Question 1

Both highly specialized workers and highly specialized jobs might increase frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 2

A country has 50 million people, 30 million of whom are adults. Of the adults, 5 million are not interested in working, another 5 million are interested in working but have given up looking for work, and 5 million are still looking for work. Of those who do have jobs, 5 million are working part time but would like to work full time, and the remaining 10 million are working full time. What is this country's labor force participation rate?

Accepted Answer

A)   50%
B)   66.7%
C)   75%
D)   83.3%E) A) and D)
F) C) and D)

Question 3

More labor regulations are likely to raise structural unemployment.

Accepted Answer

A) True 
 B)False

Question 4

Unemployment correlated with the ups and downs of the business cycle is called:

Accepted Answer

A)   cyclical unemployment.
B)   frictional unemployment.
C)   structural unemployment.
D)   temporary unemployment.E) None of the above
F) A) and B)

Question 5

Which of the following is an example of an active labor market policy?

Accepted Answer

A)   minimum wage laws
B)   paying unemployed workers who find a job
C)   extending unemployment benefits
D)   worker unionsE) A) and B)
F) None of the above

Question 6

Oil shocks, the shift from manufacturing to service jobs, and the use of new technologies are reasons for _____ unemployment.

Accepted Answer

A)   frictional
B)   cyclical
C)   structural
D)   permanentE) A) and B)
F) None of the above

Question 7

When workers lose their jobs and become officially unemployed, the number of people in the labor force:

Accepted Answer

A)   remains constant.
B)   increases.
C)   decreases.
D)   becomes difficult to predict.E) B) and C)
F) A) and B)

Question 8

Over time, the actual unemployment rate varies around the natural rate.

Accepted Answer

A) True 
 B)False

Question 9

The natural unemployment rate consists of:

Accepted Answer

A)   frictional and structural unemployment.
B)   frictional and cyclical unemployment.
C)   structural and cyclical unemployment.
D)   frictional, cyclical, and structural unemployment.E) All of the above
F) None of the above

Question 10

Which of the following does NOT determine the labor force participation rate?

Accepted Answer

A)   lifecycle effects
B)   demographics
C)   incentives
D)   educationE) A) and B)
F) B) and C)

Question 11

If the adult population of a country is 200 million, 100 million are employed, and 10 million are unemployed, this country's unemployment rate is:

Accepted Answer

A)   5%.
B)   9.1%.
C)   10%.
D)   11%.E) A) and B)
F) B) and C)

Question 12

When not in a recession, the largest fraction of unemployment in the United States lasts:

Accepted Answer

A)   less than 5 weeks.
B)   between 5 and 14 weeks.
C)   between 15 and 26 weeks.
D)   more than 27 weeks.E) A) and D)
F) None of the above

Question 13

When workers lose their jobs and become officially unemployed, the unemployment rate:

Accepted Answer

A)   remains constant.
B)   increases.
C)   decreases.
D)   becomes difficult to predict.E) B) and C)
F) A) and D)

Question 14

Government can influence a person's choice to work or not through:

Accepted Answer

A)   taxes on nonworkers and benefits paid to workers.
B)   taxes on workers and benefits paid to nonworkers.
C)   taxes on both workers and nonworkers.
D)   benefits paid to both workers and nonworkers.E) B) and D)
F) C) and D)

Question 15

What type of laws affect young, minority, and unemployed workers most negatively?

Accepted Answer

A)   employment-at-will
B)   employment protection
C)   constructive discharge
D)   fair laborE) A) and D)
F) B) and C)

Question 16

The presence of discouraged workers causes the measured unemployment rate to be:

Accepted Answer

A)   correctly stated.
B)   overstated.
C)   understated.
D)   either overstated, understated, or correctly stated.E) B) and C)
F) B) and D)

Question 17

A country has 50 million people, 30 million of whom are adults. Of the adults, 5 million are not interested in working, another 5 million are interested in working but have given up looking for work, and 5 million are still looking for work. Of those who do have jobs, 5 million are working part time but would like to work full time, and the remaining 10 million are working full time. What is this country's unemployment rate?

