Question 1

As a result of outsourcing,

Accepted Answer

A)  Domestic workers may become more productive.
B)  Profits decrease for domestic companies.
C)  GDP definitely decreases.
D)  Unemployment must increase in the long run.E) B) and D)
F) B) and C)

Question 2

Which of the following government programs would be most appropriate to counteract cyclical unemployment?

Accepted Answer

A)  Increased job placement services.
B)  Greater government expenditures to increase GDP.
C)  Year-round school.
D)  More job training programs.E) A) and C)
F) A) and B)

Question 3

Unemployment is defined as

Accepted Answer

A)  The active search and inability of labor force participants to find jobs.
B)  The active search and inability of citizens to find jobs that utilize their capabilities.
C)  The proportion of the total population that is unemployed.
D)  A decrease in the labor force.E) B) and D)
F) All of the above

Question 4

The lowest level of unemployment compatible with price stability

Accepted Answer

A)  Is referred to as full employment.
B)  Is estimated at between 0 and 2 percent unemployment.
C)  Allows for some cyclical unemployment.
D)  Is equal to the natural rate of unemployment plus the inflation rate.E) B) and D)
F) A) and B)

Question 5

Full employment in the U.S.economy means that

Accepted Answer

A)  Frictional unemployment has been reduced to zero.
B)  The total unemployment rate has been reduced to zero.
C)  The economy has reached the lowest level of unemployment compatible with price stability.
D)  Structural unemployment has reached its minimum as a result of increased spending,and the economy is moving toward the peak of the business cycle.E) B) and D)
F) None of the above

Question 6

According to Okun's Law,how does a 2 percent increase in unemployment affect the economy?

Accepted Answer

Okun's Law says that 1 percent more unem...

Question 7

Suppose a country has 10 million people.Three-fourths of those individuals are in the labor force,with 500,000 unemployed.Full employment occurs at 5 percent.Based on this information,what is the unemployment rate?

Accepted Answer

A)  6.67 percent.
B)  75 percent.
C)  7.5 percent.
D)  5 percent.E) A) and B)
F) C) and D)

Question 8

When the growth rate of the labor force is faster than the growth rate of the unemployed,the unemployment rate is falling.

Accepted Answer

A) True 
 B)False

Question 9

In the Employment Act of 1946,Congress committed the federal government to pursue a goal of 0 percent unemployment and inflation.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  White teenagers.
B)  Black adults.
C)  White adult females.
D)  Black teenagers.E) B) and C)
F) A) and D) D

Question 11

An unemployed worker who wants a job but has given up in the search for a new job is referred to as a/an

Accepted Answer

A)  Unemployed worker.
B)  Phantom unemployed worker.
C)  Discouraged worker.
D)  Underemployed worker.E) B) and D)
F) A) and B)

Question 12

Long-term changes in demand that make some goods obsolete (possibly due to technological advancement) are likely to have their greatest impact on

Accepted Answer

A)  Structural unemployment.
B)  Cyclical unemployment.
C)  Frictional unemployment.
D)  Seasonal unemployment.E) A) and D)
F) C) and D)

Question 13

Table 6.3: Population and Labor Force   Year 1  Year 5  Working Age Population 200million250million Labor Force 110million145million Employed 106million135million\begin{array} { | l | c | r | } \hline & 	ext { Year 1 } & 	ext { Year 5 } \\hline 	ext { Working Age Population } & 200 \mathrm { million } & 250 \mathrm { million } \\hline 	ext { Labor Force } & 110 \mathrm { milli } \mathrm { on } & 145 \mathrm { million } \\hline 	ext { Employed } & 106 \mathrm { million } & 135 \mathrm { million } \\hline\end{array} Working Age Population  Labor Force  Employed ​ Year 1 200million110million106million​ Year 5 250million145million135million​​  What is the number of unemployed in Year 1 in Table 6.3?

Accepted Answer

A)  90 million.
B)  94 million.
C)  106 million.
D)  4 million. E) B) and D)
F) B) and C)

Question 14

Structural unemployment occurs when

Accepted Answer

A)  Workers do not have the skills required to fill the vacant positions in the job market.
B)  Firms fail in the normal course of business activity.
C)  An industry experiences a seasonal downturn.
D)  There is inadequate demand for labor.E) C) and D)
F) A) and B)

Question 15

The number of unemployed can drop simultaneously with increases in the unemployment rate.

Accepted Answer

A) True 
 B)False  True

Question 16

If the population of a country is 250,000 people,its labor force consists of 145,000 people,35,000 people are unemployed,10,000 are unable to work,and 5,000 are unwilling to work,the unemployment rate is

Accepted Answer

A)  22.1 percent.
B)  14.0 percent.
C)  24.1 percent.
D)  19.4 percent.E) B) and D)
F) None of the above

Question 17

What is the likely consequence of an unemployment rate falling below the rate at which "full employment" is achieved?

Accepted Answer

A)  The threat of recession.
B)  Increased inflationary pressures.
C)  An increase in discouraged workers.
D)  None of the choices are correct.E) B) and C)
F) A) and D) B

Question 18

Suppose a country has 1 billion people.75 percent of its citizens are in the labor force,with 90 million unemployed.Full employment occurs at 2 percent.Based on this information,what is the unemployment rate?

