Question 1

After their second child was born, Brian decided to stay at home to be with the children. Brian would be classified as:

Accepted Answer

A)  employed. 
B)  unemployed. 
C)  not in the civilian labor force. 
D)  a home production worker.

Question 2

Individuals are considered unemployed if they do not have a job.

Accepted Answer

A) True 
 B)False

Question 3

Use the following diagram to answer the following questions.
 
-Refer to Minimum Wage. The imposition of a minimum wage would:

Accepted Answer

A)  create an excess demand for labor of N1 to N3. 
B)  create an excess supply of labor of N1 to N3. 
C)  create an excess demand for labor of N2 to N3. 
D)  create an excess supply of labor of N2 to N3.

Question 4

The full employment rate of unemployment will change over time as the composition of the labor force and other factors change.

Accepted Answer

A) True 
 B)False

Question 5

The target rate of unemployment is currently about:

Accepted Answer

A)  10 percent. 
B)  6 percent. 
C)  3 percent. 
D)  0

Question 6

If input prices are not "sticky," changes in aggregate supply will quickly eliminate any unemployment caused by a change in aggregate demand.

Accepted Answer

A) True 
 B)False

Question 7

Jack holds two part-time jobs to make ends meet. He loses one of them for sleeping on the job. Jack would be classified as:

Accepted Answer

A)  employed. 
B)  unemployed. 
C)  not in the civilian labor force. 
D)  a home production worker.

Question 8

Job training programs are probably necessary to reduce structural unemployment.

Accepted Answer

A) True 
 B)False

Question 9

Suppose the unemployment rate increases. Which of the following groups is likely to have the most adverse affect?

Accepted Answer

A)  whites. 
B)  blacks. 
C)  Hispanics. 
D)  workers over the age of 20.

Question 10

Frictional unemployment helps the economy to operate more efficiently.

Accepted Answer

A) True 
 B)False

Question 11

Sally quits her job and decides to go on a vacation to recover from hard work over the past several years. Sally would be classified as:

Accepted Answer

A)  employed. 
B)  unemployed. 
C)  not in the civilian labor force. 
D)  a home production worker.

Question 12

Is the following statement true or False? Defend your answer. "Expansionary fiscal and monetary policies would not be very effective in dealing with the unemployment problems experienced by most European nations."

Accepted Answer

The answer of Is the following statement true or False?...

Question 13

Use the following diagram to answer the following questions.
 
-Refer to Minimum Wage. As a result of the minimum wage:

Accepted Answer

A)  N3 to N2 workers are laid off. 
B)  N1 to N2 workers are laid off. 
C)  N1 to N3 workers are laid off. 
D)  the demand for labor will decrease.

Question 14

The unemployment rate is defined as:

Accepted Answer

A)  the number of people not working. 
B)  the number of people in the civilian labor force not working. 
C)  the percent of people not working. 
D)  the percent of people in the civilian labor force not working.

Question 15

Robert has worked for the past twenty years on an assembly line at a General Motors plant. Recently Robert was laid off as robots were put on the line. Robert is experiencing:

Accepted Answer

A)  structural unemployment. 
B)  cyclical unemployment. 
C)  frictional unemployment. 
D)  displacement unemployment.

Question 16

Which of the following results in impediments to accepting employment in most European nations?

Accepted Answer

A)  labor unions. 
B)  relatively high minimum wages. 
C)  relatively large unemployment benefits. 
D)  relatively low tax rates.

Question 17

Which of the following is most likely to result in an increase in structural unemployment?

Accepted Answer

A)  Increases in government spending. 
B)  Decreases in taxes. 
C)  Increases in the rate of growth in the money supply. 
D)  Rapid advances in technology.

Question 18

Tamika worked as an accountant for the past twenty years in an accounting firm. Recently Tamika was laid off as the firm fully computerized the operations. Tamika is experiencing:

Accepted Answer

A)  structural unemployment. 
B)  cyclical unemployment. 
C)  frictional unemployment. 
D)  displacement unemployment.

Question 19

The minimum wage would have the most adverse effect on which of the following groups?

Accepted Answer

A)  Females. 
B)  Males. 
C)  Hispanics. 
D)  Teenagers.

Question 20

Rich is laid off his job. As a result, his income falls by $35,000. This is an example of unemployment's:

Accepted Answer

A)  economic cost to the individual. 
B)  economic cost to society. 
C)  noneconomic cost to the individual. 
D)  noneconomic cost to society.

Exam 13: Unemployment: the Legacy of Recession, Technological Change, and Free Choice

After their second child was born, Brian decided to stay at home to be with the children. Brian would be classified as:

Individuals are considered unemployed if they do not have a job.

Use the following diagram to answer the following questions. -Refer to Minimum Wage. The imposition of a minimum wage would:

The full employment rate of unemployment will change over time as the composition of the labor force and other factors change.

The target rate of unemployment is currently about:

If input prices are not "sticky," changes in aggregate supply will quickly eliminate any unemployment caused by a change in aggregate demand.

Jack holds two part-time jobs to make ends meet. He loses one of them for sleeping on the job. Jack would be classified as:

Job training programs are probably necessary to reduce structural unemployment.

Suppose the unemployment rate increases. Which of the following groups is likely to have the most adverse affect?

Frictional unemployment helps the economy to operate more efficiently.

Sally quits her job and decides to go on a vacation to recover from hard work over the past several years. Sally would be classified as:

Is the following statement true or False? Defend your answer. "Expansionary fiscal and monetary policies would not be very effective in dealing with the unemployment problems experienced by most European nations."

Use the following diagram to answer the following questions. -Refer to Minimum Wage. As a result of the minimum wage:

The unemployment rate is defined as:

Robert has worked for the past twenty years on an assembly line at a General Motors plant. Recently Robert was laid off as robots were put on the line. Robert is experiencing:

Which of the following results in impediments to accepting employment in most European nations?

Which of the following is most likely to result in an increase in structural unemployment?

Tamika worked as an accountant for the past twenty years in an accounting firm. Recently Tamika was laid off as the firm fully computerized the operations. Tamika is experiencing:

The minimum wage would have the most adverse effect on which of the following groups?

Rich is laid off his job. As a result, his income falls by $35,000. This is an example of unemployment's: