Economics Practice - MULTIPLE CHOICE. Choose the one...

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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) GDP declines during A) the movement from trough to peak. B) the movement from below potential GDP back to potential GDP. C) the movement from peak to trough. D) a decrease in unemployment. 2) Which of the following would NOT be counted as unemployed? A) a person who is not working but who has tried to find a job in the past week B) a person who is waiting to be called back to a job after having been laid off C) a person who performs traditional housework but does not work outside the home for pay D) a person who is waiting to start a new job in the next 30 days 3) The unemployment rate is defined as the A) number of people not working. B) percentage of the population not working. C) percentage of the labor force not working. D) percentage of the working-age population not working. 4) Suppose the working-age population is 220 million, the labor force is 150 million, and the unemployment rate is 10 percent. The number of unemployed people is A) 15 million. B) 22 million. C) 37 million. D) 7 million. 5) The upward trend in the labor force participation rate since 1961 is explained by the increase in the A) population. B) number of men who work. C) number of discouraged workers. D) number of women who work. 6) Suppose there are currently 100 people unemployed, 1500 people employed, and 2000 people in the working age population. With this information, the labor force participation rate equals 100 times A) 100/1500. B) 100/1600. C) 1500/2000. D) 1600/2000. 7) The real wage rate is A) the nominal wage divided by the price level. B) the nominal wage multiplied by the price level. C) the nominal wage rate divided by the number of employed workers. D) None of the above answers are correct. 8) Frictional unemployment includes A) unemployment caused by normal labor turnover associated with people leaving and entering the labor force. B) unemployment caused by industries moving overseas to better meet foreign competition. C) unemployment caused by a lack of education so that workers do not possess necessary job skills. D) unemployment caused by automation of the workplace that displaces unskilled workers. 9) Andrew just lost his job as a corkscrew operator since his company has found a machine to perform his work tasks. Andrew did not have the skills needed to operate the machine. Andrew has searched for a new job for 6 months and continues to search. Therefore, Andrew is considered to be A) frictionally unemployed. B) a discouraged worker.
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This note was uploaded on 02/25/2009 for the course ACC 101 taught by Professor Fried during the Spring '09 term at Coastline Community College.

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Economics Practice - MULTIPLE CHOICE. Choose the one...

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