Deck 7: Unemployment and Inflation.

Question 1

Which of the following people would be counted in the labor force?

A) Chou, who lost his job and last looked for work three months ago
B) Stephanie, who holds a Ph.D. in history but can only find part-time employment at a fast-food restaurant
C) Jordan, who would like to work as a stockbroker but is a stay-at-home father
D) Stefan, who is a patient in a mental hospital
E) Monique, age 90, who is enjoying her retirement in Montana

Answer 1

Stephanie, who holds a Ph.D. in history but can only find part-time employment at a fast-food restaurant

Question 2

Table 7.1
$$\begin{array}{l}\text { Table } 7.1\\\begin{array} { | c | c | c | c | c | c | } \hline { \text { Not in Labor Force } } & &{ \text { Unemployed } } && { \text { Employed } } \\\hline \text { Male } & \text { Female } & \text { Male } & \text { Female } & \text { Male } & \text { Female } \\\hline 10 \text { million } & 20 \text { million } & 2 \text { million } & 2 \text { million } & 30 \text { million } & 20 \text { million } \\\hline\end{array}\end{array}$$

-Refer to Table 7.1, which shows data for males and females over 16 years old in the island of Palma. What is the adult population?

A) 4 million
B) 32 million
C) 50 million
D) 54 million
E) 84 million

Answer 2

84 million

Question 3

Table 7.1
$$\begin{array}{l}\text { Table } 7.1\\\begin{array} { | c | c | c | c | c | c | } \hline { \text { Not in Labor Force } } &&{ \text { Unemployed } } && \ { \text { Employed } } \\\hline \text { Male } & \text { Female } & \text { Male } & \text { Female } & \text { Male } & \text { Female } \\\hline 10 \text { million } & 20 \text { million } & 2 \text { million } & 2 \text { million } & 30 \text { million } & 20 \text { million } \\\hline\end{array}\end{array}$$

-Refer to Table 7.1, which shows data for males and females over 16 years old in the island of Palma. How many adults are employed?

A) 2 million
B) 4 million
C) 17 million
D) 22 million
E) 50 million

Answer 3

50 million

Question 4

Table 7.1
$$\begin{array}{l}\text { Table } 7.1\\\begin{array} { | c | c | c | c | c | c | } \hline { \text { Not in Labor Force } } &&{ \text { Unemployed } } && \ { \text { Employed } } \\\hline \text { Male } & \text { Female } & \text { Male } & \text { Female } & \text { Male } & \text { Female } \\\hline 10 \text { million } & 20 \text { million } & 2 \text { million } & 2 \text { million } & 30 \text { million } & 20 \text { million } \\\hline\end{array}\end{array}$$

-Refer to Table 7.1, which shows data for males and females over 16 years old in the island of Palma. What is the adult male unemployment rate?

A) 3.7 percent
B) 10.0 percent
C) 6.7 percent
D) 7.4 percent
E) 64.3 percent

Question 5

The labor force in an economy consists of all _____

A) the people in the economy who are not retired.
B) the people in the economy over 16 years of age.
C) the adults in the economy between 18 and 65 years of age who are able to work.
D) civilian noninstitutional adult population older who are either working or looking for work.
E) the noninstitutional adult population who are graduates of high school.

Question 6

The unemployment rate will increase whenever there is a(n) _____

A) increase in the size of the adult population.
B) increase in the number of unemployed persons relative to the size of the labor force.
C) increase in the size of the U.S. population but no change in the number of unemployed persons.
D) increase in the size of the labor force.
E) increase in the size of the U.S. population and a decrease in the number of unemployed persons.

Question 7

Which of the following is not a cost of unemployment?

A) a loss of income
B) emotional or psychological problems
C) the loss of job skills
D) a decrease in production
E) higher annual inflation rates

Question 8

Consider an economy made up of 100 people, 60 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The number of unemployed persons is _____.

A) 10
B) 15
C) 40
D) 30
E) 90

Question 9

The unemployment rate measures the _____

A) number of people in the labor force divided by the adult population.
B) percentage of people in the labor force who are unemployed.
C) percentage of people in an economy who have dropped out of the labor force.
D) number of people in the adult population who are looking for work.
E) number of people in the labor force who are not working.

