)a person who has been laid off for 4 weeks and is not looking for a job because he is waiting to be called back to his old job
D)a person who has been seeking a job for the last six months, but recently gave up looking because he was discouraged by his job prospects
E)a part- time worker who repeatedly expresses a desire to become a full- time worker

Question 6

In a country with a working- age population of 20 million, 14 million are employed, 1.5 million are unemployed, and 1 million of the employed are working part- time, half of whom wish to work full- time.The labour force participation rate is

A)62.5 percent.
B)70 percent.
C)15.5 percent.
D)72.5 percent.
E)77.5 percent.

Question 7

Who of the following would be counted as unemployed in Canada?

A)Sharon is a university student with no job.
B)Doris only works five hours a week but is looking for a full- time job.
C)Maurice has been laid off from his job for 5 weeks but expects to be called back soon.
D)Kanhaya has stopped looking for work since he was unable to find a suitable job during a two- month search.
E)Bogdan has been laid off from his job but does not expect to be called back, and is not looking.

Question 8

In a country with a working- age population of 22 million, 18 million are employed, 2 million are unemployed, and 1 million of the employed are working part- time, half of whom wish to work full- time.The involuntary part- time rate is

A)2.5 percent.
B)4.5 percent.
C)2.8 percent.
D)2.3 percent.
E)5 percent.

Question 9

Counting involuntary part- time workers as unemployed would

A)lower the measured unemployment rate.
B)raise the employment rate.
C)not change the actual unemployment rate.
D)raise the natural unemployment rate.
E)raise the measured unemployment rate.

Question 10

Which one of the following people would be counted as unemployed in Canada?

A)Simone is currently working but expects to be laid off by the end of the month, before next month's survey can be completed.
B)Rebekah is a recent graduate looking for work.
C)Ron has quit looking because he believes that there is no work available for him.
D)Ruth is a 14- year- old student and has been looking for an after- school job every day for the past month.
E)Sarah has been looking for a job but is taking a month- long break from the job- seeking effort due to her lack of skills.

Question 11

Which one of the following people would be counted as unemployed in Canada?

A)Benoit was laid off when his firm closed down two months ago and has not been looking for work, as he is going back to school.
B)Sharon is a university student with a job.
C)Kathy has stopped looking for work since she was unable to find a suitable job during a one- month search.
D)Christos was laid off from his job a month ago and has not been looking for a new job, as he is waiting for a severance package from his former employer.
E)Veena is not working, but she is looking for a full- time job.

Question 12

If the working- age population increases, then

A)the unemployment rate increases.
B)the total number of people aged 15 years and above increases.
C)the size of the labour force increases.
D)the labour force participation rate increases.
E)the number of people employed increases.

Question 13

In a country with a working- age population of 30 million, 20 million are employed, 2 million are unemployed, and 2 million of the employed are working part- time, half of whom wish to work full- time.The unemployment rate is

A)13.6 percent.
B)2 percent.
C)18.2 percent.
D)9.1 percent.
E)10 percent.

Question 14

In a country with a working- age population of 30 million, 20 million are employed, 2 million are unemployed, and 2 million of the employed are working part- time, half of whom wish to work full- time.The employment rate is

A)18 percent.
B)53.3 percent.
C)73.3 percent.
D)66.7 percent.
E)60 percent.

Question 15

In a country with a working- age population of 20 million, 14 million are employed, 1.5 million are unemployed, and 1 million of the employed are working part- time, half of whom wish to work full- time.The size of the labour force is

A)20 million.
B)12.5 million.
C)14 million.
D)15.5 million.
E)14.5 million.

Question 16

The labour force is the total number of

A)people aged 15 years and over.
B)people in the working- age population who are either employed or unemployed.
C)people employed.
D)full- time workers.
E)people in the working- age population who are employed.

Question 17

Which one of the following people would be counted as unemployed in Canada?

A)Sharon recently began looking for work after staying at home for 10 years to look after her children.
B)Doris works only 5 hours a week but is looking for a full- time job.
C)Maurice is on a two- month vacation out of the country but is still looking for a job using the Internet.
D)Taylor is a homemaker.
E)Kanhaya has stopped looking for work since he was unable to find a suitable job during a two- month search.

