Question 1

Sally is on a temporary summer layoff from the public school where she works as an administrator.If Sally participates in the Statistics Canada survey,how will she be classified?

Accepted Answer

Sally is currently unemployed due to her temporary layoff, but she is actively seeking employment (by participating in the Statistics Canada survey), which means she is considered to be in the labour force. Therefore, she would be classified as unemployed and in the labour force.

Question 2

Who would be counted as unemployed according to official statistics?

Accepted Answer

Shasta is counted as unemployed because she is not currently working but is waiting to start a new job, which means she is actively engaged in the labor market.

Question 3

How is unemployment data collected?

Accepted Answer

Unemployment data is collected through a regular survey of about 54,000 households conducted by Statistics Canada. The survey asks whether individuals are employed, unemployed, or not in the labour force, as well as other demographic information. This method provides a representative sample of the population and allows for accurate estimation of unemployment rates.

Question 4

Which statement is characteristic of the natural rate of unemployment?

Accepted Answer

The natural rate of unemployment is the amount of unemployment that the economy typically experiences. It represents the normal amount of frictional and structural unemployment in an economy, and cannot be altered by economic policy. It is not necessarily a desirable rate of unemployment, nor is it always a consistent rate year after year as it can be influenced by changes in the economy such as technological advancements or demographic shifts.

Question 5

Which of the following constitutes the labour force?

Accepted Answer

The labour force consists of both employed and unemployed individuals who are of working age and are actively seeking employment. Therefore, the correct answer is C - the number of people employed plus the number of people unemployed. Option A only considers the employed individuals, option B only considers the unemployed individuals, and option D includes all individuals in the adult population, whether or not they are seeking employment.

Question 6

Which statement best explains how unemployment relates to business cycles?

Accepted Answer

Cyclical unemployment is directly related to short-run economic fluctuations. When the economy is in a downturn or recession, demand for goods and services decreases, leading to less demand for labor and higher unemployment rates. Conversely, when the economy is in an upswing or expansion, demand for labor increases, resulting in lower unemployment rates.

Question 7

Who would be counted as unemployed according to official statistics?

Accepted Answer

According to official statistics, individuals who are not currently employed but are actively seeking work are considered unemployed. Therefore, Brian (A), Heath (C), and James (D) would not be counted as unemployed in official statistics. Kate (B), who is waiting to be recalled after a temporary layoff, would be considered unemployed as she is not currently working and is actively seeking employment.

Question 8

Which of the following lists includes all the categories into which Statistics Canada divides the adult population?

Accepted Answer

According to the question, Statistics Canada divides the adult population into categories. The categories are employed, unemployed, and not in the labour force. Therefore, the best choice that lists all the categories is C - employed, unemployed, not in the labour force. A includes only employed and unemployed, B includes discouraged workers which is a subset of unemployed, and D excludes unemployed.

Question 9

What is cyclical unemployment closely associated with?

Accepted Answer

Cyclical unemployment is closely associated with short-run ups and downs of the economy, also known as business cycles. It occurs when there is a downturn in the economy and businesses have to lay off workers due to a decrease in demand for goods and services.

Question 10

How is the unemployment rate computed?

Accepted Answer

The unemployment rate is computed by dividing the number of unemployed individuals by the number of people in the labour force. This calculation provides a percentage of individuals who are actively seeking employment but currently do not have a job. It is considered the most accurate measure of unemployment in an economy. Options A, C, and D are not correct because they do not accurately reflect the definition or calculation of the unemployment rate.

Question 11

Who would be included in the labour force?

Accepted Answer

Only individuals who are actively seeking employment are considered part of the labor force. Derrick is waiting for his new job to start, indicating that he is actively looking for work and would be included in the labor force.

Answer: None of the above
 Brett has become discouraged and has quit looking for a job, making him not part of the labor force. Homer is an unpaid homemaker and not seeking employment, therefore not part of the labor force. Dave is a student and not seeking employment, therefore not part of the labor force.

Question 12

How often is data on unemployment reported?

Accepted Answer

Data on unemployment is reported monthly, typically on the first Friday of each month by the Bureau of Labor Statistics.

Question 13

Which statement best defines the natural rate of unemployment?

Accepted Answer

The natural rate of unemployment refers to the amount of unemployment that the economy normally experiences, taking into account factors such as demographics, skills mismatches, and job search processes. It is the rate that prevails in the long run and is not influenced by short-term fluctuations such as business cycles or shocks to the economy. Options A and B do not accurately describe the concept of natural rate of unemployment, and option C confuses the difference between long-run and short-run unemployment rates with the concept of natural rate.

Question 14

Who would NOT be included in the labour force?

Accepted Answer

Jeremiah is not currently seeking work and therefore would not be considered part of the labour force. A, B, and C all involve individuals who are either working or actively seeking work and would be included in the labour force.

Question 15

Which statement ranks categories from smallest to largest according to recent Canadian statistics?

Accepted Answer

According to recent Canadian statistics, the number of employed individuals is the largest group, followed by those not in the labour force, with the unemployed being the smallest group.

Question 16

Who would NOT be included in the labour force?

Accepted Answer

Someone who has retired and is not looking for work is not considered part of the labor force.

Question 17

Which data does Statistics Canada NOT produce?

Accepted Answer

Statistics Canada does not produce daily data on unemployment. They release data on a monthly or quarterly basis.

Question 18

In which situation would Statistics Canada count a person as unemployed?

Accepted Answer

Statistics Canada only counts a person as unemployed if he/she is age 15 or over and actively looking for work. A person who is not in the labour force or not looking for work is not considered unemployed. A person under the age of 15 is not considered part of the labour force.

Question 19

What does cyclical unemployment refer to?

Accepted Answer

Cyclical unemployment refers to the year-to-year fluctuations of unemployment around its natural rate. This type of unemployment is related to changes in the business cycle and occurs when the economy is in a downturn or recession.

Question 20

Who would be included in the labour force?

Accepted Answer

The labour force includes people who are currently working or actively looking for work, such as Cody who does not have a job but is actively searching for one.

Answer: D 
 Kara is not included in the labour force as she has interrupted her career to raise her children and is not currently working or looking for work.

Quiz 9: Unemployment and Its Natural Rate

Sally is on a temporary summer layoff from the public school where she works as an administrator.If Sally participates in the Statistics Canada survey,how will she be classified?

Who would be counted as unemployed according to official statistics?

How is unemployment data collected?

Which statement is characteristic of the natural rate of unemployment?

Which of the following constitutes the labour force?

Which statement best explains how unemployment relates to business cycles?

Who would be counted as unemployed according to official statistics?

Which of the following lists includes all the categories into which Statistics Canada divides the adult population?

What is cyclical unemployment closely associated with?

How is the unemployment rate computed?

Who would be included in the labour force?

How often is data on unemployment reported?

Which statement best defines the natural rate of unemployment?

Who would NOT be included in the labour force?

Which statement ranks categories from smallest to largest according to recent Canadian statistics?

Who would NOT be included in the labour force?

Which data does Statistics Canada NOT produce?

In which situation would Statistics Canada count a person as unemployed?

What does cyclical unemployment refer to?

Who would be included in the labour force?