Question 10

Table 7.1
$$\begin{array}{l}\text { Table } 7.1\\\begin{array} { | c | c | c | c | c | c | } \hline { \text { Not in Labor Force } } & &{ \text { Unemployed } } && { \text { Employed } } \\\hline \text { Male } & \text { Female } & \text { Male } & \text { Female } & \text { Male } & \text { Female } \\\hline 10 \text { million } & 20 \text { million } & 2 \text { million } & 2 \text { million } & 30 \text { million } & 20 \text { million } \\\hline\end{array}\end{array}$$

-Refer to Table 7.1, which shows data for males and females over 16 years old in the island of Palma. What is the adult female population?

A) 22 million
B) 32 million
C) 42 million
D) 54 million
E) 84 million

Question 11

Table 7.1
$$\begin{array}{l}\text { Table } 7.1\\\begin{array} { | c | c | c | c | c | c | } \hline { \text { Not in Labor Force } } & &{ \text { Unemployed } } && { \text { Employed } } \\\hline \text { Male } & \text { Female } & \text { Male } & \text { Female } & \text { Male } & \text { Female } \\\hline 10 \text { million } & 20 \text { million } & 2 \text { million } & 2 \text { million } & 30 \text { million } & 20 \text { million } \\\hline\end{array}\end{array}$$

-Refer to Table 7.1, which shows data for males and females over 16 years old in the island of Palma. What is the adult labor force?

A) 4 million
B) 32 million
C) 50 million
D) 54 million
E) 84 million

Question 12

Table 7.1
$$\begin{array}{l}\text { Table } 7.1\\\begin{array} { | c | c | c | c | c | c | } \hline { \text { Not in Labor Force } } & &{ \text { Unemployed } } && { \text { Employed } } \\\hline \text { Male } & \text { Female } & \text { Male } & \text { Female } & \text { Male } & \text { Female } \\\hline 10 \text { million } & 20 \text { million } & 2 \text { million } & 2 \text { million } & 30 \text { million } & 20 \text { million } \\\hline\end{array}\end{array}$$

-Refer to Table 7.1, which shows data for males and females over 16 years old in the island of Palma. What is the adult male labor force?

A) 4 million
B) 32 million
C) 42 million
D) 52 million
E) 84 million

Question 13

Table 7.1
$$\begin{array}{l}\text { Table } 7.1\\\begin{array} { | c | c | c | c | c | c | } \hline { \text { Not in Labor Force } } &&{ \text { Unemployed } } && \ { \text { Employed } } \\\hline \text { Male } & \text { Female } & \text { Male } & \text { Female } & \text { Male } & \text { Female } \\\hline 10 \text { million } & 20 \text { million } & 2 \text { million } & 2 \text { million } & 30 \text { million } & 20 \text { million } \\\hline\end{array}\end{array}$$

-Refer to Table 7.1, which shows data for males and females over 16 years old in the island of Palma. How many adults are unemployed?

A) 2 million
B) 4 million
C) 17 million
D) 22 million
E) 50 million

Question 14

Table 7.1
$$\begin{array}{l}\text { Table } 7.1\\\begin{array} { | c | c | c | c | c | c | } \hline { \text { Not in Labor Force } } & &{ \text { Unemployed } } && { \text { Employed } } \\\hline \text { Male } & \text { Female } & \text { Male } & \text { Female } & \text { Male } & \text { Female } \\\hline 10 \text { million } & 20 \text { million } & 2 \text { million } & 2 \text { million } & 30 \text { million } & 20 \text { million } \\\hline\end{array}\end{array}$$

-Refer to Table 7.1, which shows data for males and females over 16 years old in the island of Palma. What is the adult male population?

A) 4 million
B) 32 million
C) 42 million
D) 52 million
E) 84 million

Question 15

Consider an economy made up of 100 people who are sixteen years of age and older, 60 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The number of people in the labor force is _____

A) 30.
B) 60.
C) 85.
D) 90.
E) 70.

Question 16

People who are not currently employed but say they want a job are counted as unemployed only if they _____

A) have previously held a job.
B) are actively seeking employment.
C) are discouraged workers.
D) are between 16 and 65 years of age.
E) are willing to accept any offer of employment.

Question 17

The labor force in an economy consists of all _____

A) people in the economy who are employed.
B) people in the economy who are unemployed.
C) adults in the economy.
D) adults in the economy who are employed and unemployed.
E) adults in the economy who are discouraged.

