Question 1

If there is unemployment and all businesses are operating at less than full capacity,then

Accepted Answer

When there is unemployment and businesses are operating below full capacity, it means that not all available resources (labor and capital) are being utilized efficiently. This situation indicates that society is producing inside its production possibilities curve, which represents all possible combinations of two goods that can be produced with available resources and technology when those resources are fully and efficiently utilized.

Question 2

The labor force participation rate includes

Accepted Answer

The labor force participation rate includes both employed workers and those unemployed but seeking employment. It does not include discouraged workers who are not seeking jobs.

Question 3

Costs of unemployment include

Accepted Answer

When there is unemployment in the economy, it means that the economy is not producing at its full potential resulting in a loss of output or GDP. This loss of output incurs a cost to the economy as it reduces the overall economic output, leaving societies with fewer goods and services. Therefore, the correct option is B. The other options do not apply since they either refer to types of unemployment (option A) or labor market dynamics (options C and D).

Question 4

The population is 1,200 million,the labor force is 150 million,and the number of unemployed is 15 million.What is the unemployment rate?

Accepted Answer

Unemployment rate = (number of unemployed / labor force) x 100
= (15 million / 150 million) x 100
= 10%

Question 5

The labor force is defined as

Accepted Answer

The labor force includes all individuals who are at least 16 years old and are either currently employed or unemployed but looking for work. This definition excludes those who are not seeking employment.

Question 6

If the duration of unemployment in a country increases from 16 weeks to 18 weeks,then

Accepted Answer

The duration of unemployment increasing from 16 weeks to 18 weeks indicates that individuals are remaining unemployed for a longer period of time, which suggests that the unemployment rate will increase. This is because the number of unemployed individuals will likely increase, while the size of the labor force stays constant. Option A is incorrect because an increase in unemployment duration does not result in a decrease in unemployment rate. Option C is incorrect because there is no indication that the size of the labor force would increase. Option D is incorrect because there is no indication that the duration of unemployment would have an effect on the size of the labor force.

Question 7

The duration of unemployment tends to

Accepted Answer

When business activity decreases, companies are more likely to lay off workers or not hire new ones, which leads to an increase in unemployment. As a result, the duration of unemployment tends to increase in such circumstances.

Question 8

In recent years the labor force participation rate has been fairly stable,

Accepted Answer

The overall labor force participation rate has been fairly stable in recent years, but this stability masks underlying trends: the male labor force participation rate has been declining, while the female labor force participation rate has been increasing. This reflects broader social and economic changes, including shifts in the types of jobs available, changing societal norms around gender roles, and improvements in women's access to education and professional opportunities.

Question 9

To be officially classified as unemployed,a person must be

Accepted Answer

To be officially classified as unemployed, a person must meet certain criteria. They must be at least 16 years old, not working, and actively seeking employment. Simply being out of work or collecting unemployment benefits does not necessarily make someone unemployed. Being laid off or fired may contribute to someone being unemployed, but it is not the sole determining factor.

Question 10

Over the last 100 years in the United States,unemployment reached its highest rate

Accepted Answer

The highest rate of unemployment in the United States over the last 100 years was during the Great Depression in the 1930s, where it reached as high as 25%.

Question 11

Which of the following individuals is NOT counted as unemployed?

Accepted Answer

The Bureau of Labor Statistics defines unemployed individuals as those who are currently not employed, available for work, and have actively sought employment within the past four weeks. Individuals who have become discouraged and stopped looking for work are not considered part of the labor force and therefore not counted as unemployed.

Question 12

One major reason that economists are concerned about unemployment is that

Accepted Answer

Unemployment means that some of the available resources (labor) are not being used to produce goods and services, which causes a reduction in output. Full employment means that the economy is using all available resources in the most efficient way, and thus producing the maximum possible output.

Question 13

To be considered officially unemployed,a person must be at least 16 years old

Accepted Answer

To be considered officially unemployed, a person must be actively seeking employment and not working. The other options do not accurately define unemployment.

Question 14

People who have dropped out of the labor force and who are no longer looking for a job because they believe the job market has little to offer them are classified by the Labor Department as

Accepted Answer

The Labor Department classifies people who have dropped out of the labor force and who are no longer looking for a job because they believe the job market has little to offer them as "discouraged workers." Therefore, choice C is the best answer. Choices A, B, and D are not accurate classifications for this group of individuals.

Question 15

Which of the following people would be considered unemployed by the Bureau of Labor Statistics? I.Mrs.X retires from her job and does not look for another job.
II.Mr.Y was laid off from his job as a welder,but expects to be rehired in 8 months.

Accepted Answer

The answer of Which of the following people would be...

Question 16

Jasime voluntarily quit her job and is now searching for a new position.Jasime is classified as a

Accepted Answer

Jasmine's decision to quit her job voluntarily makes her a job leaver. The other options, such as job loser, refer to individuals who have lost their jobs due to circumstances outside of their control (e.g. layoffs). Job reentrant refers to individuals who were previously in the workforce and are returning after an extended absence, while new entrants are individuals just entering the workforce for the first time.

Question 17

The unemployment rate will rise when

Accepted Answer

The answer of The unemployment rate will rise when
...

Question 18

To be officially counted as unemployed,a person must be

Accepted Answer

To be officially counted as unemployed, a person must be at least 16 years old, according to the definitions used by most labor statistics agencies, including the U.S. Bureau of Labor Statistics.

Question 19

Which of the following can cause official unemployment figures to underestimate the true unemployment rate?

Accepted Answer

When people get discouraged and stop looking for a job, they are no longer counted in the official unemployment figures. This can cause the true unemployment rate to be higher than what is reported.

Question 20

Who is considered officially unemployed?

Accepted Answer

Monica is actively searching for a job but has not been able to secure employment, so she is considered officially unemployed. A, C, and D do not fit the definition of officially unemployed.

Quiz 7: The Macroeconomy: Unemployment, inflation, and Deflation