1. award: 10.00 points 2. award: 10.00 points 3. award: 10.00 points An underemployed worker who is looking for a full-time job is A discouraged worker. Phantom unemployed. Structurally unemployed. → None of the choices are correct. An underemployed worker is employed. Multiple Choice Difficulty: 2 Medium Learning Objective: 06-03 The major types of unemployment. In the early weeks of a recession, what type of unemployment gets larger? Frictional. Structural. → Cyclical. Seasonal. As demand falls off, the economy enters the downward portion of the business cycle that is characterized by cyclical unemployment. Multiple Choice Difficulty: 2 Medium Learning Objective: 06-03 The major types of unemployment. When people over 16 years old start looking for jobs, the → Unemployment rate increases and the labor force increases. Unemployment rate decreases and the labor force decreases. Unemployment rate increases and the labor force decreases. Unemployment rate decreases and the labor force increases. When people start looking for work, the "looking for work" portions of both the numerator and denominator get larger. Example: 3/(3 + 6) = 33.3%; 4/(4 + 6) = 40 %. Multiple Choice Difficulty: 2 Medium Learning Objective: 06-01 How unemployment is measured. Page 1 of 16 Assignment Print View 10/15/2013 http://ezto.mhecloud.mcgraw-hill.com/hm.tpx
Transcript
1.award:10.00 points
2.award:10.00 points
3.award:10.00 points
An underemployed worker who is looking for a full-time job isA discouraged worker.Phantom unemployed.Structurally unemployed.
→ None of the choices are correct.
An underemployed worker is employed.
Multiple Choice Difficulty: 2 Medium Learning Objective: 06-03 The major types of unemployment.
In the early weeks of a recession, what type of unemployment gets larger?Frictional.Structural.
→ Cyclical.
Seasonal.
As demand falls off, the economy enters the downward portion of the business cycle that is characterized by cyclical unemployment.
Multiple Choice Difficulty: 2 Medium Learning Objective: 06-03 The major types of unemployment.
When people over 16 years old start looking for jobs, the
→ Unemployment rate increases and the labor force increases.
Unemployment rate decreases and the labor force decreases.Unemployment rate increases and the labor force decreases.Unemployment rate decreases and the labor force increases.
When people start looking for work, the "looking for work" portions of both the numerator and denominator get larger. Example: 3/(3 + 6) = 33.3%; 4/(4 + 6) = 40 %.
Multiple Choice Difficulty: 2 Medium Learning Objective: 06-01 How unemployment is measured.
When unemployed people stop looking for jobs, theUnemployment rate increases and the labor force increases.
→ Unemployment rate decreases and the labor force decreases.
Unemployment rate increases and the labor force decreases.Unemployment rate decreases and the labor force increases.
When people stop looking for work, the "looking for work" portions of both the numerator and denominator get smaller. Example: 4/(4 + 6) = 40%; 3/(3 + 6) = 33.3%.
Multiple Choice Difficulty: 2 Medium Learning Objective: 06-01 How unemployment is measured.
An unemployed worker who wants a job but has given up in the search for a new job is referred to as a/anUnemployed worker.Phantom unemployed worker.
→ Discouraged worker.
Underemployed worker.
The presence of discouraged workers distorts our official unemployment figures.
Multiple Choice Difficulty: 2 Medium Learning Objective: 06-01 How unemployment is measured.
Suppose the working-age population of Country A is 200 million, the number employed is 130 million, and the number unemployed is 10 million. What is the labor force participation rate?
60 percent.
→ 70 percent.
65 percent.75 percent.
The labor force participation rate is the labor force divided by the working-age population expressed as a percentage: (130 + 10)/200.
Multiple Choice Difficulty: 3 Hard Learning Objective: 06-01 How unemployment is measured.
The natural rate of unemployment includesSeasonal and cyclical unemployment only.Cyclical and frictional unemployment only.Structural and seasonal unemployment only.
→ Frictional and structural unemployment only.
The natural rate of unemployment does not include seasonal or cyclical unemployment.
Multiple Choice Difficulty: 1 Easy Learning Objective: 06-04 The meaning of full employment.
Why has structural unemployment in the United States increased over the last 20 years?Rapid technology changes have eliminated the needs for certain skill sets.Companies are increasingly outsourcing certain task to cheaper foreign markets.Increased trade with other countries has shut down U.S. factories competing with import industries.
→ All of the choices are correct.
Structural unemployment has increased due to rapid technology changes and increased trade and outsourcing.
Multiple Choice Difficulty: 2 Medium Learning Objective: 06-03 The major types of unemployment.
Which of the following government programs would be most appropriate to counteract cyclical unemployment?Increased job placement services.
→ Greater government expenditures to increase GDP.
Year-round school.More job training programs.
When private sector spending falls, GDP will fall unless government spending increases to offset the fall in private sector spending.
Multiple Choice Difficulty: 2 Medium Learning Objective: 06-03 The major types of unemployment.
Structural unemployment arises because (1) the skill set of the worker does not meet the needs of the employer or (2) the job has been moved to a location where the worker can no longer go, such as through outsourcing.
Multiple Choice Difficulty: 2 Medium Learning Objective: 06-03 The major types of unemployment.
A 30-year-old stay-at-home son tells his parent he is looking for work but cannot find a job. When the parent finds the son a job, he refuses to take it. The 30-year-old can best be classified as
A discouraged worker.
