Question 1

Suppose the working-age population in Tiny Town is 100 people.If 25 of these people are not in the labour force,the ________ equals ________.

Accepted Answer

The labour force includes individuals who are employed and those who are unemployed but actively seeking work. Since 25 people are not in the labour force, the remaining 75 people are in the labour force.

Question 2

Which of the following reflects an increase in unemployment?

Accepted Answer

The answer of Which of the following reflects an increase...

Question 3

The working-age population can be divided into two groups:

Accepted Answer

The working-age population can be divided into two groups: those in the labour force and those not in the labour force. The labour force consists of those who are employed or unemployed and actively seeking employment, while those not in the labour force include discouraged workers, full-time students, homemakers, and retirees. Therefore, option D is the most appropriate choice.

Question 4

Which of the following is NOT included in the working-age population?

Accepted Answer

The answer of Which of the following is NOT included...

Question 5

Since 1960,Canadian labour force participation rate has ________ and the unemployment rate has ________.

Accepted Answer

Since 1960, the Canadian labour force participation rate has trended higher, while the unemployment rate has varied over the business cycle.

Question 6

If the labour force participation rate is rising and the working-age population is not changing,then the

Accepted Answer

The labour force participation rate measures the proportion of the working-age population that is either working or actively seeking employment. If this rate is rising and the working-age population is not changing, it means more people are either employed or looking for work. Therefore, the size of the labour force is also rising.

Question 7

Which one of the following people is structurally unemployed?

Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills of the worker and the demands of the job market. In this case, the Saskatchewan welder lost her job due to the company's relocation, which may require her to acquire new skills or move to a different location to find similar employment.

Question 8

If the people who take early retirement are not counted in the working-age population,then

Accepted Answer

The answer of If the people who take early retirement...

Question 9

In a recession,typically

Accepted Answer

In a recession, businesses typically lay off workers, causing the employment-to-population ratio to decrease. This means that a lower percentage of the population is employed, leading to higher unemployment rates. The labour force participation rate may also decrease as people become discouraged and stop looking for work, but it is not typically expected to increase during a recession.

Question 10

In a country with a working-age population of 30 million,18 million are employed,2 million are unemployed,and 2 million of the employed are working part-time,half of whom wish to work full-time.The involuntary part-time rate is

Accepted Answer

The answer of In a country with a working-age population...

Question 11

Which of the following pieces of information do you need to calculate the labour force participation rate?
I.the number of employed persons
II.the number of unemployed persons
III.the population
IV.the working age population

Accepted Answer

The labour force participation rate is the ratio of the labour force to the working age population, where the labour force is the sum of employed and unemployed individuals who are actively seeking work. Therefore, to calculate the labour force participation rate, we need the number of employed persons, the number of unemployed persons, and the working age population. The population as a whole is not needed, as the labour force participation rate only looks at those of working age.

Question 12

Unemployment caused by permanently decreased demand for horse-drawn carriages is an example of

Accepted Answer

This is an example of structural unemployment as the decreased demand for horse-drawn carriages is a long-term shift in the economy, rather than a temporary or cyclical fluctuation. This results in a mismatch between the skills and qualifications of workers and the available jobs, leading to unemployment.

Question 13

The labour force participation rate is

Accepted Answer

The labour force participation rate is the percentage of the working-age population who are either unemployed or employed. It includes both those who are employed and those who are actively seeking employment (i.e. people who are unemployed but looking for work). Option A only includes people who are employed, while option B includes both employed and unemployed individuals in the labour force. Option D only includes people who are employed, which is not the complete picture. Therefore, option C is the best choice.

Question 14

In a recession,typically

Accepted Answer

In a recession, unemployment typically rises due to reduced demand for goods and services, leading to job losses. Consequently, the employment-to-population ratio decreases as fewer people are employed relative to the total population.

Question 15

Which of the following statements is incorrect?

Accepted Answer

The answer of Which of the following statements is incorrect?
...

Question 16

Which one of the following people is cyclically unemployed?

Accepted Answer

Cyclical unemployment occurs due to a downturn in economic activity, leading to a general slowdown and job losses across various sectors.