Question 18

Table 7.1
$$\begin{array}{l}\text { Table } 7.1\\\begin{array} { | c | c | c | c | c | c | } \hline { \text { Not in Labor Force } } &&{ \text { Unemployed } } && \ { \text { Employed } } \\\hline \text { Male } & \text { Female } & \text { Male } & \text { Female } & \text { Male } & \text { Female } \\\hline 10 \text { million } & 20 \text { million } & 2 \text { million } & 2 \text { million } & 30 \text { million } & 20 \text { million } \\\hline\end{array}\end{array}$$

-Refer to Table 7.1, which shows data for males and females over 16 years old in the island of Palma. What is the adult unemployment rate?

A) 3.7 percent
B) 10.0 percent
C) 6.7 percent
D) 7.4 percent
E) 64.3 percent

Question 19

Table 7.1
$$\begin{array}{l}\text { Table } 7.1\\\begin{array} { | c | c | c | c | c | c | } \hline { \text { Not in Labor Force } } & &{ \text { Unemployed } } && { \text { Employed } } \\\hline \text { Male } & \text { Female } & \text { Male } & \text { Female } & \text { Male } & \text { Female } \\\hline 10 \text { million } & 20 \text { million } & 2 \text { million } & 2 \text { million } & 30 \text { million } & 20 \text { million } \\\hline\end{array}\end{array}$$

-Refer to Table 7.1, which shows data for males and females over 16 years old in the island of Palma. What is the adult female labor force?

A) 22 million
B) 32 million
C) 42 million
D) 52 million
E) 94 million

Question 20

Table 7.1
$$\begin{array}{l}\text { Table } 7.1\\\begin{array} { | c | c | c | c | c | c | } \hline { \text { Not in Labor Force } } &&{ \text { Unemployed } } && \ { \text { Employed } } \\\hline \text { Male } & \text { Female } & \text { Male } & \text { Female } & \text { Male } & \text { Female } \\\hline 10 \text { million } & 20 \text { million } & 2 \text { million } & 2 \text { million } & 30 \text { million } & 20 \text { million } \\\hline\end{array}\end{array}$$

-Refer to Table 7.1, which shows data for males and females over 16 years old in the island of Palma. What is the adult female unemployment rate?

A) 3.7 percent
B) 10.0 percent
C) 53.3 percent
D) 7.4 percent
E) 64.3 percent

Question 21

"Discouraged workers" comprise the percentage of those in the _____

A) labor force who are employed and are seeking employment.
B) labor force who have chosen early retirement because they dislike their work.
C) adult population who want to be employed but have given up the search for a job.
D) labor force who are looking for a job but cannot find one.
E) adult population who are in the labor force.

Question 22

Which of the following is true of the labor force participation rate?

A) When workers become unemployed, the labor force participation rate declines.
B) When the unemployed become discouraged workers, the labor force participation rate declines.
C) When workers do not fully use their skills, the labor force participation rate decreases.
D) Since the 1950s, the labor force participation rate of women has decreased in the United States.
E) The trend toward earlier retirement has increased the labor force participation rate in the United States.

Question 23

In an economy, U = the number of adults who are unemployed, E = the number of adults who are employed, and NLF = the number of adults not in the labor force. The labor force participation rate in the economy is equal to _____

A) U/(U + E).
B) E/(U + E).
C) U/(U + E + NLF).
D) E/(U + E + NLF).
E) (U + E)/(U + E + NLF).

Question 24

Table 7.1

Consider an economy with an adult population of 100, 50 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The labor force participation rate is _____.

A) 100 percent
B) 60 percent
C) 50 percent
D) 40 percent
E) 10 percent

Question 25

Which of the following people would be classified as unemployed?

A) a person who wants a job as a fashion model but cannot find work in that field
B) someone who quits a part-time job to attend school full time
C) someone who does not have a job and gives up looking for one
D) a person who works at a job that underutilizes his or her skills
E) a person who works part-time and would rather work full time

Question 26

The labor force participation rate for men in the United States has _____

A) stayed the same over the last 30 years.
B) increased significantly since the 1950s.
C) decreased significantly since the 1950s.
D) fluctuated substantially both upward and downward since the 1950s.
E) increased only very slightly since the 1950s.

Question 27

Who among the following would not be considered officially unemployed?

A) Jones, who quit his job to look for a better job in another part of the country
B) Jason, who got fired from his job when the government cut spending
C) Bourne, who is looking for a job after being out of the labor force for five years
D) Sophie, who quit her job because she disliked it
E) Annie, who dropped out of the labor force after a year of job searching

Question 28

Which of the following groups tends to have the highest unemployment rate in the United States?

A) African American teenagers
B) workers, aged 25 or older, who are college graduates
C) white women
D) workers, 25 years of age or older, who are high school dropouts
E) white teenagers

Question 29

Which of the following is true of the labor force participation rates in the United States since the 1950s?

