Question 1

A country has 50 million people,30 million of whom are adults.Of the adults,5 million are not interested in working,another 5 million are interested in working but have given up looking for work,and 5 million are still looking for work.Of those who do have jobs,5 million are working part time but would like to work full time,and the remaining 10 million are working full time.What is this country's unemployment rate?

Accepted Answer

A)  10%
B)  16.7%
C)  25%
D)  40%E) A) and B)
F) A) and C)

Question 2

Structural unemployment has been a more serious problem in Europe than in the United States because of:

Accepted Answer

A)   a low level of labor regulations.
B)   active labor unions.
C)   more generous unemployment benefits.
D)   much tighter government control.E) All of the above
F) A) and B)

Question 3

Which of the following policies will NOT reduce structural unemployment?

Accepted Answer

A)   job retraining
B)   work tests
C)   job-search assistance
D)   raising unemployment benefitsE) A) and D)
F) A) and B)

Question 4

Individuals who are structurally unemployed tend to be unemployed for long periods of time.

Accepted Answer

A) True 
 B)False

Question 5

When it occurs at the industry level,Joseph Schumpeter's "creative destruction" results in:

Accepted Answer

A)   frictional unemployment.
B)   structural unemployment.
C)   cyclical unemployment.
D)   underemployment.E) A) and B)
F) C) and D)

Question 6

Individuals who have given up looking for work but still would take a job are considered:

Accepted Answer

A)   unemployed workers.
B)   displaced workers.
C)   discouraged workers.
D)   part of the labor force.E) C) and D)
F) B) and C)

Question 7

What factors might increase structural unemployment and what factors might decrease structural unemployment in a given country?

Accepted Answer

Factors that increase structural unemplo...

Question 8

Active labor market policies protect workers who have jobs.

Accepted Answer

A) True 
 B)False

Question 9

Which type of unemployment increased the most during the 2007-2009 recession?

Accepted Answer

A)   cyclical unemployment
B)   frictional unemployment
C)   structural unemployment
D)   search unemploymentE) All of the above
F) B) and C)

Question 10

(Figure: Labor Supply and Demand) Refer to the figure.What is the quantity of labor that is unemployed as a result of the labor union's action to increase its wage demands to $11 an hour?

Accepted Answer

A)   700
B)   1,100
C)   1,800
D)   2,700E) B) and C)
F) A) and C)

Question 11

Identify both the factors that can increase structural unemployment and the policies that can decrease it.

Accepted Answer

Large,long-lasting shocks that require t...

Question 12

The labor force consists of:

Accepted Answer

A)   employed workers only.
B)   adults who do not have a job but who are looking for work.
C)   employed workers and adults who do not have jobs but who are looking for work.
D)   all adult noninstitutionalized civilians.E) A) and B)
F) A) and C)

Question 13

Labor unions tend to decrease unemployment.

Accepted Answer

A) True 
 B)False

Question 14

All individuals who do not have a job are counted as unemployed.

Accepted Answer

A) True 
 B)False

Question 15

The level of labor force participation will be higher as the number of unemployed workers is lower.

Accepted Answer

A) True 
 B)False

Question 16

Increases in the minimum wage will most likely lead to:

Accepted Answer

A)   higher living standards for low-income workers.
B)   higher unemployment.
C)   lower wages in complement industries.
D)   increases in worker education programs.E) A) and D)
F) C) and D)

Question 17

Which of the following is a case of cyclical unemployment?

Accepted Answer

A)   Glenn quit his job to move to another state.
B)   Grace is an accountant temporarily unemployed since tax season has ended.
C)   Garrett lost his job after the company closed during last year's recession.
D)   Gwyneth is still seeking a job that will use her skills in statistics.E) A) and D)
F) B) and C)

Question 18

The labor force consists of all of the adult,noninstitutionalized civilians in a nation.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is an example of an active labor market policy?

Accepted Answer

A)   minimum wage laws
B)   paying unemployed workers who find a job
C)   extending unemployment benefits
D)   worker unionsE) B) and D)
F) B) and C)

Question 20

Which of the following best describes the effects of a major labor union that maintains a union wage above the market wage?

