ECO100Y5 Study Guide - Midterm Guide: Frictional Unemployment, Structural Unemployment, Business Cycle

Question 1 A recession occurs when there is a six consecutive month fall in Question 1 options:

A) real GDP.

B) nominal GDP.

C) the trade balance.

D) the price level.

Question 2 Since 1929, real GDP in the United States has grown at an average annual rate of about Question 2 options:

A) 0.5 percent.

B) 1 percent.

C) 3 percent.

D) 7.5 percent.

Question 3 Suppose that after reading a two-year low, the index of leading economic indicators rises for several months. Which of the following economic events will likely follow? Question 3 options:

A) A recession.

B) Severe inflation.

C) Increased production.

D) Reduced investment.

Question 4 Which of the following people would be officially counted as unemployed? Question 4 options:

A) A person who works only 5 hours per week for pay.

B) A full-time college student who chooses not to have a paying job.

C) A family member who works 20 hours per week in the family business without pay.

D) A jobless high-school graduate who is actively looking for work.

Question 5 Assume a country's population (age 16 and over) is 1 million people. What is the unemployment rate if there are 750,000 people in the labor force, 60,000 of whom are unemployed? Question 5 options:

A) 6%.

B) 8%.

C) 12.5%

D) 16.7%

Question 6 If a sizable number of workers were switched from full-time to half time employment, then the official unemployment rate would Question 6 options:

A) rise.

B) fall.

C) remain unchanged.

D) react unpredictably.

Question 7 Which of the following people would be classified as structurally unemployed? Question 7 options:

A) Computer programmers who lost their jobs because of a recession.

B) Construction workers who are on temporary layoff.

C) Discouraged workers who have given up looking for work.

D) Textile workers who lost their jobs because of new foreign competition.

Question 8 The economy is fully employed when there is no :

A) seasonal unemployment.

B) frictional unemployment.

C) structrual unemployment.

D) cyclical unemployment.

Question 9 The GDP gap measures the nation's monetary losses of real goods and services from :

A) operating at less than full employment.

B) discouraged workers who have stopped searching for employment. C) murders, suicides, and other sociological impacts of sustained unemployment.

D) seasonal and frictional unemployment.

Question 10 In the United States, the unemployment rate for blacks is :

A) roughly the same as the unemployment rate for whites.

B) about 1–2 percentage points higher than the unemployment rate for whites.
C) more than twice the unemployment rate for whites.

D) between 3 and 4 times the unemployment rate for whites.

QUESTION 1

Rosina Gonzales quit her job in Pennsylvania and moved to California to be close to her family. She is currently looking for work, so she would be considered

1 points

QUESTION 2

Discouraged workers

1 points

QUESTION 3

In measuring the unemployment rate, part-time workers are ________ and discouraged workers are ________.

1 points

QUESTION 4

Mary has decided that the she does not like Iowa and has decided to quit her job as a medical technician and move to Arizona. Mary's unemployment as she searches for a new job is best classified as

1 points

QUESTION 5

When a golf caddy in Minnesota (where golf courses close in the winter) is unemployed in December, it is most likely the case that the golf caddy is

1 points

QUESTION 6

After graduating from college, Yunis, age 22, started working for his parent's real estate business as an unpaid assistant. He works 25 hours a week helping manage rental units . In the Current Population Survey, Yunis is considered

1 points

QUESTION 7

The working-age population includes

1 points

QUESTION 8

Involuntary part-time workers are workers who

1 points

QUESTION 9

Frictional unemployment is the result of

1 points

QUESTION 10

Bill just graduated with his degree in economics. Through Career Services he submitted his resume to several companies and he will visit them during the next two weeks. Bill is considered

1 points

QUESTION 11

Harry works at the video rental store for 20 hours per week. He's asked his boss to allow him to work 40 hours per week, but has been told that business is too slow. Harry is considered

1 points

QUESTION 12

Discouraged workers who are over 16 years old are

i.not counted as unemployed.

ii.part of the working-age population.

iii.part of the labor force.

1 points

QUESTION 13

Higher unemployment benefits create

1 points

QUESTION 14

Seasonal unemployment includes people who become unemployed from

1 points

QUESTION 15

Cyclical unemployment is

1 points

QUESTION 16

Which of the following people would be classified as employed in the Current Population Survey?