A) The rates for both men and women have risen.
B) The rate for women has fallen; the rate for men has risen.
C) The rate for men has fallen; the rate for women has increased.
D) The rates for both men and women have fallen.
E) The rates for both men and women have remained fairly constant.

Question 30

In an economy, U = the number of adults who are unemployed, E = the number of adults who are employed, and NLF = the number of adults not in the labor force. The unemployment rate of the economy is equal to _____

A) U/(E + NLF).
B) U/E.
C) U/(U + E).
D) U/(U + E − NLF).

Question 31

If government officials claim that more people are working now than ever before, then which of the following is true?

A) The unemployment rate is lower now than ever before.
B) The number of people unemployed is lower now than ever before.
C) The employment rate is higher now than ever before.
D) The number of people in the labor force is higher now than ever before.
E) The number of people employed is higher now than ever before.

Question 32

Which of the following people would be counted as employed?

A) a retired naval officer
B) a high school student
C) a stay-at-home father
D) a teenager who has given up looking for work after a year of trying
E) a ski instructor who is working during the summer

Question 33

Table 7.1

Refer to Table 7.1, which shows data for males and females over 16 years old in the island of Palma. What is the labor force participation rate?

A) 4.0 percent
B) 10.0 percent
C) 53.3 percent
D) 7.4 percent
E) 64.3 percent

Question 34

The unemployment rate will decrease whenever there is a(n) _____

A) increase in the number of persons classified as unemployed.
B) decrease in the number of unemployed persons relative to the size of the labor force.
C) decrease in the size of the population and no change in the number of persons classified as employed.
D) reduction in the size of the labor force.
E) decrease in the number of unemployed persons and no change in the population.

Question 35

Which of the following people would be counted among the unemployed?

A) a new college graduate selling newspaper advertisements part time while looking for other work
B) a new college graduate selling newspaper advertisements full time while looking for other work
C) a new college graduate selling newspaper advertisements part time and not looking for other work
D) a new college graduate who gets tired of selling newspaper advertisements and takes off on a motorcycle trip to Alaska
E) a new college graduate not qualified for any of the jobs available in his small town

Question 36

A discouraged worker is one who _____

A) is underqualified for his current job.
B) dislikes his current job but is afraid to quit.
C) drops out of the labor force because he cannot find a job.
D) quits his job because the possibility of advancement is very low.
E) is overqualified for his current job.

Question 37

The labor force participation rate for women in the United States has _____

A) stayed the same over the last 30 years.
B) increased significantly since the 1950s.
C) decreased significantly since the 1950s.
D) fluctuated substantially both upward and downward since the 1950s.
E) increased only very slightly since the 1950s.

Question 38

Suppose the total population of an economy is 150 million, the labor force is 100 million, and the number of unemployed workers is 94 million. The unemployment rate is _____.

A) 6 percent
B) 80 percent
C) 94 percent
D) 10 percent
E) 15 percent

Question 39

A recent college graduate who is looking for her first job would be considered _____

A) a discouraged worker.
B) underemployed.
C) overemployed.
D) unemployed.
E) not in the labor force.

Question 40

Anne is an accountant who lost her job in the last recession and has given up looking for work after an unsuccessful job search. Which of the following is true in this case?

A) She is a discouraged worker.
B) She is underemployed.
C) This is an example of cyclical unemployment.
D) This is an example of seasonal unemployment.
E) She is overemployed.

Question 41

In recent times, there has been a decline in the sale of newspapers in the United States as people prefer to read the news on the internet. This has caused many newspaper journalists to lose their jobs. This is an example of _____

A) structural unemployment.
B) frictional unemployment.
C) cyclical unemployment.
D) seasonal unemployment.
E) underemployment.

Question 42

The _____ unemployed are those looking for work for 27 weeks or longer.

A) cyclical
B) structural
C) voluntary
D) frictional
E) long-term

Question 43

Unemployment arising from a mismatch of skills is called _____

A) frictional unemployment.
B) structural unemployment.
C) seasonal unemployment.
D) cyclical unemployment.
E) underemployment.

Question 44

Juanita worked for a defense contractor in the United States. During the 2008 recession, the government cut spending and Juanita and ninety-nine others were laid off. In such a case, the unemployment Juanita is experiencing is _____.

A) cyclical
B) structural
C) seasonal
D) frictional
E) voluntary

Question 45

Which of the following is most likely to reduce structural unemployment?

