30) The working-age population of people over the age of 16 can be divided into two
groups, people
A) in the labor force and people looking for work.
B) in the labor force and people with a job.
C) looking for work and those in the U.S. Armed Forces.
D) in the labor force and people who are not in the labor force.
E) with a job and people actively seeking a job.
Skill: Level 1: Deinition
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
31) Assume the U.S. population is 300 million. If 200 million people are of working age, 125
million are employed, and 15 million are unemployed, what is the size of the labor force?
A) 200 million
B) 140 million
C) 125 million
D) 215 million
E) 175 million
Skill: Level 2: Using deinitions
Section: Checkpoint 6.1
Status: Old
AACSB: Analytical thinking
32) The unemployment rate is the
A) number of unemployed people.
B) percentage of the population that does not have a job.
C) percentage of the working-age population that does not have a job.
D) percentage of the labor force that does not have a job.
E) percentage of employed people that does not have a job.
Skill: Level 1: Deinition
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
11
33) The unemployment rate measures the percentage of
A) people who want full-time jobs, but can’t ind them.
B) the working-age population who can’t ind a job.
C) people in the labor force who can’t ind a job.
D) the working-age population that can’t ind a full-time job.
E) employed people who can’t ind a job.
Skill: Level 1: Deinition
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
34) The unemployment rate equals 100 multiplied by the
A) number of people unemployed divided by the labor force.
B) number of people unemployed divided by the population.
C) number of people unemployed divided by the number of people employed.
D) labor force divided by the number of people unemployed.
E) number of people unemployed divided by the working-age population.
Skill: Level 1: Deinition
Section: Checkpoint 6.1
Status: Old
AACSB: Analytical thinking
35) The unemployment rate equals
A) (number of people employed ÷ working-age population) × 100.
B) (number of people unemployed ÷ labor force) × 100.
C) (labor force ÷ working-age population) × 100.
D) (number of people employed ÷ number of people age 16 and over) × 100.
E) (number of people unemployed ÷ number of people employed) × 100.
Skill: Level 1: Deinition
Section: Checkpoint 6.1
Status: Old
AACSB: Analytical thinking
12
36) The unemployment rate is equal to
A) (labor force ÷ population) × 100.
B) (number of employed people ÷ labor force) × 100.
C) (number of unemployed people ÷ labor force) × 100.
D) (number of unemployed people ÷ number of employed) × 100.
E) (number of unemployed people ÷ working-age population) × 100.
Skill: Level 1: Deinition
Section: Checkpoint 6.1
Status: Old
AACSB: Analytical thinking
37) The unemployment rate is the number of people unemployed divided by the
A) population, then multiplied by 100.
B) labor force participation rate, then multiplied by the population.
C) labor force, then multiplied by 100.
D) number of people employed, then multiplied by 100.
E) working-age population, then multiplied by 100.
Skill: Level 1: Deinition
Section: Checkpoint 6.1
Status: Old
AACSB: Analytical thinking
38) In calculating the unemployment rate, part-time workers over the age of 16 are
counted as
A) employed.
B) unemployed.
C) not in the labor force.
D) employed if they are part-time workers for noneconomic reasons and unemployed if they
are involuntary part-time workers.
E) not in the working-age population.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
13
39) If a signiicant number of part-time workers successfully ind full-time employment,
then
A) the unemployment rate will fall.
B) the labor force participation rate will increase..
C) the unemployment rate will remain unchanged.
D) the unemployment rate will rise.
E) Both answers A and B are correct.
Skill: Level 1: Deinition
Section: Checkpoint 6.1
Status: Old
AACSB: Relective thinking
40) Suppose the population is 300 million people, the labor force is 200 million people, the
number of people employed is 185 million, and the working-age population is 170 million
people. What is the unemployment rate?
A) 92.5 percent
B) 7.5 percent
C) 8.8 percent
D) 5 percent
E) 20 percent
Skill: Level 2: Using deinitions
Section: Checkpoint 6.1
Status: Old
AACSB: Analytical thinking
41) If 160 million people are employed, 15 million people are unemployed, and the
population is 280 million people, the unemployment rate is
A) 57 percent.
B) 62.5 percent.
C) 9.4 percent.
D) 8.6 percent.
