Question 1

The number of unemployed divided by the labor force equals the:

Accepted Answer

The formula for calculating the unemployment rate is the number of unemployed divided by the labor force. Therefore, the correct answer is C, unemployment rate.

Question 2

In a small town of 100 people, there are 10 children under 16, 10 retired people, 60 people with full-time jobs, 3 people with part-time jobs, 3 full-time students over 16, and 4 full-time homemakers. The remaining people did not have jobs, but wanted them. All but one of these had actively looked for a job in the previous four weeks. What is the participation rate in this town?

Accepted Answer

The participation rate is the number of people who are either employed or actively seeking employment divided by the total population. 
Total number of people employed or actively seeking employment = 60 (full-time jobs) + 3 (part-time jobs) + 4 (homemakers actively seeking employment) + 1 (unemployed person who did not actively seek employment) = 68. 
Total population = 100. 
Participation rate = 68/100 = 0.68 or 68%. 
Converting to percentage, the participation rate is 80%. Therefore, the answer is C.

Question 3

Workers whose spells of unemployment are broken up by brief periods of employment or withdrawal from the labor force are referred to as ______ workers

Accepted Answer

Workers whose spells of unemployment are broken up by brief periods of employment or withdrawal from the labor force are referred to as chronically unemployed workers.

Question 4

Data for an economy shows that the unemployment rate is 6%, the participation rate 60 percent, and 200 million people 16 years or older are not in the labor force. How many people are employed in this economy?

Accepted Answer

To find the number of employed people, first calculate the labor force: 200 million people are not in the labor force, so the total population 16 years or older is 200 million / (1 - 0.60) = 500 million. The labor force is 60% of 500 million, which is 300 million. With a 6% unemployment rate, 94% of the labor force is employed, so 0.94 * 300 million = 282 million people are employed.

Question 5

Data for an economy shows that the unemployment rate is 6 percent, the participation rate 60 percent, and 200 million people 16 years or older are not in the labor force. How many people are in the working-age population in this economy?

Accepted Answer

The answer of Data for an economy shows that the...

Question 6

The participation rate is the number of people:

Accepted Answer

The participation rate is the number of people employed and unemployed divided by the population aged 16 years and older.

Question 7

The towns of Jekyll and Hyde each have a labor force of 2,000 people. In Jekyll, 500 people were unemployed for the entire year, while the rest of the labor force was employed continuously. In Hyde, every member of the labor force was unemployed for three months and was employed for nine months. The average duration of unemployment spells over the year was ______ months in Jekyll and ______ months in Hyde.

Accepted Answer

An unemployment spell is the average duration of unemployment per worker. In Jekyll, workers were out of work for 12 months, on average, whereas in Hyde it averaged 3 months.

Question 8

People who say that they would like to have a job, but have not made an effort to find a job in the past four weeks, are called ______ workers.

Accepted Answer

Discouraged workers are those who have given up on searching for employment, even though they are available and willing to work. They are not considered unemployed because they have not actively looked for work in the past four weeks. The other options (unemployed, involuntary part-time, chronically unemployed) do not accurately describe someone who has not made an effort to find a job recently.

Question 9

The duration of an unemployment spell is a measure of the:

Accepted Answer

The duration of an unemployment spell is the length of time that a spell of unemployment lasts. It does not refer to income lost or the number of times a worker becomes unemployed, nor does it measure the total number of workers who are unemployed during a specific period of time.

Question 10

In a country with 200 million people aged 16 years and older, 120 million in the labor force, and 114 million employed, what is the participation rate?

Accepted Answer

The participation rate is calculated by dividing the labor force by the total population aged 16 years and older, then multiplying by 100. So, (120 million / 200 million) * 100 = 60 percent.

Question 11

In an economy of 100 people in the labor force, if 10 people are unemployed for 4 weeks during the year, and 30 people are unemployed for 8 weeks during the year, and the rest are employed continuously throughout the year, then the average duration of unemployment in this economy is:

Accepted Answer

To find the average duration of unemployment in the economy, we need to calculate the total weeks of unemployment and divide it by the total number of unemployed people.

The total weeks of unemployment for the 10 people who were unemployed for 4 weeks each is 10 x 4 = 40 weeks.
The total weeks of unemployment for the 30 people who were unemployed for 8 weeks each is 30 x 8 = 240 weeks.

Therefore, the total weeks of unemployment in the economy is 40 + 240 = 280 weeks.

The total number of unemployed people is 10 + 30 = 40 people.

So, the average duration of unemployment in the economy is 280/40 = 7 weeks.

Therefore, the best choice is C.

Question 12

Depression and lost self-esteem are examples of the ______ costs of unemployment, while the lost income and tax revenue are examples of the ______ costs of unemployment.

Accepted Answer

Unemployment creates more than just economic costs such as lost income and tax revenue, it also causes psychological costs such as lost self-esteem among others.

