Question 1

Consider an economy producing at its full employment output level. In this case the unemployment rate is equal to

Accepted Answer

A)   zero.
B)   the natural rate.
C)   the rate of cyclical unemployment.
D)   the rate of frictional unemployment.
E)   the rate of structural unemployment.F) B) and D)
G) A) and D)

Question 2

When actual unemployment is less than its natural rate, the

Accepted Answer

A)   economy is expanding beyond its long-run capabilities.
B)   economy is producing within its long-run capabilities.
C)   numbers must be wrong because the actual unemployment rate can never be less than the natural rate.
D)   economy is in a recession.
E)   economy must be experiencing high inflation.F) None of the above
G) All of the above

Question 3

Frictional unemployment is

Accepted Answer

A)   unemployment caused by time delays in matching available jobs and workers.
B)   unemployment caused by changes in the industrial makeup of an economy.
C)   unemployment caused by economic downturns.
D)   when a worker stops looking for a job because he or she feels no job is available.
E)   not one of the three types of unemployment.F) B) and E)
G) A) and E)

Question 4

Workers who lose their jobs because of market innovations are considered

Accepted Answer

A)   discouraged workers.
B)   cyclically unemployed.
C)   frictionally unemployed.
D)   structurally unemployed.
E)   employed.F) C) and D)
G) B) and E)

Question 5

Which type of unemployment can be negative?

Accepted Answer

A)   No type of unemployment can be negative.
B)   cyclical
C)   frictional
D)   structural
E)   naturalF) A) and D)
G) C) and E)

Question 6

Some individuals are unemployed because they are laid off from their jobs when the economy is sluggish. These individuals would be considered

Accepted Answer

A)   frictionally unemployed.
B)   cyclically unemployed.
C)   structurally unemployed.
D)   overemployed.
E)   discouraged workers.F) A) and B)
G) None of the above

Question 7

Provide evidence that the economic contraction from July 1981 to November 1982 was very similar to the Great Recession.

Accepted Answer

First, consider real gross domestic prod...

Question 8

When it is difficult to hire employees, firms take _____to hire, which increases ______unemployment.

Accepted Answer

A)   less time; frictional
B)   less time; structural
C)   longer; frictional
D)   longer; cyclical
E)   longer; structuralF) C) and E)
G) A) and E)

Question 9

The definition of "long-term unemployment" is unemployment that lasts longer than _____weeks.

Accepted Answer

A)   28
B)   4
C)   10
D)   14
E)   8F) A) and D)
G) A) and E)

Question 10

In NBC's hit TV show 30 Rock, actor Dean Winters plays Dennis Duffy, who works as a beeper salesman in New York City. Because beepers are an old technology that has been taken over by cell phones, Dennis loses his job.
a. What type of unemployment is Dennis experiencing?
b. What is something the government can do to limit this type of unemployment?

Accepted Answer

a. Dennis is experiencing structural une...

Question 11

The Internet has enabled workers and companies to find each other more quickly and to make better matches with substantially lower costs. The result is

Accepted Answer

A)   lower frictional unemployment.
B)   lower structural unemployment.
C)   higher frictional unemployment.
D)   lower cyclical unemployment.
E)   higher structural unemployment.F) C) and E)
G) All of the above

Question 12

What happened to the labor force participation rate for males between the years 1948 and 2015? What are some reasons for this trend?

Accepted Answer

Between 1948 and 2015 the labor force pa...

Question 13

Government policies such as unemployment compensation and government regulations related to hiring and firing employees result in _______unemployment.

Accepted Answer

A)   lower frictional
B)   lower structural
C)   higher frictional
D)   lower cyclical
E)   higher structuralF) D) and E)
G) A) and B)

Question 14

Economists refer to full-employment output as

Accepted Answer

A)   GDP per capita.
B)   natural GDP.
C)   real GDP.
D)   nominal GDP.
E)   potential GDP.F) A) and B)
G) None of the above

Question 15

Jamal works in a factory in Lake Zurich, Illinois, assembling toy trains. The factory owner updates the current equipment and installs new robots that can do Jamal's job. As a result, Jamal is laid off and is now unemployed. Jamal would be considered

Accepted Answer

A)   structurally unemployed.
B)   cyclically unemployed.
C)   frictionally unemployed.
D)   overemployed.
E)   a discouraged worker.F) A) and B)
G) A) and D)

Question 16

The main statistic that is used to monitor unemployment in the economy is

Accepted Answer

A)   real GDP.
B)   the unemployment rate.
C)   the unemployed-employed ratio.
D)   real GDP per capita.
E)   discouraged workers.F) D) and E)
G) A) and D)

Question 17

The recession of 2007-2009 has been dubbed the

Accepted Answer

A)   Great Depression.
B)   Grand Recession.
C)   Grand Depression.
D)   Big Recession.
E)   Great Recession.F) B) and E)
G) A) and E)

Question 18

With all else being constant, how do the U.S. unemployment rates differ between individuals with only a high school diploma and individuals with a bachelor's degree? What are some reasons for this difference?

Accepted Answer

Holding all else constant, the unemploym...

Question 19

Which of the following statements about structural unemployment is true?

Accepted Answer

A)   Structural unemployment can be eliminated through government intervention.
B)   Structural unemployment is equal to zero when the economy is in an expansion.
C)   Structural unemployment cannot be eliminated.
D)   Structural unemployment is not a burden on household incomes.
E)   Structural unemployment is unhealthy for the long-run growth of an economy.F) B) and C)
G) C) and E)

Question 20

Examine the following statistics about the economy and answer the questions below: Unemployment rate: 5.7 percent
Labor force participation rate: 71.7 percent
Number of unemployed: 10 million Relevant population: 244 million
a. How many people are in the labor force?
b. How many people are employed?
c. How many people are classified as not being in the labor force?

