Question 1

Over the last 125 years in the United States, unemployment reached its highest rate
A) in the Panic of 1893.
B) in the 1930s.
C) in the period between World War II and the Korean War.
D) in the Great Recession of the late 2000s.

Accepted Answer

The highest rate of unemployment in the United States over the last 125 years was during the Great Depression in the 1930s. Despite economic downturns such as the Panic of 1893 and the Great Recession of the late 2000s, the unemployment rate during the 1930s was the highest, with a peak of around 25% in 1933. The period between World War II and the Korean War was characterized by high economic growth and low unemployment rates.

Question 2

Which federal agency publishes the United States' unemployment figures?
A) Health and Human Services
B) The Bureau of Labor Statistics
C) The Federal Reserve
D) The Senate Committee on Labor Relations

Accepted Answer

The Bureau of Labor Statistics is responsible for collecting and reporting unemployment figures in the United States. The other options listed do not have this responsibility.

Question 3

According to the text, during which time period did the United States have the highest unemployment rates?
A) 1930s
B) 1950s
C) 1980s
D) 2000s

Accepted Answer

The text states that the highest unemployment rates in the United States occurred during the 1930s, which was the time of the Great Depression.

Question 4

If the U.S. economy enters a recession, the
A) economy experiences full employment.
B) unemployment rate tends to increase.
C) labor force tends to increase.
D) entire population will be partially unemployed.

Accepted Answer

During a recession, businesses may face lower demand for their goods and services. As a result, they may reduce production and lay off workers, which can lead to an increase in the unemployment rate.

Question 5

When Joe, who is among the highest-paid workers in a field in which there are numerous job openings across the nation, recently became unemployed, his opportunity cost of job search is
A) average, so the length of his period of unemployment is likely to be long.
B) relatively high, so the length of his period of unemployment is likely to be short.
C) relatively low, so the length of his period of unemployment is likely to be long.
D) relatively high, so the length of his period of unemployment is likely to be long.

Accepted Answer

The answer of When Joe, who is among the highest-paid...

Question 6

Which of the following is true about the labor force?
A) It includes those over 16 ages old and are employed.
B) It includes those over 16 ages old and are unemployed.
C) Both A and B are correct.
D) None of the above is correct.

Accepted Answer

The labor force includes both those over 16 ages old who are employed and those who are unemployed.

Question 7

Which of the following is true of unemployment?
A) It is defined as the number of people actively looking for work who do not have jobs.
B) The result is that the economy operates inside its production possibilities curve.
C) There are psychological consequences associated with unemployment.
D) All of the above.

Accepted Answer

All of the given statements are true regarding unemployment. Option A correctly defines unemployment as the number of people actively seeking work but not having jobs. Option B is incorrect as unemployment leads to a point inside the production possibilities curve, not outside it. Option C is also true as unemployment can cause psychological distress and negative effects on mental health. Therefore, D is the correct answer.

Question 8

The labor force includes individuals who are: I. Employed
II) Unemployed
III) Discouraged workers
A) I only.
B) Both I and II.
C) Both I and III.
D) All I, II and III..

Accepted Answer

The labor force includes individuals who are either employed or unemployed and actively seeking work. Discouraged workers, who are not actively seeking employment, are not considered part of the labor force.

Question 9

The official unemployment rate may understate the true rate of unemployment because of
A) workers who hold two jobs.
B) increases in worker productivity.
C) changes in wage rates.
D) discouraged workers who no longer are actively seeking work and are excluded from the statistics.

Accepted Answer

Discouraged workers who have given up on finding work are not included in the unemployment rate calculation, which can result in an understatement of the true rate of unemployment.

Question 10

The rate of unemployment is calculated as the number of
A) unemployed workers divided by the number of employed workers.
B) people in the civilian labor force divided by the number of unemployed.
C) unemployed divided by the number of people in the civilian labor force.
D) employed workers divided by the number of unemployed workers.

Accepted Answer

The rate of unemployment is calculated as the number of unemployed workers divided by the number of people in the civilian labor force. Option A is incorrect because it divides unemployed workers by employed workers instead of the total labor force. Option B is incorrect because it divides the total labor force by only unemployed workers instead of the entire labor force. Option D is incorrect because it divides employed workers by unemployed workers instead of the total labor force.

Question 11

Historically, the United States has experienced
A) continuous decreases in the unemployment rate since World War II.
B) periods of both increases and decreases in the unemployment rate since World War II.
C) continuous increases in the unemployment rate since World War II.
D) no changes in the unemployment rate since World War II.

Accepted Answer

The United States has experienced periods of both increases and decreases in the unemployment rate since World War II. There have been times of economic growth and times of economic recession that have affected the unemployment rate.

Question 12

Individuals who have stopped looking for work because they are convinced that they will not find a job are considered
A) structurally unemployed.
B) discouraged workers.
C) part of the labor force.
D) underemployed.

Accepted Answer

Discouraged workers have stopped looking for work because they believe there are no jobs available. They are no longer considered part of the labor force and are therefore not included in unemployment statistics. Structurally unemployed refer to those who have lost their job due to changes in the structure of the labor market, such as technological advancements. Underemployed refers to those who are employed but not in jobs that fully utilize their skills and qualifications.