→ Phantom unemployed.
Structurally unemployed.Underemployed.
When one is not actively seeking work and not too excited about finding it, one may be considered phantom unemployed.
Multiple Choice Difficulty: 3 Hard Learning Objective: 06-03 The major types of unemployment.
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
A discouraged worker.Structurally unemployed.Phantom unemployed.
→ Underemployed.
The official unemployment figures are distorted by underemployed workers and tend to paint a better picture than is present in reality.
Multiple Choice Difficulty: 2 Medium Learning Objective: 06-01 How unemployment is measured.
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
→ Decrease.
Increase.Remain unchanged until the unemployed find a job.Increase initially but decrease when the phantom unemployed receive unemployment benefits.
The official unemployment rate can mask actual unemployment.
Multiple Choice Difficulty: 2 Medium Learning Objective: 06-01 How unemployment is measured.
(Assume the figures above represent the working-age population).
What was the unemployment rate in Nationland in 1999?
rev: 08_09_20127.6 percent.
→ 7.1 percent.
5.0 percent. 65.0 percent.
The unemployment rate is simply the number of people who are unemployed divided by the labor force: 5/(65 + 5).
Multiple Choice Difficulty: 2 Medium Learning Objective: 06-01 How unemployment is measured.
All of the following are true when the economy is growing exceptDuration of unemployment falls.Costs associated with unemployment fall.Unemployment rate falls.
→ Underemployment rises.
Typically unemployment figures improve during economic expansions.
Multiple Choice Difficulty: 2 Medium Learning Objective: 06-01 How unemployment is measured.
(Assume the figures above represent the working-age population).
Based on Table 6.2, what was the labor force participation rate in 2000?
rev: 08_09_2012
→ 77.27 percent.
65.45 percent. 11.81 percent. 18.05 percent.
The labor force participation rate is equal to the labor force divided by the population: {(72 + 13)/110} * 100.
Multiple Choice Difficulty: 2 Medium Learning Objective: 06-01 How unemployment is measured.
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?
→ 12.0 percent.
25.0 percent.9.0 percent.8.3 percent.
The unemployment rate can be found by dividing the number of people who are unemployed by the number of people in the labor force: (90 million/750 million) * 100.
Multiple Choice Difficulty: 2 Medium Learning Objective: 06-01 How unemployment is measured.
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?
→ 6.67 percent.
75 percent.7.5 percent.5 percent.
Taking the number of unemployed people and dividing it by the number of people in the labor force will give you the unemployment rate.
Multiple Choice Difficulty: 2 Medium Learning Objective: 06-01 How unemployment is measured.
Suppose that in a population of 50 million persons, 40 million are in the labor force, 36 million are employed, 2 million are classified as unable to work, and 1 million are classified as unwilling to work. The unemployment rate is
→ 10.0 percent.
72.0 percent.8.0 percent.80.0 percent.
The number of unemployed people divided by the number of people in the labor force yields the unemployment rate.
Multiple Choice Difficulty: 3 Hard Learning Objective: 06-01 How unemployment is measured.
The most widely used measure of the unemployment rate is found by theU.S. Department of Labor in surveys of businesses to determine the number of employees as a percentage of the total labor force.
→ U.S. Census Bureau in monthly surveys that examine whether people are working or are willing to work.U.S. Census Bureau in its census of the population every 10 years.Council of Economic Advisers, which summarizes its nationwide surveys in its yearly report to the president.
The Census Bureau is responsible for sampling the population of the United States to find useful information such as unemployment figures.
Multiple Choice Difficulty: 1 Easy Learning Objective: 06-01 How unemployment is measured.
To be officially counted as unemployed, one must beEither not working or working only part-time.Not employed at a full-time job.
→ Actively seeking employment and currently not working.
None of the choices are correct.
Being without a job is insufficient to be considered as unemployed; one must also be actively seeking a job.
Multiple Choice Difficulty: 3 Hard Learning Objective: 06-01 How unemployment is measured.
According to Okun's Law, if unemployment rises by 5 percent while imports and exports increase at roughly the same rate, the economy will lose output equal to
1 percent. 2 percent. 5 percent.
→ 10 percent.
For every 1 percent increase in unemployment, Okun's Law forecasts a 2 percent decrease in real GDP.
Multiple Choice Difficulty: 3 Hard Learning Objective: 06-01 How unemployment is measured.
When the economy is below full employment, it is producingOn the production possibilities curve.Beyond the production possibilities curve.
→ Inside the production possibilities curve.
None of the choices are correct.
Unemployed resources above the natural rate of unemployment result in society producing at a point below the production possibilities curve.
Multiple Choice Difficulty: 1 Easy Learning Objective: 06-01 How unemployment is measured.
31.award:10.00 pointsFrom 1950 until 2000, the labor force participation rate has
Increased for men and increased for women.Decreased for men and decreased for women.Increased for men and decreased for women.
→ Decreased for men and increased for women.
The labor force participation rate for men has decreased due to men living long enough to retire. The labor force participation rate for women has increased because the opportunity cost of remaining an unpaid homemaker as opposed to a labor force participant has significantly increased.
Multiple Choice Difficulty: 1 Easy Learning Objective: 06-01 How unemployment is measured.
