Question 1

"Discouraged workers" comprise the percentage of those in the _____
A) labor force who are employed and are seeking employment.
B) labor force who have chosen early retirement because they dislike their work.
C) adult population who want to be employed but have given up the search for a job.
D) labor force who are looking for a job but cannot find one.
E) adult population who are in the labor force.

Accepted Answer

Discouraged workers are those who have given up the search for a job, even though they still want to be employed. Therefore, the correct answer is C - adult population who want to be employed but have given up the search for a job. Option A refers to individuals who are actively seeking employment, while option B refers to those who have already retired. Option D is partially correct but does not include the fact that these individuals have given up on their job search. Option E is too broad and includes both employed and unemployed individuals.

Question 2

Which of the following is true of the labor force participation rate?
A) When workers become unemployed, the labor force participation rate declines.
B) When the unemployed become discouraged workers, the labor force participation rate declines.
C) When workers do not fully use their skills, the labor force participation rate decreases.
D) Since the 1950s, the labor force participation rate of women has decreased in the United States.
E) The trend toward earlier retirement has increased the labor force participation rate in the United States.

Accepted Answer

When the unemployed become discouraged workers, they are no longer counted as part of the labor force, causing a decline in the labor force participation rate. A) Is incorrect because unemployment doesn't decrease the labor force participation rate but might result in the discouraged worker effect. C) is incorrect since the utilization of skills of workers has no direct impact on the labor force participation rate. D) is incorrect since the labor force participation rate of women has increased since the 1950s. E) is incorrect as the trend toward earlier retirement would decrease the labor force participation rate.

Question 3

In an economy, U = the number of adults who are unemployed, E = the number of adults who are employed, and NLF = the number of adults not in the labor force. The labor force participation rate in the economy is equal to _____
A) U/(U + E).
B) E/(U + E).
C) U/(U + E + NLF).
D) E/(U + E + NLF).
E) (U + E)/(U + E + NLF).

Accepted Answer

The labor force participation rate is calculated as the labor force (U + E, i.e., the number of unemployed plus the number of employed) divided by the total adult population (U + E + NLF). This measures the proportion of the population that is actively participating in the labor force, either by working or looking for work.

Question 4

Table 7.1
 
-Consider an economy with an adult population of 100, 50 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The labor force participation rate is _____.
A) 100 percent
B) 60 percent
C) 50 percent
D) 40 percent
E) 10 percent

Accepted Answer

The labor force is made up of those who hold jobs and those who are looking for work, which is a total of 60 people in this case. Therefore, the labor force participation rate is 60/100 or 60 percent.

Question 5

Which of the following people would be classified as unemployed?
A) a person who wants a job as a fashion model but cannot find work in that field
B) someone who quits a part-time job to attend school full time
C) someone who does not have a job and gives up looking for one
D) a person who works at a job that underutilizes his or her skills
E) a person who works part-time and would rather work full time

Accepted Answer

A person who is actively seeking work in their desired field but cannot find it is considered unemployed because they are without a job and are actively looking for one.

Question 6

The labor force participation rate for men in the United States has _____
A) stayed the same over the last 30 years.
B) increased significantly since the 1950s.
C) decreased significantly since the 1950s.
D) fluctuated substantially both upward and downward since the 1950s.
E) increased only very slightly since the 1950s.

Accepted Answer

The labor force participation rate for men in the United States has decreased significantly since the 1950s. In 1950, the participation rate for men was 87.4%, while in 2019, it was 68.3%. This decline is due to various factors, including technological changes, globalization, and the shift towards service sector jobs that require more education and training.

Question 7

Who among the following would not be considered officially unemployed?
A) Jones, who quit his job to look for a better job in another part of the country
B) Jason, who got fired from his job when the government cut spending
C) Bourne, who is looking for a job after being out of the labor force for five years
D) Sophie, who quit her job because she disliked it
E) Annie, who dropped out of the labor force after a year of job searching

Accepted Answer

The answer of Who among the following would not be...

