Question 1

Which of the following people would be included in the labour force?

Accepted Answer

A)  Derrick, who is waiting for his new job to start
B)  Brett, who has become discouraged looking for a job and has quit looking for a while
C)  Homer, an unpaid homemaker
D)  A 20-year-old student who does not work and is not looking for workE) All of the above
F) B) and D)

Question 2

The unemployment rate reported by Statistics Canada clearly understates the true unemployment rate.

Accepted Answer

A) True 
 B)False

Question 3

Consider two people who are currently out of work. Deb is not currently looking for work but would like a job. Although she is not currently searching for work, she has done so at some time in the recent past. Ted is not looking for work, because he doesn't think there are jobs available for which he would qualify. Who does Statistics Canada consider to be a discouraged worker?

Accepted Answer

A)  both Deb and Ted
B)  only Ted
C)  only Deb
D)  Neither Deb nor TedE) A) and B)
F) B) and D)

Question 4

How is the unemployment rate computed?

Accepted Answer

A)  The unemployment rate is computed using the number of unemployment insurance claims filed.
B)  Each adult included in a survey is classified as employed, unemployed, or not in the labour force. Then, the unemployment rate is computed by dividing the number of unemployed persons to the number of persons in the labour force.
C)  The unemployment rate is computed by determining the number of unemployed in the population aged 18 and older.
D)  Every person who does not have a job is considered unemployed.E) A) and B)
F) A) and C)

Question 5

Which of the following Canadian provinces has the highest percentage of unionized workers?

Accepted Answer

A)  Ontario
B)  Quebec
C)  British Columbia
D)  Nova ScotiaE) B) and C)
F) A) and B)

Question 6

Even though most spells of unemployment are short, most unemployment results from long-term unemployment.

Accepted Answer

A) True 
 B)False

Question 7

Employment insurance reduces hardships of unemployment but also increases the amount of structural unemployment.

Accepted Answer

A) True 
 B)False

Question 8

Statistics Canada uses data from each province's unemployment insurance agency to compute unemployment statistics.

Accepted Answer

A) True 
 B)False

Question 9

What impact do employment insurance and unions have on unemployment?

Accepted Answer

A)  Unemployment insurance and unions both create structural unemployment.
B)  Unemployment insurance and unions both create frictional unemployment.
C)  Unemployment insurance creates frictional unemployment and unions create structural unemployment.
D)  Unemployment insurance creates structural unemployment and unions create frictional unemployment.E) B) and C)
F) B) and D)

Question 10

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

Accepted Answer

A)  mismatch between skills and available jobs
B)  economic recession
C)  sectoral changes
D)  unionsE) B) and D)
F) A) and B)

Question 11

What is the effect of unions on wages and employment?

Accepted Answer

A)  Unions are unlikely to affect wages and employment.
B)  Unions raise wages above the competitive equilibrium level.
C)  Unions increase the level of employment in unionized firms.
D)  Unions decrease the level of employment in nonunionized firms.E) B) and C)
F) B) and D)

Question 12

Table 28-1. This table shows the 2007 data for males and females aged 15 and over in the country of Dan.
 
-Refer to Table 28-1. What is the adult labour-force participation rate in Dan?

Accepted Answer

A)  4.12 percent
B)  12.50 percent
C)  37.50 percent
D)  66.67 percentE) A) and B)
F) B) and C)

Question 13

In 2000 in the United Kingdom, the adult population was about 46.5 million, the labour force participation rate was 63.5 percent, and the unemployment rate was 5.8 percent. What was the number of people unemployed?

Accepted Answer

A)  3.7 million
B)  2.7 million
C)  1.7 million
D)  0.7 millionE) C) and D)
F) None of the above

Question 14

Over one-half of the unemployed are recent entrants into the labour force.

Accepted Answer

A) True 
 B)False

Question 15

Why might a favourable change to the economy such as technological change or a decrease in the price of imported oil be associated with an increase in frictional unemployment?

Accepted Answer

Even generally favourable changes will u...

Question 16

If competition laws were applied to unions, which of the following would most likely happen to the natural rate of unemployment?

Accepted Answer

A)  The natural rate of unemployment would increase, other things being the same.
B)  The natural rate of unemployment would decrease, other things being the same.
C)  The natural rate of unemployment would not change.
D)  The effect on the natural rate of unemployment is uncertain.E) None of the above
F) B) and C)

Question 17

Which of the following constitutes the labour force?

Accepted Answer

A)  the number of people who are employed
B)  the number of people who are unemployed
C)  the number of people employed plus the number of people unemployed
D)  the adult populationE) A) and B)
F) All of the above

Question 18

The government operates programs for job training and job information intended to reduce unemployment. Which of the following best describes how economists feel about such programs?

Accepted Answer

A)  Most economists agree that such programs are of no use.
B)  Most economists agree that such programs work very well.
C)  Some economists claim that the government can do these things no better than firms and individuals could do them for themselves.
D)  Some economists believe that the private sector has no role in the process of job search.E) A) and D)
F) B) and D)

Question 19

The U.S. Bureau of Labour Statistics recently reported that there were 48.6 million people over age 25 who had at least a bachelor's degree. Of this number, 38.0 million were in the labour force and 36.9 million were employed. What was the unemployment rate in this group?