Question 18

The working- age population is the total number of people

A)in the labour force, aged 15 years and over, and employed.
B)aged 15 years and over.
C)in the labour force, aged 15 years and over.
D)in the labour force who are employed.
E)in the labour force.

Question 19

In a country with a working- age population of 30 million, 20 million are employed, 2 million are unemployed, and 2 million of the employed are working part- time, half of whom wish to work full- time.The labour force is

A)16 million.
B)30 million.
C)18 million.
D)20 million.
E)22 million.

Question 20

In a country with a working- age population of 22 million, 18 million are employed, 2 million are unemployed, and 1 million of the employed are working part- time, half of whom wish to work full- time.The unemployment rate is

A)18.2 percent.
B)2 percent.
C)9.1 percent.
D)10 percent.
E)11.1 percent.

Question 21

R4 is

A)long- term unemployment.
B)the official unemployment rate.
C)comparable to the official U.S.rate.
D)short- term unemployment.
E)the unemployment rate that adds discouraged searchers to the official rate.

Question 22

In a recession, typically

A)unemployment rises.
B)the employment rate decreases.
C)the employment rate rises.
D)the labour force participation rate rises.
E)Both A and B are correct.

Question 23

Which of the following are not included in the working- age population?

A)retired workers
B)students over the age of 15
C)children under the age of 15
D)discouraged searchers
E)involuntary part- time workers

Question 24

The labour force participation rate is

A)the percentage of the labour force who are unemployed or employed.
B)the percentage of the working- age population who are either unemployed or employed.
C)the percentage of the labour force who are employed.
D)equal to the employment rate plus the unemployment rate.
E)the percentage of the working- age population who are employed.

Question 25

People become unemployed when they

A)become discouraged searchers.
B)retire.
C)quit working to go to university.
D)leave university and start seeking work.
E)are on maternity leave.

Question 26

If the number of discouraged searchers increases, everything else remaining the same, then the

A)unemployment rate increases.
B)employment rate decreases.
C)labour force participation rate decreases.
D)labour force participation rate increases.
E)employment rate increases.

Question 27

The employment rate is

A)the percentage of the labour force who are unemployed or employed.
B)equal to 100 minus the unemployment rate.
C)the percentage of the working- age population who are unemployed or employed.
D)the percentage of the working- age population who are employed.
E)the percentage of the labour force who are employed.

Question 28

If the labour force participation rate is rising and the working- age population is not changing, then the

A)size of the labour force is rising.
B)number of unemployed people is rising and the size of the labour force is falling.
C)size of the labour force is falling.
D)number of employed people must be increasing.
E)number of unemployed people is falling and the size of the labour force is rising.

Question 29

R8 is

A)long- term unemployment.
B)the official unemployment rate.
C)comparable to the official U.S.rate.
D)short- term unemployment.
E)the total underemployment rate.

Question 30

Which of the following pieces of information do you need to calculate the labour force participation rate? I.the number of employed persons
II.the number of unemployed persons
III.the population
IV.the working age population

A)I and II
B)I and III
C)I, II, and III
D)I, II, and IV
E)I, II, III, and IV

Question 31

R2 is

A)long- term unemployment.
B)the official unemployment rate.
C)comparable to the official U.S.rate.
D)short- term unemployment.
E)the unemployment rate that adds discouraged searchers to the official rate.

Question 32

In a country with a working- age population of 30 million, 20 million are employed, 2 million are unemployed, and 2 million of the employed are working part- time, half of whom wish to work full- time.The involuntary part- time rate is

A)4.8 percent.
B)4.5 percent.
C)10 percent.
D)0.5 percent.
E)5 percent.

Question 33

In a recession, typically

A)unemployment decreases.
B)the employment rate increases.
C)the labour force participation rate does not change.
D)the employment rate decreases.
E)the labour force participation rate increases.

Question 34

Since 1960, Canadian labour force participation rate has _______ and the unemployment rate has _______.

A)trended lower; varied over the business cycle
B)trended higher; trended higher
C)varied over the business cycle; trended higher
D)trended higher; varied over the business cycle
E)trended higher; trended lower

Question 35

R1 is

A)the official unemployment rate.
B)the unemployment rate that adds discouraged searchers to the official rate.
C)long- term unemployment.
D)short- term unemployment.
E)comparable to the official U.S.rate.

