Question 1

The unemployment rate is the percentage of the:

Accepted Answer

The unemployment rate is the percentage of the civilian labor force that is unemployed. It does not include those who are working part-time but want to work full-time or those who are not actively seeking employment. Also, it does not subtract the number of government workers. The adult population as a whole is not the correct measure for the unemployment rate.

Question 2

A person who has given up searching for work is called:

Accepted Answer

A person who has given up searching for work is called a discouraged worker. They are not classified as frictionally or structurally unemployed. The term unemployed can refer to anyone without a job, including those actively seeking employment and those who have given up. However, the specific term for someone who has given up searching is a discouraged worker.

Question 3

Which of the following people would be officially counted as unemployed?

Accepted Answer

Only a jobless high-school graduate who is actively looking for work would be officially counted as unemployed according to the Bureau of Labor Statistics. The other options do not meet the criteria for being unemployed, either because they have some level of employment (A and C) or are not currently seeking employment (B).

Question 4

Which of the following groups of people are counted as employed?

Accepted Answer

The answer of Which of the following groups of people...

Question 5

Which of the following statements would come from someone classified as unemployed?

Accepted Answer

The answer of Which of the following statements would come...

Question 6

In a dynamic economy under ideal conditions:

Accepted Answer

Even in a dynamic economy with ideal conditions, some unemployment would exist due to workers changing jobs or entering/exiting the labor force. This type of unemployment, known as frictional unemployment, is generally considered to be unavoidable and even healthy for a thriving economy.

Question 7

An individual who is employed part time,but is looking for a full-time job is classified as:

Accepted Answer

The answer of An individual who is employed part time,but...

Question 8

Exhibit 12-3 Unemployment categories
 
-According to data in Exhibit 12-3 and assuming the total number of workers is 8,400,the civilian labor force is:

Accepted Answer

The answer of Exhibit 12-3 Unemployment categories
 
-According to data...

Question 9

If a sizable number of workers were switched from full-time to half-time employment,then the official unemployment rate would:

Accepted Answer

The official unemployment rate measures the percentage of the labor force that is jobless and actively seeking employment. Switching workers from full-time to half-time does not change their status from employed to unemployed; therefore, the official unemployment rate would remain unchanged.

Question 10

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

Accepted Answer

The unemployment rate is calculated as the number of unemployed individuals divided by the total labor force, so if the number of unemployed individuals decreases relative to the size of the labor force, the unemployment rate will decrease.

Question 11

Consider an economy made up of 100 people,50 of whom hold jobs,10 of whom are looking for work,and 15 of whom are retired.The unemployment rate is approximately:

Accepted Answer

The answer of Consider an economy made up of 100...

Question 12

The unemployment rate will increase whenever there is a(n):

Accepted Answer

The unemployment rate is calculated as the number of unemployed individuals divided by the size of the labor force. Therefore, if there is an increase in the number of unemployed individuals relative to the size of the labor force, the unemployment rate will increase.

Question 13

A criticism of the unemployment rate is that:

Accepted Answer

The answer of A criticism of the unemployment rate is...

Question 14

Exhibit 12-2 Unemployment categories
 
-Find the BLS's rate of unemployment from the following data: frictional unemployment = 150,structural unemployment = 200,cyclical unemployment = 225,discouraged workers = 25,underemployed workers = 75,fully employed workers = 850,total population = 2,000.

Accepted Answer

The answer of Exhibit 12-2 Unemployment categories
 
-Find the BLS's...

Question 15

Exhibit 12-3 Unemployment categories
 
-According to data in Exhibit 12-3 and assuming the total number of workers is 8,400,the unemployment rate is:

Accepted Answer

To find the unemployment rate, divide the number of unemployed workers by the total labor force and multiply by 100. Assuming the labor force is the same as the total number of workers (8,400), and given the unemployment rate options, 15 percent is the most plausible choice.

Question 16

Exhibit 12-2 Unemployment categories
 
-The unemployment rate for the economy in Exhibit 12-2 is:

Accepted Answer

The correct unemployment rate is 21.5 percent, as indicated in Exhibit 12-2.

Question 17

One problem with the unemployment rate is that:

Accepted Answer

The answer of One problem with the unemployment rate is...

Question 18

Suppose the official unemployment rate is 10 percent.We can conclude without question that:

Accepted Answer

The official unemployment rate is calculated by taking the number of unemployed individuals in the civilian labor force and dividing it by the total number of individuals in the civilian labor force. Therefore, the percentage is representative of the current unemployment rate at the time of calculation and does not necessarily mean that the same individuals were out of work for the entire year or any set period of time. Option B correctly summarizes this concept.

Question 19

Suppose u = those adults who are unemployed and seeking work; e = those adults who are employed; and NLF = those adults not in the labor force.Which expression would equal the BLS definition of the unemployment rate?

Accepted Answer

The answer of Suppose u = those adults who are...

Question 20

The unemployment rate measures the percentage of:

Accepted Answer

The unemployment rate is calculated as the percentage of people in the civilian labor force who are without jobs but actively seeking jobs. This definition excludes those who are not seeking employment, such as retirees, full-time students, and homemakers.

Quiz 12: Business Cycles and Unemployment