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Foundations of Macroeconomics, 7e (Bade/Parkin)
Chapter 6 Jobs and Unemployment
6.1 Labor Market Indicators
1) The Bureau of Labor Statistics (BLS) compiles information about employment by
A) performing a census of every household in the nation.
B) performing a quarterly survey 6,000,000 households.
C) performing a monthly survey of 60,000 households.
D) determining the average estimate of labor market specialists around the nation.
E) contacting each of the 50 states' Departments of Labor.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
2) In order to obtain the data used to calculate the unemployment rate, the Bureau of
Labor Statistics
A) adds the number of people collecting unemployment insurance from each state.
B) adds the state unemployment claims reports.
C) uses a survey from 60,000 households.
D) adds together all the reports of layofs from businesses.
E) uses a survey from 160,000 irms.
Skill: Level 1: Deinition
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
3) The purpose of the Current Population Survey is to determine the
A) number of people in the population.
B) employment status of the population.
C) age structure of the population.
D) income level of the population.
E) prices consumers pay for the goods and services they buy.
Skill: Level 1: Deinition
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
1
4) The working-age population includes
A) those in jails and hospitals.
B) youngsters between the ages of 14 and 16 if they are working at least part time.
C) employed and unemployed people over the age of 16.
D) only employed people over the age of 16.
E) people over the age of 16 who are in the Army.
Skill: Level 1: Deinition
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
5) Which of the following is true?
A) To be classiied as employed, you must be a full-time worker at a paid job.
B) To be classiied as employed, you must work at least 20 hours per week at a paid job.
C) Part-time workers are all those who work less than 40 hours per week.
D) To be classiied as employed, you must work at least 1 hour per week at a paid job or 15
hours or more as an unpaid worker in your family business.
E) If you are not working and turn down a job ofer in the previous week, you are no longer
classiied as unemployed.
Skill: Level 1: Deinition
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
6) An unpaid worker in a family business is classiied as
A) not in the labor force.
B) employed no matter how many hours the person worked in the previous week.
C) unemployed no matter how many hours the person worked in the previous week.
D) employed if the person worked at least 15 hours in the previous week.
E) unemployed only if the person worked no hours in the previous week.
Skill: Level 1: Deinition
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
2
7) After graduating from college, Yunis, age 22, started working for his parents' real estate
business as an unpaid assistant. He works 25 hours a week helping manage rental units. In
the Current Population Survey, Yunis is considered
A) part of the labor force and unemployed.
B) part of the labor force and employed.
C) not part of the labor force.
D) a discouraged worker.
E) part of the labor force but not part of the working-age population.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
8) If KeKe, age 32, worked 12 hours as a paid employee the week before the Current
Population Survey, KeKe is classiied in the Current Population Survey as ________ when
calculating the unemployment rate.
A) unemployed
B) employed
C) a discouraged worker
D) not in the labor force
E) underemployed
Skill: Level 2: Using deinitions
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
9) Suppose a 23-year old graduate student is looking for a full-time job , but has to take a
part-time job instead. He or she will be categorized in the Current Population Survey as
________ when calculating the unemployment rate.
A) unemployed
B) employed
C) not in the labor force
D) a discouraged worker
E) underemployed
Skill: Level 1: Deinition
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
3
10) Which of the following people would be classiied as employed in the Current
Population Survey?
A) Rich, who is working 20 hours a week but wants a full-time job
B) Misty, who just quit her job to return full time to school
C) April, who just graduated from college and is looking for work
D) Jason, who was laid of from work less than 6 months ago but who has stopped looking
for work
E) Laura, who is unpaid but is working 10 hours a week in the family business she and her
husband run
Skill: Level 1: Deinition
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
11) In the Current Population Survey, a person is considered unemployed if the person
A) is without a job.
B) is working anything less than 40 hours per week.
C) is working without pay.
D) does not have a job and is actively looking for a job.
E) is working less than 20 hours per week.
Skill: Level 1: Deinition
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
12) To be considered unemployed, a worker must have had
A) no employment during the week before the survey and be actively looking for a job.
B) part-time employment while actively looking for a full-time job.
C) no employment during the week before the survey and be actively looking for a job while
a student.
D) no employment during the day before the survey and be actively looking for a job.
E) Both answers A and B are correct.
Skill: Level 1: Deinition
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
4
13) If Brian, age 24, had no job but was available for work and had looked for a job the
week before the survey, Brian is classiied in the Current Population Survey as
A) unemployed.
B) employed.
C) a discouraged worker.
D) not in the labor force.
E) not in the working-age population.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
14) Rob is considered unemployed in the Current Population Survey if he
A) has looked for a job in the last four weeks but has not found a job.
B) has worked at least 1 hour but not more than 15 hours as a paid employee during the
last week.
C) does not have a job and stopped looking for a job at least two months ago.
D) has a part-time job but would like a full-time job.