Question 36

If the people who take early retirement are not counted in the working- age population, then

A)the labour force participation rate would be less.
B)the labour force participation rate would be higher.
C)the unemployment rate would be higher.
D)the number of discouraged searchers would decrease.
E)the unemployment rate would be lower.

Question 37

In an expansion, typically

A)unemployment increases.
B)the employment rate decreases.
C)the number of discouraged searchers increases.
D)employment decreases.
E)the labour force participation rate increases.

Question 38

Which of the following statements is incorrect?

A)The employment rate is the number of people employed divided by the working- age population, all multiplied by 100.
B)The labour- force participation rate is the labour force divided by the working- age population, all multiplied by 100.
C)The involuntary part- time rate is the number of involuntary part- time workers divided by the number employed, all multiplied by 100.
D)The labour force is equal to the number of people employed plus the number of people unemployed.
E)The unemployment rate is the number of persons who are unemployed divided by the labour force, all multiplied by 100.

Question 39

Suppose the working- age population in Tiny Town is 100 people.If 25 of these people are not in the labour force, the _______ equals _______.

A)labour force; 75 people
B)unemployment rate; 25 percent
C)unemployment rate; 33 percent
D)employment rate; 75 percent
E)employment rate; 25 percent

Question 40

The working- age population can be divided into two groups:

A)those who are over the age of 15 and those who are under the age of 15.
B)those who are employed and those who are unemployed.
C)those who work full time and those who work part time.
D)those in the labour force and those not in the labour force.
E)those in the labour force and discouraged searchers.

Question 41

In a country with a working- age population of 30 million, 18 million are employed, 2 million are unemployed, and 2 million of the employed are working part- time, half of whom wish to work full- time.If 1 million of the unemployed are cyclically unemployed, what is the natural unemployment rate?

A)6.7 percent
B)5 percent
C)5.6 percent
D)1 percent
E)11.1 percent

Question 42

If the number of discouraged searchers decreases because many of them start to look for work, everything else remaining the same, then the

A)unemployment rate increases.
B)labour force participation rate decreases.
C)labour force participation rate increases.
D)employment rate decreases.
E)both A and C

Question 43

Use the table below to answer the following questions.
Table 5.2.1
This table shows the answers given by interviewees to the Labour Force Survey.
In Table 5.2.1, which person is frictionally unemployed?

A)A
B)B
C)C
D)E
E)A and E

Question 44

Use the table below to answer the following questions.
Table 5.2.1
This table shows the answers given by interviewees to the Labour Force Survey.
In Table 5.2.1, which person is structurally unemployed?

A)A
B)B
C)C
D)D
E)B and D

Question 45

In a country with a working- age population of 22 million, 18 million are employed, 2 million are unemployed, and 1 million of the employed are working part- time, half of whom wish to work full- time.If 500,000 of the unemployed are cyclically unemployed, what is the natural unemployment rate?

A)10.0 percent
B)7.5 percent
C)2.5 percent
D)5.6 percent
E)8.3 percent

Question 46

If the economy is at full employment, then

A)all unemployment arises from normal frictions and structural change.
B)the only unemployment is frictional unemployment plus discouraged searchers.
C)the entire labour force is employed.
D)the unemployment rate is less than 3 percent.
E)the entire population is employed.

Question 47

Which one of the following people is frictionally unemployed? A steel worker who

A)is laid off but expects to be called back soon.
B)loses her job because of technological change.
C)becomes discouraged and stops looking for a job.
D)gives up her job because she retires.
E)decides to leave the labour force and become a full- time student.

Question 48

Structural unemployment arises in part because

A)of unrealistic wage expectations.
B)there are not enough jobs available.
C)people become discouraged when they cannot find jobs.
D)people will not quit their present jobs until they can find suitable employment elsewhere.
E)of technological change.

Question 49

Use the table below to answer the following questions.
Table 5.2.1
This table shows the answers given by interviewees to the Labour Force Survey.
In Table 5.2.1, which person is cyclically unemployed?