Accepted Answer

A)   10%
B)   16.7%
C)   25%
D)   40%E) B) and D)
F) A) and B)

Question 18

Most economists expect labor force participation rates in the United States to:

Accepted Answer

A)   remain constant over time.
B)   increase over time.
C)   decrease over time.
D)   first increase and then decrease over time.E) A) and D)
F) A) and B)

Question 19

Labor unions tend to decrease unemployment.

Accepted Answer

A) True 
 B)False

Exam 11: Unemployment and Labor Force Participation

Both highly specialized workers and highly specialized jobs might increase frictional unemployment.

Correct Answer
verified

Over time, the actual unemployment rate varies around the natural rate.

Correct Answer
verified

Correct Answer
verified

Oil shocks, the shift from manufacturing to service jobs, and the use of new technologies are reasons for _____ unemployment.

Correct Answer
verified

Which of the following is an example of an active labor market policy?

Correct Answer
verified

Most economists expect labor force participation rates in the United States to:

Correct Answer
verified

If the adult population of a country is 200 million, 100 million are employed, and 10 million are unemployed, this country's unemployment rate is:

Correct Answer
verified

When workers lose their jobs and become officially unemployed, the unemployment rate:

Correct Answer
verified

Unemployment correlated with the ups and downs of the business cycle is called:

Correct Answer
verified

The presence of discouraged workers causes the measured unemployment rate to be:

Correct Answer
verified

When not in a recession, the largest fraction of unemployment in the United States lasts:

Correct Answer
verified

More labor regulations are likely to raise structural unemployment.

Correct Answer
verified

What type of laws affect young, minority, and unemployed workers most negatively?

Correct Answer
verified

Which of the following does NOT determine the labor force participation rate?

Correct Answer
verified

Labor unions tend to decrease unemployment.

Correct Answer
verified

When workers lose their jobs and become officially unemployed, the number of people in the labor force:

Correct Answer
verified

The natural unemployment rate consists of:

Correct Answer
verified

Correct Answer
verified

Government can influence a person's choice to work or not through:

Correct Answer
verified

Exam 11: Unemployment and Labor Force Participation

Both highly specialized workers and highly specialized jobs might increase frictional unemployment.

Correct AnswerverifiedShow Answer

Over time, the actual unemployment rate varies around the natural rate.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Oil shocks, the shift from manufacturing to service jobs, and the use of new technologies are reasons for _____ unemployment.

Correct AnswerverifiedShow Answer

Which of the following is an example of an active labor market policy?

Correct AnswerverifiedShow Answer

Most economists expect labor force participation rates in the United States to:

Correct AnswerverifiedShow Answer

If the adult population of a country is 200 million, 100 million are employed, and 10 million are unemployed, this country's unemployment rate is:

Correct AnswerverifiedShow Answer

When workers lose their jobs and become officially unemployed, the unemployment rate:

Correct AnswerverifiedShow Answer

Unemployment correlated with the ups and downs of the business cycle is called:

Correct AnswerverifiedShow Answer

The presence of discouraged workers causes the measured unemployment rate to be:

Correct AnswerverifiedShow Answer

When not in a recession, the largest fraction of unemployment in the United States lasts:

Correct AnswerverifiedShow Answer

More labor regulations are likely to raise structural unemployment.

Correct AnswerverifiedShow Answer

What type of laws affect young, minority, and unemployed workers most negatively?

Correct AnswerverifiedShow Answer

Which of the following does NOT determine the labor force participation rate?

Correct AnswerverifiedShow Answer

Labor unions tend to decrease unemployment.

Correct AnswerverifiedShow Answer

When workers lose their jobs and become officially unemployed, the number of people in the labor force:

Correct AnswerverifiedShow Answer

The natural unemployment rate consists of:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Government can influence a person's choice to work or not through:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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