Deck 8: Unemployment and Inflation

Question 1

The unemployment rate is the:

A) percentage of the labour force that is unemployed.
B) number of people unemployed.
C) labour force minus the number of people unemployed.
D) average length of time someone is unemployed.

Answer 1

percentage of the labour force that is unemployed.

Question 2

To be officially unemployed,a person must:

A) not have a job and must have looked for work in the past 4 weeks.
B) be under 55 years old.
C) be working fewer than 30 hours per week.
D) be working fewer than 20 hours per week.

Answer 2

not have a job and must have looked for work in the past 4 weeks.

Question 3

A person who is NOT working or looking for work is:

A) included in the unemployment rate.
B) underemployed.
C) a member of the labour force who is not working.
D) not counted in the unemployment rate.

Answer 3

not counted in the unemployment rate.

Question 4

The unemployment rate is the ratio of all of the people:

A) out of work to the total population.
B) out of work to those over age 16.
C) unemployed to those looking for work.
D) unemployed to those in the labour force.

Question 5

Employment is the total:

A) labour force.
B) population of working age.
C) number of people actively working,either full time or part time.
D) number of people not unemployed.

Question 6

The labour force is the total:

A) number of people employed.
B) population.
C) number of people in the population of working age.
D) number of people who are employed or unemployed.

Question 7

If a country has a working-age population of 200 million,135 million people with jobs,and 15 million people unemployed and seeking employment,then its unemployment rate is:

A) 4%.
B) 7.5%.
C) 10%.
D) 67.5%.

Question 8

Which statement is TRUE?

A) The number of people not working but who have looked for work in the past year is equal to the number of unemployed people.
B) The labour force is the total number of people working plus those who are unemployed.
C) The unemployment rate is the number of people unemployed expressed as a percentage of the population.
D) The labour force is the same as the population.

Question 9

The statistics and data on unemployment are gathered and reported:

A) daily.
B) weekly.
C) monthly.
D) yearly.

Question 10

The percentage of the labour force that is unemployed is the:

A) labour force participation rate.
B) employment ratio.
C) unemployment rate.
D) natural employment rate.

Question 11

If a country has a working-age population of 200 million,120 million people with jobs,and 30 million people unemployed and seeking employment,then its unemployment rate is:

A) 5%.
B) 7.5%.
C) 15%.
D) 20%.

Question 12

If a country has a working-age population of 200 million,135 million people with jobs,and 15 million people unemployed and seeking employment,then its labour force is:

A) 335 million.
B) 200 million.
C) 155 million.
D) 150 million.

Question 13

A person who has no job but is looking for one is:

A) unemployed.
B) a discouraged worker.
C) part of the labour force.
D) unemployed and part of the labour force.

Question 14

The labour force is equal to the:

A) sum of the number of those employed and unemployed.
B) population minus the number of employed.
C) sum of the number of those employed and the underemployed.
D) number of people working.

Question 15

A person without a job who is actively seeking and available for work is considered:

A) employed.
B) unemployed.
C) underemployed.
D) marginally attached.

Question 16

A survey reveals that,on a small island,40 people have jobs,10 people are not working but are looking for jobs,and 30 people are neither working nor looking for work.The unemployment rate on the island is _____%.

A) 12.5
B) 20
C) 25
D) 50

Question 17

The rate of unemployment is found by dividing the:

A) number of people looking for work by the population.
B) number of people not working but looking for work by the sum of the number of people not working but looking for work and the number of people employed.
C) labour force by the number of people looking for work.
D) unemployed and discouraged workers by the labour force.

Question 18

The labour force is considered to be:

A) everyone who is employed.
B) everyone who is employed plus everyone who is unemployed.
C) the population of the nation.
D) those not frictionally unemployed plus all others who are employed.

Question 19

You are a university student and NOT working or looking for work.You are:

A) unemployed.
B) in the labour force but not employed.
C) not part of the labour force.
D) counted in the labour force as underemployed.

Question 20

To be counted as unemployed,one must:

A) have had a job previously.
B) be out of work and be actively looking for a job during the past 4 weeks.
C) have had a job before and be actively looking for work.
D) be actively looking for a job and have at least a high-school diploma or its equivalent.

Question 21

A survey reveals that,on a small island,1 000 people have jobs,200 people don't have jobs but are looking for jobs,and 200 people are neither working nor looking for work.The unemployment rate on the island is _____%.

A) 12.5
B) 16.7
C) 20
D) 30

Question 22

Suppose that there are 70 million people in the labour force,of whom 60 million are employed.The unemployment rate is:

A) 7%.
B) 10%.
C) 14.29%.
D) 4.2%.

