Question 1

Underemployment refers to

Accepted Answer

Underemployment refers to a situation where a person is employed but not able to use her full capabilities in her job. This could be due to factors such as being overqualified for the job or not being able to secure a job that matches her skill set. Underemployment is different from unemployment, where a person is not employed and actively seeking work. Choice A is incorrect as underemployment and unemployment are different concepts. Choice B is incorrect as being lazy is not a defining factor of underemployment. Choice D is incorrect as a discouraged worker is someone who has given up looking for work and is not included in the definition of underemployment.

Question 2

All of the following are true when the economy is growing except

Accepted Answer

During economic growth, unemployment typically falls as firms hire more workers to keep up with increasing demand. This leads to a decrease in the duration of unemployment and a lower unemployment rate. However, underemployment (when people work part-time or in jobs that don't fully utilize their skills) may rise as firms try to cut costs by hiring part-time or lower-skilled workers instead of full-time employees. Therefore, option D is the correct answer.

Question 3

Individuals who are working part-time while seeking full-time employment are classified as

Accepted Answer

Individuals who are working part-time while seeking full-time employment are classified as underemployed. They are still earning income but are not able to work to their full potential or desired level of employment.

Question 4

After a fruitless two-year search for a job,a former executive gives up and decides to live off the land in the Rocky Mountains.This former executive is considered

Accepted Answer

A discouraged worker is someone who has given up actively seeking employment due to a lack of available jobs or other factors. This describes the situation of the former executive who has been searching for a job for two years without success and has now chosen to live off the land. The other options do not accurately describe this individual's situation. Structurally unemployed refers to individuals who cannot find work due to a lack of demand for their skills in the labor market. Phantom unemployed refers to individuals who are not actively seeking work but report themselves as unemployed, potentially skewing unemployment statistics. Underemployed refers to individuals who are working below their skill level or in part-time jobs when they want full-time work.

Question 5

$\begin{array}{|l|c|c|c|}
\hline & 1999 & 2000 & 2001 \
\hline \text { Population } & 100 & 110 & 125 \
\hline \text { Employed } & 65 & 70 & 80 \
\hline \text { Unemployed } & 5 & 10 & 20 \
\hline \text { Discouraged Workers } & 2 & 3 & 5 \
\hline
\end{array}$
$\text { *All numbers are in millions }$

Table 6.4
Population and Employment in Nationland What was the labor force participation rate in Nationland in 2000?

Accepted Answer

The labor force participation rate is calculated as (Employed + Unemployed) / Population. For 2000, it is (70 + 10) / 110 = 80 / 110 = 72.7%.

Question 6

Which of the following is considered a discouraged worker?

Accepted Answer

A discouraged worker refers to an individual who is able and willing to work but has given up on actively seeking employment due to the lack of job opportunities or any other reasons. Option D describes a retired professional football player who tried to make a comeback but found no one willing to give him a tryout, and as a result, stopped looking for a job, making him a discouraged worker. The other options do not describe an individual who has given up actively seeking employment.

Question 7

Which of the following groups generally has the lowest unemployment rate?

Accepted Answer

College graduates generally have lower unemployment rates compared to those with lower levels of education. According to the Bureau of Labor Statistics, as of May 2021, the unemployment rate for those with a bachelor's degree or higher was 3.2%, while it was 5.9% for those with only a high school diploma and 9.3% for those without a high school diploma.

Question 8

Suppose there are 6 million unemployed workers actively seeking a job.After a period of time,1,500,000 of these workers become discouraged and no longer look for employment.If everything else remains constant,the unemployment rate will

Accepted Answer

The unemployment rate decreases because discouraged workers are not counted as part of the labor force, thus reducing the number of unemployed individuals in the calculation.

Question 9

Discouraged workers

Accepted Answer

Discouraged workers are individuals who have given up on actively seeking employment but still desire to be employed. They are not counted as part of the labor force and therefore are not included in the official unemployment rate.

Question 10

$\begin{array}{|l|c|c|c|}
\hline & 1999 & 2000 & 2001 \
\hline \text { Population } & 100 & 110 & 125 \
\hline \text { Employed } & 65 & 70 & 80 \
\hline \text { Unemployed } & 5 & 10 & 20 \
\hline \text { Discouraged Workers } & 2 & 3 & 5 \
\hline
\end{array}$
$\text { *All numbers are in millions }$

Table 6.4
Population and Employment in Nationland If discouraged workers are included in the labor force,what was the unemployment rate for 1999?

Accepted Answer

The labor force in 1999 includes employed, unemployed, and discouraged workers: 65 + 5 + 2 = 72 million. The unemployment rate is (Unemployed / Labor Force) * 100 = (5 / 72) * 100 ≈ 6.94 percent. However, the closest option is 9.7 percent, which might be due to a calculation error in the options.

Question 11

Suppose a student graduates from college with a civil engineering degree and is now employed to grade papers,answer the phone,and make copies-tasks that are below the graduate's capabilities.The graduate can best be classified as

Accepted Answer

The graduate is underemployed, as they are working in a job that does not require their college degree and is below their capabilities. This is a common issue for graduates and can distort the official unemployment figures.

Question 12

Part-time workers who desire full-time employment are

Accepted Answer

Part-time workers who desire full-time employment are considered underemployed, but they are not counted in the unemployment statistics because they are working, albeit not to their desired capacity. The unemployment statistic typically counts those who are not employed but are actively seeking work.

Question 13

$\begin{array}{|l|c|c|c|}
\hline & 1999 & 2000 & 2001 \
\hline \text { Population } & 100 & 110 & 125 \
\hline \text { Employed } & 65 & 70 & 80 \
\hline \text { Unemployed } & 5 & 10 & 20 \
\hline \text { Discouraged Workers } & 2 & 3 & 5 \
\hline
\end{array}$
$\text { *All numbers are in millions }$

Table 6.4
Population and Employment in Nationland What was the unemployment rate in Nationland in 1999?

Accepted Answer

The answer of \(\begin{array}{|l|c|c|c|}
\hline & 1999 & 2000 & 2001...

Question 14

Which of the following falls into the largest unemployment category during a recession?

Accepted Answer

During a recession, the largest unemployment category is typically cyclical unemployment, which is caused by a decrease in demand for goods and services. This often results in factories temporarily closing, leaving workers without jobs. Therefore, the factory worker who is laid off due to a temporary plant closing is the most likely to fall into this category.

The other options listed do not necessarily fall into the largest unemployment category during a recession. A recent college graduate and a teenager looking for a summer job are typically classified as frictional unemployment because they are in the process of searching for a job. The woman who left the labor force to raise children and now wants to return to work is typically classified as structural unemployment because she may lack current skills or face discrimination due to her employment gap.

Question 15

When an economy enters a recession,the

Accepted Answer

During a recession, the duration of unemployment typically rises as there are fewer job opportunities and more competition for available positions. This can lead to workers being out of work for longer periods of time, which can have negative effects on their financial stability and overall well-being. The cost of unemployment may also rise due to increased demand for unemployment benefits and other forms of government assistance. The number of unemployed typically increases during a recession, as businesses may lay off workers or cut back on hiring. The number of discouraged workers may also rise, as individuals become discouraged and stop actively searching for work.

Question 16

Underemployment is defined as

Accepted Answer

Underemployment is specifically defined as individuals seeking full-time employment but working part-time or working jobs below their capability, so choice D is the correct option. Choice A describes discouraged workers, choice B describes individuals who are unemployed, and choice C describes individuals who are simply not actively seeking employment.

Question 17

Of the following reasons for unemployment,which will increase most because of a recession?

Accepted Answer

During recessions, many businesses struggle financially and may have to lay off workers or reduce their working hours, resulting in a higher number of job losers. This is because companies tend to cut their workforce as a cost-saving measure in response to weak demand and under-utilized capacity. Additionally, some employees may quit their jobs due to reduced benefits or poorer working conditions, causing them to become job losers themselves. Therefore, the number of job losers usually increases significantly during recessions, making option A the most likely choice.

Question 18

$\begin{array}{|l|c|c|c|}
\hline & 1999 & 2000 & 2001 \
\hline \text { Population } & 100 & 110 & 125 \
\hline \text { Employed } & 65 & 70 & 80 \
\hline \text { Unemployed } & 5 & 10 & 20 \
\hline \text { Discouraged Workers } & 2 & 3 & 5 \
\hline
\end{array}$
$\text { *All numbers are in millions }$

Table 6.4
Population and Employment in Nationland If discouraged workers are included in the labor force,what was the unemployment rate for 2000?

Accepted Answer

The answer of \(\begin{array}{|l|c|c|c|}
\hline & 1999 & 2000 & 2001...

Question 19

Which of the following groups typically has the highest unemployment rate?

Accepted Answer

Historically, Black teenagers have faced higher levels of unemployment compared to their White counterparts, as they often lack access to quality education and job opportunities in certain areas.

Question 20

The phantom unemployed are

Accepted Answer

The answer of The phantom unemployed are
...

Quiz 6: Unemployment

Underemployment refers to

All of the following are true when the economy is growing except

Individuals who are working part-time while seeking full-time employment are classified as

After a fruitless two-year search for a job,a former executive gives up and decides to live off the land in the Rocky Mountains.This former executive is considered

Which of the following is considered a discouraged worker?

Which of the following groups generally has the lowest unemployment rate?

Suppose there are 6 million unemployed workers actively seeking a job.After a period of time,1,500,000 of these workers become discouraged and no longer look for employment.If everything else remains constant,the unemployment rate will

Discouraged workers

Suppose a student graduates from college with a civil engineering degree and is now employed to grade papers,answer the phone,and make copies-tasks that are below the graduate's capabilities.The graduate can best be classified as

Part-time workers who desire full-time employment are

Which of the following falls into the largest unemployment category during a recession?

When an economy enters a recession,the

Underemployment is defined as

Of the following reasons for unemployment,which will increase most because of a recession?

Which of the following groups typically has the highest unemployment rate?

The phantom unemployed are