Question 1

Which type of unemployment is most likely to lead unemployed workers to retrain or relocate?

Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills of the unemployed workers and the skills needed for available jobs, often leading them to retrain or relocate.

Question 2

Discouraged workers and marginally attached workers are

Accepted Answer

Discouraged workers and marginally attached workers are not part of the labor force because they are not actively seeking employment.

Question 3

Which is true concerning U-2?
i.It does not count marginally attached workers as unemployed.
ii.It counts as unemployed workers who were laid off. iii)It is smaller than U-3.

Accepted Answer

The answer of Which is true concerning U-2?
i.It does not...

Question 4

Which of the following statements about the United States is (are)correct?
I. The labor force is larger than the number of employed people.
Ii. The labor force is larger than the number of unemployed people.
Iii. The number of unemployed people is larger than the number of employed people.

Accepted Answer

The labor force includes both employed and unemployed people, so it is larger than the number of employed people (I) and larger than the number of unemployed people (II). The number of employed people is typically larger than the number of unemployed people, making statement III incorrect.

Question 5

In 2008 as the recession worsened, suppose discouraged workers were included as part of the unemployment rate. Which of the following would have occurred?

Accepted Answer

Including discouraged workers in the unemployment rate would increase it, as these individuals are not counted in the labor force but are still without jobs.

Question 6

A reduction in unemployment benefits will

Accepted Answer

Reducing unemployment benefits can decrease frictional unemployment as it may incentivize individuals to find new jobs more quickly.

Question 7

Andrew is not working, but is available and willing to work after finishing a month-long mission trip for his church. While on his mission, Andrew did not look for work. Andrew is considered

Accepted Answer

Andrew is considered a marginally attached worker because he is not currently working, is available and willing to work, but did not actively look for work while on his mission trip.

Question 8

Which is true regarding cyclical unemployment?
i.Cyclical unemployment is positive at business cycle peaks.
ii.Cyclical unemployment is negative at business cycle troughs. iii)Cyclical unemployment is zero at full employment.

Accepted Answer

Cyclical unemployment is zero at full employment because it is the unemployment that results from economic downturns or recessions, and at full employment, the economy is operating at its potential output.

Question 9

Suppose people decide to buy fewer GE stoves. If General Electric reduces the number of its
Employees to reduce its costs but no other stove company does so, which type of unemployment
Results?

Accepted Answer

The answer of Suppose people decide to buy fewer GE...

Question 10

The following are groups of individuals in the population:
1. Individuals who are under 16
2. Individuals in institutional care
3. Individual in the armed forces
4. Individuals working for pay at a fulltime job
5. Individuals who are employed
6. Individuals not employed but were available for work and were looking for work
7. Individuals not employed and looking for work
Using the table above, the Current Population Survey classifies the group of individuals who are left after subtracting from the total population groups 1, 2, and 3 as

Accepted Answer

The answer of The following are groups of individuals in...

Question 11

Consider the following people:
·	Chris quits his job as an automobile mechanic to pursue his college education full-time.
·	Arrelo is temporarily laid off from her technical support job because of a strike by production workers.
·	Schurita graduated from college in May and is currently looking for a job.
·	Bo quit his job on September 1 and then, after looking for a new job, will begin his new job on October 1.
·	Terri retired from his job on May 1.
·	Vicki works part-time at Bainen Press to help pay her college tuition.

-Vicki would be classified as

Accepted Answer

Vicki is working part-time by choice to help pay for her college tuition, classifying her as a voluntary part-time worker.

Question 12

In the Current Population Survey, a person is considered unemployed if the person

Accepted Answer

A person is considered unemployed if they do not have a job and are actively looking for work, according to the Current Population Survey criteria.

Question 13

Across developed and newly industrialized economies, since 1989 the United States has generally had

Accepted Answer

Since 1989, the United States has generally had a lower unemployment rate than the Eurozone countries and a higher unemployment rate than Japan and Hong Kong.

Question 14

Potential GDP is the level of output produced when the unemployment rate is

Accepted Answer

Potential GDP is achieved when the economy is operating at full employment, which occurs when the unemployment rate is equal to the natural unemployment rate, comprising only frictional and structural unemployment, with no cyclical unemployment.

Question 15

Mary has decided that the she does not like Iowa and has decided to quit her job as a medical technician and move to Arizona. Mary's unemployment as she searches for a new job is best classified as

Accepted Answer

Frictional unemployment occurs when individuals are temporarily unemployed while transitioning between jobs or locations, such as Mary's move from Iowa to Arizona.

Question 16

In 2011, real GDP in the United States was below potential GDP. This fact definitely means that

Accepted Answer

When real GDP is below potential GDP, it indicates that the economy is not operating at full capacity, leading to higher unemployment rates than the natural rate, which includes only frictional and structural unemployment.

Question 17

Which of the following statements are true concerning the labor force participation rate?
i.The labor force participation rate for women in the United States has increased since 1959.
ii.The labor force participation rates for women across different countries have converged to about 50 percent.
iii.The labor force participation rate for men in the United States has decreased since 1959.

Accepted Answer

The labor force participation rate for women in the United States has indeed increased since 1959, and the rate for men has decreased over the same period. However, the labor force participation rates for women across different countries have not necessarily converged to about 50 percent.

Question 18

When the economy is at full employment,

Accepted Answer

At full employment, cyclical unemployment is zero because the economy is operating at its potential output, but natural unemployment, which includes frictional and structural unemployment, still exists.

Question 19

The labor force is the

Accepted Answer

The labor force consists of the number of employed people plus the number of unemployed people who are actively seeking work.

Question 20

Which of the following people would be classified as employed in the Current Population Survey?

Accepted Answer

The answer of Which of the following people would be...

Quiz 6: Jobs and Unemployment