E) is in his last term of college before he graduates.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
15) Phillip is a 22-year old who has no job and is available for work, but has not actively
looked for a job in the last month. The Current Population Survey identiies Phillip as
________ , ________ the labor force, and ________ the working-age population.
A) unemployed; part of; part of
B) unemployed; part of; not part of
C) not unemployed; not part of; part of
D) not unemployed; not part of; not part of
E) not unemployed; part of; part of
Skill: Level 2: Using deinitions
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
5
The following are groups of individuals in the population:
1. Individuals who are under 16
2. Individuals in institutional care
3. Individual in the armed forces
4. Individuals working for pay at a fulltime job
5. Individuals who are employed
6. Individuals not employed but were available for work and were looking for work
7. Individuals not employed and looking for work
16) Using the table above, the Current Population Survey classiies the group of individuals
who are left after subtracting from the total population groups 1, 2, and 3 as
A) the working-age population.
B) the labor force.
C) employed.
D) unemployed.
E) discouraged workers.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
17) Using the table above, the Current Population Survey classiies the group of individuals
who are left after subtracting from the total population groups 1, 2, 3, 4, 5, and 6 as
A) not in the labor force.
B) the labor force.
C) employed.
D) unemployed.
E) discouraged workers.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
6
18) Using the table above, the Current Population Survey classiies the group of individuals
obtained by adding groups 5 and 6 as
A) the working age population.
B) the labor force.
C) employed.
D) unemployed.
E) discouraged workers.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
19) The working-age population consists of all the people in the population
A) aged 16 and over.
B) aged 16 to 65.
C) aged 16 and over who are not in jail, hospital, or an institution or in the U.S. Armed
Forces.
D) aged 21 and over who are not in jail, hospital, or an institution or in the U.S. Armed
Forces.
E) who are employed plus the unemployed people.
Skill: Level 1: Deinition
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
20) If the number of people in the labor force ________, then ________.
A) increases; the labor force participation rate increases
B) increases; the unemployment rate deinitely increases
C) decreases; the unemployment rate deinitely decreases
D) decreases; the labor force participation rate increases
E) decreases, the unemployment rate does not change
Skill: Level 2: Using deinitions
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
7
21) The labor force is the
A) number of employed people plus the number of unemployed people.
B) total population divided by the number of employed people.
C) number of employed people in the working-age population.
D) working-age population minus the number of unemployed people.
E) number of employed people minus the number of unemployed people.
Skill: Level 1: Deinition
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
22) The labor force includes people who
i. are less than 16 years of age.
ii. are in institutions.
iii. are actively seeking a job but do not have a job.
A) i only
B) i and iii
C) i and ii
D) iii only
E) i, ii, and iii
Skill: Level 1: Deinition
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
23) The labor force consists of
A) the number of people who are employed.
B) the number of people who unemployed and who are actively seeking work.
C) the number of people in the working-age population who are employed or unemployed.
D) all people in the population aged 16 and over who are not in jail, a hospital, or an
institution or in the U.S. Armed Forces.
E) the number of people who are employed minus the number of the people who are
unemployed.
Skill: Level 1: Deinition
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
8
24) The labor force is deined as the number of people who
A) are employed plus the number of people who are unemployed.
B) are available and looking for work but are unable to ind employment.
C) would like to have a job but have stopped seeking work.
D) would like to have a full-time job but are working part time.
E) are employed minus the number of people who are unemployed.
Skill: Level 1: Deinition
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
25) Which of the following persons is NOT considered a part of the labor force?
A) Mary, who has a part-time job as a day care specialist
B) Lones, an unemployed mechanic looking for a new job
C) Jameson, an accountant who has been temporarily laid of during the holiday season
D) Desire, a wealthy hedge fund manager who just took early retirement
E) Lucy, who works 20 hours a week in her father's restaurant for no pay
Skill: Level 2: Using deinitions
Section: Checkpoint 6.1
Status: New
AACSB: Relective thinking
26) Jane is a 25 year old, full-time student. She works part time in her school library and is
paid $7 an hour. She is considered to be
A) unemployed.
B) not in labor force.
C) in labor force but not working.
D) employed.
E) not in the working-age population because she is in college.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
9
27) People over the age 16 with full-time jobs are considered to be
A) unemployed.
B) not in the labor force.
C) in the labor force and employed.
D) in the labor force unemployed.
E) in the working-age population only because they have full-time jobs.
Skill: Level 1: Deinition
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
28) If Jose is 22-years old, is available to work but does not have a job and made no speciic
eforts to ind a job for the previous month, Jose is classiied in the Current Population
Survey as
A) unemployed.
B) employed.
C) not in the working-age population.
D) not in the labor force.
E) in the labor force but not in the working-age population.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
29) The size of the labor force is
A) equal to the size of the population.
B) less than the number of employed workers if the number of unemployed workers is small
enough.
C) less than the number of unemployed workers if the number of employed workers is
small enough.
D) greater than the number of employed workers as long as there are some unemployed
workers.
E) equal to the working-age population.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
10
