Question 1

After the financial crisis in 2007, many firms laid off workers who struggled to find new work during the recession. These workers experienced:

Accepted Answer

A)   frictional unemployment.
B)   real-wage unemployment.
C)   cyclical unemployment.
D)   structural unemployment.E) C) and D)
F) A) and B)

Question 2

Millennials are stereotyped as changing jobs frequently to find their "dream" career. What type of unemployment is caused by these movements?

Accepted Answer

A)   Frictional
B)   Real-wage
C)   Cyclical
D)   StructuralE) A) and D)
F) All of the above

Question 3

Unemployment insurance is paid:

Accepted Answer

A)   by the government to people who are unemployed.
B)   to the government by employers who lay off employees.
C)   by private insurance companies to people who have purchased insurance and are unemployed.
D)   by the government to employers so that they can retain workers.E) B) and D)
F) B) and C)

Question 4

The labor force does not include people in the working-age population who are:

Accepted Answer

A)   employed.
B)   not actively trying to find a job.
C)   retired, a full-time student, or a stay-at-home parent.
D)   employed part time.E) B) and D)
F) None of the above

Question 5

Unemployment insurance is:

Accepted Answer

A)   often more extensive in times of economic expansion.
B)   a subsidy offered by the government to private insurance companies to insure the unemployed.
C)   money that is paid by the government to people who are unemployed.
D)   All of these are true.E) C) and D)
F) A) and C)

Question 6

The price of labor is called:

Accepted Answer

A)   the wage.
B)   income.
C)   opportunity cost.
D)   the leisure trade-off.E) A) and D)
F) None of the above

Question 7

How might labor unions affect the labor market?

Accepted Answer

A)   Wage rates could rise above equilibrium level.
B)   Wage rates could fall below equilibrium level.
C)   Unemployment could reach zero.
D)   Unemployment could grow to unsustainable levels.E) A) and D)
F) B) and C)

Question 8

In the United States, the working-age population includes people:

Accepted Answer

A)   in prison.
B)   in the military.
C)   who are less than 16 years of age.
D)   aged 16 years or older.E) C) and D)
F) All of the above

Question 9

All else equal, if unemployment rises to 8 percent after a 3.5 percentage point increase, this indicates that:

Accepted Answer

A)   35 out of every 100 in the labor force have lost a job.
B)   35 out of every 1,000 in the labor force have lost a job.
C)   8 out of every 1,000 in the labor force can't find a job.
D)   8 out of every 100 in the labor force have stopped looking for work.E) A) and B)
F) None of the above

Question 10

When economic growth _______, unemployment tends to _______.

Accepted Answer

A)   slows; increase
B)   speeds up; increase
C)   slows, decrease
D)   slows; stay the sameE) A) and C)
F) A) and B)

Question 11

The unemployment rate may_______ the effect of a recession on unemployment because some people ______ the labor force.

Accepted Answer

A)   understate; leave
B)   understate; enter
C)   overstate; leave
D)   overstate; enterE) None of the above
F) A) and B)

Question 12

Economists report changes in unemployment as:

Accepted Answer

A)   percentage points, not percentages.
B)   percentages, not percentage points.
C)   percentage points or percentages, interchangeably.
D)   nominal figures.E) B) and C)
F) A) and B)

Question 13

The table shown displays employment statistics for two years.  What was the unemployment rate in 2018?

Accepted Answer

A)   14 percent
B)   25 percent
C)   17.5 percent
D)   15 percentE) None of the above
F) All of the above

Question 14

The labor force participation rate:

Accepted Answer

A)   tells us what fraction of the working-age population wants employment, whether or not they actually have a job.
B)   typically rises during times of recession, as more people need work.
C)   is used to assess the health of the overall economy.
D)   All of these are true.E) All of the above
F) B) and C)

Question 15

Lian has a master's degree in writing and currently works full-time as a second grade classroom helper. She submits articles for the local paper on occasion, and gets paid only when the editor agrees to publish a submission. Lian would love to work full-time as a news reporter. Lian is best described as _______ and the BLS would classify Lian as _______.

Accepted Answer

A)   underemployed; employed
B)   employed; employed
C)   discouraged; underemployed
D)   underemployed; underemployedE) B) and D)
F) None of the above

Question 16

Miguel is a corrections officer at a local prison, but he would like to go back to school to train to become a police officer someday. According to the BLS, Miguel is:

Accepted Answer

A)   a discouraged worker.
B)   unemployed.
C)   underemployed.
D)   employed.E) A) and D)
F) None of the above

Question 17

Wages tend to be "sticky" because:

Accepted Answer

A)   contracts are often negotiated for long periods of time and cannot be easily changed.
B)   workers are less likely to work hard if their pay may be cut due to market performance.
C)   changing wages create uncertainty and cost employers a lot of time and energy.
D)   All of these are reasons why wages might be sticky.E) B) and C)
F) All of the above

Question 18

The table shown displays employment statistics for two years.  In which year was unemployment the highest?