1 points

QUESTION 17

People who are willing and able to work but are not looking for work because they have been discouraged by their previous futile efforts are called

1 points

QUESTION 18

Discouraged workers are included in the calculation of the

i.unemployment rate.

ii.labor force participation rate.

iii.working-age population.

1 points

QUESTION 19

As firms search for the best employee to fill an opening and the unemployed search for the job that best fits their skills, the economy experiences

1 points

QUESTION 20

Suppose the U.S. population is 275 million. If 210 million people are of working age, 135 million are employed, and 6 million are unemployed, what is the labor force participation rate?

1 points

QUESTION 21

During a recession the unemployment rate generally ________ and during an expansion the unemployment rate generally ________.

1 points

QUESTION 22

In January of 2001, the population of the United States was 276.8 million, the working-age population was 210.2 million, the total number of people employed was 140, and the total number of people unemployed was 5.0 million. What was the labor force participation rate?

1 points

QUESTION 23

If Brian, age 24, had no job but was available for work and had looked for a job the week before the survey, Brian is classified in the Current Population Survey as

1 points

QUESTION 24

Julie works part-time for economic reasons. She would be considered

1 points

QUESTION 25

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?

1 points

QUESTION 1

Rosina Gonzales quit her job in Pennsylvania and moved to California to be close to her family. She is currently looking for work, so she would be considered

1 points

QUESTION 2

Discouraged workers

1 points

QUESTION 3

In measuring the unemployment rate, part-time workers are ________ and discouraged workers are ________.

1 points

QUESTION 4

Mary has decided that the she does not like Iowa and has decided to quit her job as a medical technician and move to Arizona. Mary's unemployment as she searches for a new job is best classified as

1 points

QUESTION 5

When a golf caddy in Minnesota (where golf courses close in the winter) is unemployed in December, it is most likely the case that the golf caddy is

1 points

QUESTION 6

After graduating from college, Yunis, age 22, started working for his parent's real estate business as an unpaid assistant. He works 25 hours a week helping manage rental units . In the Current Population Survey, Yunis is considered

1 points

QUESTION 7

The working-age population includes

1 points

QUESTION 8

Involuntary part-time workers are workers who

1 points

QUESTION 9

Frictional unemployment is the result of

1 points

QUESTION 10

Bill just graduated with his degree in economics. Through Career Services he submitted his resume to several companies and he will visit them during the next two weeks. Bill is considered

1 points

QUESTION 11

Harry works at the video rental store for 20 hours per week. He's asked his boss to allow him to work 40 hours per week, but has been told that business is too slow. Harry is considered

1 points

QUESTION 12

Discouraged workers who are over 16 years old are

i.not counted as unemployed.

ii.part of the working-age population.

iii.part of the labor force.

1 points

QUESTION 13

Higher unemployment benefits create

1 points

QUESTION 14

Seasonal unemployment includes people who become unemployed from

1 points

QUESTION 15

Cyclical unemployment is

1 points

QUESTION 16

Which of the following people would be classified as employed in the Current Population Survey?

1 points

QUESTION 17

People who are willing and able to work but are not looking for work because they have been discouraged by their previous futile efforts are called

1 points

QUESTION 18

Discouraged workers are included in the calculation of the

i.unemployment rate.

ii.labor force participation rate.

iii.working-age population.

1 points

QUESTION 19

As firms search for the best employee to fill an opening and the unemployed search for the job that best fits their skills, the economy experiences

1 points

QUESTION 20

Suppose the U.S. population is 275 million. If 210 million people are of working age, 135 million are employed, and 6 million are unemployed, what is the labor force participation rate?

1 points

QUESTION 21

During a recession the unemployment rate generally ________ and during an expansion the unemployment rate generally ________.

1 points

QUESTION 22

In January of 2001, the population of the United States was 276.8 million, the working-age population was 210.2 million, the total number of people employed was 140, and the total number of people unemployed was 5.0 million. What was the labor force participation rate?

1 points

QUESTION 23

If Brian, age 24, had no job but was available for work and had looked for a job the week before the survey, Brian is classified in the Current Population Survey as

1 points

QUESTION 24

Julie works part-time for economic reasons. She would be considered

1 points

QUESTION 25

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?

1 points