Question 23

A survey reveals that,on a small island,100 people have jobs,25 people are not working but are looking for jobs,and 45 people are neither working nor looking for work.The unemployment rate on the island is:

A) 12.5%.
B) 20%.
C) 25%.
D) 50%.

Question 24

If the rate of unemployment is 10% and the labour force is 130 million,the number of unemployed workers is _____million.

A) 1.3
B) 13
C) 10
D) 8

Question 25

Use the following to answer questions:
(Table: Labour Force Data)Use Table: Labour Force Data.Suppose the labour force participation rate is 70%.The labour force is equal to _____ million.

A) 1 200
B) 50
C) 105
D) 400

Question 26

If the labour force includes 100 million workers and 5 million people are unemployed but actively seeking work,then the unemployment rate is _____%.

A) 1
B) 5
C) 10
D) 95

Question 27

A survey reveals that,on a small island,initially 40 people have jobs,10 people are not working but are looking for jobs,and 30 people are neither working nor looking for work.Suppose that 10 of the 30 people who weren't working or looking for work now begin looking for work.There are now 20 people without jobs but looking for work and 40 people working.The unemployment rate:

A) rises to 33.3%.
B) rises to 50%.
C) falls to 25%.
D) Nothing happens to the unemployment rate because these people weren't working before and they aren't working now.

Question 28

A survey reveals that,on a small island,initially 1 000 people have jobs,250 people are not working but are looking for jobs,and 450 people are neither working nor looking for work.Suppose that 150 of the 450 people who weren't looking for work now begin looking for work.There are now 400 people looking for work and 1 000 people working.The unemployment rate:

A) falls to 20%.
B) rises to 28.6%.
C) rises to 50%.
D) Nothing happens to the unemployment rate because these people weren't working before and they aren't working now.

Question 29

The unemployment rate equals the number _____ divided by the number _____ times 100.

A) unemployed;employed
B) unemployed;in the population
C) employed;in the labour force
D) unemployed;in the labour force

Question 30

The Republic of Livonia has an adult population of 100 million;60% of Livonia's population is employed,and 10% of the people are unemployed.The labour force participation rate in Livonia is _____%.

A) 70
B) 60
C) 7
D) 10

Question 31

A survey reveals that,on a small island,1 000 people have jobs,250 people are unemployed and looking for jobs,and 450 people are neither working nor looking for work.The unemployment rate on the island is _____%.

A) 20
B) 25
C) 45
D) 15.6

Question 32

If the labour force totals 100 million workers and 90 million are working,then the unemployment rate is_____%.

A) 1
B) 5
C) 10
D) 90

Question 33

If there are 100 million people in the total population,a labour force of 50 million,and 47 million employed workers,the unemployment rate is _____%.

A) 3
B) 6
C) 8
D) 10

Question 34

If the population of Canada is 36 million,the labour force is 24 million,and 21 million workers are employed,the rate of unemployment is _____%.

A) 12.5
B) 8.3
C) 50
D) 92

Question 35

In 2017,10 million people did not have a job but were actively looking for employment,and 85 million people had either a full-time or a part-time job.The unemployment rate in 2017 was _____%.

A) 10
B) 9.5
C) 10.5
D) 8.5

Question 36

A survey reveals that,on a small island,initially 1 000 people have jobs,200 people are unemployed but are looking for jobs,and 200 people are neither working nor looking for work.Suppose that 100 of the 200 people who weren't looking for work now begin looking for work and that half of the new entrants find a job.The unemployment rate:

A) rises to 19.2%.
B) rises to 21.4%.
C) rises to 28.6%.
D) Nothing happens to the unemployment rate.

Question 37

A survey reveals that,on a small island,initially 100 people have jobs,25 people don't have jobs but are looking for jobs,and 45 people are neither working nor looking for work.Suppose that 15 of the 45 people who weren't looking for work now begin looking for work.There are now 40 people looking for work and 100 people working.The unemployment rate:

A) falls to 20%.
B) rises to 28.6%.
C) rises to 50%.
D) Nothing happens to the unemployment rate because these people weren't working before and they aren't working now.

Question 38

If 99 million people are working and 1 million are unemployed but actively seeking work,then the unemployment rate is _____%.

A) 1
B) 5
C) 10
D) 100

Question 39

Which expression MOST accurately describes how to calculate the unemployment rate?

A) (Unemployed / Population)* 100
B) (Unemployed / Employed)* 100
C) (Unemployed / Labour force)* 100
D) [(Unemployed - Employed)/ Labour force] * 100

Question 40

Use the following to answer questions:
(Table: Labour Force Data)Use Table: Labour Force Data.Suppose the labour force participation rate is 70%.The number of unemployed adults is _____ million.