E) not possible to calculate without data on the labor force.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.1
Status: Old
AACSB: Analytical thinking
14
42) Suppose the population of Timmy Town is 1000 people and the working-age population
is 800. If 200 of these people are unemployed, the unemployment rate in Timmy Town is
A) 2 percent.
B) 1/5 × 100.
C) 1/8 × 100.
D) 1/4 × 100.
E) There is not enough information provided to calculate the unemployment rate.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.1
Status: Old
AACSB: Analytical thinking
43) Suppose the working-age population is 500 million, the labor force is 200 million, and
the unemployment rate is 15 percent. The number of unemployed people is
A) 30 million.
B) 75 million.
C) 45 million.
D) 105 million.
E) 15 million.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.1
Status: Old
AACSB: Analytical thinking
44) In fall 2009, the population of the United States was 301 million, the working-age
population was 235.7 million, the total number of people employed and unemployed was
154.9 million, and the total number of unemployed people was 14.7 million. What is the
unemployment rate?
A) 51 percent
B) 6.2 percent
C) 4.9 percent
D) 9.5 percent
E) 4.6 percent
Skill: Level 2: Using deinitions
Section: Checkpoint 6.1
Status: Old
AACSB: Analytical thinking
45) Using the table above, the working-age population is
15
A) 155 million.
B) 170 million.
C) 195 million.
D) 250 million.
E) 220 million.
Skill: Level 3: Using models
Section: Checkpoint 6.1
Status: Old
AACSB: Analytical thinking
46) Using the table above, the number of people in the labor force is
A) 145 million.
B) 165 million.
C) 175 million.
D) 195 million.
E) 185 million.
Skill: Level 3: Using models
Section: Checkpoint 6.1
Status: Old
AACSB: Analytical thinking
47) Using the table above, the unemployment rate is
A) 5.13 percent.
B) 5.88 percent.
C) 6.45 percent.
D) 6.90 percent.
E) 5.71 percent.
Skill: Level 3: Using models
Section: Checkpoint 6.1
Status: Old
AACSB: Analytical thinking
48) Using the table above, the unemployment rate is
A) 11.2 percent.
B) 6.3 percent.
C) 4.2 percent.
D) 10 percent.
E) 5.8 percent.
Skill: Level 3: Using models
16
Section: Checkpoint 6.1
Status: Old
AACSB: Analytical thinking
49) Using the table above, the labor participation rate is
A) 67 percent.
B) 48 percent.
C) 75 percent.
D) 83 percent.
E) 40 percent.
Skill: Level 3: Using models
Section: Checkpoint 6.1
Status: Old
AACSB: Analytical thinking
17
50) In the table above, the number of unemployed people is
A) 2,000.
B) 1,000.
C) 1,100.
D) 11,000.
E) 3,000.
Skill: Level 3: Using models
Section: Checkpoint 6.1
Status: Old
AACSB: Analytical thinking
51) In the table above, the unemployment rate is
A) 12 percent.
B) 10 percent.
C) 8 percent.
D) 6 percent.
E) 11 percent.
Skill: Level 3: Using models
Section: Checkpoint 6.1
Status: Old
AACSB: Analytical thinking
52) Using the table above, the labor force participation rate is
A) 83.3 percent.
B) 90.0 percent.
C) 10.0 percent.
D) 11.1 percent.
E) 100 percent.
Skill: Level 3: Using models
Section: Checkpoint 6.1
Status: Old
AACSB: Analytical thinking
53) Based on the above table, the unemployment rate is
A) 10 percent.
18
B) 11.1 percent
C) 7.1 percent.
D) 5.4 percent.
E) 8.6 percent.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.1
Status: Old
AACSB: Analytical thinking
54) Based on the above table, the labor force participation rate is
A) 71.4 percent.
B) 82 percent.
C) 53.6 percent.
D) 75 percent.
E) 64.3 percent.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.1
Status: Old
AACSB: Analytical thinking
19
55) In the table above, the size of the labor force is
A) 80 million.
B) 46 million.
C) 42 million.
D) 40 million.
E) 34 million.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.1
Status: Old
AACSB: Analytical thinking
56) In the table above, the unemployment rate is
A) 50.0 percent.
B) 15.0 percent.
C) 10.0 percent.
D) 4.8 percent.
E) 5.0 percent.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.1
Status: Old
AACSB: Analytical thinking
20