Question 1

In the United States, which of the following groups has the highest unemployment rate?

Accepted Answer

According to the Bureau of Labor Statistics, as of September 2021, the unemployment rate for black males in the age range 16-19 is 16.8%, which is the highest among the groups mentioned. The unemployment rate for white males in the age range 16-19 is 9.4%, the rate for white males in the age range 20 and over is 3.9%, the rate for black males in the age range 20 and over is 7.5%, and the rate for white females in the age range 20 and over is 4.8%.

Question 2

The average duration of unemployment

Accepted Answer

During recessions, more people become unemployed and it takes longer for them to find new jobs, leading to an increase in the average duration of unemployment. During expansions, more jobs become available and it is easier for people to find employment, leading to a decrease in the average duration of unemployment.

Question 3

The unemployment rate is

Accepted Answer

The unemployment rate is generally higher among teenagers than among people over the age of 20.

Question 4

During an recession, the duration of unemployment ________ and the unemployment rate is ________ the natural rate of unemployment.

Accepted Answer

During a recession, businesses are less likely to hire new workers and may even lay off employees, which increases the duration of unemployment. This also leads to a higher unemployment rate compared to the natural rate (the rate of unemployment when the economy is at its potential output) as more people are seeking work but cannot find employment.

Question 5

Consider the following people:
Chris quits his job as an automobile mechanic to pursue his college education full-time.
Darrelo was laid off from her technical support job because of a strike by production workers and is currently looking for a new job.
Rita graduated from college and is currently looking for a job.
Armondo quit his old job and will begin his new job in four days.
Thorton was fired from his job as a steel worker because of massive imports of steel and he is looking for a new job.
Valery is a ski instructor from December to April and she is currently sailing for enjoyment, which is what she does the rest of the year.
Jung was laid off from his job as an appraiser because the firm's business declined because of a general downturn in the economy and he is currently looking for a new job as an appraiser.
-According to the scenario above, in which of the following groups are all the people cyclically unemployed?

Accepted Answer

Jung is cyclically unemployed because his layoff was due to a general downturn in the economy, which is characteristic of cyclical unemployment.

Question 6

Full employment means that

Accepted Answer

The answer of Full employment means that
...

Question 7

Which of the following statements is (are) correct?
i. Males 16-19 have higher unemployment rates than males 20 and over.
ii. The unemployment rates for blacks and whites are generally equal.
iii. The duration of unemployment lengthens in a recession.

Accepted Answer

Statement i is correct as younger males have higher unemployment rates compared to older males. 
Statement iii is also correct as during a recession, the duration of unemployment generally lengthens. 
However, statement ii is incorrect as black Americans generally have a higher unemployment rate compared to white Americans, indicating inequality. Therefore, options A, B, and C are incorrect. 
Hence, the correct answer is option D.

Question 8

Consider the following people:
Chris quits his job as an automobile mechanic to pursue his college education full-time.
Darrelo was laid off from her technical support job because of a strike by production workers and is currently looking for a new job.
Rita graduated from college and is currently looking for a job.
Armondo quit his old job and will begin his new job in four days.
Thorton was fired from his job as a steel worker because of massive imports of steel and he is looking for a new job.
Valery is a ski instructor from December to April and she is currently sailing for enjoyment, which is what she does the rest of the year.
Jung was laid off from his job as an appraiser because the firm's business declined because of a general downturn in the economy and he is currently looking for a new job as an appraiser.
-According to the scenario above, in which of the following groups are all the people structurally unemployed?

Accepted Answer

The answer of Consider the following people:
Chris quits his job...

Question 9

Full employment occurs when

Accepted Answer

Full employment occurs when cyclical unemployment is zero, meaning the economy is operating at its full potential without recessionary gaps. Structural and frictional unemployment can still exist.

Question 10

At full employment there is no

Accepted Answer

At full employment, cyclical unemployment is zero because it is associated with the ups and downs of the business cycle. However, other types of unemployment like frictional, structural, and seasonal can still exist.

Question 11

Consider the following people:
Chris quits his job as an automobile mechanic to pursue his college education full-time.
Darrelo was laid off from her technical support job because of a strike by production workers and is currently looking for a new job.
Rita graduated from college and is currently looking for a job.
Armondo quit his old job and will begin his new job in four days.
Thorton was fired from his job as a steel worker because of massive imports of steel and he is looking for a new job.
Valery is a ski instructor from December to April and she is currently sailing for enjoyment, which is what she does the rest of the year.
Jung was laid off from his job as an appraiser because the firm's business declined because of a general downturn in the economy and he is currently looking for a new job as an appraiser.
-According to the scenario above, in which of the following groups are all the people seasonally unemployed?

