Exam 2 SAMPLE QUESTIONS

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Unformatted text preview: ar to year. c. sometimes has some unemployment and that the amount stays constant from year to year. d. sometimes has some unemployment and that the amount changes from year to year. ____ 20. Suppose that some people are counted as unemployed when, to maintain unemployment compensation, they search for work only at places where they are unlikely to be hired. If these individuals were counted as out of the labor force instead of as unemployed, then a. both the unemployment rate and labor‐force participation rate would be higher. b. both the unemployment rate and labor‐force participation rate would be lower. c. the unemployment rate would be lower and the labor‐force participation rate would be higher. d. the unemployment rate would be higher and the participation rate would be lower. 5 Name: ________________________ ID: A ____ 21. Which of the following is not correct? a. Most people who become unemployed will soon find jobs. b. In an ideal labor market, wages would adjust to ensure that all workers are always fully employed. c. The unemployment rate occasionally falls to zero. d. There are always some workers without jobs, even when the overall economy is doing well. ____ 22. 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. ____ 23. Unemployment that exists because it takes time for workers to search for the jobs that suit them best is a. frictional unemployment, which contributes to the natural rate of unemplo...
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This note was uploaded on 06/12/2013 for the course ECON 252 taught by Professor Robertholand during the Fall '08 term at Purdue University-West Lafayette.

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