True / False
1. Most people rely primarily on income other than their labor earnings to maintain their standard of living.
a.
True
b.
False
2. The amount of unemployment that a country typically experiences is a determinant of its standard of living.
a.
True
b.
False
3. Some degree of unemployment is inevitable in a complex economy.
a.
True
b.
False
4. The amount of unemployment varies little over time and across countries.
a.
True
b.
False
5. When a country keeps its workers as fully employed as possible, it achieves a higher level of GDP than if many of its
workers were idle.
a.
True
b.
False
6. The natural rate of unemployment refers to the current unemployment rate.
a.
True
b.
False
7. An economy’s natural rate of unemployment refers to the amount of unemployment that the economy normally
experiences.
a.
True
b.
False
8. Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate.
a.
True
b.
False
9. The natural rate of unemployment is closely associated with the short-run ups and downs of economic activity.
a.
True
b.
False
10. The natural rate of unemployment is the desirable rate of unemployment for an economy.
a.
True
b.
False
11. The natural rate of unemployment is constant over time.
a.
True
b.
False
12. The natural rate of unemployment is impervious to economic policy.
a.
True
b.
False
13. Government policy can do nothing about the natural rate of unemployment.
a.
True
b.
False
14. The natural rate of unemployment is any type of unemployment that does not go away on its own even in the long run.
a.
True
b.
False
15. Long-run unemployment arises from a single problem that has a single solution.
a.
True
b.
False
16. There is no easy way for policymakers to reduce the economy’s natural rate of unemployment while at the same time
reducing the hardships of the unemployed.
a.
True
b.
False
17. Measuring unemployment is the job of the Bureau of Labor Statistics.
a.
True
b.
False
18. Every week, the Bureau of Labor Statistics produces data on unemployment.
a.
True
b.
False
19. The Bureau of Labor Statistics produces data on unemployment, types of employment, length of the average
workweek, and the duration of unemployment.
a.
True
b.
False
20. The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular
survey of about 600 households, called the Current Population Survey.
a.
True
b.
False
21. The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular
survey of about 60,000 households, called the Current Population Survey.
a.
True
b.
False
22. The Bureau of Labor Statistics divides the adult population into two categories: those who are employed and those
who are unemployed.
a.
True
b.
False
23. The Bureau of Labor Statistics divides the adult population into three categories: employed, unemployed, and not in
the labor force.
a.
True
b.
False
24. The Bureau of Labor Statistics divides the adult population into four categories: employed, underemployed,
unemployed, and not in the labor force.
a.
True
b.
False
25. The adult population must equal the sum of the employed, the unemployed, and those not in the labor force.
a.
True
b.
False
26. The adult population must equal the sum of the employed and the unemployed.
a.
True
b.
False
27. The Bureau of Labor Statistics’ “employed” category includes those who worked as paid employees, worked in their
own business, or worked as unpaid workers in a family member’s business.
a.
True
b.
False
28. Only paid workers are included in the Bureau of Labor Statistics’ “employed” category.
a.
True
b.
False
29. Both full-time and part-time workers are included in the Bureau of Labor Statistics’ “employed” category.
a.
True
b.
False
30. Someone who has a job but is absent from work because she is on vacation is counted as “employed.”
a.
True
b.
False
31. Some adults who were not working are included in the Bureau of Labor Statistics’ “employed” category.
a.
True
b.
False
32. Adults who were not working but who had jobs from which they were temporarily absent are included in the Bureau
of Labor Statistics’ “employed” category.
a.
True
b.
False
33. Adults who were waiting to be recalled to a job from which they had been laid off are included in the Bureau of Labor
Statistics’ “employed” category.
a.
True
b.
False
34. The Bureau of Labor Statistics produces data on unemployment based on the number of people collecting
unemployment insurance.
a.
True
b.
False
35. The Bureau of Labor Statistics’ “unemployed” category includes those who were not employed, were available for
work, and had tried to find employment during the previous four weeks.
a.
True
b.
False
36. Every adult who was not employed during the previous four weeks is included in the Bureau of Labor Statistics’
“unemployed” category.
a.
True
b.
False
37. Someone who is without work but is not looking for work is included in the Bureau of Labor Statistics’ “unemployed”
category.
a.
True
b.
False
38. Full-time students and homemakers are included in the Bureau of Labor Statistics’ “unemployed” category.
a.
True
b.
False
39. Unpaid stay-at-home fathers are included in the Bureau of Labor Statistics’ “unemployed” category.
a.
True
b.
False
40. Adults who are waiting to be recalled to a job from which they had been laid off are counted as “unemployed.”
a.
True
b.
False
41. Retirees are included in the Bureau of Labor Statistics’ “not in the labor force” category.
a.
True
b.
False
42. The labor force equals the sum of the employed and the unemployed.
a.
True
b.
False
43. The labor force minus the number of employed equals the number of unemployed.
a.
True
b.
False
44. The unemployment rate equals the percentage of the adult population that is unemployed.
a.
True
b.
False
45. The unemployment rate equals the percentage of the labor force that is unemployed.
a.
True
b.
