Question 1

Matilda just graduated from college.In order to devote all her efforts to college,she didn't hold a job.She is going to cruise around the country on her motorcycle for a month before she starts looking for work.Other things the same,the unemployment rate

Accepted Answer

Matilda is not actively seeking work while traveling, so she is not counted as unemployed or part of the labor force, leaving both rates unaffected.

Question 2

The sum of which of the following must be equal to the adult population?

Accepted Answer

The adult population can be divided into three categories - employed, unemployed, and not in the labor force. Therefore, the sum of employed, unemployed, and not in the labor force should be equal to the adult population. Option C includes all three categories, and therefore, is the correct answer. Option A only includes employed and unemployed, which is not enough to cover the total adult population. Option B includes labor force, which is a subset of employed and unemployed, and therefore, will not cover the entire adult population. Option D includes all four categories, but it includes labor force, which, again, is a subset of employed and unemployed, and therefore, is not needed to calculate the total adult population.

Question 3

Satchel loses his job and immediately begins looking for another.Other things the same,the unemployment rate

Accepted Answer

The answer of Satchel loses his job and immediately begins...

Question 4

Table 28-1
Labor Data for Wrexington
 
-Refer to Table 28-1.The labor force of Wrexington in 2006 was

Accepted Answer

The answer of Table 28-1
Labor Data for Wrexington
 
-Refer to...

Question 5

Suppose that a large number of men who used to work or seek work now no longer do either.Other things the same,this makes

Accepted Answer

When people stop working or seeking work, they are no longer counted as part of the labor force or as unemployed, causing both the number of unemployed and the labor force to decrease.

Question 6

Which of the following is correct?

Accepted Answer

The answer of Which of the following is correct?
...

Question 7

Sheamous loses his job and decides to sit on the beach rather than look for work during the next few months.Other things the same,the unemployment rate

Accepted Answer

Sheamous not looking for work means he is not active in the labor market, which decreases the labor-force participation rate. However, he is still unemployed, so this would increase the unemployment rate.

Question 8

Zeeman is a college student who is not working or looking for a job.The Bureau of Labor Statistics counts Zeeman as

Accepted Answer

Zeeman is neither working nor actively seeking employment, so he is not considered part of the labor force and is not counted as unemployed by the Bureau of Labor Statistics.

Question 9

Neeltje is an unpaid homemaker who works as a volunteer at the local Red Cross and is currently not looking for a paid job.The Bureau of Labor Statistics counts Neeltje as

Accepted Answer

Neeltje is not in the labor force because she is not currently looking for a paid job. She is also not unemployed because she is not actively seeking employment. Therefore, the best choice is D, neither in the labor force nor unemployed.

Question 10

The labor-force participation rate is computed as

Accepted Answer

The labor-force participation rate is the percentage of the adult population (people over the age of 16) who are either employed or are actively seeking employment and are available to work. Hence, option C, which calculates the rate as the ratio of the labor force to the adult population, is the correct formula for computing the labor-force participation rate.

Question 11

If an unemployed person quits looking for work,then,other things the same,the unemployment rate

Accepted Answer

If an unemployed person quits looking for work, they are no longer considered part of the labor force, which consists of those who are employed or actively seeking employment. As a result, both the unemployment rate (which measures the percentage of the labor force that is unemployed) and the labor-force participation rate (which measures the percentage of the population that is in the labor force) decrease.

Question 12

Sirius has just finished high school and started looking for his first job,but has not yet found one.Other things the same,the unemployment rate

Accepted Answer

The answer of Sirius has just finished high school and...

Question 13

The unemployment rate is computed as the number of unemployed

Accepted Answer

The unemployment rate is calculated by dividing the number of unemployed individuals by the labor force and then multiplying by 100 to get a percentage. The labor force includes both employed and unemployed individuals who are actively seeking work. Therefore, choice A is the correct answer.

Question 14

The labor-force participation rate tells us the fraction of the population that

Accepted Answer

The labor-force participation rate tells us the fraction of the population that has chosen to participate in the labor market. It does not necessarily reflect one's ability or past employment history, but rather their current decision to engage in the labor market.

Question 15

Table 28-1
Labor Data for Wrexington
 
-Refer to Table 28-1.The labor force of Wrexington in 2004 was

Accepted Answer

The labor force of Wrexington in 2004 was 1600.

Question 16

The labor-force participation rate measures the percentage of the

Accepted Answer

The labor-force participation rate measures the percentage of the total adult population that is in the labor force, which includes both employed and unemployed individuals who are actively seeking employment. Therefore, option A is the correct answer. Option B only measures the percentage of the total adult population that is currently employed, and option C only measures the percentage of the labor force that is currently employed, whereas option D expands the measure beyond the labor force to include those who are not actively seeking employment.

Question 17

The Bureau of Labor Statistics defines the unemployment rate as the percentage of

Accepted Answer

The unemployment rate is the percentage of the labor force that is unemployed, meaning those who are able and willing to work but do not currently have a job. Therefore, choice B is the correct answer. Option A refers to the employment rate rather than the unemployment rate. Option C includes individuals who may not be part of the labor force, and option D includes individuals who are not in the labor force.

Question 18

The labor force equals the

Accepted Answer

The labor force includes both employed and unemployed individuals, so the number of employed plus the number of unemployed gives the total labor force. Option A only includes employed individuals, while option B only includes unemployed individuals. Option D refers to the entire adult population and not just those who are actively participating in the labor force. Therefore, option C is the correct answer as it includes both employed and unemployed individuals in the labor force.

Question 19

Table 28-1
Labor Data for Wrexington
 
-Refer to Table 28-1.The labor force of Wrexington in 2005 was

Accepted Answer

The labor force is calculated as the sum of employed and unemployed individuals. Without the table, we assume the correct choice based on typical labor force calculations.

Question 20

President Bigego is running for re-election against Senator Pander.Bigego proclaims that more people are working now than when he took office.Pander says that the unemployment rate is higher now than when Bigego took office.You conclude that

Accepted Answer

The answer of President Bigego is running for re-election against...

Quiz 28: Unemployment