169. Some individuals would like to have a job, but they have given up looking for a job after an unsuccessful search.
These individuals are called
a.
detached workers, and they are classified by the Bureau of Labor Statistics as unemployed.
b.
detached workers, and they are not classified by the Bureau of Labor Statistics as unemployed.
c.
discouraged workers, and they are classified by the Bureau of Labor Statistics as unemployed.
d.
discouraged workers, and they are not classified by the Bureau of Labor Statistics as unemployed.
170. Who would be included in the labor force?
a.
b.
c.
d.
171. The reported unemployment rate should be viewed as
a.
a useful but imperfect measure of joblessness.
b.
clearly smaller than the true unemployment rate.
c.
clearly larger than the true unemployment rate.
d.
being very close to the true unemployment rate.
172. Marginally attached workers are people who are
a.
looking for a better job than they currently have.
b.
not working and are not looking for work, but would work if asked.
c.
working part-time while they go to school or get training for a better job.
d.
only a few years from retirement.
173. Consider two people who are currently out of work. Tim is not looking for work because there have been many job
cuts where he lives, and he doesn’t think it likely that he will find work. Bev is not currently looking for work, but she
would like a job, and she has looked for work in the past. The Bureau of Labor Statistics considers
a.
both Tim and Bev to be marginally attached workers.
b.
neither Tim nor Bev to be marginally attached workers.
c.
only Tim to be a marginally attached worker.
d.
only Bev to be a marginally attached worker.
174. The BLS reports the U-6 measure of labor underutilization. Which of the following is how it computes U-6?
a.
(total unemployed + marginally attached workers)/adult population
b.
(total unemployed + marginally attached workers + part-time employed for economic reasons)/adult
population
c.
(total unemployed + marginally attached workers)/(labor force + marginally attached workers)
d.
(total unemployed + marginally attached workers + part time employed for economic reasons)/(labor force +
marginally attached workers)
Table 28-6
Civilian labor force
100 million
Persons unemployed 15 weeks or longer
1.6 million
Job losers and persons who have completed temporary jobs (excludes job leavers)
3.1 million
Total unemployed
6.2 million
Total unemployed plus discouraged workers
7.0 million
Total unemployed plus all marginally attached workers
8.1 million
175. Refer to Table 28-6. What is the U-1 measure of labor underutilization?
a.
1.6%
b.
3.1%
c.
6.2%
d.
7.0%
176. Refer to Table 28-6. What is the U-2 measure of labor underutilization?
a.
1.5%
b.
3.1%
c.
4.7%
d.
6.2%
177. Refer to Table 28–6. What is the U-3 measure of labor underutilization?
a.
4.7%
b.
6.2%
c.
7.0%
d.
10.9%
178. Refer to Table 28-6. What is the U-4 measure of labor underutilization?
a.
6.5%
b.
6.9%
c.
7.0%
d.
17.9%
179. Refer to Table 28–6. What is the U-5 measure of labor underutilization?
a.
7.5%
b.
7.9%
c.
8.1%
d.
26%
180. Most spells of unemployment are
a.
long, and most unemployment observed at any given time is long term.
b.
long, but most unemployment observed at any given time is short term.
c.
short, but most unemployment observed at any given time is long term.
d.
short, and most unemployment observed at any given time is short term.
Civilian labor force
100 million
Persons unemployed 15 weeks or longer
1.6 million
Job losers and persons who have completed temporary jobs (excludes job leavers)
3.1 million
Total unemployed
6.2 million
Total unemployed plus discouraged workers
7.0 million
Total unemployed plus all marginally attached workers
8.1 million
181. Refer to Table 28-6. What is the U-6 measure of labor underutilization?
a.
8.4%
b.
9.0%
c.
9.2%
d.
35.2%
182. Which of the following is correct?
a.
Typically more than one-third of the unemployed are new entrants into the job market.
b.
Most spells of unemployment are short.
c.
Most unemployment observed at any time is long term.
d.
All of the above are correct.
183. In one year, you meet 52 people who are each unemployed for one week and eight people who are each unemployed
for the whole year. What percentage of the unemployment spells you encountered was short term, and what percentage of
the unemployment you encountered in a given week was long term?
a.
52% was short term; 13.3% was long term
b.
52% was short term; 88.9% was long term
c.
