Question 1

Which of the following cause the unemployment rate as measured by Statistics Canada to understate the true extent of joblessness?

Accepted Answer

Discouraged workers are not counted in the unemployment rate because they have stopped looking for work, thus understating the true extent of joblessness.

Question 2

Someone who is available for work but has not actively looked for work in the previous four weeks would be classified as

Accepted Answer

The individual is not considered unemployed, as they have not actively looked for work in the past four weeks. However, they are also not considered part of the labour force, as they are not actively seeking employment. Therefore, the individual falls under the category of "not in the labour force".

Question 3

The unemployment rate is an important economic statistic that can tell us about the health of the economy.If the unemployment rate turns out to be high or higher than anticipated, we would expect

Accepted Answer

When the unemployment rate is high, it usually indicates a weak economy which can cause investors to be more wary, resulting in a stock market downturn.

Question 4

Statistics Canada would categorize a retiree who is not working as

Accepted Answer

A retiree who is not working is considered out of the labour force, as they are not actively seeking employment nor available for employment.

Question 5

Suppose the government launches a successful advertising campaign that convinces workers with high school degrees to quit their jobs and become full time students.This would cause

Accepted Answer

The labor force participation rate would decrease because these individuals would no longer be considered a part of the labor force since they are not actively seeking employment. This would not directly affect the unemployment rate as those who quit their jobs to become students are not counted as unemployed. However, it could indirectly affect the unemployment rate in the future if these individuals re-enter the labor force after completing their education. The number of discouraged workers may increase if some workers who cannot find jobs decide to become students as well, but this would depend on individual circumstances. The employment population ratio may or may not increase depending on whether those who quit their jobs to become students are included in the numerator.

Question 6

Suppose the labour force stays constant, and the working-age population stays constant, but a greater number of persons who were unemployed become employed.The labour force participation rate will

Accepted Answer

The labour force participation rate is calculated as the labour force divided by the working-age population. Since both the labour force and the working-age population remain constant, even as unemployed individuals become employed, the rate itself remains constant.

Question 7

The unemployment rate equals the number of unemployed divided by the ________, all times 100.

Accepted Answer

The unemployment rate is calculated by dividing the number of unemployed people by the labor force, which consists of both the employed and unemployed individuals who are actively seeking work. The result is then multiplied by 100 to express the percentage. Therefore, the correct choice is (B) labor force.

Question 8

The labour force equals the number of people

Accepted Answer

The labour force includes both those who are employed and those who are unemployed and actively seeking work. Therefore, the labour force equals the number of people who are employed plus those who are unemployed.

Question 9

The economy has gone into a recession.You have majored in computer science and, because of the recession, have difficulty in finding a job.Should you go back to school and get a second major?

Accepted Answer

While the economy being in a recession will make it more difficult to find a job in the short term, it is likely that the economy will recover eventually. Getting a second major may not necessarily guarantee a job, and it may be more beneficial to focus on gaining experience and skills in computer science through internships or personal projects. Additionally, it is possible that the recession may not have a permanent impact on the demand for computer science majors. Therefore, it is better to wait and see how the job market evolves rather than invest in another major without strong evidence of the need for it.

Question 10

In November 2015 the Purchasing Managers' Index for Canadian manufacturers was 48.6 which predicts a(n)________ in the number of persons it employed and a(n)________ in the total number of persons unemployed in the economy.

Accepted Answer

A PMI score below 50 indicates a contraction in the manufacturing sector. This contraction suggests that manufacturers are likely to decrease their production and employment levels, leading to a decrease in the number of persons it employed and an increase in the total number of persons unemployed in the economy.

Question 11

Statistics Canada would categorize a person as ________ if they were temporarily away from their job because they were ill.

Accepted Answer

According to Statistics Canada, a person would still be considered employed if they were temporarily away from work due to illness. Therefore, option A is the correct choice.

