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Menu Exit Quiz 3-5 Submitted by jjani on 3/16/2008 5:29:22 PM Points Awarded 20 Points Missed 0 Percentage 100% 1. The unemployment rate is defined as A. the reciprocal of the labor force participation rate. B. the raw number of workers who want a job but do not have one. C. the number of unemployed workers divided by the total adult population. D. the percentage of the labor force that is not employed. Right Points Earned: 1/1 Correct Register to View AnswerYour Response: D 2. If the total population in the U.S. is 275 million, the adult population is 215 million, the number employed is 140 million, and the number of unemployed is 10 million, then the labor force participation rate is ________. A. 69.7% B. 54.5% C. 65.1% D. 50.9% Right Points Earned: 1/1 Correct Register to View AnswerYour Response: A 3. Critics argue that the Bureau of Labor Statistics' measurement of the unemployment rate understates the actual amount of unemployment because it A. does not include children under 18. B. does not factor in part-time employees who would rather have fulltime employment. C. unfairly includes employees who may have been laid off only days prior to the survey. D. calculates the rate in a way that exaggerates the effect of discouraged workers. Right Points Earned: 1/1 Correct Register to View AnswerYour Response: B 4. Which of the following cases is an example of structural unemployment? A. An accountant quits her job to become an investment banker. B. An auto worker is fired for poor job performance. C. A wheat farmer, whose income has plummeted because of a new trade agreement, quits farming and starts looking for a new job. D. A consultant is laid off becuase poor economic conditions have depressed the market for consultants. Right Points Earned: 1/1 Correct Register to View Answer Your Response: C 5. The government is most likely to intervene when ________ unemployment rises sharply. A. structural B. frictional C. seasonal D. cyclical Right Points Earned: 1/1 Correct Register to View AnswerYour Response: D 6. The lowest rate of unemployment that does not create inflationary pressure is called the A. NERU: Non-Expansionary Rate of Unemployment. B. MUR: Minimal Unemployment Rate. C. NAIRU: Non-Accelerating Inflation Rate of Unemployment. D. NRU: Natural Rate of Unemployment Right Points Earned: 1/1 Correct Register to View AnswerYour Response: C 7. The natural rate of unemployment is the sum of __________ unemployment and ___________ unemployment. A. frictional; structural B. cyclical; structural C. frictional; cyclical D. seasonal; cyclical Right Points Earned: 1/1 Correct Register to View AnswerYour Response: A 8. Which of the following factors best supports the relationship illustrated by the Phillips curve? A. When unemployment falls, competition for workers causes wages to rise, and the higher wages are passed along to consumers in the form of higher prices. B. When the economy stays at the NAIRU, inflationary pressures are minimal, leading to a stable inflation rate. C. When unemployment rises, the overall economy can contract, which in turn can lead to a rising inflation rate. D. Lower unemployment leads to increased total income, which increass both consumer spending and GDP. Right Points Earned: 1/1 Correct Register to View AnswerYour Response: A 9. Newer automobiles use many computerized components. "Old style" auto mechanics who lose their jobs because they do not know how to fix the computerized components are an example of A. B. C. D. frictional unemployment. structural unemployment. cyclical unemployment. normal unemployment. Right Earned: Points 1/1 Correct Register to View AnswerYour Response: B 10. When there is full employment (or when the economy is at the natural rate of unemployment), A. unemployment is zero. B. frictional unemployment still exists, but there is no structural or cyclical unemployment. C. unemployment is still positive. D. inflation is zero. Right Points Earned: 1/1 Correct Register to View AnswerYour Response: C 11. When the unemployment rate is above the natural rate of unemployment, the government response is likely to be to A. increase job training programs to retrain unemployed workers. B. implement policies, like tax cuts, to stimulate the economy. C. increase job placement activities. D. any of the above. Right Points Earned: 1/1 Correct Register to View AnswerYour Response: B 12. In 1993 the adult population in the United States was about 195 million people. Of these, approximately 121 million were employed and 9 million were unemployed. Thus, the labor force was ______ million people and the unemployment rate was about ______ percent. A. 195, 4.6 B. 121, 7.4 C. 130, 6.9 D. 204, 4.4 Right Points Earned: 1/1 Correct Register to View AnswerYour Response: C 13. Which of the following does NOT cause unemployment to increase during a recession? A. The labor force shrinks. B. Firms hire fewer workers. C. The duration of unemployment increases. Right Points Earned: 1/1 Correct Register to View AnswerYour Response: A 14. Which government agency is responsible for measuring unemployment? A. The Bureau of the Census. B. The Bureau of Labor Statistics. C. The Council of Economic Advisors. D. all of the above. Right Points Earned: 1/1 Correct Register to View AnswerYour Response: B 15. When output _________, unemployment is expected to ________. A. rises; rise. B. rises; fall. C. falls; remain constant. D. remains constant; fall. Right Points Earned: 1/1 Correct Register to View AnswerYour Response: B 16. The total labor force is comprised of A. the unemployed and the employed. B. only the employed. C. all individuals age 16 or over. D. only full-time employed individuals between the ages of 18 and 55. Right Points Earned: 1/1 Correct Register to View AnswerYour Response: A 17. As the baby boom generation entered the labor force, the natural rate of unemployment increased, probably because A. the labor force was larger. B. frictional unemployment increased. C. structural unemployment increased. D. cyclical unemployment increased. Right Points Earned: 1/1 Correct Register to View AnswerYour Response: B 18. If we compare the unemployment rates across age, race and gender, we find that A. females have higher unemployment rates than males. B. the rate of white unemployment is lower than that for blacks. C. adult workers have lower unemployment rates than teenagers. D. all of the above. Right Points Earned: 1/1 Correct Register to View AnswerYour Response: D 19. Welfare reform in the late 1990s required that recipients seek jobs. Most states implemented training programs for the individuals who entered the labor force off of the welfare roles. This policy is useful for combating _____________ unemployment. A. frictional B. structural C. cyclical D. all three types of Right Points Earned: 1/1 Correct Register to View AnswerYour Response: B 20. Which of the following people should be included in the labor force? A. someone who doesn't have a job and isn't looking for one B. someone who is unemployed C. someone who is 15 years old D. none of the above Right Points Earned: 1/1 Correct Register to View AnswerYour Response: B powered by ANGEL Learning's MindClickTMProcess Technology ... View Full Document

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