Question 1

Unemployment arising from a mismatch of skills is called:
A)frictional unemployment.
B)structural unemployment.
C)seasonal unemployment.
D)cyclical unemployment.
E)underemployment.

Accepted Answer

Structural unemployment is when there is a mismatch of skills between what employers are looking for and what workers are able to offer, leading to a long-term unemployment problem.

Question 2

The best example of a frictionally unemployed worker is one who:
A)has been looking for work for 27 weeks or longer.
B)is laid off during a recessionary period in the economy.
C)is in the process of voluntarily switching jobs.
D)is discouraged and not actively seeking work.
E)cannot find a job that matches with his skills.

Accepted Answer

Frictional unemployment occurs when individuals are temporarily unemployed while transitioning from one job to another, often voluntarily. This is the case with someone who is in the process of switching jobs.

Question 3

If the official unemployment rate increases from December to January because the Christmas season is over,we can conclude that _____ is responsible for the increase.
A)seasonal unemployment
B)cyclical unemployment
C)structural unemployment
D)frictional unemployment
E)underemployment

Accepted Answer

Seasonal unemployment refers to the variation of employment levels that occur in a predictable pattern in certain industries or occupations due to seasonal fluctuations. As the question stated, the increase in unemployment rate is due to the end of the Christmas season, which is a typical seasonal fluctuation. Therefore, seasonal unemployment is responsible for the increase.

Question 4

Which of the following groups experiences high unemployment rates?
A)White-collar professionals
B)Attorneys
C)Technical workers
D)Blue-collar workers
E)Web page designers

Accepted Answer

Blue-collar workers are typically associated with manual labor jobs such as manufacturing, construction, and transportation, which have been adversely affected by automation and outsourcing. As a result, they experience high unemployment rates compared to other groups.

Question 5

After graduating from Harvard Law School,Anne started looking for a job.She could not find a job after looking for one week.Which of the following is true in this case?
A)This is an example of frictional unemployment.
B)This is an example of cyclical unemployment.
C)This is an example of seasonal unemployment.
D)She is underemployed.
E)She is a discouraged worker.

Accepted Answer

This is an example of frictional unemployment because Anne is actively seeking employment but has not found a job within a short period of time. Frictional unemployment is caused by factors such as job search, skill-mismatch, and geographical mismatches between unemployed workers and job openings.

Question 6

Which type of unemployment is most likely to help an economy become more efficient?
A)Cyclical unemployment
B)Voluntary unemployment
C)Seasonal unemployment
D)Frictional unemployment
E)Underemployment

Accepted Answer

Frictional unemployment occurs when individuals are temporarily in between jobs while searching for new ones. This type of unemployment can actually benefit the economy by freeing up workers to find jobs that are a better fit for their skills, leading to more efficient allocation of labor resources.

Question 7

The impact of _____ unemployment is removed from official monthly unemployment figures.
A)cyclical
B)structural
C)seasonal
D)frictional
E)involuntary

Accepted Answer

Seasonal unemployment refers to unemployment that is caused by seasonal changes in industries such as agriculture or tourism. This type of unemployment is typically expected and occurs regularly during certain times of the year. As a result, it is often excluded from official monthly unemployment figures in order to provide a clearer understanding of overall economic conditions.

Question 8

Which of the following groups tends to have the highest unemployment rate in the United States?
A)African American teenagers
B)Workers,age 25 or older,who are college graduates
C)White women
D)Workers,25 years of age or older,who are high school dropouts
E)White teenagers

Accepted Answer

African American teenagers tend to have the highest unemployment rates due to a combination of factors including systemic inequalities, discrimination, and fewer job opportunities.

Question 9

The type of unemployment most likely to be experienced by a touring professional golfer is:
A)frictional unemployment.
B)structural unemployment.
C)seasonal unemployment.
D)cyclical unemployment.
E)discouraged-worker unemployment.