Question 12

Which of the following explains the changes in the Canadian adult male labour force participation rate since 1976?

Accepted Answer

The labour force participation rate of Canadian adult males has decreased since 1976, which can be partly attributed to younger men remaining in school longer than in the past.

Question 13

Suppose that homemakers are included as employed in the labour force statistics, rather than being counted as out of the labour force.This would

Accepted Answer

If homemakers are included as employed in the labour force statistics, they will be counted in the labour force participation rate since they are actively engaged in work. This will increase the measured labour force participation rate. It will not affect the unemployment rate since homemakers cannot be considered unemployed as they are not actively seeking employment.

Question 14

Which of the following labour market statistics best indicates the amount of labour that is available to the economy from a given working-age population?

Accepted Answer

The labour force participation rate is the percentage of the working-age population (those aged 15-64) who are either employed or actively seeking employment. This provides an indication of how many people in the working-age population are available for the labour market, as it includes both those who are employed and those who are actively seeking employment. The other options do not provide a direct indication of the available labour force, as they focus on unemployment, discouraged workers, minimum wage, or the ratio of employment to population.

Question 15

Suppose the working-age population of a fictional economy falls into the following categories: 90 are retired or homemakers; 60 have full-time employment; 20 have part-time employment; 20 do not have employment, but are actively looking for employment; and 10 would like employment but do not have employment and are not actively looking for employment.The official unemployment rate as calculated by Statistics Canada would equal

Accepted Answer

The answer of Suppose the working-age population of a fictional...

Question 16

In November 2015, Canada saw an increase of ________ jobs for the same time the previous year.

Accepted Answer

The question is asking about the increase in jobs for November 2015 compared to November of the previous year. Both choices A and C are specific numbers, but there is no way to know if either of those numbers represent the increase in jobs. Choice D and E are percentages, which do not provide a specific number of jobs. Therefore, the best choice is B, which represents a specific number of jobs that increased.

Question 17

Table 5.1  Consider the data above for a simple economy.
-Refer to Table 5.1.The labour force participation rate for this simple economy equals

Accepted Answer

The labour force participation rate is the percentage of the working-age population that is part of the labour force. In this case, the labour force is made up of those who are employed (1,000) and those who are unemployed but actively seeking employment (100). Therefore, the labour force is 1,100 (1,000 + 100). The working-age population is 15,000. Therefore, the labour force participation rate is (1,100/15,000) × 100 percent, which is equal to choice C.

Question 18

Table 5.1  Consider the data above for a simple economy.
-Refer to Table 5.1.The unemployment rate for this simple economy equals

Accepted Answer

The unemployment rate is calculated by dividing the number of unemployed individuals by the total labor force. In this case, the number of unemployed individuals is 100 and the total labor force is 1,100 (sum of employed and unemployed). Thus, the unemployment rate is (100/1,100) x 100 percent = 9.09 percent.

Question 19

Which of the following cause the unemployment rate as measured by Statistics Canada to overstate the true extent of joblessness?

Accepted Answer

Unemployed persons falsely reporting themselves as actively looking for a job can lead to an overstatement of the unemployment rate, as these individuals are counted as unemployed when they may not be genuinely seeking employment.

Question 20

The labour force participation rate equals the

Accepted Answer

The labour force participation rate is defined as the percentage of the working-age population (people between 15 and 64 years old) who are either employed or actively seeking employment. Therefore, the correct formula is (labour force divided by working-age population)× 100, which is option C. Option A is incorrect as it only calculates the employment rate, not the participation rate. Option B is mathematically incorrect as it divides the labour force by the number of people who are not in the labour force, instead of dividing by the total working-age population as it should. Option D is incorrect as it divides the labour force by the total population, which includes individuals who are not in the working-age population. Option E is also incorrect as it divides the working-age population by employment, which is not the correct formula.

Quiz 5: Unemployment and Inflation

Which of the following cause the unemployment rate as measured by Statistics Canada to understate the true extent of joblessness?