A) A reduction in wage rates.
B) Access to better information on local job openings.
C) Retraining workers in marketable skills.
D) Promotion of full employment through stabilization policies.
E) Reducing the cost of job loss through enhanced unemployment benefits.

Question 46

The type of unemployment most likely to be experienced by a touring professional golfer is _____

A) frictional unemployment.
B) structural unemployment.
C) seasonal unemployment.
D) cyclical unemployment.
E) discouraged-worker unemployment.

Question 47

The impact of _____ unemployment is removed from official monthly unemployment figures.

A) cyclical
B) structural
C) seasonal
D) frictional
E) voluntary

Question 48

Which of the following groups experiences high unemployment rates?

A) white-collar professionals
B) attorneys
C) technical workers
D) blue-collar workers
E) sales professionals

Question 49

The best example of a frictionally unemployed worker is one who _____

A) has been looking for work for 27 weeks or longer.
B) is laid off during a recessionary period in an economy.
C) is in the process of voluntarily switching jobs.
D) is discouraged and not actively seeking work.
E) cannot find a job that matches with his skills.

Question 50

Which of the following statements is true of unemployment?

A) Cyclical unemployment decreases during recessions and increases during expansions.
B) Some unemployment exists even when an economy is healthy and growing.
C) Unemployment and inflation are not related.
D) People who are willing and able to work but have given up the search for a job are considered unemployed.
E) Voluntary unemployment refers to a situation in which people who really do not want to work only pretend to look for jobs.

Question 51

Frictional unemployment refers to unemployment that is a result of _____

A) a mismatch of skills.
B) being out of work 27 weeks or longer.
C) job search.
D) seasonal decreases in the demand for labor.
E) a recession in an economy.

Question 52

During one month, the U.S. economy added 290,000 jobs and the unemployment rate still increased from 9.7 percent to 9.9 percent. Which of the following best explains this situation?

A) The size of the labor force shrunk.
B) The number of unemployed workers also increased, but by a smaller percentage.
C) The number of illegal immigrants increased substantially.
D) The number of discouraged workers increased substantially.
E) The number of unemployed workers also increased, but by an even greater percentage.

Question 53

_____ unemployment is experienced by a customer service representative who is laid off from a job because new technology reduces the need for people to handle customer service inquiries.

A) Seasonal
B) Cyclical
C) Voluntary
D) Structural
E) Frictional

Question 54

Which of the following types of unemployment is the hardest to reduce?

A) cyclical unemployment
B) structural unemployment
C) voluntary unemployment
D) frictional unemployment
E) seasonal unemployment

Question 55

Jacqueline has a Ph.D. in economics. She has turned down many job offers because she eventually hopes to teach at one of the top ten universities in her field. The type of unemployment she is experiencing is _____

A) frictional unemployment.
B) structural unemployment.
C) seasonal unemployment.
D) cyclical unemployment.
E) underemployment.

Question 56

In 2004, Noah lost his job as a shipbuilder. His shipyard never reopened, and his very specialized skills as a shipbuilder were no longer in demand. Noah's unemployment is best classified as _____

A) cyclical.
B) structural.
C) seasonal.
D) frictional.
E) voluntary.

Question 57

After graduating from Harvard Law School, Anne started looking for a job. She could not find a job after looking for one week. Which of the following is true in this case?

A) This is an example of frictional unemployment.
B) This is an example of cyclical unemployment.
C) This is an example of seasonal unemployment.
D) She is underemployed.
E) She is a discouraged worker.

Question 58

Structural unemployment refers to unemployment that results from _____

A) inefficiencies in the market for labor that prolong the job search.
B) being in the wrong geographical location.
C) the specialization and division of labor.
D) seasonal decreases in the demand for labor.
E) a recession in an economy.

Question 59

If the official unemployment rate increases from December to January because the Christmas season is over, we can conclude that _____ is responsible for the increase.

A) seasonal unemployment
B) cyclical unemployment
C) structural unemployment
D) frictional unemployment
E) underemployment

Question 60

Which type of unemployment is most likely to help an economy become more efficient?

A) cyclical unemployment
B) voluntary unemployment
C) seasonal unemployment
D) frictional unemployment
E) underemployment

Question 61

Recently, banking has become easier, with automated teller machines replacing bank tellers. The loss of tellers' jobs is an example of _____

A) cyclical unemployment.
B) structural unemployment.
C) frictional unemployment.
D) underemployment.
E) voluntary unemployment.

