Chapter10(Practicequestion)

Chapter10(Practicequestion) - Chapter 10-Unemployment and...

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Chapter 10—Unemployment and Its Natural Rate 1. The natural rate of unemployment is the a. unemployment rate that would prevail with zero inflation. b. rate associated with the highest possible level of GDP. c. difference between the long-run and short-run unemployment rates. d. amount of unemployment that the economy normally experiences. 2. Which of the following is correct? a. Some degree of unemployment is inevitable. b. Other things the same an increase in the number of people who are unemployed decreases real GDP. c. Cyclical unemployment is inversely related to short-run economic fluctuations. d. All of the above are correct. 3. Which list includes all the categories into which Statistics Canada divides the adult population? a. employed or unemployed b. discouraged workers, employed, or unemployed c. employed, unemployed, or not in the labour force d. discouraged workers, employed, or not in the labour force 4. Sally is on a temporary layoff from the factory where she makes plastic tableware. If Sally participates in the Statistics Canada survey, she will be classified as a. unemployed and in the labour force. b. unemployed and out of the labour force. c. employed and in the labour force. d. employed and out of the labour force. 5. Which of the following correctly ranks categories from smallest to largest according to recent Canadian values? a. unemployed, employed, not in labour force b. unemployed, not in labour force, employed c. not in labour force, employed, unemployed d. not in labour force, unemployed, employed 6. Which of the following definitions is correct? a. Labor force = number of employed. b. Labor force = population - number of unemployed. c. Unemployment Rate = (number of unemployed ÷ [number of employed + number of unemployed]) × 100. d. Unemployment Rate = (number of unemployed ÷ adult population) × 100. 7. Matt loses his job and decides to sit around at home for a few months. Ceteris paribus, the unemployment rate a. increases, and the labour-force participation rate is unaffected. b. increases, and the labour-force participation rate increases. c. decreases, and the labour-force participation rate increases. d. decreases, and the labour-force participation rate decreases. 8. Tara has just finished school, but she is going to roam around the country awhile before she starts looking for work. As a result, the unemployment rate a. increases, and the labour-force participation rate increases.
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b. is unaffected, and the labour-force participation rate is unaffected. c. increases, and the labour-force participation rate decreases. d. increases, and the labour-force participation rate is unaffected. 9. Between 2001 and 2002, the country of Aquilonia reported an increase in the number of people who were employed. It also reported an increase in the unemployment rate. Which of the following would best explain the two reports? a.
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This test prep was uploaded on 04/18/2008 for the course ECO 1102 taught by Professor Davidgray during the Spring '08 term at University of Ottawa.

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Chapter10(Practicequestion) - Chapter 10-Unemployment and...

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