Accepted Answer

A)  12.0 percent.
B)  25.0 percent.
C)  9.0 percent.
D)  8.3 percent.E) C) and D)
F) A) and D)

Question 19

The benefits to the United States of outsourcing include all of the following except

Accepted Answer

A)  Foreign firms insource or send jobs to the United States.
B)  U.S.productivity rises,resulting in higher profits at U.S.firms that outsource.
C)  Higher domestic labor cost for U.S.firms.
D)  Greater domestic investment by U.S.firms that outsource.E) B) and D)
F) B) and C)

Question 20

Which of the following would not increase the physical production possibilities curve?

Accepted Answer

A)  Greater constraints for oil drilling companies.
B)  Increased availability of factors of production.
C)  Increased technology.
D)  None of the choices are correct.E) C) and D)
F) B) and C)

Exam 6: Unemployment

As a result of outsourcing,

Correct Answer
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Which of the following government programs would be most appropriate to counteract cyclical unemployment?

Correct Answer
verified

Unemployment is defined as

Correct Answer
verified

The lowest level of unemployment compatible with price stability

Correct Answer
verified

Full employment in the U.S.economy means that

Correct Answer
verified

According to Okun's Law,how does a 2 percent increase in unemployment affect the economy?

Correct Answer
verified
Okun's Law says that 1 percent more unem...
View Answer

Suppose a country has 10 million people.Three-fourths of those individuals are in the labor force,with 500,000 unemployed.Full employment occurs at 5 percent.Based on this information,what is the unemployment rate?

Correct Answer
verified

When the growth rate of the labor force is faster than the growth rate of the unemployed,the unemployment rate is falling.

Correct Answer
verified

In the Employment Act of 1946,Congress committed the federal government to pursue a goal of 0 percent unemployment and inflation.

Correct Answer
verified

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

Correct Answer
verified
D

An unemployed worker who wants a job but has given up in the search for a new job is referred to as a/an

Correct Answer
verified

Long-term changes in demand that make some goods obsolete (possibly due to technological advancement) are likely to have their greatest impact on

Correct Answer
verified

Correct Answer
verified

Structural unemployment occurs when

Correct Answer
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The number of unemployed can drop simultaneously with increases in the unemployment rate.

Correct Answer
verified
True

If the population of a country is 250,000 people,its labor force consists of 145,000 people,35,000 people are unemployed,10,000 are unable to work,and 5,000 are unwilling to work,the unemployment rate is

Correct Answer
verified

What is the likely consequence of an unemployment rate falling below the rate at which "full employment" is achieved?

Correct Answer
verified
B

Suppose a country has 1 billion people.75 percent of its citizens are in the labor force,with 90 million unemployed.Full employment occurs at 2 percent.Based on this information,what is the unemployment rate?

Correct Answer
verified

The benefits to the United States of outsourcing include all of the following except

Correct Answer
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Which of the following would not increase the physical production possibilities curve?

Correct Answer
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Exam 6: Unemployment

As a result of outsourcing,

Correct AnswerverifiedShow Answer

Which of the following government programs would be most appropriate to counteract cyclical unemployment?

Correct AnswerverifiedShow Answer

Unemployment is defined as

Correct AnswerverifiedShow Answer

The lowest level of unemployment compatible with price stability

Correct AnswerverifiedShow Answer

Full employment in the U.S.economy means that

Correct AnswerverifiedShow Answer

According to Okun's Law,how does a 2 percent increase in unemployment affect the economy?

Correct AnswerverifiedOkun's Law says that 1 percent more unem...View AnswerShow Answer

Suppose a country has 10 million people.Three-fourths of those individuals are in the labor force,with 500,000 unemployed.Full employment occurs at 5 percent.Based on this information,what is the unemployment rate?

Correct AnswerverifiedShow Answer

When the growth rate of the labor force is faster than the growth rate of the unemployed,the unemployment rate is falling.

Correct AnswerverifiedShow Answer

In the Employment Act of 1946,Congress committed the federal government to pursue a goal of 0 percent unemployment and inflation.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedD

An unemployed worker who wants a job but has given up in the search for a new job is referred to as a/an

Correct AnswerverifiedShow Answer

Long-term changes in demand that make some goods obsolete (possibly due to technological advancement) are likely to have their greatest impact on

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Structural unemployment occurs when

Correct AnswerverifiedShow Answer

The number of unemployed can drop simultaneously with increases in the unemployment rate.

Correct AnswerverifiedTrue

If the population of a country is 250,000 people,its labor force consists of 145,000 people,35,000 people are unemployed,10,000 are unable to work,and 5,000 are unwilling to work,the unemployment rate is

Correct AnswerverifiedShow Answer

What is the likely consequence of an unemployment rate falling below the rate at which "full employment" is achieved?

Correct AnswerverifiedB

Suppose a country has 1 billion people.75 percent of its citizens are in the labor force,with 90 million unemployed.Full employment occurs at 2 percent.Based on this information,what is the unemployment rate?

Correct AnswerverifiedShow Answer

The benefits to the United States of outsourcing include all of the following except

Correct AnswerverifiedShow Answer

Which of the following would not increase the physical production possibilities curve?

Correct AnswerverifiedShow Answer

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Okun's Law says that 1 percent more unem...
View Answer

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D

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True

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B

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