A)A
B)B
C)C
D)D and B
E)A and C

Question 50

Full employment occurs when

A)there is zero frictional unemployment.
B)all unemployment is frictional and discouraged.
C)there is zero unemployment.
D)there is zero cyclical unemployment.
E)all unemployment is cyclical and structural.

Question 51

Use the table below to answer the following questions.
Table 5.2.1
This table shows the answers given by interviewees to the Labour Force Survey.
In Table 5.2.1, which person is a discouraged searcher?

A)A
B)B
C)C
D)D
E)none of them

Question 52

If the economy is operating at full employment, then

A)everyone who wants a job has one.
B)the unemployment rate is approximately 3 percent.
C)the entire labour force is employed.
D)the unemployment rate is zero.
E)the unemployment rate is equal to the frictional unemployment rate plus the structural unemployment rate.

Question 53

The natural unemployment rate is

A)the rate at which cyclical unemployment is equal to 0 percent.
B)equal to 0 percent.
C)the same as the cyclical unemployment rate.
D)the rate at which cyclical unemployment is equal to 6 percent.
E)the rate at which all unemployment is structural.

Question 54

Which one of the following people is structurally unemployed?

A)an office worker who has lost her job because of a general slowdown in economic activity
B)a steel worker who is laid off but who expects to be called back soon
C)a Saskatchewan welder who lost her job when her company relocated to B.C.and is currently looking for a job
D)a student who recently graduated and is looking for work
E)a Nova Scotia fishery worker who is searching for a better job closer to home

Question 55

At full employment, the unemployment rate

A)averages 6 percent.
B)decreases as the price level falls.
C)should be zero.
D)increases as the price level rises.
E)is greater than zero percent due to natural unemployment.

Question 56

Which one of the following people is cyclically unemployed?

A)a Nova Scotia fishery worker who is searching for a better job closer to home
B)a steel worker who is laid off but who expects to be called back soon
C)a student who recently graduated and is looking for work
D)a Saskatchewan welder who lost her job when her company relocated to B.C.and is currently looking for a job
E)an office worker who has lost her job because of a general slowdown in economic activity

Question 57

Full employment does not mean that there is zero unemployment because

A)business fluctuations are inevitable.
B)of the existence of discouraged searchers.
C)some cyclical unemployment is always present.
D)of unrealistic wage expectations.
E)some frictional and structural unemployment is always present.

Question 58

At full employment, there is no

A)structural unemployment.
B)unemployment.
C)frictional unemployment.
D)cyclical unemployment.
E)natural unemployment.

Question 59

Unemployment caused by permanently decreased demand for horse- drawn carriages is an example of

A)frictional unemployment.
B)discouraged unemployment.
C)cyclical unemployment.
D)old- fashioned unemployment.
E)structural unemployment.

Question 60

A zero percent unemployment rate

A)would alleviate scarcity.
B)is one of the economic goals of the Canadian government.
C)is the only efficient unemployment rate.
D)was last achieved during World War II when everyone was willing to work at the going wage rate to end the war.
E)is not consistent with the notion of full employment.

Question 61

Jesse just graduated from university, and is looking for her first job.Jesse is

A)frictionally unemployed.
B)structurally unemployed.
C)not unemployed.
D)cyclically unemployed.
E)not in the labour force.

Question 62

Counting discouraged searchers as unemployed would

A)not change the measured unemployment rate.
B)raise the measured unemployment rate.
C)raise the natural unemployment rate.
D)raise the full employment rate.
E)lower the measured unemployment rate.

Question 63

Some unemployment is unavoidable because

A)many people in the working- age population attend school and are unemployed.
B)there is always some cyclical unemployment.
C)many part- time workers would like to have full- time work.
D)often people become discouraged searchers.
E)people are making transitions through the stages of life and businesses are making transitions.

Question 64

If the CPI was 228 at the end of 2016 and 236 at the end of 2017, what was the inflation rate in 2017?

