Deck 5: Monitoring Jobs and Inflation

Question 1

Which of the following statements is incorrect?

A) The labor force is equal to the number of people employed plus the number of people unemployed.
B) The working age population includes everyone over the age of 16.
C) The labor- force participation rate is the labor force divided by the working- age population then times 100.
D) The unemployment rate is the number of persons who are unemployed divided by the labor force then times 100.

Answer 1

B

Question 2

Which population category equals the sum of employed and unemployed people?

A) labor force
B) working- age population
C) not in the labor force
D) young and institutionalized

Answer 2

A

Question 3

The working- age population is defined as the number of

A) people who have a job.
B) people over the age of 16 who are not in jail, hospital, or other institution.
C) people looking for work.
D) people working full- time jobs who are over the age of 16.

Answer 3

B

Question 4

The labor force is defined as the

A) number of people over 16 years of age.
B) number of people who are working.
C) number of people in blue- collar jobs.
D) sum of employed and unemployed people.

Question 5

Suppose the working age population in Tiny Town is 100 people. If 25 of these people are NOT in the labor force, the _ equals .

A) unemployment rate; 25/100 × 100
B) labor force; 75
C) unemployment rate; 25/75 × 100
D) labor force; 25/100 × 100

Question 6

Full- time students and prisoners are _ _.

A) in the labor force
B) not in the labor force
C) counted as discouraged workers
D) counted as unemployed

Question 7

The labor force is defined as

A) workers with jobs and unemployed workers.
B) all people capable of work.
C) people with full time jobs.
D) All of the above answers are correct.

Question 8

The equals the number of .

A) labor force; unemployed and employed persons
B) unemployment rate; people unemployed
C) working age population; employed persons
D) labor force; persons over 16 years old

Question 9

Which of the following is NOT included in the working- age population?

A) discouraged workers
B) retirees under the age of 55
C) people in prison
D) people waiting to be called back to a job after being laid off

Question 10

The is the total number of people aged 16 years and older (and not in jail, hospital or institutional care) while the is the number of people employed and the unemployed.

A) labor force; working- age population
B) labor force participation rate; labor force
C) working- age population; labor force participation rate
D) working- age population; labor force

Question 11

The labor force includes

A) both employed and unemployed workers.
B) discouraged workers.
C) only the number of people employed.
D) only the number of people unemployed.

Question 12

The labor force is defined as people

A) in the working- age population who have a full time job.
B) who are 16 years of age or older.
C) who have a job or are looking for a job.
D) in the working- age population who have a job.

Question 13

The labor force is the sum of the

A) total population and the number of unemployed people.
B) number of employed people and the working- age population.
C) working- age population and the number of unemployed people.
D) number of employed people and the number of unemployed people.

Question 14

All people in the working- age population can be divided into

A) labor force participants.
B) potential employees.
C) either over- employed or under- employed.
D) employed, unemployed, or not in the labor force.

Question 15

The labor force is defined as the number of

A) people who are employed and unemployed.
B) unemployed people.
C) people 16 and over.
D) people with jobs, both part- time and full- time.

Question 16

The labor force is defined as the number of people who

A) are available and looking for work but are unable to find employment.
B) would like to have a job but have stopped seeking work.
C) are employed plus the number of people who are unemployed.
D) would like to have a full- time job but are working part- time.

Question 17

The working- age population can be divided into two groups,

A) people looking for work and those in the armed forces.
B) people in the labor force and people who are not in the labor force.
C) people in the labor force and people with a job.
D) people in the labor force and people looking for work.

Question 18

Which of the following is NOT considered to be in the labor force?

A) a person who is waiting to start a new job in the next 30 days
B) a person who is not working but who has tried to find a job in the past week
C) a student who works part- time
D) a person who is not working and who has not tried to find a job

Question 19

The total number of people aged 16 years and over who are not institutionalized .

A) is the labor force
B) is the working- age population
C) does not include students
D) equals the number of employed plus unemployed

Question 20

The labor force is defined as the

A) number of people who are working in labor- type jobs.
B) number of union members who are working.
C) number of employed people plus the number of unemployed people.
D) number of people who are working.

Question 21

Which of the following best fits the definition of unemployed?

A) working less than a full work week
B) retired and not working
C) not working but looking for a job
D) not working and not looking for work

Question 22

Unemployment as measured includes the total number of people who

A) are available and looking for work but unable to find employment.
B) would like to have a job but have stopped seeking work.
C) would like to have a full- time job but are working part- time.
D) have jobs or are currently looking for jobs.

Question 23

Which of the following people would NOT be counted as unemployed in the Current Population Survey?