Accepted Answer

Seasonal unemployment is caused by factors such as weather, fashion, and holiday schedules. In the case of a touring professional golfer, their career is centered around the PGA Tour season, which runs from October to September. During the off-season, golfers may struggle to find work or may need to supplement their income with other ventures. This type of unemployment is temporary and expected within the industry, making seasonal unemployment the most likely type experienced by a touring professional golfer.

Question 10

Frictional unemployment refers to unemployment that is a result of:
A)a mismatch of skills.
B)being out of work 27 weeks or longer.
C)job search.
D)seasonal decreases in demand for labor.
E)a recession in the economy.

Accepted Answer

Frictional unemployment occurs when individuals are temporarily unemployed while transitioning between jobs or entering the workforce, often due to the time spent searching for a new job.

Question 11

Which of the following is true of labor force participation rates in the United States since the 1950s?
A)The rates for both men and women have risen.
B)The rate for women has fallen;the rate for men has risen.
C)The rate for men has fallen;the rate for women has increased.
D)The rates for both men and women have fallen.
E)The rates for both men and women have remained fairly constant.

Accepted Answer

Since the 1950s, the labor force participation rate for men has fallen, while the rate for women has increased. This trend was largely due to societal changes such as the rise of female education and employment opportunities, and a decrease in manual labor jobs.

Question 12

In April 2010,the U.S.economy added 290,000 jobs but the unemployment rate still increased from 9.7 percent to 9.9 percent.Which of the following best explains this situation?
A)The size of the labor force shrunk.
B)The number of unemployed workers also increased,but by a smaller percentage.
C)The number of illegal immigrants increased substantially.
D)The number of discouraged workers increased substantially.
E)The number of unemployed workers also increased,but by an even greater percentage.

Accepted Answer

Although the economy added a large number of jobs, the number of unemployed workers increased at a greater percentage, leading to an overall increase in the unemployment rate.

Question 13

Consider an economy with an adult population of 100,50 of whom hold jobs,10 of whom are looking for work,and 15 of whom are retired.The labor force participation rate is _____.
A)100 percent
B)60 percent
C)50 percent
D)40 percent
E)10 percent

Accepted Answer

The labor force participation rate is calculated by the following formula:
Labor force participation rate = (Labor Force / Adult Population) * 100%
In this case, the labor force includes those who hold jobs and those who are looking for work, which is a total of 50 + 10 = 60 people.
Therefore, the labor force participation rate is (60 / 100) * 100% = 60%.

Question 14

Jacqueline has a Ph.D.in economics.She has turned down many job offers because she eventually hopes to teach at one of the top ten universities in her field.The type of unemployment she is experiencing is:
A)frictional unemployment.
B)structural unemployment.
C)seasonal unemployment.
D)cyclical unemployment.
E)underemployment.

Accepted Answer

This situation is an example of frictional unemployment, which occurs when individuals are in-between jobs or in the process of searching for better employment opportunities. Jacqueline has turned down job offers because her ultimate goal is to teach at a top university, indicating that she is actively searching for a job that meets her desired qualifications and preferences.

Question 15

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)decreased significantly since the 1950s
D)fluctuated substantially both upward and downward since the 1950s
E)increased only very slightly since the 1950s

Accepted Answer

The labor force participation rate for women in the United States has increased significantly since the 1950s. In 1950, only 29% of women participated in the labor force, while in 2019, over 57% of women were part of the labor force. This increase is due to various factors such as changing societal norms, access to education and contraception, and the need for dual-income households.

Question 16

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)the specialization and division of labor.
D)seasonal decreases in demand for labor.
E)a recession in the economy.

Accepted Answer

The answer of Structural unemployment refers to unemployment that results...

Question 17

Which of the following statements is true of unemployment?
A)Cyclical unemployment decreases during recessions and increases during expansions.
B)Some unemployment exists even when the economy is healthy and growing.
C)Unemployment and inflation are not related.
D)People who are willing and able to work but have given up the search for a job are considered unemployed.
E)Voluntary unemployment refers to a situation in which people who really do not want to work only pretend to look for jobs.

Accepted Answer

Some level of unemployment, called natural or frictional unemployment, exists even when the economy is healthy and growing due to factors such as skill mismatches and people voluntarily leaving their jobs to search for better opportunities.

