Question 1

If cyclical unemployment is eliminated in the economy,then

Accepted Answer

Cyclical unemployment refers to unemployment that is caused by fluctuations in the business cycle. When cyclical unemployment is eliminated, the economy is considered to be at full employment, which means that there is no more unemployment that can be reduced without causing inflation. Therefore, the best choice is A.

Question 2

How could a growing labour force lead to an increase in the unemployment rate?

Accepted Answer

The answer of How could a growing labour force lead...

Question 3

How would the unemployment rate and the labour force participation rate change if discouraged workers were counted as unemployed rather than as out of the labour force? Illustrate this using the formulae for both measurements.

Accepted Answer

The answer of How would the unemployment rate and the...

Question 4

The advice to "keep searching,there are plenty of jobs around here for which you are qualified," would be most appropriate for which of the following types of unemployment?

Accepted Answer

Frictional unemployment occurs when individuals are temporarily between jobs or searching for better employment opportunities. The advice to keep searching for available jobs would be most relevant in this context as it may take time for individuals to find suitable employment options.

Question 5

Structural unemployment is the result of

Accepted Answer

Structural unemployment occurs when there is a long-term mismatch between the skills and characteristics of available workers and the requirements of available jobs. This can be caused by changes in technology or the economy, which can make certain skills obsolete or increase the demand for new skills. As a result, some workers may find it difficult to find employment or may need to undergo additional training or education to acquire the necessary skills for available jobs.

Question 6

Jack just received a promotion at work and now works 50 hours per week instead of 35.As a result,

Accepted Answer

The answer of Jack just received a promotion at work...

Question 7

Suppose 180,000 people are employed,20,000 people are unemployed,and 50,000 people are out of the labour force.Calculate the labour force participation rate.

Accepted Answer

The answer of Suppose 180,000 people are employed,20,000 people are...

Question 8

The labour force survey is compiled from firms who answer questions about the number of persons who are employed and on the company payroll.

Accepted Answer

The Labour Force Survey is primarily compiled from household surveys where individuals are asked about their employment status, not from firms.

Question 9

A student who just graduated from college but has not found a job would most likely be

Accepted Answer

Frictional unemployment occurs when people are temporarily between jobs or searching for new ones, such as a recent college graduate who has not yet found a job.

Question 10

Cyclical unemployment is the result of

Accepted Answer

Cyclical unemployment is the type of unemployment that results from a slowdown in the economy. It occurs when there is a decrease in the demand for goods and services, which leads to a decrease in the demand for workers. As a result, workers lose their jobs as businesses reduce their workforce to stay afloat.

Question 11

In the labour force survey,all people are categorized as either employed or unemployed.

Accepted Answer

In the labour force survey, people are categorized as employed, unemployed, or not in the labor force. Those not actively seeking work or unable to work are not counted as part of the labor force.

Question 12

Frictional unemployment is the result of

Accepted Answer

Frictional unemployment occurs when workers are between jobs, either because they are searching for a new job or are transitioning from one job to another. It is a natural form of unemployment and reflects the time taken for the job search process and the matching of workers with suitable jobs.

Question 13

The labour force survey asks adults about their employment status and is used to compile the monthly unemployment rate.

Accepted Answer

This is true. The labour force survey is a survey conducted by Statistics Canada to collect information on employment and labour market participation in Canada. It asks people about their employment status, and this information is used to calculate the unemployment rate.

Question 14

The labour force participation rates of men have gradually increased since 1975.

Accepted Answer

The labour force participation rates of men have actually gradually decreased since 1975.

Question 15

For the last few decades,the labour force participation rates of men have ________,and the labour force participation rates of women have ________.

Accepted Answer

The labour force participation rates of men have fallen, while the labour force participation rates of women have risen, as more women are entering the workforce.

Question 16

Full employment is not considered to be zero unemployment,because

Accepted Answer

Full employment does not imply zero unemployment because there is always some level of frictional unemployment, which occurs when people are in the process of moving from one job to another. This means that even in a healthy economy, there will be people who are temporarily unemployed as they search for new positions that better match their skills or preferences.

Question 17

Suppose 180,000 people are employed,20,000 people are unemployed,the working-age population is 250,000,and 50,000 people are out of the labour force.Calculate the unemployment rate.

Accepted Answer

The answer of Suppose 180,000 people are employed,20,000 people are...

Question 18

According to the text,economists consider full employment to occur when

Accepted Answer

Full employment is considered to occur when the unemployment rate consists only of frictional and structural unemployment, meaning everyone who is willing and able to work at the prevailing wages can find a job, but there is still some unemployment due to people changing jobs or due to mismatches between workers' skills and job requirements.

Question 19

Jack was unemployed two weeks ago but just started a new job.As a result of this increase in the number of employed workers,which of the following occurred?

Accepted Answer

Jack was unemployed two weeks ago, but just started a new job. This means he transitioned from being counted as unemployed to being counted as employed. Therefore, the number of unemployed workers decreased while the number of employed workers increased, resulting in a decrease in the unemployment rate.

Question 20

In December 2015,CHCH TV cut 129 full-time positions in its local news division.The laid-off employees who were not able to find jobs at another television news station due to a permanent decline in local news programming would be considered

Accepted Answer

The laid-off employees who were not able to find jobs due to a permanent decline in local news programming are considered structurally unemployed. Structural unemployment is the type of unemployment that occurs due to a fundamental mismatch between the skills that workers possess and the skills required for available jobs. In this case, the decline in local news programming resulted in fewer job opportunities for these workers, leading to a long-term mismatch between available jobs and workers' skills.

Quiz 5: Unemployment and Inflation

If cyclical unemployment is eliminated in the economy,then

How could a growing labour force lead to an increase in the unemployment rate?

How would the unemployment rate and the labour force participation rate change if discouraged workers were counted as unemployed rather than as out of the labour force? Illustrate this using the formulae for both measurements.

The advice to "keep searching,there are plenty of jobs around here for which you are qualified," would be most appropriate for which of the following types of unemployment?

Structural unemployment is the result of

Jack just received a promotion at work and now works 50 hours per week instead of 35.As a result,

Suppose 180,000 people are employed,20,000 people are unemployed,and 50,000 people are out of the labour force.Calculate the labour force participation rate.

The labour force survey is compiled from firms who answer questions about the number of persons who are employed and on the company payroll.

A student who just graduated from college but has not found a job would most likely be

Cyclical unemployment is the result of

In the labour force survey,all people are categorized as either employed or unemployed.

Frictional unemployment is the result of

The labour force survey asks adults about their employment status and is used to compile the monthly unemployment rate.

The labour force participation rates of men have gradually increased since 1975.

For the last few decades,the labour force participation rates of men have ,and the labour force participation rates of women have .

Full employment is not considered to be zero unemployment,because

Suppose 180,000 people are employed,20,000 people are unemployed,the working-age population is 250,000,and 50,000 people are out of the labour force.Calculate the unemployment rate.

According to the text,economists consider full employment to occur when

Jack was unemployed two weeks ago but just started a new job.As a result of this increase in the number of employed workers,which of the following occurred?

In December 2015,CHCH TV cut 129 full-time positions in its local news division.The laid-off employees who were not able to find jobs at another television news station due to a permanent decline in local news programming would be considered