A) The person is without a job and is making no effort to find work.
B) The person is waiting to start a new job in thirty days.
C) The person is awaiting recall to a job after being laid off.
D) The person has no job and has made an effort to find work in the last four weeks.

Question 24

Which of the following would NOT be counted as unemployed?

A) a person who is waiting to be called back to a job after having been laid off
B) a person who performs traditional housework but does not work outside the home for pay
C) a person who is not working but who has tried to find a job in the past week
D) a person who is waiting to start a new job in the next 30 days

Question 25

Using the definition of unemployment, which of the following individuals would be unemployed?

A) Because of a reduction in the military budget, your next door neighbor loses her job in a plant where nuclear warheads are made and must look for a new job.
B) A full- time student quits school, enters the labor market for the first time, and searches for employment.
C) Because of the increased level of automobile imports, an employee of General Motors is laid off but expects to be called back to work soon.
D) All of these individuals are unemployed.

Question 26

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

A) Misty, who just quit her job to return full- time to school
B) Rich, who is working 20 hours a week but wants a full- time job
C) April, who just graduated from college and is looking for work
D) Jason, who was laid off from work less than 6 months ago but who has stopped looking for work

Question 27

In an economy, 42 million people are in the labor force, 38 million are employed, and 47 million are of working age. How many people are not in the labor force?

A) 4 million
B) 9 million
C) 5 million
D) 19 percent

Question 28

The unemployment rate is the _ _ who are unemployed.

A) number of people in the labor force
B) percentage of people in the country
C) percentage of people in the labor force
D) percentage of the working- age population

Question 29

The unemployment rate is found by dividing the number of unemployed people by the

A) sum of working individuals plus unemployed workers, and multiplying by 100.
B) number of working individuals, and multiplying by 100.
C) number of the working- age population, and multiplying by 100.
D) number in the labor force, and dividing by 100.

Question 30

The unemployment rate is calculated as 100 times

A) [(labor force) ÷ (population)].
B) [(unemployment) ÷ (labor force)].
C) [(labor force) ÷ (unemployment)].
D) [(unemployment) ÷ (population)].

Question 31

Which of the following people would be considered unemployed by the Bureau of Labor Statistics?
I) Mrs. X retires from her job at the age of 55 and does not look for another job.
II) Mr. Y was laid off from his job as a welder, but expects to be rehired in 8 months.

A) I only
B) II only
C) both I and II
D) neither I nor II

Question 32

The unemployment rate equals

A) the rate of change in unemployment figures from one period to another.
B) the total number of people without jobs in a given period.
C) the percentage of the labor force currently unemployed.
D) the percentage of the population not currently employed.

Question 33

The unemployment rate equals

A) (labor force/working age population) × 100.
B) (number of people employed/number of people age 16 and over) × 100.
C) (number of people employed/working age population) × 100.
D) (number of people unemployed/labor force) × 100.

Question 34

Which of the following people is NOT considered unemployed in the Current Population Survey?

A) The person has been laid off and is looking for a new job.
B) The person has just finished school and has entered the labor force to look for work.
C) The person is looking for work after not doing so for a time.
D) The person is discouraged about finding a job and so does not search for work.

Question 35

The unemployment rate equals 100 times

A) (the number of unemployed workers)/(the civilian population).
B) (the number of unemployed workers)/(the number of employed + unemployed workers).
C) (the number of unemployed + employed workers)/(U.S. population older than 16 years of age).
D) (the number of unemployed workers)/(the U.S. population older than 16 years of age).

Question 36

Which of the following people would be considered unemployed?

A) a person who is working but expects to be laid off at the end of the month
B) a person who has been searching for work, but turns down a job paying a lower wage rate than desired
C) a part- time worker who wishes to work full time
D) a person who gave up looking for jobs because he or she was discouraged about his or her job prospects

Question 37

If the number of people unemployed is 100, the number of people employed is 1000, and the working- age population is 1400, then the labor force is

A) 1100.
B) 1500.
C) 1400.
D) 1000.

Question 38

The unemployment rate equals 100 times the number of

A) unemployed workers divided by the number of employed workers.
B) unemployed workers divided by the labor force.
C) unemployed workers divided by the population.
D) unemployed workers.

Question 39

The official unemployment estimates

A) count discouraged workers as unemployed.
B) include persons without a job who have made efforts in the last week to find a job.
C) include persons without a job, whether they are actively searching for work or not.
D) count as unemployed people with part- time jobs who want full- time jobs.

Question 40

Which of the following would NOT be considered unemployed?

A) an individual fired by her employer
B) a job leaver who is looking for a better job
C) a new entrant to the labor force
D) a newly retired worker

Question 41

The unemployment rate is measured as

A) an indicator for potential inflation.
B) an indicator to determine long- term economic growth.
C) the percentage of people in the labor force who are unemployed.
D) the number of people that want to work but cannot find jobs out of the entire population.