Accepted Answer

A)  about 21.8 percent
B)  about 24.1 percent
C)  about 2.9 percent
D)  about 2.3 percentE) A) and C)
F) A) and D)

Question 20

Under which of the following conditions will there be structural unemployment?

Accepted Answer

A)  if some wages are kept above the equilibrium level
B)  if some people choose not to work at the equilibrium wage
C)  if some wages are below the equilibrium level
D)  if conditions for unemployment insurance benefits are relaxedE) All of the above
F) A) and D)

Exam 9: Unemployment and Its Natural Rate

Which of the following constitutes the labour force?

Correct Answer
verified

Table 28-1. This table shows the 2007 data for males and females aged 15 and over in the country of Dan. -Refer to Table 28-1. What is the adult labour-force participation rate in Dan?

Correct Answer
verified

Which of the following Canadian provinces has the highest percentage of unionized workers?

Correct Answer
verified

The unemployment rate reported by Statistics Canada clearly understates the true unemployment rate.

Correct Answer
verified

Why might a favourable change to the economy such as technological change or a decrease in the price of imported oil be associated with an increase in frictional unemployment?

Correct Answer
verified
Even generally favourable changes will u...
View Answer

Employment insurance reduces hardships of unemployment but also increases the amount of structural unemployment.

Correct Answer
verified

How is the unemployment rate computed?

Correct Answer
verified

Over one-half of the unemployed are recent entrants into the labour force.

Correct Answer
verified

What impact do employment insurance and unions have on unemployment?

Correct Answer
verified

Even though most spells of unemployment are short, most unemployment results from long-term unemployment.

Correct Answer
verified

Under which of the following conditions will there be structural unemployment?

Correct Answer
verified

In 2000 in the United Kingdom, the adult population was about 46.5 million, the labour force participation rate was 63.5 percent, and the unemployment rate was 5.8 percent. What was the number of people unemployed?

Correct Answer
verified

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

Correct Answer
verified

Statistics Canada uses data from each province's unemployment insurance agency to compute unemployment statistics.

Correct Answer
verified

Correct Answer
verified

What is the effect of unions on wages and employment?

Correct Answer
verified

Which of the following people would be included in the labour force?

Correct Answer
verified

The government operates programs for job training and job information intended to reduce unemployment. Which of the following best describes how economists feel about such programs?

Correct Answer
verified

The U.S. Bureau of Labour Statistics recently reported that there were 48.6 million people over age 25 who had at least a bachelor's degree. Of this number, 38.0 million were in the labour force and 36.9 million were employed. What was the unemployment rate in this group?

Correct Answer
verified

If competition laws were applied to unions, which of the following would most likely happen to the natural rate of unemployment?

Correct Answer
verified

Exam 9: Unemployment and Its Natural Rate

Which of the following constitutes the labour force?

Correct AnswerverifiedShow Answer

Table 28-1. This table shows the 2007 data for males and females aged 15 and over in the country of Dan. -Refer to Table 28-1. What is the adult labour-force participation rate in Dan?

Correct AnswerverifiedShow Answer

Which of the following Canadian provinces has the highest percentage of unionized workers?

Correct AnswerverifiedShow Answer

The unemployment rate reported by Statistics Canada clearly understates the true unemployment rate.

Correct AnswerverifiedShow Answer

Why might a favourable change to the economy such as technological change or a decrease in the price of imported oil be associated with an increase in frictional unemployment?

Correct AnswerverifiedEven generally favourable changes will u...View AnswerShow Answer

Employment insurance reduces hardships of unemployment but also increases the amount of structural unemployment.

Correct AnswerverifiedShow Answer

How is the unemployment rate computed?

Correct AnswerverifiedShow Answer

Over one-half of the unemployed are recent entrants into the labour force.

Correct AnswerverifiedShow Answer

What impact do employment insurance and unions have on unemployment?

Correct AnswerverifiedShow Answer

Even though most spells of unemployment are short, most unemployment results from long-term unemployment.

Correct AnswerverifiedShow Answer

Under which of the following conditions will there be structural unemployment?

Correct AnswerverifiedShow Answer

In 2000 in the United Kingdom, the adult population was about 46.5 million, the labour force participation rate was 63.5 percent, and the unemployment rate was 5.8 percent. What was the number of people unemployed?

Correct AnswerverifiedShow Answer

Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?

Correct AnswerverifiedShow Answer

Statistics Canada uses data from each province's unemployment insurance agency to compute unemployment statistics.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What is the effect of unions on wages and employment?

Correct AnswerverifiedShow Answer

Which of the following people would be included in the labour force?

Correct AnswerverifiedShow Answer

The government operates programs for job training and job information intended to reduce unemployment. Which of the following best describes how economists feel about such programs?

Correct AnswerverifiedShow Answer

The U.S. Bureau of Labour Statistics recently reported that there were 48.6 million people over age 25 who had at least a bachelor's degree. Of this number, 38.0 million were in the labour force and 36.9 million were employed. What was the unemployment rate in this group?

Correct AnswerverifiedShow Answer

If competition laws were applied to unions, which of the following would most likely happen to the natural rate of unemployment?

Correct AnswerverifiedShow Answer

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
verified
Even generally favourable changes will u...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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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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