Accepted Answer

A)   The quantity of labor demanded exceeds the quantity of labor supplied,and the unemployment rate increases.
B)   The quantity of labor demanded exceeds the quantity of labor supplied,and the unemployment rate decreases.
C)   The quantity of labor supplied exceeds the quantity of labor demanded,and the unemployment rate increases.
D)   The quantity of labor supplied exceeds the quantity of labor demanded,and the unemployment rate decreases.E) A) and B)
F) A) and C)

Exam 11: Unemployment and Labor Force Participation

What factors might increase structural unemployment and what factors might decrease structural unemployment in a given country?

Correct Answer
verified
Factors that increase structural unemplo...
View Answer

Which type of unemployment increased the most during the 2007-2009 recession?

Correct Answer
verified

The level of labor force participation will be higher as the number of unemployed workers is lower.

Correct Answer
verified

Individuals who are structurally unemployed tend to be unemployed for long periods of time.

Correct Answer
verified

Identify both the factors that can increase structural unemployment and the policies that can decrease it.

Correct Answer
verified
Large,long-lasting shocks that require t...
View Answer

Which of the following is a case of cyclical unemployment?

Correct Answer
verified

All individuals who do not have a job are counted as unemployed.

Correct Answer
verified

Correct Answer
verified

Increases in the minimum wage will most likely lead to:

Correct Answer
verified

(Figure: Labor Supply and Demand) Refer to the figure.What is the quantity of labor that is unemployed as a result of the labor union's action to increase its wage demands to $11 an hour?

Correct Answer
verified

The labor force consists of all of the adult,noninstitutionalized civilians in a nation.

Correct Answer
verified

Individuals who have given up looking for work but still would take a job are considered:

Correct Answer
verified

Structural unemployment has been a more serious problem in Europe than in the United States because of:

Correct Answer
verified

Which of the following is an example of an active labor market policy?

Correct Answer
verified

Which of the following best describes the effects of a major labor union that maintains a union wage above the market wage?

Correct Answer
verified

Which of the following policies will NOT reduce structural unemployment?

Correct Answer
verified

When it occurs at the industry level,Joseph Schumpeter's "creative destruction" results in:

Correct Answer
verified

Active labor market policies protect workers who have jobs.

Correct Answer
verified

Labor unions tend to decrease unemployment.

Correct Answer
verified

The labor force consists of:

Correct Answer
verified

Exam 11: Unemployment and Labor Force Participation

What factors might increase structural unemployment and what factors might decrease structural unemployment in a given country?

Correct AnswerverifiedFactors that increase structural unemplo...View AnswerShow Answer

Which type of unemployment increased the most during the 2007-2009 recession?

Correct AnswerverifiedShow Answer

The level of labor force participation will be higher as the number of unemployed workers is lower.

Correct AnswerverifiedShow Answer

Individuals who are structurally unemployed tend to be unemployed for long periods of time.

Correct AnswerverifiedShow Answer

Identify both the factors that can increase structural unemployment and the policies that can decrease it.

Correct AnswerverifiedLarge,long-lasting shocks that require t...View AnswerShow Answer

Which of the following is a case of cyclical unemployment?

Correct AnswerverifiedShow Answer

All individuals who do not have a job are counted as unemployed.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Increases in the minimum wage will most likely lead to:

Correct AnswerverifiedShow Answer

(Figure: Labor Supply and Demand) Refer to the figure.What is the quantity of labor that is unemployed as a result of the labor union's action to increase its wage demands to $11 an hour?

Correct AnswerverifiedShow Answer

The labor force consists of all of the adult,noninstitutionalized civilians in a nation.

Correct AnswerverifiedShow Answer

Individuals who have given up looking for work but still would take a job are considered:

Correct AnswerverifiedShow Answer

Structural unemployment has been a more serious problem in Europe than in the United States because of:

Correct AnswerverifiedShow Answer

Which of the following is an example of an active labor market policy?

Correct AnswerverifiedShow Answer

Which of the following best describes the effects of a major labor union that maintains a union wage above the market wage?

Correct AnswerverifiedShow Answer

Which of the following policies will NOT reduce structural unemployment?

Correct AnswerverifiedShow Answer

When it occurs at the industry level,Joseph Schumpeter's "creative destruction" results in:

Correct AnswerverifiedShow Answer

Active labor market policies protect workers who have jobs.

Correct AnswerverifiedShow Answer

Labor unions tend to decrease unemployment.

Correct AnswerverifiedShow Answer

The labor force consists of:

Correct AnswerverifiedShow Answer

Correct Answer
verified
Factors that increase structural unemplo...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Large,long-lasting shocks that require t...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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