Question 17

In a country with a working-age population of 30 million,18 million are employed,2 million are unemployed,and 2 million of the employed are working part-time,half of whom wish to work full-time.If 1 million of those unemployed are cyclically unemployed,what is the natural unemployment rate?

Accepted Answer

The answer of In a country with a working-age population...

Question 18

Complete the following sentence.In an expansion,typically

Accepted Answer

In an expansion, typically the labour force participation rate increases. This means that more people are entering or re-entering the labor force, which leads to an increase in employment opportunities and a decrease in unemployment. Therefore, options A and D are incorrect, and option C is also incorrect since the employment-to-population ratio typically increases during expansions. Option E is not correct because option D is incorrect.

Question 19

The employment-to-population ratio is

Accepted Answer

The employment-to-population ratio is a measure of the percentage of the working-age population who are employed, regardless of whether they are part of the labour force or not. Therefore, option A is the correct answer.

Question 20

In a country with a working-age population of 22 million,16 million are employed,2 million are unemployed,and 1 million of the employed are working part-time,half of whom wish to work full-time.If 500,000 of those unemployed are cyclically unemployed,what is the natural unemployment rate?

Accepted Answer

The natural unemployment rate consists of structural unemployment and frictional unemployment.

Structural unemployment is the long-term unemployment caused by a mismatch between the skills of the workers and the requirements of the job market. This includes those who are working part-time but wish to work full-time.

Frictional unemployment is the short-term unemployment caused by the time delay between the workers becoming unemployed and finding a new job. This includes those who are currently unemployed but not cyclically unemployed.

Using this information, we can calculate the natural unemployment rate as follows:

Structural unemployment = 1 million x 0.5 = 0.5 million
Frictional unemployment = 2 million - 0.5 million = 1.5 million
Total natural unemployment = 0.5 million + 1.5 million = 2 million

Therefore, the natural unemployment rate = (2 million / 22 million) x 100% = 9.09%

However, we have to subtract the cyclically unemployed workers from the total unemployed workers to find the natural unemployment rate.

Cyclical unemployment is the short-term unemployment caused by the business cycle, where firms reduce their output due to a decrease in demand, leading to workers being laid off.

Subtracting the cyclically unemployed workers (500,000) from the total unemployed (2 million), we get the natural unemployment rate as:

Natural unemployment rate = (1.5 million / 21.5 million) x 100% = 6.98%

Rounding this up to one decimal place, we get the answer as 8.3%, which is closest to option C.

Quiz 21: Monitoring Jobs and Inflation

Suppose the working-age population in Tiny Town is 100 people.If 25 of these people are not in the labour force,the equals .

Which of the following reflects an increase in unemployment?

The working-age population can be divided into two groups:

Which of the following is NOT included in the working-age population?

Since 1960,Canadian labour force participation rate has and the unemployment rate has .

If the labour force participation rate is rising and the working-age population is not changing,then the

Which one of the following people is structurally unemployed?

If the people who take early retirement are not counted in the working-age population,then

In a recession,typically

In a country with a working-age population of 30 million,18 million are employed,2 million are unemployed,and 2 million of the employed are working part-time,half of whom wish to work full-time.The involuntary part-time rate is

Which of the following pieces of information do you need to calculate the labour force participation rate? I.the number of employed persons II.the number of unemployed persons III.the population IV.the working age population

Unemployment caused by permanently decreased demand for horse-drawn carriages is an example of

The labour force participation rate is

In a recession,typically

Which of the following statements is incorrect?

Which one of the following people is cyclically unemployed?

In a country with a working-age population of 30 million,18 million are employed,2 million are unemployed,and 2 million of the employed are working part-time,half of whom wish to work full-time.If 1 million of those unemployed are cyclically unemployed,what is the natural unemployment rate?

Complete the following sentence.In an expansion,typically

The employment-to-population ratio is

In a country with a working-age population of 22 million,16 million are employed,2 million are unemployed,and 1 million of the employed are working part-time,half of whom wish to work full-time.If 500,000 of those unemployed are cyclically unemployed,what is the natural unemployment rate?