Question 18

In an economy,U = the number of adults who are unemployed,E = the number of adults who are employed,and NLF = the number of adults not in the labor force.The labor force participation rate in the economy is equal to:
A)U/(U + E).
B)E/(U + E).
C)U/(U + E + NLF).
D)E/(U + E + NLF).
E)(U + E)/(U + E + NLF).

Accepted Answer

The labor force participation rate is the percentage of the total adult population that is either employed or actively seeking employment. This is represented by (U + E) / (U + E + NLF) because the total adult population is the sum of the employed adults, unemployed adults, and adults not in the labor force. Therefore, the correct answer is E.

Question 19

Which of the following types of unemployment is the hardest to reduce?
A)Cyclical unemployment
B)Structural unemployment
C)Voluntary unemployment
D)Frictional unemployment
E)Seasonal unemployment

Accepted Answer

Structural unemployment is caused by long-term changes in the economy, such as shifts in technology or changes in consumer demands. It is difficult to reduce because it requires individuals to retrain or obtain new skills that are in demand in the current job market. This can take time and require significant investments in education and training programs.

Question 20

Which of the following is true of the labor force participation rate?
A)When workers become unemployed,the labor force participation rate declines.
B)When the unemployed become discouraged workers,the labor force participation rate declines.
C)When workers do not fully use their skills,the labor force participation rate decreases.
D)Since the 1950s,the labor force participation rate of women has decreased in the United States.
E)The trend toward earlier retirement has increased the labor force participation rate in the United States.

Accepted Answer

The labor force participation rate is the percentage of the working-age population that is in the labor force (either employed or actively seeking employment). When the unemployed become discouraged workers (i.e. they give up looking for work), they are no longer considered part of the labor force, which causes the labor force participation rate to decline. Therefore, option B is true. Option A is incorrect because if workers become unemployed but continue to actively seek employment, they are still part of the labor force and the participation rate would remain the same. Option C is incorrect because the labor force participation rate measures the percentage of working-age population that is in the labor force, regardless of how skilled they are. Option D is incorrect because since the 1950s, the labor force participation rate of women has actually increased in the United States. Option E is incorrect because the trend toward earlier retirement would decrease the labor force participation rate, as fewer people would be actively seeking employment.

Quiz 7: Unemployment and Inflation

Unemployment arising from a mismatch of skills is called:

The best example of a frictionally unemployed worker is one who:

If the official unemployment rate increases from December to January because the Christmas season is over,we can conclude that _____ is responsible for the increase.

Which of the following groups experiences high unemployment rates?

After graduating from Harvard Law School,Anne started looking for a job.She could not find a job after looking for one week.Which of the following is true in this case?

Which type of unemployment is most likely to help an economy become more efficient?

The impact of _____ unemployment is removed from official monthly unemployment figures.

Which of the following groups tends to have the highest unemployment rate in the United States?

The type of unemployment most likely to be experienced by a touring professional golfer is:

Frictional unemployment refers to unemployment that is a result of:

Which of the following is true of labor force participation rates in the United States since the 1950s?

In April 2010,the U.S.economy added 290,000 jobs but the unemployment rate still increased from 9.7 percent to 9.9 percent.Which of the following best explains this situation?

Consider an economy with an adult population of 100,50 of whom hold jobs,10 of whom are looking for work,and 15 of whom are retired.The labor force participation rate is _____.

Jacqueline has a Ph.D.in economics.She has turned down many job offers because she eventually hopes to teach at one of the top ten universities in her field.The type of unemployment she is experiencing is:

The labor force participation rate for women in the United States has _____.

Structural unemployment refers to unemployment that results from:

Which of the following statements is true of unemployment?

In an economy,U = the number of adults who are unemployed,E = the number of adults who are employed,and NLF = the number of adults not in the labor force.The labor force participation rate in the economy is equal to:

Which of the following types of unemployment is the hardest to reduce?

Which of the following is true of the labor force participation rate?