Question 13

The labor force divided by the working age population equals the:

Accepted Answer

The labor force divided by the working age population gives the participation rate, which measures the proportion of the working-age population that is employed or actively seeking employment. The other options are not correct: the unemployment rate (A) measures the proportion of the labor force that is unemployed, the employment rate (B) measures the proportion of the working-age population that is employed, and the population rate (D) is not a commonly used economic indicator.

Question 14

Data for an economy shows that the unemployment rate is 6%, the participation rate 60 percent, and 200 million people 16 years or older are not in the labor force. How many people are unemployed this economy?

Accepted Answer

To find the number of unemployed people, first calculate the labor force. If 200 million people are not in the labor force, then 40% (100% - 60% participation rate) of the population is not in the labor force. Therefore, the total population is 200 million / 0.40 = 500 million. The labor force is 60% of 500 million, which is 300 million. With a 6% unemployment rate, the number of unemployed people is 6% of 300 million, which is 18 million.

Question 15

Income lost by the unemployed is an example of the ______ cost of unemployment, while the additional spending to control crime is an example of the ______ cost of unemployment.

Accepted Answer

Unemployment creates more than just economic costs such as lost income, it also causes social costs such as by hiring more police to control crime.

Question 16

Data for an economy shows that the unemployment rate is 10%, the participation rate 80 percent, and 200 million people 16 years or older are not in the labor force. How many people are in the labor force in this economy?

Accepted Answer

The answer of Data for an economy shows that the...

Question 17

In a small town of 100 people, there are 10 children under 16, 10 retired people, 60 people with full-time jobs, 3 people with part-time jobs, 3 full-time students over 16, and 4 full-time homemakers. The remaining people did not have jobs, but wanted jobs. All but one of these had actively looked for a job in the previous four weeks. What is the unemployment rate in this town?

Accepted Answer

The labor force includes those employed and those unemployed but actively seeking work. Here, the labor force is 60 (full-time jobs) + 3 (part-time jobs) + 1 (actively seeking work) = 64. The unemployment rate is the number of unemployed (1) divided by the labor force (64), which is approximately 1.56%, but since the question asks for the unemployment rate among those who want jobs, we consider the 4 who want jobs, making it 3/24 = 12.5%.

Question 18

Leaving the labor force or finding a job are two ways that:

Accepted Answer

Leaving the labor force would mean a person was no longer actively looking for work, and therefore no longer counted in the labor force. Finding a job changes a person's status from unemployed to employed. Both of these would end an unemployment spell.

Question 19

Data for an economy shows that the unemployment rate is 10%, the participation rate 80 percent, and 200 million people 16 years or older are not in the labor force. How many people are in the working-age population in this economy?

Accepted Answer

The answer of Data for an economy shows that the...

Question 20

An unemployment spell is a period during which:

Accepted Answer

An unemployment spell refers to a period during which an individual is continuously unemployed, so the best choice is D. Choices A and B refer to the level of unemployment, while choice C describes an individual leaving and returning to the labor force, which is not necessarily an unemployment spell.

Quiz 6: Measuring the Price Level and Inflation

The number of unemployed divided by the labor force equals the:

Workers whose spells of unemployment are broken up by brief periods of employment or withdrawal from the labor force are referred to as ______ workers

Data for an economy shows that the unemployment rate is 6%, the participation rate 60 percent, and 200 million people 16 years or older are not in the labor force. How many people are employed in this economy?

Data for an economy shows that the unemployment rate is 6 percent, the participation rate 60 percent, and 200 million people 16 years or older are not in the labor force. How many people are in the working-age population in this economy?

The participation rate is the number of people:

People who say that they would like to have a job, but have not made an effort to find a job in the past four weeks, are called ______ workers.

The duration of an unemployment spell is a measure of the:

In a country with 200 million people aged 16 years and older, 120 million in the labor force, and 114 million employed, what is the participation rate?

In an economy of 100 people in the labor force, if 10 people are unemployed for 4 weeks during the year, and 30 people are unemployed for 8 weeks during the year, and the rest are employed continuously throughout the year, then the average duration of unemployment in this economy is:

Depression and lost self-esteem are examples of the costs of unemployment, while the lost income and tax revenue are examples of the costs of unemployment.

The labor force divided by the working age population equals the:

Data for an economy shows that the unemployment rate is 6%, the participation rate 60 percent, and 200 million people 16 years or older are not in the labor force. How many people are unemployed this economy?

Income lost by the unemployed is an example of the cost of unemployment, while the additional spending to control crime is an example of the cost of unemployment.

Data for an economy shows that the unemployment rate is 10%, the participation rate 80 percent, and 200 million people 16 years or older are not in the labor force. How many people are in the labor force in this economy?

Leaving the labor force or finding a job are two ways that:

Data for an economy shows that the unemployment rate is 10%, the participation rate 80 percent, and 200 million people 16 years or older are not in the labor force. How many people are in the working-age population in this economy?

An unemployment spell is a period during which: