Question 1

Which of the following would be most likely to reduce the rate of unemployment?

Accepted Answer

An Internet job listing system makes it easier for potential employees to find job opportunities and for employers to find potential candidates, which can increase the efficiency of job placement and decrease the unemployment rate.

Option A, a business recession, typically leads to a decrease in employment opportunities, thus increasing the unemployment rate.

Option C, an increase in unemployment compensation benefits can create a disincentive for individuals to actively seek employment, which may result in a higher unemployment rate.

Option D, a rise in the minimum wage can increase the cost of labor for employers, potentially leading to a decrease in hiring, which may contribute to an increase in unemployment.

Question 2

In 2003,the number of persons employed in the U.S.was 137.7 million,while the number unemployed was 8.8 million.The U.S.unemployment rate during the year was

Accepted Answer

The unemployment rate is calculated as the number of unemployed divided by the total labor force (employed + unemployed), then multiplied by 100. Here, (8.8 / (137.7 + 8.8)) * 100 = 6.0%.

Question 3

Which one of the following persons would be classified as unemployed by the Bureau of Labor Statistics?

Accepted Answer

According to the Bureau of Labor Statistics, a person is classified as unemployed if they do not have a job, have actively looked for work, and are currently available for work. In this case, Joe is on layoff, actively seeking employment and available for work, so he would be classified as unemployed.

The other options, Sean is on vacation, Susan is unable to work due to illness, and Kim is employed (even if it is only for four hours per week) and actively seeking full-time employment, so they would not be classified as unemployed.

Question 4

John is on layoff from his assembly-line job in Detroit,and he expects to return in about four weeks.During this time,he is vacationing in Florida.The Bureau of Labor Statistics would classify John as

Accepted Answer

John is considered unemployed because he is on temporary layoff and expects to return to his job.

Question 5

Todd stops looking for work because he believes his prospects are so poor that he is unlikely to find a job.The Bureau of Labor Statistics would classify Todd as

Accepted Answer

If Todd has given up looking for work because he believes his prospects are poor, he is considered as discouraged and is no longer counted as part of the labor force. Therefore, he is classified as not in the labor force. The definition of the labor force includes all employed individuals and those who are actively seeking employment. Since Todd has stopped actively seeking employment, he falls outside this definition.

Question 6

John begins looking for work after two years of not working because he believes his prospects of finding a job have greatly improved.The Bureau of Labor Statistics would classify John as

Accepted Answer

John is actively seeking work and believes his prospects of finding a job have improved. This means he meets the definition of being unemployed, as he is not currently employed but is actively seeking work. The fact that he had not been working for two years does not disqualify him from being classified as unemployed.

Question 7

Which one of the following persons would be considered employed?

Accepted Answer

A part-time worker looking for a full-time job is considered employed because they are currently working, even if it's not their desired full-time position.

Question 8

Sean would like to work as an accountant full time.A full-time position is not available,however,so he must accept a part-time job working 15 hours per week.The Bureau of Labor Statistics would categorize Sean as

Accepted Answer

Sean is employed, even though he is not working full-time in his desired position as an accountant. The Bureau of Labor Statistics considers someone to be employed as long as they are doing any work for pay, regardless of the number of hours worked.

Question 9

The unemployment rate equals the number of persons

Accepted Answer

The unemployment rate is calculated by dividing the number of unemployed individuals by the number of people in the labor force. This provides a ratio of the amount of people that are out of work, but actively seeking employment, compared to those that are in the labor force and potentially employable. Therefore, choice B is the correct answer.

Question 10

John has been without a job for 12 months and quit searching for work about three months ago.The Bureau of Labor Statistics would classify John as

Accepted Answer

According to the Bureau of Labor Statistics, an individual is classified as unemployed if they do not have a job, are available for work, and have actively searched for work in the past four weeks. Since John has stopped searching for work, he is no longer considered part of the labor force and would be classified as not part of the labor force.

Question 11

How would the Bureau of Labor Statistics classify a college graduate who is not currently working but recently turned down an offer for employment at $10 an hour in order to keep looking for a better job?