Question 62

There is evidence that unemployment insurance and other safety-net programs _____

A) may increase unemployment.
B) increase the incentives to find work.
C) motivates Americans search harder and wider for a job.
D) increase labor supply.
E) decreases fraud.

Question 63

Unemployed workers who meet certain qualifications can receive unemployment benefits for up to _____

A) 1 month.
B) 3 months.
C) 6 months.
D) 1 year.
E) the time when they find employment.

Question 64

An increase in unemployment insurance is likely to _____

A) reduce a person's incentive to look for work.
B) reduce the opportunity cost of remaining employed.
C) provide a better safety net for employed families.
D) decrease the tax imposed on consumers.
E) increase the need to accept the first job available after becoming unemployed.

Question 65

Which of the following does not exist when an economy is operating at full employment?

A) an unemployment rate of 5 percent or 6 percent
B) seasonal unemployment
C) structural unemployment
D) cyclical unemployment
E) frictional unemployment

Question 66

In which of the following industries are workers least likely to suffer from cyclical unemployment?

A) the construction industry
B) automobile manufacturing
C) the apparel industry
D) education
E) tourism

Question 67

Unemployment benefits replace on average how much of a person's take-home pay?

A) 10 percent
B) 15 percent
C) 27 percent
D) 50 percent
E) 100 percent

Question 68

Which type of unemployment is likely to increase the most during an economy's recession?

A) frictional unemployment
B) seasonal unemployment
C) structural unemployment
D) cyclical unemployment
E) underemployment

Question 69

Unemployment benefits _____

A) are cash transfers to those who lose their jobs and actively seek employment.
B) reduce the opportunity cost of remaining employed.
C) provide a better safety net for employed families.
D) decrease the tax imposed on consumers.
E) increase the need to accept the first job available after becoming unemployed.

Question 70

When economists talk about full employment they mean _____

A) zero unemployment.
B) seasonal unemployment.
C) structural unemployment.
D) cyclical unemployment.
E) low unemployment.

Question 71

An individual with a Ph.D. in physics who can find employment only in a pizza parlor would be considered _____

A) discouraged.
B) underemployed.
C) overemployed.
D) voluntarily unemployed.
E) long-term unemployed.

Question 72

Which of the following will most likely qualify for unemployment compensation benefits?

A) a new college graduate who cannot find work despite a desperate job search
B) an unemployed coal miner who has been receiving benefits for the past six months
C) a former retail clerk who quit her job because the boss was too demanding
D) a spot welder who has just gotten his first "pink slip" in the mail after ten years of continuous employment
E) an accountant who was fired from his last position for drinking alcohol on the job

Question 73

If the official unemployment rate increases from February to March because of sluggish sales in the automobile industry, then the increase can be blamed on _____

A) seasonal unemployment.
B) cyclical unemployment.
C) structural unemployment.
D) frictional unemployment.
E) underemployment.

Question 74

Cyclical unemployment results from _____

A) a mismatch of skills.
B) being in the wrong geographical location.
C) the monetary cost and the time it takes to find the best job.
D) seasonal decreases in the demand for labor.
E) a prolonged decline in business activity.

Question 75

In 2014, what percentage of the unemployed received benefits?

A) 10 percent
B) 15 percent
C) 27 percent
D) 50 percent
E) 100 percent

Question 76

How is unemployment insurance financed?

A) through loans to the unemployed
B) through government borrowings
C) by a tax on the unemployed
D) by a tax on employers
E) by a tax on employees

Question 77

Which type of unemployment is likely to decrease the most during an economy's boom?

A) frictional unemployment
B) seasonal unemployment
C) structural unemployment
D) cyclical unemployment
E) underemployment

Question 78

How does unemployment insurance impact the labor market?

A) It increases the incentive to find work and increases unemployment.
B) It increases the incentive to find work and decreases unemployment.
C) It decreases the incentive to find work and increases unemployment.
D) It decreases the incentive to find work and decreases unemployment.
E) It has no effect on the incentive to find work or unemployment.

Question 79

When an economy is operating at full employment, _____

A) structural unemployment does not exist.
B) cyclical unemployment does not exist.
C) the unemployment rate is zero.
D) seasonal unemployment does not exist.
E) the number of discouraged workers is zero.

Question 80

Full employment _____

A) exists when, on average, nearly two out of three adults in the labor force are employed.
B) exists when everyone who wants a job has one.
C) exists when the unemployment rate is zero.
D) exists when everyone in the labor force has a job.
E) will always include some unemployment.