Someone who is available for work but has not actively looked for work in the previous four weeks would be classified as

The unemployment rate is an important economic statistic that can tell us about the health of the economy.If the unemployment rate turns out to be high or higher than anticipated, we would expect

Statistics Canada would categorize a retiree who is not working as

Suppose the government launches a successful advertising campaign that convinces workers with high school degrees to quit their jobs and become full time students.This would cause

Suppose the labour force stays constant, and the working-age population stays constant, but a greater number of persons who were unemployed become employed.The labour force participation rate will

The unemployment rate equals the number of unemployed divided by the ________, all times 100.

The labour force equals the number of people

The economy has gone into a recession.You have majored in computer science and, because of the recession, have difficulty in finding a job.Should you go back to school and get a second major?

In November 2015 the Purchasing Managers' Index for Canadian manufacturers was 48.6 which predicts a(n) in the number of persons it employed and a(n) in the total number of persons unemployed in the economy.

Statistics Canada would categorize a person as ________ if they were temporarily away from their job because they were ill.

Which of the following explains the changes in the Canadian adult male labour force participation rate since 1976?

Suppose that homemakers are included as employed in the labour force statistics, rather than being counted as out of the labour force.This would

Which of the following labour market statistics best indicates the amount of labour that is available to the economy from a given working-age population?

In November 2015, Canada saw an increase of ________ jobs for the same time the previous year.

Table 5.1 Consider the data above for a simple economy. -Refer to Table 5.1.The labour force participation rate for this simple economy equals

Table 5.1 Consider the data above for a simple economy. -Refer to Table 5.1.The unemployment rate for this simple economy equals

Which of the following cause the unemployment rate as measured by Statistics Canada to overstate the true extent of joblessness?

The labour force participation rate equals the

Quiz 5: Unemployment and Inflation

Which of the following cause the unemployment rate as measured by Statistics Canada to understate the true extent of joblessness?

Someone who is available for work but has not actively looked for work in the previous four weeks would be classified as

The unemployment rate is an important economic statistic that can tell us about the health of the economy.If the unemployment rate turns out to be high or higher than anticipated, we would expect

Statistics Canada would categorize a retiree who is not working as

Suppose the government launches a successful advertising campaign that convinces workers with high school degrees to quit their jobs and become full time students.This would cause

Suppose the labour force stays constant, and the working-age population stays constant, but a greater number of persons who were unemployed become employed.The labour force participation rate will

The unemployment rate equals the number of unemployed divided by the ________, all times 100.

The labour force equals the number of people

The economy has gone into a recession.You have majored in computer science and, because of the recession, have difficulty in finding a job.Should you go back to school and get a second major?

In November 2015 the Purchasing Managers' Index for Canadian manufacturers was 48.6 which predicts a(n) ________ in the number of persons it employed and a(n) ________ in the total number of persons unemployed in the economy.

Statistics Canada would categorize a person as ________ if they were temporarily away from their job because they were ill.

Which of the following explains the changes in the Canadian adult male labour force participation rate since 1976?

Suppose that homemakers are included as employed in the labour force statistics, rather than being counted as out of the labour force.This would

Which of the following labour market statistics best indicates the amount of labour that is available to the economy from a given working-age population?

In November 2015, Canada saw an increase of ________ jobs for the same time the previous year.

Table 5.1 Consider the data above for a simple economy. -Refer to Table 5.1.The labour force participation rate for this simple economy equals

Table 5.1 Consider the data above for a simple economy. -Refer to Table 5.1.The unemployment rate for this simple economy equals

Which of the following cause the unemployment rate as measured by Statistics Canada to overstate the true extent of joblessness?

The labour force participation rate equals the

In November 2015 the Purchasing Managers' Index for Canadian manufacturers was 48.6 which predicts a(n) in the number of persons it employed and a(n) in the total number of persons unemployed in the economy.