Question 42

If the number of people unemployed is 100, the number of people employed is 1000, and the working- age population is 1400, then the unemployment rate is

A) 10 percent.
B) 7.1 percent.
C) 6.6 percent.
D) 9.1 percent.

Question 43

Suppose the population of Tiny Town is 100 people and the working age population is 70. If 10 of these people are unemployed, the unemployment rate in Tiny Town is

A) 10 percent.
B) 10/80 × 100.
C) 10/70 × 100.
D) There is not enough information provided to calculate the unemployment rate.

Question 44

Suppose initially that the working- age population is 220 million, the labor force is 150 million, and the unemployment rate is 10 percent. 5 million new jobs are created and filled by 5 million people who had previously been discouraged workers. What is the new unemployment rate?

A) 6.7 percent
B) 9.7 percent
C) 6.25 percent
D) 8.7 percent

Question 45

Suppose there are currently 100 people unemployed, 1500 people employed, 1600 people in the labor force, and 2000 people in the working age population. The unemployment rate equals 100 times

A) 100/2000.
B) 100/1500.
C) 100/1600.
D) 1500/2000.

Question 46

During a recession, people drop out of the labor force because they are unable to find a job. All else the same, this

A) increases the unemployment rate and the labor force participation rate.
B) increases the unemployment rate.
C) does not change the unemployment rate.
D) decreases the unemployment rate.

Question 47

Suppose the population is 220 million people, the labor force is 150 million people, the number of people employed is 130 million and the working- age population is 175 million people. What is the unemployment rate?

A) 15.4 percent
B) 11.4 percent
C) 9.0 percent
D) 13.3 percent

Question 48

The unemployment rate is defined as the

A) percentage of the population not working.
B) percentage of the working- age population not working.
C) percentage of the labor force not working.
D) number of people not working.

Question 49

Which of the following decreases the unemployment rate?

A) Young people graduate from college and start to look for their first full- time job.
B) More women enter the labor force and seek jobs.
C) Workers leave the labor force.
D) None of the above because they all increase or do not change the unemployment rate.

Question 50

The unemployment rate measures the percentage of

A) the working- age population who can't find a job.
B) people in the labor force who can't find a job.
C) the working age population that can't find a full- time job.
D) people who want full- time jobs, but can't find them.

Question 51

Suppose there are 100 million in the labor force, and 6 million unemployed people. During the next month, 200,000 people lose their jobs and 300,000 find jobs. The new total of employed persons is
And the new unemployment rate is .

A) 94.1 million; 5.9 percent
B) 93.9 million; 6.1 percent
C) 100 million; 6.1 percent
D) 100.1 million; 5.8 percent

Question 52

The is calculated as the number of people divided by the labor force multiplied by 100.

A) employment rate; employed
B) unemployment rate; unemployed
C) employment- to- population ratio; unemployed
D) employment- to- population ratio; in the working age population

Question 53

To calculate the unemployment rate, which of the following are necessary pieces of information?
I) the number of unemployed persons
II) the population
III) the number of people in the labor force
IV) the working age population

A) I and III
B) I and IV
C) I, II III and IV
D) I and II

Question 54

Based on the following data for the country of Tiny Town, the unemployment rate equals: Population = 100
Labor force = 80
Number of employed persons = 70 Number of discouraged workers = 5

A) 15/80 × 100.
B) 10/80 × 100.
C) 10/100 × 100.
D) 5/70 × 100.

Question 55

Suppose the working- age population is 220 million, the labor force is 150 million, and the unemployment rate is 10 percent. The number of unemployed people is

A) 37 million.
B) 7 million.
C) 22 million.
D) 15 million.

Question 56

In an economy, 23 million people are employed and 2 million are unemployed, but 5 million part- time workers would prefer full- time work. What is the unemployment rate?

A) 23.2 percent
B) 25 percent
C) 8 percent
D) 6.7 percent

Question 57

Which labor market statistic tends rise during recessions and fall during expansions?

A) the employment- to- population ratio
B) aggregate hours
C) the labor- force participation rate
D) the unemployment rate

Question 58

Assume that the total labor force is 100 individuals with 10 unemployed. The unemployment rate is
) Now assume that 10 people drop out of the labor force and that 10 remain unemployed. The new unemployment rate is .

A) 11 percent, 10 percent
B) 10 percent, 11 percent
C) 10 percent, 9 percent
D) 9 percent, 10 percent

Question 59

The population of Tiny Town is 100 people and the labor force is made up of 75 people. If 5 of these people are unemployed, the unemployment rate is

A) 5/75 × 100.
B) 5/100 × 100.
C) 5/80 × 100.
D) There is not enough information provided to calculate the unemployment rate.

