Question 1

Define and give an example of how a spell of frictional unemployment can begin.

Accepted Answer

Frictional unemployment is the unemploym...

Question 2

Bill loses his job as a loan officer when the bank he works for is bought up by a larger financial institution. Bill has the skills necessary to find a new job, so Bill is best considered an example of

Accepted Answer

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

Question 3

Which of the following people is NOT considered unemployed in the Current Population Survey?

Accepted Answer

A)   The person has been laid off and is looking for a new job.
B)   The person has just finished school and has entered the labor force to look for work.
C)   The person is looking for work after not doing so for a time.
D)   The person is discouraged about finding a job and so does not search for work.E) A) and C)
F) A) and B)

Question 4

Which of the following situations best describes an individual who is cyclically unemployed?

Accepted Answer

A)   Susan quit her job as a preschool teacher to try to find a better paying job.
B)   Nicholas was laid- off when orders for General Motors cars fell during a recession.
C)   Catherine is a ski instructor who is not working because it is summer.
D)   Matthew was an artillery man, but he has been unable to find work since he left the army.E) B) and C)
F) A) and D)

Question 5

The absence of cyclical unemployment means the economy is at the natural unemployment rate.

Accepted Answer

A) True 
 B)False

Question 6

The employment- to- population ratio

Accepted Answer

A)   shows that the U.S. economy has created jobs at a faster rate than the working- age population has grown.
B)   has increased since 1961.
C)   falls during a recession.
D)   All of the above answers are correct.E) B) and C)
F) C) and D)

Question 7

If this year the price level is 135 and last year it was 125, the inflation rate is

Accepted Answer

A)   10 percent.
B)   12 percent.
C)   8 percent.
D)   none of the aboveE) C) and D)
F) B) and C)

Question 8

Suppose that the natural unemployment rate is 4.5 percent and the actual unemployment rate is 3.5 percent. Then cyclical unemployment is

Accepted Answer

A)   1 percent.
B)   0 percent.
C)   8 percent.
D)   - 1 percent.E) B) and C)
F) A) and D)

Question 9

An unemployment rate of zero percent cannot be expected because

Accepted Answer

A)   some portion of the labor force will always be between jobs.
B)   cyclical unemployment will always exist.
C)   there will always be discouraged workers.
D)   there are some people who do not want to work.E) A) and B)
F) B) and D)

Question 10

Unemployment can arise from

Accepted Answer

A)   people voluntarily quitting their jobs.
B)   people losing their jobs.
C)   people entering or reentering the labor force.
D)   All of the above answers are correct.E) B) and C)
F) None of the above

Question 11

The official unemployment estimates

Accepted Answer

A)   count discouraged workers as unemployed.
B)   include persons without a job who have made efforts in the last week to find a job.
C)   include persons without a job, whether they are actively searching for work or not.
D)   count as unemployed people with part- time jobs who want full- time jobs.E) A) and C)
F) None of the above

Question 12

An individual with good job prospects who is between jobs is best considered as

Accepted Answer

A)   cyclically unemployed.
B)   frictionally unemployed.
C)   not in the labor force.
D)   structurally unemployed.E) B) and C)
F) None of the above

Question 13

-The above table shows answers given by people interviewed in a government survey of households. Which individuals are considered unemployed?

Accepted Answer

A)   A, B, and C
B)   C and D
C)   A, C, and D
D)   B, C, and DE) A) and C)
F) None of the above

Question 14

If the population is 300 million, with 70 million under the age of 16 and institutionalized, another 70 million not in the labor force, 10 million unemployed, and 150 million employed, the employment- to- population rate is

Accepted Answer

A)   87.5 percent.
B)   46.7 percent.
C)   65.2 percent.
D)   53.3 percent.E) A) and D)
F) B) and C)

Question 15

The Consumer Expenditure Survey is .

Accepted Answer

A)   updated annually
B)   updated quarterly
C)   updated monthly
D)   undertaken infrequentlyE) None of the above
F) A) and B)

Question 16

Give an example of a frictionally unemployed person.