A) 8
B) 53
C) 103
D) 50

Question 41

If a country has a working-age population of 200 million,135 million people with jobs,10 million people who were looking for a job but have given up,and 5 million people who are unemployed and seeking employment,then the number of discouraged workers is _____ million.

A) 25
B) 15
C) 10
D) 5

Question 42

Use the following to answer questions:
(Table: Labour Force Data)Use Table: Labour Force Data.If the labour force participation rate is 70%,the unemployment rate is _____%.

A) 7.6
B) 5
C) 4
D) 3

Question 43

Which situation is likely to lead to an INCREASE in discouraged workers?

A) The economy is expanding.
B) The availability of jobs falls.
C) The economy is undergoing inflation.
D) The economy is undergoing deflation.

Question 44

Suppose that Allison has an accounting degree,but she lost her job 2 months ago when her company merged with another firm.Allison hasn't been able to find another accounting job,so she has taken a part-time job as a sales clerk at a clothing store.Statistics Canada classifies Allison as:

A) a marginally attached worker.
B) a discouraged worker.
C) underemployed.
D) unemployed.

Question 45

Statistics Canada calls a person who is out of work,would like to work,but has given up looking for work:

A) unemployed.
B) employed.
C) a discouraged worker.
D) lazy.

Question 46

The official unemployment rate ignores:

A) people with professional jobs.
B) people who work on commission.
C) discouraged workers.
D) people with professional jobs,people who work on commission,and discouraged workers.

Question 47

Suppose that roughly 8 million people in Canada were actively seeking jobs but had not found them this month,the same number as last month.Suppose that 2 million of the people who were unemployed last month gave up their search this month and stopped looking for work.What will happen to the official unemployment rate this month,all other things unchanged?

A) It will rise because 2 million people are not in the labour force this month and are not counted as unemployed.
B) It will fall because 2 million people are not in the labour force this month and are not counted as unemployed.
C) It will be unaffected because the same number of people is unemployed.
D) The unemployment rate will decrease by 25%.

Question 48

Discouraged workers:

A) are getting paid too little.
B) do not like their job.
C) are working part time but are looking for a full-time job.
D) have given up looking for a job.

Question 49

Suppose that Allison has an accounting degree,but she lost her job 2 months ago when her company merged with another firm.Allison hasn't been able to find another accounting job,so she has taken a part-time job as a sales clerk at a clothing store.As a result,the official unemployment rate will:

A) not change.
B) increase.
C) decrease.
D) increase temporarily,then fall back to its original level.

Question 50

The official unemployment rate reported by the government may tend to understate the amount of unemployment because it:

A) includes discouraged workers.
B) excludes discouraged workers.
C) includes people over 65 who aren't retired.
D) excludes teenagers.

Question 51

Jim has a part-time job.He would prefer to have a full-time job but has been unable to find one.Jim is classified as:

A) a discouraged worker.
B) underemployed.
C) unemployed.
D) out of the labour force.

Question 52

According to official statistics,discouraged workers are:

A) included in the employment statistics.
B) included in the labour force.
C) not included in the labour force.
D) treated just like the underemployed.

Question 53

An INCREASE in the number of discouraged workers in the economy tends to:

A) raise the official unemployment rate.
B) lower the official unemployment rate.
C) lower the number of people who are frictionally unemployed.
D) increase the number of people who are structurally unemployed.

Question 54

Use the following to answer questions:
(Table: Labour Force Distribution)Use Table: Labour Force Distribution.The total population is _____ million.

A) 486
B) 253
C) 278
D) 283

Question 55

Which federal agency calculates and reports the official unemployment rate?

A) Bank of Canada
B) Department of Finance
C) Department of Supply and Services
D) Statistics Canada

Question 56

Although accurate,the official measured employment rate by Statistics Canada measures the:

A) underuse of labour that includes discouraged workers,marginally attached workers,and underemployed workers.
B) use of labour based on various demographics.
C) labour force participation rate in a comprehensive way.
D) rate of overuse of labour when workers hold multiple jobs.

Question 57

Economists claim that the unemployment rate can understate the true level of unemployment because the ONLY group that is included is:

A) discouraged workers.
B) marginally attached workers.
C) underemployed workers.
D) workers without jobs who have looked for work in the past 4 weeks.

Question 58

Use the following to answer questions:
(Table: Labour Force Distribution)Use Table: Labour Force Distribution.The unemployment rate is _____%.

A) 3.85
B) 10
C) 4.55
D) 6.75

Question 59

If a country has a working-age population of 200 million,135 million people with jobs,10 million people who were looking for a job but have given up,and 5 million people who are unemployed and seeking employment,then its labour force is _____ million.

A) 150
B) 145
C) 140
D) 135

Question 60

Donna was laid off at the beginning of 2017.She looked for a job for 3 months but could not find anything suitable.She then decided to volunteer for a soup kitchen and stopped looking for a job.Donna is considered to be:

A) unemployed.
B) underemployed.
C) a discouraged worker.
D) a part-time worker.

Question 61

Use the following to answer questions:
(Table: Population Data for Round Lake,British Columbia)Use Table: Population Data for Round Lake,British Columbia.What is the labour force participation rate?

A) 64%
B) 81%
C) 17%
D) 79%

Question 62

Unemployment rates are usually HIGHEST for:

A) Quebec.
B) Newfoundland and Labrador.
C) Ontario.
D) Alberta.

Question 63

For most of Canadian modern economic history,when the unemployment rate is _____,real GDP is _____.

A) falling;rising
B) falling;falling
C) rising;unchanged
D) rising;rising

Question 64

Use the following to answer questions:
(Table: Unemployment and Employment Data)Use Table: Unemployment and Employment Data.The unemployment rate for this economy is _____%.

A) 2.9
B) 4.8
C) 5
D) 5.3

Question 65

Use the following to answer questions:
(Table: Employment Data)Use Table: Employment Data.The unemployment rate is _____%.

A) 6.25
B) 6.45
C) 9.09
D) 9.37

Question 66

Use the following to answer questions:
(Table: Unemployment and Employment Data)Use Table: Unemployment and Employment Data.The labour force in this economy is _____ million.

A) 170
B) 140
C) 100
D) 98

Question 67

In general,expansions are characterized by:

A) increasing unemployment.
B) falling unemployment.
C) decreasing employment.
D) constant employment.

Question 68

Use the following to answer questions:
(Table: Employment Data)Use Table: Employment Data.If marginally attached workers are included in the labour force,the labour force is _____ million.

A) 1
B) 11
C) 32
D) 33

Question 69

People who are counted as unemployed by Statistics Canada are:

A) people without a job who are actively seeking a job.
B) discouraged workers.
C) workers who are underemployed.
D) people without a job who are actively seeking a job,discouraged workers,and workers who are underemployed.

Question 70

If the growth rate of GDP is above its historical average,then there is a tendency for the unemployment rate to:

A) fall to zero.
B) rise.
C) fall.
D) stabilize.

Question 71

According to historical economic data for Canada from 1946 to 2016,the unemployment rate is MOST likely to rise:

A) whenever the economy grows at a rate below 3.62%.
B) only when there is no economic growth.
C) only when there is positive economic growth.
D) whenever the economy grows at a rate between 4% and 4.8%.

Question 72

Use the following to answer questions:
(Table: Population Data for Round Lake,British Columbia)Use Table: Population Data for Round Lake,British Columbia.How many people are in the labour force?

A) 6 000
B) 9 400
C) 7 400
D) 6 500

Question 73

Use the following to answer questions:
(Table: Employment Data)Use Table: Employment Data.The labour force is _____million.

A) 33
B) 32
C) 31
D) 22

Question 74

Use the following to answer questions:
(Table: Unemployment and Employment Data)Use Table: Unemployment and Employment Data.If marginally attached workers are included in the labour force and in the unemployment rate,the unemployment rate in this economy is _____%.

A) 8.4
B) 7.8
C) 5
D) 3

Question 75

In general,for the Canadian economy,the relation between unemployment and economic growth is:

A) positive.
B) direct.
C) neutral.
D) negative.

Question 76

Which statement about unemployment is FALSE?

A) Unemployment always falls during recessions.
B) Unemployment always falls during expansions.
C) There is a strong negative relation between growth in real GDP and changes in unemployment.
D) In general,there is a trade-off between inflation and unemployment in the short run.

Question 77

Use the following to answer questions:
(Table: Unemployment and Employment Data)Use Table: Unemployment and Employment Data.If marginally attached workers are included,the labour force in this economy is _____ million.

A) 170
B) 103
C) 100
D) 98

Question 78

Periods of recession are likely to be marked by:

A) rising unemployment.
B) constant unemployment.
C) increasing employment.
D) constant employment.

Question 79

Use the following to answer questions:
(Table: Employment Data)Use Table: Employment Data.If marginally attached workers are included in the labour force and in the unemployment rate,the unemployment rate is _____%.

A) 39.4
B) 30.3
C) 9.1
D) 6.25

Question 80

During a recession:

A) unemployment and the growth rate of real GDP both decrease.
B) unemployment decreases and the growth rate of real GDP increases.
C) unemployment increases and the growth rate of real GDP decreases.
D) there is no relation between unemployment and the growth rate of real GDP.