False
46. The Bureau of Labor Statistics computes unemployment rates for the entire adult population and for groups based on
age, gender, and race.
a.
True
b.
False
47. The labor-force participation rate equals the percentage of the labor force that is employed.
a.
True
b.
False
48. The labor-force participation rate equals the percentage of the labor force that is either employed or unemployed.
a.
True
b.
False
49. The labor-force participation rate equals the percentage of the total adult population that is in the labor force.
a.
True
b.
False
50. The labor-force participation rate tells us the fraction of the population that is able to participate in the labor market.
a.
True
b.
False
51. The labor-force participation rate tells us the fraction of the population that has chosen to participate in the labor
market.
a.
True
b.
False
52. If the number of people unemployed rose but the number of people employed and the adult population stayed the
same, then the labor force participation rate would rise.
a.
True
b.
False
53. The Bureau of Labor Statistics computes labor-force participation rates for the entire adult population and for groups
based on age, gender, and race.
a.
True
b.
False
Table 28–11
2015 Labor Data for Tajnia
Number of adults employed
10,000
Number of adults unemployed
2,250
Number of adults not in the labor force
17,750
54. Refer to Table 28–11. The total adult population of Tajnia in 2015 is 30,000.
a.
True
b.
False
55. Refer to Table 28–11. The labor force of Tajnia in 2015 is 12,250.
a.
True
b.
False
56. Refer to Table 28–11. The labor force of Tajnia in 2015 is 10,000.
a.
True
b.
False
57. Refer to Table 28–11. The unemployment rate of Tajnia in 2015 is about 18.4 percent.
a.
True
b.
False
58. Refer to Table 28–11. The unemployment rate in Tajnia in 2015 is about 7.5 percent.
a.
True
b.
False
59. Refer to Table 28–11. The labor-force participation rate of Tajnia in 2015 is about 40.8 percent.
a.
True
b.
False
60. Refer to Table 28–11. The labor-force participation rate of Tajnia in 2015 is about 33.3 percent.
a.
True
b.
False
61. Within the U.S. population, women of prime working age (ages 25–54) have lower rates of labor-force participation
than men of prime working age (ages 25-54), regardless of race.
a.
True
b.
False
62. Within the U.S. population, women of prime working age (ages 25–54) have similar rates of labor-force participation
than men of prime working age (ages 25-54), regardless of race.
a.
True
b.
False
63. Within the U.S. population, women of prime working age (ages 25–54) have higher rates of unemployment than men
of prime working age (ages 25-54), regardless of race.
a.
True
b.
False
64. Within the U.S. population, blacks of prime working age (ages 25–54) have higher rates of unemployment than whites
of prime working age (ages 25-54), regardless of gender.
a.
True
b.
False
65. Within the U.S. population, blacks of prime working age (ages 25–54) have similar rates of unemployment than whites
of prime working age (ages 25-54), regardless of gender.
a.
True
b.
False
66. Within the U.S. population, teenagers (ages 16–19) have lower rates of labor-force participation than adults of prime
working age (ages 25-54), regardless of race or gender.
a.
True
b.
False
67. Within the U.S. population, teenagers (ages 16–19) have similar rates of labor-force participation than adults of prime
working age (ages 25-54), regardless of race or gender.
a.
True
b.
False
68. Within the U.S. population, teenagers (ages 16–19) have higher rates of unemployment than adults of prime working
age (ages 25-54), regardless of race or gender.
a.
True
b.
False
69. Within the U.S. population, teenagers (ages 16–19) have similar rates of unemployment to adults of prime working age
(ages 25-54), regardless of race or gender.
a.
True
b.
False
70. Data on the unemployment rate in the U.S. since 1960 show that the economy always has some unemployment and
that the amount changes from year to year.
a.
True
b.
False
71. Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate sometimes is close to zero.
a.
True
b.
False
72. The normal rate of unemployment around which the unemployment rate fluctuates is called the natural rate of
unemployment.
a.
True
b.
False
73. The normal rate of unemployment around which the unemployment rate fluctuates is called cyclical unemployment.
a.
True
b.
False
74. Economists at the Congressional Budget Office estimated that for 2015, the U.S. natural rate of unemployment was
about 4.9 percent.
a.
True
b.
False
75. For 2015 the U.S. natural rate of unemployment was estimated to be about 4.9 percent, which was close to the actual
unemployment rate in 2015.
a.
True
b.
False
76. The deviation of unemployment from its natural rate is called cyclical unemployment.
a.
True
b.
False
77. Causes of the changing role of women in American society over the past several decades include new technologies
that have reduced the amount of time required to complete routine household tasks, improved birth control, and changing
political and social attitudes.
a.
True
b.
False
78. Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S.
has gradually decreased.
a.
True
b.
False
79. Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S.
has gradually increased.
a.
True
b.
False
80. Over the past several decades in the United States, the labor-force participation rate of women has increased and the
labor-force participation rate of men had decreased.
a.
True
b.
False
81. Over the past several decades in the United States, the labor-force participation rate of women has increased and the
labor-force participation rate of men had remained steady.
a.
True
b.
False