Accepted Answer

A person who is without a job because of...

Question 17

The best example of a frictionally unemployed individual is

Accepted Answer

A)   Sandy who has few skills and is no longer looking for work.
B)   Charles who has lost his job as an autoworker because of increased imports and can't find a good job that utilizes his skills.
C)   Mary who quit her job to find work closer to her home.
D)   Sam who lost his job as a real estate salesperson when the housing market went soft because of a recession.E) A) and C)
F) B) and C)

Question 18

Full employment means that

Accepted Answer

A)   no one is unemployed.
B)   there is no structural or frictional unemployment.
C)   there is no cyclical or frictional unemployment.
D)   there is no cyclical unemployment.E) A) and B)
F) A) and C)

Question 19

The unemployment rate is found by dividing the number of unemployed people by the

Accepted Answer

A)   sum of working individuals plus unemployed workers, and multiplying by 100.
B)   number of working individuals, and multiplying by 100.
C)   number of the working- age population, and multiplying by 100.
D)   number in the labor force, and dividing by 100.E) A) and C)
F) A) and B)

Question 20

Suppose initially that the working- age population is 220 million, the labor force is 150 million, and the unemployment rate is 10 percent. 5 million new jobs are created and filled by 5 million people who had previously been discouraged workers. What is the new unemployment rate?

Accepted Answer

A)   6.7 percent
B)   9.7 percent
C)   6.25 percent
D)   8.7 percentE) C) and D)
F) B) and C)

Exam 5: Monitoring Jobs and Inflation

Give an example of a frictionally unemployed person.

Correct AnswerverifiedA person who is without a job because of...View AnswerShow Answer

The absence of cyclical unemployment means the economy is at the natural unemployment rate.

Correct AnswerverifiedShow Answer

If the population is 300 million, with 70 million under the age of 16 and institutionalized, another 70 million not in the labor force, 10 million unemployed, and 150 million employed, the employment- to- population rate is

Correct AnswerverifiedShow Answer

Unemployment can arise from

Correct AnswerverifiedShow Answer

Which of the following situations best describes an individual who is cyclically unemployed?

Correct AnswerverifiedShow Answer

An individual with good job prospects who is between jobs is best considered as

Correct AnswerverifiedShow Answer

Full employment means that

Correct AnswerverifiedShow Answer

-The above table shows answers given by people interviewed in a government survey of households. Which individuals are considered unemployed?

Correct AnswerverifiedShow Answer

Bill loses his job as a loan officer when the bank he works for is bought up by a larger financial institution. Bill has the skills necessary to find a new job, so Bill is best considered an example of

Correct AnswerverifiedShow Answer

Suppose that the natural unemployment rate is 4.5 percent and the actual unemployment rate is 3.5 percent. Then cyclical unemployment is

Correct AnswerverifiedShow Answer

Suppose initially that the working- age population is 220 million, the labor force is 150 million, and the unemployment rate is 10 percent. 5 million new jobs are created and filled by 5 million people who had previously been discouraged workers. What is the new unemployment rate?

Correct AnswerverifiedShow Answer

Define and give an example of how a spell of frictional unemployment can begin.

Correct AnswerverifiedFrictional unemployment is the unemploym...View AnswerShow Answer

The official unemployment estimates

Correct AnswerverifiedShow Answer

Which of the following people is NOT considered unemployed in the Current Population Survey?

Correct AnswerverifiedShow Answer

The employment- to- population ratio

Correct AnswerverifiedShow Answer

An unemployment rate of zero percent cannot be expected because

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The best example of a frictionally unemployed individual is

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The unemployment rate is found by dividing the number of unemployed people by the

Correct AnswerverifiedShow Answer

If this year the price level is 135 and last year it was 125, the inflation rate is

Correct AnswerverifiedShow Answer

The Consumer Expenditure Survey is .

Correct AnswerverifiedShow Answer

Correct Answer
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A person who is without a job because of...
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Frictional unemployment is the unemploym...
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