Question 1

Ricardo lost his job last year when his company downsized and laid off middle-level managers.He tried to find another job for a year but was unsuccessful and quit looking for work.Which individual is cyclically unemployed?

Accepted Answer

The answer of Ricardo lost his job last year when...

Question 2

Unemployment that occurs when there is deficient demand for the goods and services of an economy is called

Accepted Answer

Cyclical unemployment occurs when there is a decline in aggregate demand, leading to a decrease in production and employment.

Question 3

The total adult population of an economy is 175 million, the number of employed is 122 million, and the number of unemployed is 17 million.The percentage of adults who are not in the labor force is

Accepted Answer

The answer of The total adult population of an economy...

Question 4

Ricardo lost his job last year when his company downsized and laid off middle-level managers.He tried to find another job for a year but was unsuccessful and quit looking for work.Which individual is structurally unemployed?

Accepted Answer

The answer of Ricardo lost his job last year when...

Question 5

A nation has a population of 260 million people.Of these, 60 million are retired, in the military, institutionalized, or under 16 years old.There are 188 million who are employed and 12 million who are unemployed.What is the unemployment rate?

Accepted Answer

The unemployment rate is calculated as the number of unemployed divided by the labor force (employed + unemployed). Here, the labor force is 188 million employed + 12 million unemployed = 200 million. The unemployment rate is (12 million / 200 million) * 100 = 6 percent.

Question 6

New college graduates still looking for their first jobs would be classified in the BLS data as

Accepted Answer

New college graduates looking for their first jobs are considered frictionally unemployed as they are temporarily between jobs or entering the workforce for the first time.

Question 7

In calculating the unemployment rate, "discouraged" workers who are not actively seeking employment are

Accepted Answer

Discouraged workers are not included in the labor force because they have not actively searched for a job in the past four weeks. The unemployment rate only considers those who are in the labor force and actively seeking employment. Therefore, they are excluded from the calculation of the unemployment rate.

Question 8

Kevin has lost his job in an automobile plant because the company switched to robots for its welding step in the assembly line.Kevin plans to go to technical school to learn how to repair microcomputers.The type of unemployment Kevin is faced with is

Accepted Answer

Kevin is experiencing structural unemployment, which occurs when there is a mismatch between the skills workers have and the skills needed for available jobs, often due to technological changes like automation.

Question 9

The unemployment rate in an economy is 7.5 percent.The total population of the economy is 250 million and the size of the civilian labor force is 180 million.The number of employed workers in this economy is

Accepted Answer

The unemployment rate is the percentage of the labor force that is unemployed. With a 7.5% unemployment rate and a labor force of 180 million, the number of unemployed is 0.075 * 180 million = 13.5 million. Therefore, the number of employed workers is 180 million - 13.5 million = 166.5 million.

Question 10

Which of the following statements is correct?

Accepted Answer

Structural unemployment occurs when there are changes in the economy that alter the demand for certain skills or technology, leading to a mismatch between the skills workers have and the skills needed by employers.

Question 11

Ricardo lost his job last year when his company downsized and laid off middle-level managers.He tried to find another job for a year but was unsuccessful and quit looking for work.Which individual(s) would be included in the calculation of the natural unemployment rate?

Accepted Answer

The answer of Ricardo lost his job last year when...

Question 12

A mismatch between the geographic location of workers and the location of job openings would result in which type of unemployment?

Accepted Answer

Structural unemployment occurs due to a mismatch between the skills and location of job seekers and the requirements and location of job openings. In this case, the geographic location of workers and job openings does not match, resulting in structural unemployment.

Question 13

In calculating the unemployment rate, part-time workers are

Accepted Answer

Part-time workers are considered employed because they are receiving payment for work, even if they are not working full-time hours. Therefore, they are not counted as unemployed when calculating the unemployment rate.

Question 14

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

Accepted Answer

A frictionally unemployed worker is someone who is temporarily unemployed while they search for a new job. This can happen when someone voluntarily leaves their job to find a better opportunity, or when they are in the process of switching jobs. Therefore, choice C is the best option. Choices A and D do not fit the definition of frictional unemployment, and choice B describes someone who is involuntarily unemployed due to economic conditions, which is a different type of unemployment.