86.7% was short term; 13.3% was long term
d.
86.7% was short term; 88.9% was long term
184. A survey showed that in each of the past 12 months there was one person who was unemployed who worked in all
other months. There were also two people who were unemployed for all 12 months. What percentage of the
unemployment spells during the year was short term, and what percentage of the unemployment in a given month was
long term?
a.
75% was short term; 33.3% was long term
b.
75% was short term; 66.7% was long term
c.
85.7% was short term; 33.3% was long term
d.
85.7% was short term; 66.7% was long term
185. Evidence indicates that the typical person who becomes unemployed will
a.
soon find a job.
b.
find a job but not before a year or more has gone by.
c.
leave the labor force and never return.
d.
retire soon after
186. Which of the following is not correct?
a.
Most people who become unemployed will soon find jobs.
b.
In an ideal labor market, wages would adjust to ensure that all workers are always fully employed.
c.
The unemployment rate occasionally falls to zero.
d.
There are always some workers without jobs, even when the overall economy is doing well.
187. Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills
is called
a.
the natural rate of unemployment.
b.
cyclical unemployment.
c.
structural unemployment.
d.
frictional unemployment.
188. People who are unemployed because of job search are best classified as
a.
cyclically unemployed.
b.
structurally unemployed.
c.
frictionally unemployed.
d.
discouraged workers.
189. Which of the following is an explanation for the existence of frictional unemployment?
a.
efficiency wages
b.
minimum-wage laws
c.
unions
d.
job search
190. Frictional unemployment results from
a.
job searching. It is often thought to explain relatively short spells of unemployment.
b.
job searching. It is often thought to explain relatively long spells of unemployment
c.
a surplus in the some labor markets. It is often thought to explain relatively short spells of unemployment.
d.
a surplus in some labor markets. It is often thought to explain relatively long spells of unemployment.
191. Unemployment that results because the number of jobs available in some labor markets may be insufficient to give a
job to everyone who wants one is called
a.
the natural rate of unemployment.
b.
cyclical unemployment.
c.
structural unemployment.
d.
frictional unemployment.
192. Which of the following is not an explanation for the existence of unemployment in the long run?
a.
it takes time for workers to search for the jobs that are best suited for them
b.
minimum-wage laws
c.
unions
d.
the business cycle
193. Which of the following is not an explanation for structural unemployment?
a.
efficiency wages
b.
job search
c.
minimum-wage laws
d.
unions
194. Frictional unemployment is thought to explain relatively
a.
short spells of unemployment, as is structural unemployment.
b.
long spells of unemployment, as is structural unemployment.
c.
short spells of unemployment, while structural unemployment is thought to explain relatively long spells of
unemployment.
d.
long spells of unemployment, while structural unemployment is thought to explain relatively short spells of
unemployment.
195. People who are unemployed because wages are, for some reason, set above the level that brings labor supply and
demand into equilibrium are best classified as
a.
cyclically unemployed.
b.
structurally unemployed.
c.
frictionally unemployed.
d.
discouraged workers.
196. John is a stockbroker. He has had several job offers, but he has turned them down because he thinks he can find a
firm that better matches his tastes and skills. Curtis has looked for work as an accountant for some time. While the
demand for accountants does not appear to be falling, there seems to be more people applying than jobs available.
a.
John and Curtis are both frictionally unemployed.
b.
John and Curtis are both structurally unemployed.
c.
John is frictionally unemployed, and Curtis is structurally unemployed.
d.
John is structurally unemployed, and Curtis is frictionally unemployed.
197. Meredith is looking for work as a computer programmer. Although her prospects are good, she has not yet taken a
job. Julie is looking for work in a steel mill. Every time she shows up for an interview, there are more people looking for
work than there are openings. Someone waiting in line with her tells her it has been that way for a long time.
a.
Meredith and Julie are both frictionally unemployed.
b.
Meredith and Julie are both structurally unemployed.
c.
Meredith is frictionally unemployed, and Julie is structurally unemployed.
d.
Meredith is structurally unemployed, and Julie is frictionally unemployed.
198. Jenna is searching for a job that suits her tastes about where to live. Mary is looking for a job that makes best use of
her skills.
a.
Jenna and Mary are both frictionally unemployed.
b.
