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34) Which is true concerning U-2?
i. It does not count marginally attached workers as unemployed.
ii. It counts as unemployed workers who were laid of.
iii. It is smaller than U-3.
A) i only
B) i and ii
C) i and iii
D) ii and iii
E) i, ii and iii
Skill: Level 1: Deinition
Section: Checkpoint 6.2
Status: Old
AACSB: Relective thinking
35) U-4, U-5 and U-6 are
A) all broader measures of the unemployment rate.
B) all narrower measures of the unemployment rate.
C) not used by the Bureau of Labor Statistics because they include too much variability.
D) narrower measures of the labor force participation rate.
E) broader measures of the labor force participation rate.
Skill: Level 1: Deinition
Section: Checkpoint 6.2
Status: Old
AACSB: Relective thinking
36) During the recessions of 2001 and 2008-09,
A) all measures of the unemployment rate (U-1 through U-6) increased.
B) only the broader measures of the unemployment rate increased.
C) only the narrower measures of the unemployment rate increased.
D) the labor force participation rate for women increased.
E) the labor force participation rate for men increased.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.2
Status: Old
AACSB: Relective thinking
51
37) During the 2008 - 09 recession, the U-6 measure of the unemployment rate
A) which counts marginally attached workers and discouraged workers as unemployed,
reached 17 percent.
B) which counts marginally attached workers and discouraged workers as employed,
reached 10 percent.
C) which counts marginally attached workers as unemployed but does not count
discouraged workers as unemployed, reached 17 percent.
D) which counts all part time workers as employed, reached 12 percent.
E) which counts discouraged workers as unemployed but does not count marginally
attached workers as unemployed, reached 17 percent.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.2
Status: Old
AACSB: Relective thinking
38) In the United States, part-time workers are
A) more numerous than full-time workers.
B) less numerous than full-time workers.
C) about as numerous as full-time workers.
D) considered discouraged workers.
E) counted as unemployed in all measures of the unemployment rate.
Skill: Level 1: Deinition
Section: Checkpoint 6.2
Status: Old
AACSB: Relective thinking
39) In the United States, from 1980 to 2011, the percentage of
A) part-time workers who are part time for economic reasons has risen during recessions
and fallen during expansions.
B) part-time workers who are part time for economic reasons has increased signiicantly to
over 30 percent.
C) part-time workers who are part time for noneconomic reasons has risen during
recessions and fallen during expansions.
D) part-time workers who are part time for noneconomic reasons has increased
signiicantly to over 30 percent.
E) None of the above answers is correct.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.2
Status: Old
AACSB: Relective thinking
52
40) In the United States, the percentage of part-time workers who are part time for
noneconomic reasons
A) has fallen by almost one half since 1980.
B) does not luctuate much with the business cycle.
C) rises during an expansionary period and falls during a recessionary period.
D) has averaged about 33 percent of all workers.
E) has increased in most years since 1980.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.2
Status: Old
AACSB: Relective thinking
41) Since 1980, the percentage of part-time workers who are part time for economic
reasons
A) has steadily decreased.
B) has steadily increased.
C) at irst increased, then generally decreased.
D) generally increased in recessions and decreased in expansions.
E) has remained approximately constant.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.2
Status: Old
AACSB: Relective thinking
42) During a recession, the percentage workers who are part time for economic reasons
A) increases more rapidly than the percentage of part-time workers.
B) decreases more rapidly than the percentage of part-time workers.
C) increases proportionately with the percentage of part-time workers.
D) decreases proportionately to the percentage of part-time workers.
E) does not change even though the percentage of part-time workers increases.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.2
Status: Old
AACSB: Relective thinking
53
43) Which of the following statements is true regarding part-time workers?
A) Part-time workers are divided those who voluntary choose part-time work and those who
work part-time due to economic reasons.
B) The percentage of workers who are part time due to non-economic reasons rise
signiicantly during recessions.
C) The percentage of workers who are part time due to economic reasons does not change
much over the business cycle.
D) The percentage of workers who are part time due to non-economic reasons is about the
same percentage as those who are voluntary reasons.
E) Part-time workers who are part-time for economic reasons are included in the
unemployment rate, but part-time workers who are part time for noneconomic reasons are
not included in the unemployment rate.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.2
Status: Old
AACSB: Relective thinking
44) In the 2008-09 recession, the percentage of part-time workers due to economic reasons
A) doubled from 3 percent to 6 percent.
B) equalled the unemployment rate for those who are part-time workers due to non-
economic reasons.
C) rose to almost 18 percent.
D) did not include teenagers.
E) decreased slightly over the period.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.2
Status: Old
AACSB: Relective thinking
45) From 1948 to 2011, the average unemployment rate in the United States was
approximately
A) 3.1 percent.
B) 5.8 percent.
C) 12.0 percent.
D) 24.4 percent.
E) 9.6 percent.
Skill: Level 1: Deinition
Section: Checkpoint 6.2
Status: Old
AACSB: Relective thinking
54
46) During a recession, the unemployment rate ________ and the percentage of part-time
workers who are involuntary part-time workers ________.
A) rises; rises
B) rises; falls
C) falls; rises
D) falls; falls
E) rises; does not change
Skill: Level 2: Using deinitions
Section: Checkpoint 6.2
Status: Old
AACSB: Relective thinking
47) From 1981 to 2011, the unemployment rate in the United States
A) was always lower than the unemployment rate in Japan.