Accepted Answer

According to the Bureau of Labor Statistics, someone is considered unemployed if they are not employed but have actively looked for work in the past four weeks. In this scenario, the college graduate is not currently working and is actively searching for a job, but turned down an offer for employment. Therefore, they meet the criteria for being unemployed.

Question 12

The population (age 16 and over)of Yakutsk is 48 million;4 million are unemployed,and 40 million hold jobs.Indicate the rate of unemployment and the employment/population ratio of Yakutsk.

Accepted Answer

To find the unemployment rate, we divide the number of unemployed individuals by the total labor force (which includes both employed and unemployed individuals).

Unemployment rate = (Number of unemployed / Total labor force) x 100%

Number of unemployed = 4 million 
Total labor force = 4 million + 40 million = 44 million

Unemployment rate = (4 million / 44 million) x 100% = 9.1%

To find the employment/population ratio, we divide the number of employed individuals by the total population (which includes both working and non-working individuals).

Employment/population ratio = (Number of employed / Total population) x 100%

Number of employed = 40 million 
Total population = 48 million

Employment/population ratio = (40 million / 48 million) x 100% = 83.3%

Therefore, the best choice is D: The unemployment rate is 9.1 percent,and the employment/population ratio is 83.3 percent.

Question 13

Andrea would be considered unemployed if she is

Accepted Answer

Andrea is not currently employed and is actively seeking work, so she would be considered unemployed. Option A describes underemployment, option B describes temporary leave, and option C describes a situation where Andrea is already employed full-time.

Question 14

The employment/population ratio is the number of persons employed divided by the number of persons

Accepted Answer

The employment/population ratio measures the percentage of the civilian population age 16 and over that is employed. Therefore, the correct choice is D.

Question 15

Which one of the following would be classified as employed?

Accepted Answer

The 17-year-old high school student who works a newspaper route six hours per week would be classified as employed because they are performing work and receiving compensation for their labor. The other options do not meet the criteria for being classified as employed. A parent who works 50 to 60 hours per week caring for family members would be classified as "not in the labor force" because they are not engaged in paid work. The construction worker on layoff and the college student would both be classified as "unemployed" because they are not currently working but are actively seeking employment.

Question 16

The population (age 16 and over)of Yakutsk is 200 million;9 million are unemployed,and 111 million hold jobs.Indicate the rate of unemployment and the employment/population ratio of Yakutsk.

Accepted Answer

To find the unemployment rate, we need to divide the number of unemployed individuals by the total population and multiply by 100:

Unemployment rate = (9 million / 200 million) x 100 = 4.5%

To find the employment/population ratio, we need to divide the number of employed individuals by the total population and multiply by 100:

Employment/population ratio = (111 million / 200 million) x 100 = 55.5%

Therefore, the answer is C.

Question 17

Shawn is on a two-week layoff as the result of a model change at the auto plant where he works.According to employment statistics,Shawn is classified as

Accepted Answer

Shawn is not working due to a temporary layoff, which means he is actively looking for work and is therefore considered unemployed.

Question 18

Each month,the Bureau of Labor Statistics calculates unemployment by

Accepted Answer

The Bureau of Labor Statistics surveys a random sample of households, known as the Current Population Survey (CPS), to gather information about employment and unemployment in the U.S. This survey includes questions about labor force status, occupation, and industry, and is used to calculate the unemployment rate each month.

Question 19

Which of the following would be classified as employed?

Accepted Answer

A worker who is in the midst of a two-week vacation from his regular job is classified as employed because they have a job but are currently on a temporary break from work.

The other choices are not classified as employed because:

A) A full-time college student is not currently working. 
B) A construction worker on layoff is not currently working or receiving pay. 
C) A parent who is caring for family members is not currently working outside of the home and not receiving pay for their caregiving duties.

Question 20

The employment/population ratio identifies the proportion of the population age 16 and over that is

Accepted Answer

The employment/population ratio identifies the proportion of the population age 16 and over that is employed. It does not include those who are unemployed, in the labor force, or on layoff waiting to be rehired.

Quiz 8: Economic Fluctuations, unemployment, and Inflation