Question 15

A worker who loses a job at a call center because the company moved the call center operations to another country is an example of

Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills of the job seekers and the requirements of the available jobs. In this case, the job loss is due to the outsourcing of the call center operations to another country, which is a structural change in the labor market.

Question 16

The unemployment rate in an economy is 6 percent.The total population of the economy is 290 million, and the size of the civilian labor force is 150 million.The number of unemployed workers in this economy is

Accepted Answer

The answer of The unemployment rate in an economy is...

Question 17

The total population of an economy is 175 million, the labor force is 125 million, and the number of employed workers is 117 million.The unemployment rate for this economy is

Accepted Answer

The unemployment rate is calculated as the number of unemployed individuals divided by the labor force, then multiplied by 100. 
Number of unemployed individuals = labor force - employed workers = 125 million - 117 million = 8 million 
Unemployment rate = (8 million / 125 million) x 100 = 6.4 percent

Question 18

Ricardo lost his job last year when his company downsized and laid off middle-level managers.He tried to find another job for a year but was unsuccessful and quit looking for work.Which individual would be classified as a discouraged worker?

Accepted Answer

Ricardo would be classified as a discouraged worker because he stopped looking for work after being unsuccessful in finding a job for a year.

Question 19

Official unemployment rate statistics may

Accepted Answer

The official unemployment rate may understate unemployment because it does not account for "discouraged" workers who have stopped looking for work and are not counted as part of the labor force.

Question 20

A headline states, "Real GDP falls again as the economy slumps." This condition is most likely to produce what type of unemployment?

Accepted Answer

Real GDP falling indicates a decline in the overall economic activity, which is a characteristic of a recession. Cyclical unemployment occurs due to a downturn in the business cycle or economic recession. Hence, the most likely type of unemployment in this scenario is cyclical unemployment.

Quiz 29: Business Cycles, Unemployment, and Inflation

Ricardo lost his job last year when his company downsized and laid off middle-level managers.He tried to find another job for a year but was unsuccessful and quit looking for work.Which individual is cyclically unemployed?

Unemployment that occurs when there is deficient demand for the goods and services of an economy is called

The total adult population of an economy is 175 million, the number of employed is 122 million, and the number of unemployed is 17 million.The percentage of adults who are not in the labor force is

Ricardo lost his job last year when his company downsized and laid off middle-level managers.He tried to find another job for a year but was unsuccessful and quit looking for work.Which individual is structurally unemployed?

A nation has a population of 260 million people.Of these, 60 million are retired, in the military, institutionalized, or under 16 years old.There are 188 million who are employed and 12 million who are unemployed.What is the unemployment rate?

New college graduates still looking for their first jobs would be classified in the BLS data as

In calculating the unemployment rate, "discouraged" workers who are not actively seeking employment are

Kevin has lost his job in an automobile plant because the company switched to robots for its welding step in the assembly line.Kevin plans to go to technical school to learn how to repair microcomputers.The type of unemployment Kevin is faced with is

The unemployment rate in an economy is 7.5 percent.The total population of the economy is 250 million and the size of the civilian labor force is 180 million.The number of employed workers in this economy is

Which of the following statements is correct?

Ricardo lost his job last year when his company downsized and laid off middle-level managers.He tried to find another job for a year but was unsuccessful and quit looking for work.Which individual(s) would be included in the calculation of the natural unemployment rate?

A mismatch between the geographic location of workers and the location of job openings would result in which type of unemployment?

In calculating the unemployment rate, part-time workers are

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

A worker who loses a job at a call center because the company moved the call center operations to another country is an example of

The unemployment rate in an economy is 6 percent.The total population of the economy is 290 million, and the size of the civilian labor force is 150 million.The number of unemployed workers in this economy is

The total population of an economy is 175 million, the labor force is 125 million, and the number of employed workers is 117 million.The unemployment rate for this economy is

Ricardo lost his job last year when his company downsized and laid off middle-level managers.He tried to find another job for a year but was unsuccessful and quit looking for work.Which individual would be classified as a discouraged worker?

Official unemployment rate statistics may

A headline states, "Real GDP falls again as the economy slumps." This condition is most likely to produce what type of unemployment?