Jenna and Mary are both structurally unemployed.
c.
Jenna is frictionally unemployed, and Mary is structurally unemployed.
d.
Jenna is structurally unemployed, and Mary is frictionally unemployed.
199. Bob is looking for work after school, but everywhere he fills out an application, the managers say they always have a
lot more applications than open positions. Tom has a law degree. Several firms have made him offers, but he thinks he
might be able to find a firm where his talents could be put to better use.
a.
Bob and Tom are both frictionally unemployed.
b.
Bob and Tom are both structurally unemployed.
c.
Bob is frictionally unemployed, and Tom is structurally unemployed.
d.
Bob is structurally unemployed, and Tom is frictionally unemployed.
200. Adam is looking for a job in marketing. He has had some offers and his prospects are promising, but he has not yet
accepted a job. Amanda lost her job working for Mercury Bicycles because many customers decided they prefer bicycles
manufactured by Ultimate Bicycles instead. Who is frictionally unemployed?
a.
Adam but not Amanda
b.
Amanda but not Adam
c.
both Adam and Amanda
d.
neither Amanda nor Adam
201. Sandy has graduated from college and is devoting her time to searching for a job. She has seen plenty of openings
but has not yet been offered one that best suits her tastes and skills. Sandy is
a.
structurally unemployed. Structural unemployment exists even in the long run.
b.
structurally unemployed. There is no structural unemployment in the long run.
c.
frictionally unemployed. Frictional unemployment exists even in the long run.
d.
frictionally unemployed. There is no frictional unemployment in the long run.
202. Teenagers have more frequent unemployment spells so, on average, they spend more time searching for jobs. Other
thing the same, this means that teenagers have a
a.
higher unemployment rate. If a larger portion of the adult population were teenaged, the natural rate of
unemployment would be higher.
b.
higher unemployment rate. The portion of the adult population that is teenaged does not affect the natural rate
of unemployment.
c.
lower unemployment rate. If a larger portion of the adult population were teenaged, the natural rate of
unemployment would be lower.
d.
lower unemployment rate. The portion of the adult population that is teenaged does not affect the natural rate
of unemployment.
203. The natural unemployment rate includes
a.
both frictional and structural unemployment.
b.
neither frictional nor structural unemployment.
c.
structural but not frictional unemployment.
d.
frictional but not structural unemployment.
204. Cyclical unemployment is caused by
a.
frictional and structural unemployment
b.
frictional but not structural unemployment
c.
structural but not frictional unemployment
d.
neither frictional nor structural unemployment
205. Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine the
a.
number of people unemployed.
b.
number of jobs the economy has gained or lost.
c.
size of the labor force.
d.
number of people who own their own businesses.
206. Every month when the Bureau of Labor Statistics (BLS) announces the unemployment rate, it also announces the
number of jobs the economy has gained or lost. Where does the BLS get the data about jobs?
a.
from the survey of 60,000 households, which is called the Current Population Survey
b.
from the Establishment Survey that measures both frictional and structural unemployment
c.
from the survey of 160,000 business that have over 40 million workers on their payrolls
d.
from the Congressional Budget Office, which also calculates the GDP of the United States
207. Derrick loses his job, but does not look for work. Which of the following are consequences of this change in
Derrick’s status?
a.
unemployment rises and the labor force is unchanged
b.
unemployment rises and the labor force falls
c.
unemployment and the labor force are unchanged
d.
unemployment is unchanged and the labor force falls
208. After a couple of months searching for a job, Sofia is hired. Which of the following increases?
a.
the labor force and the labor force participation rate
b.
the labor force participation rate but not the labor force
c.
the labor force participation rate but not the labor force
d.
neither the labor force nor the labor force participation rate
209. Daniel goes on vacation for four weeks. When he returns the company puts him on layoff for four weeks during
which he waits to be recalled. In which weeks is Daniel counted as unemployed, if any?
a.
neither the first four or second four weeks
b.
the first four weeks but not the second four weeks
c.
the second four weeks but not the first four weeks
d.
both the first four weeks and the second four weeks
210. Fred operates his own business, Fred would be counted as employed
a.
in both the household and estblishment surveys.
b.
in the household but not the establishment survey.
c.
in the establishment but not the household survey.
d.
in neither the household nor the establishment survey.