Question 8

Which of the following groups tends to have the highest unemployment rate in the United States?
A) African American teenagers
B) workers, aged 25 or older, who are college graduates
C) white women
D) workers, 25 years of age or older, who are high school dropouts
E) white teenagers

Accepted Answer

African American teenagers tend to have the highest unemployment rates due to various socio-economic factors, including systemic inequalities and fewer job opportunities.

Question 9

Which of the following is true of the labor force participation rates in the United States since the 1950s?
A) The rates for both men and women have risen.
B) The rate for women has fallen; the rate for men has risen.
C) The rate for men has fallen; the rate for women has increased.
D) The rates for both men and women have fallen.
E) The rates for both men and women have remained fairly constant.

Accepted Answer

The labor force participation rate for men has indeed fallen since the 1950s, while the rate for women has increased. This trend can be attributed to a variety of factors, including changes in societal norms, the rise of women's rights movements, and increased opportunities for women in the workforce.

Question 10

In an economy, U = the number of adults who are unemployed, E = the number of adults who are employed, and NLF = the number of adults not in the labor force. The unemployment rate of the economy is equal to _____
A) U/(E + NLF).
B) U/E.
C) U/(U + E).
D) U/(U + E − NLF).

Accepted Answer

The unemployment rate is calculated as the number of unemployed individuals (U) divided by the total labor force, which is the sum of employed (E) and unemployed (U) individuals, hence the formula U/(U + E).

Question 11

If government officials claim that more people are working now than ever before, then which of the following is true?
A) The unemployment rate is lower now than ever before.
B) The number of people unemployed is lower now than ever before.
C) The employment rate is higher now than ever before.
D) The number of people in the labor force is higher now than ever before.
E) The number of people employed is higher now than ever before.

Accepted Answer

The statement directly implies that the total number of people employed is at its highest, not necessarily that the rate of employment or unemployment is at its lowest or highest.

Question 12

Which of the following people would be counted as employed?
A) a retired naval officer
B) a high school student
C) a stay-at-home father
D) a teenager who has given up looking for work after a year of trying
E) a ski instructor who is working during the summer

Accepted Answer

The only person listed who would be counted as employed is the ski instructor who is currently working. The retired naval officer, high school student, stay-at-home father, and teenager who has given up looking for work would not be considered part of the labor force and therefore not included in employment statistics.

Question 13

Table 7.1
 
-Refer to Table 7.1, which shows data for males and females over 16 years old in the island of Palma. What is the labor force participation rate?
A) 4.0 percent
B) 10.0 percent
C) 53.3 percent
D) 7.4 percent
E) 64.3 percent

Accepted Answer

The labor force participation rate is calculated by dividing the labor force by the total adult population and multiplying by 100. Without the specific data from Table 7.1, the choice that typically represents a realistic labor force participation rate is 64.3 percent.

Question 14

The unemployment rate will decrease whenever there is a(n) _____
A) increase in the number of persons classified as unemployed.
B) decrease in the number of unemployed persons relative to the size of the labor force.
C) decrease in the size of the population and no change in the number of persons classified as employed.
D) reduction in the size of the labor force.
E) decrease in the number of unemployed persons and no change in the population.

Accepted Answer

The unemployment rate is calculated by dividing the number of unemployed individuals by the total labor force (employed + unemployed individuals). Therefore, a decrease in the number of unemployed individuals relative to the size of the labor force will result in a lower unemployment rate. This can occur through job creation, individuals leaving the labor force, or a combination of both. Choices A, C, D, and E would not result in a decrease in the unemployment rate.

Question 15

Which of the following people would be counted among the unemployed?
A) a new college graduate selling newspaper advertisements part time while looking for other work
B) a new college graduate selling newspaper advertisements full time while looking for other work
C) a new college graduate selling newspaper advertisements part time and not looking for other work
D) a new college graduate who gets tired of selling newspaper advertisements and takes off on a motorcycle trip to Alaska
E) a new college graduate not qualified for any of the jobs available in his small town

Accepted Answer

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

Question 16

A discouraged worker is one who _____
A) is underqualified for his current job.
B) dislikes his current job but is afraid to quit.
C) drops out of the labor force because he cannot find a job.
D) quits his job because the possibility of advancement is very low.
E) is overqualified for his current job.