A)3.5 percent
B)3.4 percent
C)236 percent
D)8 percent
E)4 percent

Question 65

The reference base period is 2002.A consumer price index of 122 in 2018 means that

A)prices of consumer goods have more than doubled.
B)the average of the prices paid by urban consumers for a fixed market basket of consumer goods and services was 22 percent higher in 2018 than it was on average during 2002.
C)the market basket of consumer goods that cost $122 in 2002 can be purchased for $100 in 2018.
D)if the price of a good was $100 in 2002, its price in 2018 is $122.
E)prices of consumer goods have gone up by a factor of 12.2.

Question 66

If the economy is at full employment,

A)the entire labour force is employed.
B)the only unemployment is frictional unemployment plus discouraged searchers.
C)real GDP equals potential GDP.
D)the entire population is employed.
E)all unemployment is cyclical and structural.

Question 67

Frictional unemployment

A)is unemployment associated with normal labour turnover.
B)includes workers who have lost their jobs due to an economic downturn.
C)occurs when changes in technology change the skills needed to perform jobs.
D)includes discouraged searchers.
E)is voluntary part- time unemployment.

Question 68

The three types of unemployment are

A)frictional, structural, and cyclical.
B)frictional, structural, and involuntary.
C)voluntary, involuntary, and natural.
D)cyclical, maternity leave, and paternity leave.
E)voluntary, involuntary, and cyclical.

Question 69

When the unemployment rate is less than the natural unemployment rate, real GDP is _______ than potential GDP and the output gap is _______.

A)greater; positive
B)greater; equal to zero
C)smaller; positive
D)smaller; negative
E)greater; negative

Question 70

If the CPI was 128 at the end of 2016 and 136 and the end of 2017, what was the inflation rate in 2017?

A)9.4 percent
B)8 percent
C)4.2 percent
D)6.25 percent
E)5.9 percent

Question 71

Suppose the economy is experiencing frictional unemployment of 1 percent, structural unemployment of 3 percent and cyclical unemployment of 4 percent.What is the natural unemployment rate?

A)5 percent
B)7 percent
C)3 percent
D)8 percent
E)4 percent

Question 72

Suppose that the natural unemployment rate is 4.5 percent and the actual unemployment rate is 3.5 percent.Then cyclical unemployment is

A)- 1 percent.
B)8 percent.
C)3.5 percent.
D)0 percent.
E)1 percent.

Question 73

Suppose the country of Tiny Town experiences frictional unemployment.This frictional unemployment would

A)decrease the output gap.
B)signal that the country is in a recession.
C)increase structural unemployment.
D)signal the number of discouraged searchers is growing.
E)be considered a natural occurrence in a growing economy.

Question 74

Rochelle lost her job as a salesperson when sales fell off during the recession.Now she is looking for a new job.Rochelle is

A)frictionally unemployed.
B)structurally unemployed.
C)not unemployed.
D)cyclically unemployed.
E)not in the labour force.

Question 75

When the unemployment rate _______ the natural unemployment rate, real GDP _______ potential GDP.

A)is less than; is less than
B)is greater than; is less than
C)equals; is greater than
D)is greater than; equals
E)equals; is less than

Question 76

If the unemployment rate is 4.5 percent and the natural unemployment rate is 5.5 percent, then

A)potential GDP equals real GDP.
B)real GDP is greater than nominal GDP.
C)potential GDP is greater than real GDP.
D)we have mismeasured the natural unemployment rate.
E)potential GDP is less than real GDP.

Question 77

If the CPI was 95 at the end of 2016 and 105 at the end of 2017, what was the inflation rate in 2017?

A)5 percent
B)10 percent
C)10.5 percent
D)105 percent
E)9.5 percent

Question 78

Caitlin is working part- time at the Mr.G store, but wants to work full- time.She is

A)frictionally unemployed.
B)structurally unemployed.
C)not in the labour force.
D)cyclically unemployed.
E)counted as employed.

Question 79

Henelyn lost her job as a factory worker when she was replaced by a robotic machine.Now she is looking for a new job.Henelyn is

A)frictionally unemployed.
B)structurally unemployed.
C)not unemployed.
D)cyclically unemployed.
E)not in the labour force.

Question 80

Michael lost his job as a night security guard because he kept falling asleep at the job.Now he is looking for a new job.Michael is

A)frictionally unemployed.
B)structurally unemployed.
C)not unemployed.
D)cyclically unemployed.
E)not in the labour force.