Question 60

In the United States in 1996, the population was 265.5 million and the working age population was
200)6 million. There were 133.9 million people in the labor force and 126.7 of them were employed. The unemployment rate equaled .

A) 33 percent
B) 7.2 percent
C) 5.4 percent
D) 3.6 percent

Question 61

If the population is 300 million, with 70 million under the age of 16 and institutionalized, another 70 million not in the labor force, 10 million unemployed, and 150 million employed, the employment- to- population rate is

A) 87.5 percent.
B) 46.7 percent.
C) 65.2 percent.
D) 53.3 percent.

Question 62

In the table above, the unemployment rate is

A) 10 percent.
B) 5 percent.
C) 15 percent.
D) 50 percent.

Question 63

The employment- to- population ratio is equal to 100 multiplied by the number of

A) unemployed people divided by the total population.
B) employed people divided by the working- age population.
C) unemployed people divided by the working age population.
D) employed people divided by the total population.

Question 64

In the table above, the size of the labor force is

A) 80 million.
B) 42 million.
C) 40 million.
D) 46 million.

Question 65

In the table above, the number of people officially unemployed is .

A) 4 million
B) 40 million
C) 2 million
D) 6 million

Question 66

Suppose the current unemployment rate is 5 percent, the labor force is 400 million people, the labor force participation rate is 80 percent and the working- age population is 500 million people. What number of people are unemployed?

A) 100 million people
B) 25 million people
C) 5 million people
D) 20 million people

Question 67

The above table shows answers given by people interviewed in a government survey of households. Which individuals are considered to be a part of the labor force?

A) A, C, and D
B) C and D
C) A, B, and C
D) B, C, and D

Question 68

Over the last forty years, the labor force participation rate and the employment- to- population ratio .

A) decreased; increased
B) increased; decreased
C) increased; increased
D) decreased; decreases

Question 69

If the population is 300 million, with 70 million under the age of 16 and institutionalized, another 70 million not in the labor force, 10 million unemployed and 150 million employed, the unemployment rate is

A) 6.7 percent.
B) 26.7 percent.
C) 23.3 percent.
D) 6.25 percent.

Question 70

If the number of people unemployed is 100, the number of people employed is 1000, and the working- age population is 1400, then the employment- to- population ratio is

A) 78.6 percent.
B) 66.6 percent.
C) 71.4 percent.
D) 75 percent.

Question 71

The employment- to- population ratio

A) shows that the U.S. economy has created jobs at a faster rate than the working- age population has grown.
B) has increased since 1961.
C) falls during a recession.
D) All of the above answers are correct.

Question 72

The employment- to- population ratio is defined as 100 times

A) total employment divided by labor hours.
B) total employment divided by the working- age population.
C) the labor force divided by the working- age population.
D) total employment divided by the labor force.

Question 73

The above table shows answers given by people interviewed in a government survey of households. Which individuals are considered unemployed?

A) A, B, and C
B) C and D
C) A, C, and D
D) B, C, and D

Question 74

Suppose the number of people employed is 25 million and the number of people in the labor force is 75 million. What is the employment- to- population ratio?

A) 75 percent
B) 25 percent
C) 33 percent
D) There is not enough information given to answer the question.

Question 75

The fluctuates more than does the _.

A) employment- to- population ratio; unemployment rate
B) labor force participation rate; employment- to- population ratio
C) employment- to- population ratio; labor force participation rate
D) labor force participation rate; unemployment rate

Question 76

In an economy, 43 million people are employed, 3 million are unemployed, and 4 million are not in the labor force. What is the employment- to- population ratio?

A) 86 percent
B) 93 percent
C) 6.5 percent
D) 92 percent

Question 77

The percentage of the people of working age who have jobs is called the .

A) employment- to- working- age- population ratio
B) inverse of the unemployment rate
C) labor force
D) employment- to- population ratio

Question 78

The employment- to- population ratio equals

A) (number of people employed)/(labor force) × 100.
B) (labor force)/(working- age population) × 100.
C) (number of people employed)/(working- age population) × 100.
D) (number of people with full- time jobs)/(labor force) × 100.

Question 79

Based on the following data for the country of Tiny Town, the employment- to- population ratio equals _ multiplied by 100.
Population = 200
Working age population = 100 Labor Force = 90
Number of employed persons = 75

A) 90/100.
B) 75/200
C) 75/100.
D) 90/200.

Question 80

The percentage of people employed aged 16 years and older divided by the working- age population is known as the

A) labor force participation rate.
B) employment- to- population ratio.
C) working- age population ratio.
D) employment rate.