Accepted Answer

A discouraged worker is someone who has given up looking for a job because they believe there are no job opportunities available for them. This could be due to a variety of factors, including long-term unemployment, lack of job offers, or feeling overqualified or underqualified for available positions. Therefore, option C is the correct answer.

Question 17

The labor force participation rate for women in the United States has _____
A) stayed the same over the last 30 years.
B) increased significantly since the 1950s.
C) decreased significantly since the 1950s.
D) fluctuated substantially both upward and downward since the 1950s.
E) increased only very slightly since the 1950s.

Accepted Answer

The labor force participation rate for women in the United States has increased significantly since the 1950s. In 1950, only 29.6% of women were participating in the labor force, whereas in 2020, that number had risen to 57.2%. This is due to a combination of factors, including increasing educational attainment among women, changing social attitudes towards women working outside the home, and the rise of service sector jobs that are traditionally dominated by women.

Question 18

Suppose the total population of an economy is 150 million, the labor force is 100 million, and the number of unemployed workers is 94 million. The unemployment rate is _____.
A) 6 percent
B) 80 percent
C) 94 percent
D) 10 percent
E) 15 percent

Accepted Answer

The unemployment rate is the percentage of the labor force that is unemployed. 
Unemployment rate = (number of unemployed workers / labor force) x 100%
Substituting the given values, we get: 
Unemployment rate = (94 million / 100 million) x 100% = 94%
Therefore, the answer is C) 94 percent.

Question 19

A recent college graduate who is looking for her first job would be considered _____
A) a discouraged worker.
B) underemployed.
C) overemployed.
D) unemployed.
E) not in the labor force.

Accepted Answer

A recent college graduate who is looking for her first job would not currently be employed, therefore the correct choice is D) unemployed.

Question 20

Anne is an accountant who lost her job in the last recession and has given up looking for work after an unsuccessful job search. Which of the following is true in this case?
A) She is a discouraged worker.
B) She is underemployed.
C) This is an example of cyclical unemployment.
D) This is an example of seasonal unemployment.
E) She is overemployed.

Accepted Answer

Anne is a discouraged worker because she has given up looking for work, which is a characteristic of discouraged workers. Underemployment refers to workers who have a job but are not utilizing their skills or working part-time when they want to work full-time, which does not apply to Anne's situation. This is not an example of cyclical or seasonal unemployment because it is not specifically tied to economic cycles or seasonal changes in demand. Overemployment is not a recognized economic term and is not applicable in this situation.

Quiz 7: Unemployment and Inflation.

"Discouraged workers" comprise the percentage of those in the _____

Which of the following is true of the labor force participation rate?

In an economy, U = the number of adults who are unemployed, E = the number of adults who are employed, and NLF = the number of adults not in the labor force. The labor force participation rate in the economy is equal to _____

Table 7.1 -Consider an economy with an adult population of 100, 50 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The labor force participation rate is _____.

Which of the following people would be classified as unemployed?

The labor force participation rate for men in the United States has _____

Who among the following would not be considered officially unemployed?

Which of the following groups tends to have the highest unemployment rate in the United States?

Which of the following is true of the labor force participation rates in the United States since the 1950s?

In an economy, U = the number of adults who are unemployed, E = the number of adults who are employed, and NLF = the number of adults not in the labor force. The unemployment rate of the economy is equal to _____

If government officials claim that more people are working now than ever before, then which of the following is true?

Which of the following people would be counted as employed?

Table 7.1 -Refer to Table 7.1, which shows data for males and females over 16 years old in the island of Palma. What is the labor force participation rate?

The unemployment rate will decrease whenever there is a(n) _____

Which of the following people would be counted among the unemployed?

A discouraged worker is one who _____

The labor force participation rate for women in the United States has _____

Suppose the total population of an economy is 150 million, the labor force is 100 million, and the number of unemployed workers is 94 million. The unemployment rate is _____.

A recent college graduate who is looking for her first job would be considered _____

Anne is an accountant who lost her job in the last recession and has given up looking for work after an unsuccessful job search. Which of the following is true in this case?