Accepted Answer

a. 175 million by solving an equation 10...

Exam 7: Unemployment

Economists refer to full-employment output as

Correct Answer
verified

With all else being constant, how do the U.S. unemployment rates differ between individuals with only a high school diploma and individuals with a bachelor's degree? What are some reasons for this difference?

Correct Answer
verified
Holding all else constant, the unemploym...
View Answer

Jamal works in a factory in Lake Zurich, Illinois, assembling toy trains. The factory owner updates the current equipment and installs new robots that can do Jamal's job. As a result, Jamal is laid off and is now unemployed. Jamal would be considered

Correct Answer
verified

Correct Answer
verified
a. Dennis is experiencing structural une...
View Answer

Provide evidence that the economic contraction from July 1981 to November 1982 was very similar to the Great Recession.

Correct Answer
verified
First, consider real gross domestic prod...
View Answer

Workers who lose their jobs because of market innovations are considered

Correct Answer
verified

The main statistic that is used to monitor unemployment in the economy is

Correct Answer
verified

The definition of "long-term unemployment" is unemployment that lasts longer than _____weeks.

Correct Answer
verified

When actual unemployment is less than its natural rate, the

Correct Answer
verified

Frictional unemployment is

Correct Answer
verified

What happened to the labor force participation rate for males between the years 1948 and 2015? What are some reasons for this trend?

Correct Answer
verified
Between 1948 and 2015 the labor force pa...
View Answer

The Internet has enabled workers and companies to find each other more quickly and to make better matches with substantially lower costs. The result is

Correct Answer
verified

Correct Answer
verified
a. 175 million by solving an equation 10...
View Answer

Government policies such as unemployment compensation and government regulations related to hiring and firing employees result in _______unemployment.

Correct Answer
verified

Which of the following statements about structural unemployment is true?

Correct Answer
verified

Consider an economy producing at its full employment output level. In this case the unemployment rate is equal to

Correct Answer
verified

Which type of unemployment can be negative?

Correct Answer
verified

When it is difficult to hire employees, firms take _to hire, which increases __unemployment.

Correct Answer
verified

The recession of 2007-2009 has been dubbed the

Correct Answer
verified

Some individuals are unemployed because they are laid off from their jobs when the economy is sluggish. These individuals would be considered

Correct Answer
verified

Exam 7: Unemployment

Economists refer to full-employment output as

Correct AnswerverifiedShow Answer

With all else being constant, how do the U.S. unemployment rates differ between individuals with only a high school diploma and individuals with a bachelor's degree? What are some reasons for this difference?

Correct AnswerverifiedHolding all else constant, the unemploym...View AnswerShow Answer

Jamal works in a factory in Lake Zurich, Illinois, assembling toy trains. The factory owner updates the current equipment and installs new robots that can do Jamal's job. As a result, Jamal is laid off and is now unemployed. Jamal would be considered

Correct AnswerverifiedShow Answer

Correct Answerverifieda. Dennis is experiencing structural une...View AnswerShow Answer

Provide evidence that the economic contraction from July 1981 to November 1982 was very similar to the Great Recession.

Correct AnswerverifiedFirst, consider real gross domestic prod...View AnswerShow Answer

Workers who lose their jobs because of market innovations are considered

Correct AnswerverifiedShow Answer

The main statistic that is used to monitor unemployment in the economy is

Correct AnswerverifiedShow Answer

The definition of "long-term unemployment" is unemployment that lasts longer than _____weeks.

Correct AnswerverifiedShow Answer

When actual unemployment is less than its natural rate, the

Correct AnswerverifiedShow Answer

Frictional unemployment is

Correct AnswerverifiedShow Answer

What happened to the labor force participation rate for males between the years 1948 and 2015? What are some reasons for this trend?

Correct AnswerverifiedBetween 1948 and 2015 the labor force pa...View AnswerShow Answer

The Internet has enabled workers and companies to find each other more quickly and to make better matches with substantially lower costs. The result is

Correct AnswerverifiedShow Answer

Correct Answerverifieda. 175 million by solving an equation 10...View AnswerShow Answer

Government policies such as unemployment compensation and government regulations related to hiring and firing employees result in _______unemployment.

Correct AnswerverifiedShow Answer

Which of the following statements about structural unemployment is true?

Correct AnswerverifiedShow Answer

Consider an economy producing at its full employment output level. In this case the unemployment rate is equal to

Correct AnswerverifiedShow Answer

Which type of unemployment can be negative?

Correct AnswerverifiedShow Answer

When it is difficult to hire employees, firms take _____to hire, which increases ______unemployment.

Correct AnswerverifiedShow Answer

The recession of 2007-2009 has been dubbed the

Correct AnswerverifiedShow Answer

Some individuals are unemployed because they are laid off from their jobs when the economy is sluggish. These individuals would be considered

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Holding all else constant, the unemploym...
View Answer

Correct Answer
verified

Correct Answer
verified
a. Dennis is experiencing structural une...
View Answer

Correct Answer
verified
First, consider real gross domestic prod...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Between 1948 and 2015 the labor force pa...
View Answer

Correct Answer
verified

Correct Answer
verified
a. 175 million by solving an equation 10...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

When it is difficult to hire employees, firms take _to hire, which increases __unemployment.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified