Reference no: EM131101798

Chapter 15 Unemployment

1. A person who is not employed and claims to be trying hard to find a job but really is not trying hard to find a job

A. is counted as out of the labor force but should be counted as unemployed.

B. is counted as unemployed but should be counted as out of the labor force.

C. is correctly counted as out of the labor force.

D. is correctly counted as unemployed.

2. Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate is

A. always zero.

B. sometimes zero.

C. rarely zero.

D. never zero.

3. If the natural rate of unemployment is 5.2 percent and the actual rate of unemployment is 5.7 percent, then by definition there is

A. cyclical unemployment amounting to 0.5 percent of the labor force.

B. frictional unemployment amounting to 0.5 percent of the labor force.

C. structural unemployment amounting to 0.5 percent of the labor force.

D. search unemployment amounting to 0.5 percent of the labor force.

4. Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called

A. the natural rate of unemployment.

B. cyclical unemployment.

C. structural unemployment.

D. frictional unemployment.

5. Unemployment that results because the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one is called

A. the natural rate of unemployment.

B. cyclical unemployment.

C. structural unemployment.

D. frictional unemployment.

6. Frictional unemployment results from

A. job searching. It is often thought to explain relatively short spells of unemployment.

B. job searching. It is often thought to explain relatively long spells of unemployment

C. a surplus in the some labor markets. It is often thought to explain relatively short spells of unemployment.

D. a surplus in some labor markets. It is often thought to explain relatively long spells of unemployment.

7. Frictional unemployment is

A. not inevitable; rather, it can be reduced to zero by well-designed public policies.

B. not inevitable; rather, it could be reduced to zero if by the elimination of unemployment insurance.

C. inevitable, because at any given time, jobs are being created in some firms and destroyed in other firms.

D. inevitable, because in some industries, wages are always set above the level that brings supply and demand into equilibrium.

8. People who are unemployed because wages are, for some reason, set above the level that brings labor supply and demand into equilibrium are best classified as

A. cyclically unemployed.

B. structurally unemployed.

C. frictionally unemployed.

D. discouraged workers.

9. The natural unemployment rate includes

A. both frictional and structural unemployment.

B. neither frictional nor structural unemployment.

C. structural, but not frictional unemployment.

D. frictional, but not structural unemployment.

10. Frictional unemployment can be the consequence of

A. workers leaving existing jobs to find ones they like better.

B. one industry declining while another is growing.

C. changes in the working conditions offered by competing firms.

D. All of the above are correct.