Question 1

Economists generally agree that sufficiently high minimum wage laws:

Accepted Answer

Economists generally agree that a sufficiently high minimum wage law causes unemployment because it increases the cost of labor for employers, leading them to hire fewer employees.

Question 2

All of the following are examples of job search EXCEPT:

Accepted Answer

Attending class at a community college to learn database management is an example of improving one's skills and education, but it is not specifically a job search activity. The other three options involve actively seeking out job opportunities or networking connections.

Question 3

People who are changing jobs are counted in _____ unemployment.

Accepted Answer

People who are changing jobs are referred to as frictionally unemployed because they are between jobs by choice and are seeking better opportunities. This type of unemployment is considered normal and healthy for an economy.

Question 4

Use the following to answer questions : 
-(Table: Population Data for Estill County) Look at the table Population Data for Estill County. If marginally attached workers are included in the labor force and in the unemployment rate, the unemployment rate in this economy is:

Accepted Answer

To calculate the unemployment rate including marginally attached workers, we need to add the number of marginally attached workers (247) to the number of unemployed workers (432). This gives us a total of 679. The labor force is the sum of employed (3421) and unemployed (432) workers, which is 3853. Therefore, the unemployment rate is 679/3853 = 0.231, or 23.1%.

Question 5

Use the following to answer questions : 
-(Table: Population Data for Estill County) Look at the table Population Data for Estill County. What is the unemployment rate?

Accepted Answer

The unemployment rate for Estill County is 17%.

Question 6

A worker classified as frictionally unemployed is one who is:

Accepted Answer

A worker who is classified as frictionally unemployed is someone who is currently without a job but is actively seeking employment that matches their skill set or qualifications. This type of unemployment is considered to be temporary as it often occurs during the transition period between jobs.

Question 7

Anna recently moved to Boston, as her husband, Joe, has a new job as an economics professor at Harvard. Anna is an experienced surgeon who is interviewing with several hospitals in Boston. Anna is:

Accepted Answer

Anna is frictionally unemployed because she is actively searching for a new job after moving to a new location with her spouse's job. She is not structurally or cyclically unemployed, as those types of unemployment are related to longer-term changes in the economy or industries. While she may receive a job offer soon, she is still currently without a job, which classifies her as frictionally unemployed.

Question 8

Frictional unemployment is considered to be:

Accepted Answer

Frictional unemployment is a natural part of the job search process as workers transition between jobs or search for their first job. This type of unemployment occurs when workers are temporarily unemployed because they are in between jobs or are searching for new ones that better match their skills and preferences. This type of unemployment is generally considered to be good because it can lead to a better job match and improved productivity in the long run.

Question 9

Last week Stephanie quit her job as a copywriter at an advertising agency. She has spent the past few days browsing the help wanted ads but hasn't found anything that matches her skills. Stephanie is best classified as:

Accepted Answer

Stephanie is frictionally unemployed since she is currently looking for a job and is between jobs. She has the skills and qualifications required for certain jobs but is in the process of finding one that matches her skills.

Question 10

Unemployment that is due to the time workers spend in job search is _____ unemployment.

Accepted Answer

Frictional unemployment is due to the time workers spend in job search. This type of unemployment is considered natural as workers search for better job opportunities or transition between jobs. Structural unemployment occurs when there is a mismatch between the skills of workers and the available jobs. Cyclical unemployment is caused by downturns in the business cycle, resulting in a decrease in demand for labor.

Question 11

A recent college graduate with a major in economics attends a job fair but has not yet found a job. This graduate is counted as a _____ unemployed worker.

Accepted Answer

Frictional unemployment occurs when individuals are temporarily between jobs, such as a recent graduate who is actively seeking employment. This type of unemployment is a result of individuals searching for jobs that best fit their skills and interests.

Question 12

Frictional unemployment exists because of all of the following reasons EXCEPT:

Accepted Answer

Frictional unemployment is caused by the time and effort it takes for workers to search for new jobs that match their skills and preferences. It is not caused by the minimum wage. Therefore, option D is the correct answer. A, B, and C are all valid reasons for the existence of frictional unemployment.

Question 13

Internet employment agencies have simplified the job search for the applicants. They have also led to a(n) _____ unemployment.

Accepted Answer

Internet employment agencies have made it easier for job seekers to find and apply for jobs, reducing the time and effort required in the job search process. This has led to a decrease in frictional unemployment, which is the unemployment that results from the time and effort it takes for job seekers to find a job that suits their skills and preferences.

Question 14

An example of the frictionally unemployed is a(n):

Accepted Answer

Frictional unemployment occurs when individuals voluntarily leave their job to find new employment, often for better opportunities or conditions, as in the case of the real estate agent moving from Texas to California for a similar, higher-paying job.

Question 15

A person who spends time looking for work is:

Accepted Answer

A person who spends time looking for work is engaged in job search. This is different from being counted as marginally attached or discouraged, which typically indicates that the person has stopped actively looking for work or has given up on finding work altogether. Being counted as out of the labor force means the person is not currently employed or actively seeking employment.

Question 16

Use the following to answer questions : 
-(Table: Population Data for Estill County) Look at the table Population Data for Estill County. If marginally attached workers are included, the labor force in Estill County is:

Accepted Answer

The answer of Use the following to answer questions :...

Question 17

Use the following to answer questions : 
-(Table: Population Data for Estill County) Look at the table Population Data for Estill County. What is the labor force participation rate?

Accepted Answer

The labor force participation rate is the percentage of the population that is either employed or actively seeking employment. In the table, the total number of individuals in the labor force (employed + unemployed seeking employment) is 11,706. The total population is 14,509. Therefore, the labor force participation rate is (11,706/14,509) x 100 = 80.67%. Rounded to the nearest whole percentage point, the answer is 81%. Choice B is the correct answer.

Question 18

Ron quit his job in retail management and moved to Florida with his wife, a physician who opened a new practice there. He was not successful in his job search for the next four months. Ron's unemployment is:

Accepted Answer

Ron's unemployment is frictional because he voluntarily quit his job and is searching for a new one that matches his skills and preferences. The fact that he has been unemployed for only four months suggests that he is actively seeking employment and is likely to find a job soon. Structural unemployment would result from a mismatch between his skills and the job market, cyclical unemployment would result from a downturn in the economy, and seasonal unemployment would result from a predictable seasonal fluctuation in demand for labor. None of these types of unemployment seem to apply to Ron's situation.

Question 19

When the unemployment rate is very low, most of it tends to be:

Accepted Answer

When the unemployment rate is very low, it is likely that most of it is due to frictional unemployment, as workers are able to find new jobs relatively quickly and easily. Cyclical unemployment occurs during economic downturns and would not be present when the unemployment rate is low. Seasonal unemployment occurs due to changes in demand for certain industries at specific times of the year, and structural unemployment occurs when workers lack the skills or qualifications for the available jobs. These types of unemployment are not likely to be the main drivers of low unemployment rates.

Question 20

Unemployment that occurs because it takes workers and employees time to find each other is _____ unemployment.

Accepted Answer

Frictional unemployment occurs when workers are in-between jobs, searching for employment that best suits their skills or preferences. It is a result of the time it takes to match a worker with a suitable job.

Quiz 22: Unemployment and Inflation