Question 13

According to the Bureau of Labor Statistics, if you voluntarily leave your job to search for another job, then you
A) are classified as unemployed.
B) are eligible for unemployment compensation.
C) may not re-enter the labor force for six months.
D) are classified as a job loser.

Accepted Answer

If you voluntarily leave your job to search for another job, you are considered to be actively seeking employment and are therefore classified as unemployed by the Bureau of Labor Statistics. However, you may not be eligible for unemployment compensation as eligibility depends on various factors including the reason for leaving your previous job.

Question 14

The population of individuals at least 16 years of age can be broken into 3 groups. They are
A) the unemployed, discouraged workers, and retirees.
B) those employed full-time, those employed only part-time, and the unemployed.
C) those working in the for-profit sector, those working in the nonprofit sector, and individuals who are unemployed.
D) none of the above.

Accepted Answer

The answer of The population of individuals at least 16...

Question 15

The total civilian labor force is comprised of
A) the unemployed and the employed.
B) only the employed.
C) all individuals over 16 years of age, whether or not they work or are seeking work.
D) only full-time employed individuals between the ages of 18 and 55.

Accepted Answer

The total civilian labor force includes both the unemployed (those who are not currently working but are actively seeking employment) and the employed (those who are currently working). This definition is used by various economic and labor organizations to measure the active portion of an economy's labor market.

Question 16

When did the United States register its lowest unemployment rate?
A) In the 1920s
B) In the economic boom of the 1990s
C) In the Roaring Nineties (1890s)
D) At the end of World War II

Accepted Answer

The United States registered its lowest unemployment rate at the end of World War II, when the economy was transitioning from wartime to peacetime, leading to a surge in employment.

Question 17

A country's labor force is equal to
A) the population between the ages of 16 and 65.
B) the number of employed people.
C) the total number of employed and unemployed people.
D) the total number of employed people, unemployed people, and discouraged workers.

Accepted Answer

A country's labor force includes both employed and unemployed individuals, so the labor force is equal to the total number of employed and unemployed people. Discouraged workers, who are not actively seeking employment, are not included in the labor force. The population between the ages of 16 and 65 may be a rough estimate of the potential labor force, but it does not accurately reflect the actual number of people who are currently participating in the labor market. The number of employed people alone does not give a complete picture of the labor force, since it does not account for those who are seeking but unable to find work.

Question 18

Official unemployment rates may underestimate the true rate of unemployment because the official rate
A) includes those workers who only work part time.
B) may include some individuals who are not actually in the labor force.
C) does not include individuals receiving any type of unemployment compensation.
D) fails to include discouraged workers.

Accepted Answer

The official unemployment rate only counts individuals who are actively seeking employment, which excludes discouraged workers who have given up looking for work. Therefore, the true rate of unemployment may be higher than the official rate.

Question 19

The term "unemployment" is best described as the total number of
A) people not working.
B) people who have been laid off and have stopped looking for work.
C) adults who work fewer hours than they wish to work.
D) adults who are looking for work but have not found a job.

Accepted Answer

Unemployment refers to adults who are actively seeking work but have not yet found a job. Option A includes all people who are not working, regardless of their desire or ability to work, and does not necessarily indicate unemployment. Option B includes a specific subset of people who have stopped looking for work, which may or may not be related to unemployment. Option C refers to underemployment, which is not necessarily the same as unemployment.

Question 20

Which of the following people would be considered unemployed?
A) Homer, who lost his job at the power plant and is not looking for work
B) Lenny, who is working part time at a fast food restaurant
C) Abe, who is retired
D) Edna, who lost her job as a teacher and is currently searching for a new job

Accepted Answer

Only Edna is currently unemployed as she lost her job as a teacher and is actively searching for a new job. Homer is also technically unemployed since he lost his job at the power plant, but he is not actively seeking work, so he would be considered out of the labor force rather than unemployed. Lenny is employed part-time, and Abe is retired and not seeking work, so they would not be considered unemployed.

Quiz 7: The Macroeconomy: Unemployment, Inflation, and Deflation

Over the last 125 years in the United States, unemployment reached its highest rate

Which federal agency publishes the United States' unemployment figures?

According to the text, during which time period did the United States have the highest unemployment rates?

If the U.S. economy enters a recession, the

When Joe, who is among the highest-paid workers in a field in which there are numerous job openings across the nation, recently became unemployed, his opportunity cost of job search is

Which of the following is true about the labor force?

Which of the following is true of unemployment?

The labor force includes individuals who are: I. Employed II) Unemployed III) Discouraged workers

The official unemployment rate may understate the true rate of unemployment because of

The rate of unemployment is calculated as the number of

Historically, the United States has experienced

Individuals who have stopped looking for work because they are convinced that they will not find a job are considered

According to the Bureau of Labor Statistics, if you voluntarily leave your job to search for another job, then you

The population of individuals at least 16 years of age can be broken into 3 groups. They are

The total civilian labor force is comprised of

When did the United States register its lowest unemployment rate?

A country's labor force is equal to

Official unemployment rates may underestimate the true rate of unemployment because the official rate

The term "unemployment" is best described as the total number of

Which of the following people would be considered unemployed?