Accepted Answer

Valery is the only person mentioned who is seasonally unemployed, as she works as a ski instructor from December to April and spends the rest of the year sailing. None of the other individuals are described as having seasonal employment.

Question 12

During a recession, the average duration of unemployment tends to

Accepted Answer

During a recession, firms tend to lay off employees and reduce their workforce, leading to an increase in the average duration of unemployment as there are more job seekers than job openings.

Question 13

Which is true regarding cyclical unemployment?
i. Cyclical unemployment is positive at business cycle peaks.
ii. Cyclical unemployment is negative at business cycle troughs.
iii. Cyclical unemployment is zero at full employment.

Accepted Answer

The answer of Which is true regarding cyclical unemployment?
i. Cyclical...

Question 14

Full employment occurs when the

Accepted Answer

Full employment occurs when the economy is producing at its potential GDP and there is only frictional and structural unemployment remaining. The unemployment rate at this level is equal to the natural unemployment rate, which includes only frictional and structural unemployment. Therefore, choice A is correct.

Question 15

Teenage unemployment rates are

Accepted Answer

Teenagers tend to leave jobs more frequently, which leads to higher unemployment rates compared to older workers. This can be due to various reasons such as school schedules, family responsibilities, or the fact that many teenage jobs are part-time or temporary.

Question 16

When the economy is at full employment, the

Accepted Answer

Full employment is when the economy is operating at its potential output level and there is minimum cyclical unemployment. At this point, the unemployment rate consists only of the natural unemployment rate, which is the combination of structural and frictional unemployment. Therefore, the natural unemployment rate equals the unemployment rate at full employment.

Question 17

Full employment occurs when

Accepted Answer

Full employment is achieved when cyclical unemployment is zero, meaning the economy is operating at its potential output without recession-related job losses. Frictional, structural, and seasonal unemployment can still exist.

Question 18

In the United States, the highest unemployment rates occur among

Accepted Answer

Historically, the highest unemployment rates in the United States have occurred among black teenagers. While unemployment rates fluctuate over time and are affected by various factors, such as economic policies and trends, the unemployment rate for black teenagers has consistently been higher than for any other demographic group.

Question 19

Consider the following people:
Chris quits his job as an automobile mechanic to pursue his college education full-time.
Darrelo was laid off from her technical support job because of a strike by production workers and is currently looking for a new job.
Rita graduated from college and is currently looking for a job.
Armondo quit his old job and will begin his new job in four days.
Thorton was fired from his job as a steel worker because of massive imports of steel and he is looking for a new job.
Valery is a ski instructor from December to April and she is currently sailing for enjoyment, which is what she does the rest of the year.
Jung was laid off from his job as an appraiser because the firm's business declined because of a general downturn in the economy and he is currently looking for a new job as an appraiser.
-According to the scenario above, in which of the following groups are all the people frictionally unemployed?

Accepted Answer

Rita and Darrelo are frictionally unemployed because they are in transition between jobs or entering the workforce.

Question 20

When the economy is at full employment,

Accepted Answer

Full employment means that the economy has reached its potential output, and there is no cyclical unemployment. However, there may still be some level of frictional and structural unemployment due to factors such as job matching, technological change, and changes in the industry. Therefore, option C is the closest to the accurate definition of full employment.

Quiz 6: Jobs and Unemployment

In the United States, which of the following groups has the highest unemployment rate?

The average duration of unemployment

The unemployment rate is

During an recession, the duration of unemployment and the unemployment rate is the natural rate of unemployment.

Full employment means that

Which of the following statements is (are) correct? i. Males 16-19 have higher unemployment rates than males 20 and over. ii. The unemployment rates for blacks and whites are generally equal. iii. The duration of unemployment lengthens in a recession.

Full employment occurs when

At full employment there is no

During a recession, the average duration of unemployment tends to

Which is true regarding cyclical unemployment? i. Cyclical unemployment is positive at business cycle peaks. ii. Cyclical unemployment is negative at business cycle troughs. iii. Cyclical unemployment is zero at full employment.

Full employment occurs when the

Teenage unemployment rates are

When the economy is at full employment, the

Full employment occurs when

In the United States, the highest unemployment rates occur among

When the economy is at full employment,