Accepted Answer

A)   2016
B)   2017
C)   2018
D)   2019E) All of the above
F) A) and C)

Question 19

The table shown displays employment statistics for two years.  What was the labor force participation rate in 2018?

Accepted Answer

A)   70 percent
B)   75 percent
C)   50 percent
D)   69 percentE) C) and D)
F) None of the above

Question 20

It is generally more profitable for a firm to pay workers more than the going wage rate:

Accepted Answer

A)   in sectors where skills are scarce.
B)   in industries in which worker motivation doesn't really matter.
C)   in areas for which turnover is not very costly.
D)   in cities where there is a surplus of labor.E) A) and B)
F) None of the above

Exam 9: Unemploymentand the Labor Market

The table shown displays employment statistics for two years. What was the labor force participation rate in 2018?

Correct Answer
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The table shown displays employment statistics for two years. What was the unemployment rate in 2018?

Correct Answer
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Unemployment insurance is:

Correct Answer
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The labor force does not include people in the working-age population who are:

Correct Answer
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When economic growth _, unemployment tends to _.

Correct Answer
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After the financial crisis in 2007, many firms laid off workers who struggled to find new work during the recession. These workers experienced:

Correct Answer
verified

The table shown displays employment statistics for two years. In which year was unemployment the highest?

Correct Answer
verified

Economists report changes in unemployment as:

Correct Answer
verified

It is generally more profitable for a firm to pay workers more than the going wage rate:

Correct Answer
verified

All else equal, if unemployment rises to 8 percent after a 3.5 percentage point increase, this indicates that:

Correct Answer
verified

The unemployment rate may_ the effect of a recession on unemployment because some people the labor force.

Correct Answer
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Wages tend to be "sticky" because:

Correct Answer
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How might labor unions affect the labor market?

Correct Answer
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Miguel is a corrections officer at a local prison, but he would like to go back to school to train to become a police officer someday. According to the BLS, Miguel is:

Correct Answer
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Correct Answer
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The price of labor is called:

Correct Answer
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Millennials are stereotyped as changing jobs frequently to find their "dream" career. What type of unemployment is caused by these movements?

Correct Answer
verified

The labor force participation rate:

Correct Answer
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In the United States, the working-age population includes people:

Correct Answer
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Unemployment insurance is paid:

Correct Answer
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Exam 9: Unemploymentand the Labor Market

The table shown displays employment statistics for two years. What was the labor force participation rate in 2018?

Correct AnswerverifiedShow Answer

The table shown displays employment statistics for two years. What was the unemployment rate in 2018?

Correct AnswerverifiedShow Answer

Unemployment insurance is:

Correct AnswerverifiedShow Answer

The labor force does not include people in the working-age population who are:

Correct AnswerverifiedShow Answer

When economic growth _______, unemployment tends to _______.

Correct AnswerverifiedShow Answer

After the financial crisis in 2007, many firms laid off workers who struggled to find new work during the recession. These workers experienced:

Correct AnswerverifiedShow Answer

The table shown displays employment statistics for two years. In which year was unemployment the highest?

Correct AnswerverifiedShow Answer

Economists report changes in unemployment as:

Correct AnswerverifiedShow Answer

It is generally more profitable for a firm to pay workers more than the going wage rate:

Correct AnswerverifiedShow Answer

All else equal, if unemployment rises to 8 percent after a 3.5 percentage point increase, this indicates that:

Correct AnswerverifiedShow Answer

The unemployment rate may_______ the effect of a recession on unemployment because some people ______ the labor force.

Correct AnswerverifiedShow Answer

Wages tend to be "sticky" because:

Correct AnswerverifiedShow Answer

How might labor unions affect the labor market?

Correct AnswerverifiedShow Answer

Miguel is a corrections officer at a local prison, but he would like to go back to school to train to become a police officer someday. According to the BLS, Miguel is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The price of labor is called:

Correct AnswerverifiedShow Answer

Millennials are stereotyped as changing jobs frequently to find their "dream" career. What type of unemployment is caused by these movements?

Correct AnswerverifiedShow Answer

The labor force participation rate:

Correct AnswerverifiedShow Answer

In the United States, the working-age population includes people:

Correct AnswerverifiedShow Answer

Unemployment insurance is paid:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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When economic growth _, unemployment tends to _.

Correct Answer
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Correct Answer
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Correct Answer
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The unemployment rate may_ the effect of a recession on unemployment because some people the labor force.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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