B) almost always equaled the unemployment rate in Canada.
C) generally rose while the unemployment rate in the Eurozone fell.
D) was generally lower than the unemployment rate in the Eurozone.
E) was usually higher than the unemployment rate in Canada.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.2
Status: Old
AACSB: Relective thinking
48) Since 1960, in the United States the labor force participation rate for men has ________
and for women has ________.
A) increased; increased
B) increased; decreased
C) decreased; increased
D) decreased; decreased
E) not changed; increased
Skill: Level 2: Using deinitions
Section: Checkpoint 6.2
Status: Old
AACSB: Relective thinking
55
49) Between 1960 and 2011,
A) both the male and female labor force participation rates increased.
B) the male labor force participation rate decreased rapidly, the female labor force
participation rate decreased slowly, and the two rates are now equal.
C) the male labor force participation rate decreased and the female labor force
participation rate increased.
D) both the male and female labor force participation rates decreased slowly.
E) the male labor force participation rate did not change and the female labor force
participation rate increased.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.2
Status: Old
AACSB: Relective thinking
50) The women's labor force participation rate is
A) higher in Japan than in the United States.
B) higher in the United States than in France.
C) higher in Italy than in the United States.
D) higher in Spain than in Iceland.
E) higher in the United States than in Iceland or Norway.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.2
Status: Old
AACSB: Relective thinking
51) In a recession, which unemployment rate is the highest?
A) the U-1 unemployment rate
B) the U-6 unemployment rate
C) the U-2 unemployment rate
D) the U-3 unemployment rate
E) None of the above answers is correct because the highest unemployment rate changes
from one recession to the next.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.2
Status: Old
AACSB: Relective thinking
56
52) In 2012, part-time workers for noneconomic reasons were about ________ of total
employment, and part-time workers for economic reasons were about ________ of total
employment.
A) 3 percent; 25 percent
B) 17 percent; 17 percent
C) 2 percent; 12 percent
D) 13 percent; 20 percent
E) 13 percent; 6 percent
Skill: Level 2: Using deinitions
Section: Checkpoint 6.2
Status: Old
AACSB: Relective thinking
53) The percentage of workers who work part time for noneconomic reasons
A) decreases during a recession as the number of discouraged workers increases.
B) does not luctuate much at all with the business cycle.
C) luctuates strongly with the business cycle.
D) has decreased from 30 percent of the labor force in 1980 to 20 percent in 2011.
E) has trended upward since 1980.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.2
Status: Old
AACSB: Relective thinking
54) In the United States, the percentage of part-time workers who would like full-time work
A) increases in recessions and decreases in expansions.
B) changes very little from expansion to recession.
C) in 2013 was almost 100 percent of all part-time workers.
D) Both answers A and C are correct.
E) Both answers B and C are correct.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.2
Status: Old
AACSB: Relective thinking
57
55) The number of part-time workers for economic reasons ________ during recessions and
the number of part-time workers for noneconomic reasons ________ during recessions
A) increases; increases
B) increases; decreases
C) increases; does not change
D) does not change; does not change
E) decreases; increases
Skill: Level 2: Using deinitions
Section: Checkpoint 6.2
Status: Old
AACSB: Relective thinking
6.3 Unemployment and Full Employment
1) Frictional unemployment is the result of
A) an economic recession.
B) the economic decline of major industries.
C) the normal process of jobs being created and destroyed.
D) people not getting along (having friction) with their employers.
E) changing weather throughout the year.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
2) As irms search for the best employee to ill an opening and the unemployed search for
the job that best its their skills, the economy experiences
A) structural unemployment.
B) frictional unemployment.
C) cyclical unemployment.
D) changes in the business cycle.
E) avoidable unemployment.
Skill: Level 1: Deinition
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
58
3) Frictional unemployment is the result of
A) technological change or foreign competition.
B) normal labor market turnover.
C) a slowdown in the rate of economic expansion.
D) the economy entering a strong expansion.
E) changes in the weather.
Skill: Level 1: Deinition
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
4) ________ unemployment changes slowly and depends on ________.
A) Frictional; the skills of the unemployed
B) Seasonal; the rate at which people enter and exit the labor force
C) Frictional; the rate at which people enter and exit the labor force
D) Structural; the rate at which people enter the labor force
E) Structural; the inlation rate
Skill: Level 1: Deinition
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
5) The ongoing normal creation and destruction of jobs creates
A) frictional unemployment.
B) structural unemployment.
C) avoidable unemployment.
D) cyclical unemployment.
E) destructive unemployment.
Skill: Level 1: Deinition
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
59
6) Which type of unemployment is a permanent and healthy phenomenon in a dynamic
economy?
A) cyclical
B) avoidable
C) structural
D) frictional
E) unavoidable
Skill: Level 2: Using deinitions
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
7) The amount of frictional unemployment depends on
A) the phase of the business cycle.
B) the time of the year.
C) international competition.
D) demographic factors and unemployment beneits.
E) Both answers A and B are correct.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
8) A reduction in unemployment beneits will
A) decrease the amount of frictional unemployment.
B) increase the amount of frictional unemployment.
C) not change the amount of frictional unemployment because unemployment beneits
afects only cyclical unemployment.
D) not change the amount of frictional unemployment because unemployment beneits
afects only structural unemployment.
E) increase the amount of cyclical unemployment.
Skill: Level 2: Using deinitions
Section: Checkpoint 6.3
Status: Old
AACSB: Relective thinking
60
