Question 1

What are the different types of unemployment? Which type of unemployment is most likely to be higher during a recession? Explain your answers briefly.

Accepted Answer

The three types of unemployment are fric...

Question 2

Both highly specialized workers and highly specialized jobs might increase frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 3

The natural unemployment rate fluctuates very little over time.

Accepted Answer

A) True 
 B)False

Question 4

Changing demographics,cultural attitudes about women,and government tax policies all affect:

Accepted Answer

A)   frictional unemployment.
B)   the unemployment rate.
C)   the labor participation rate.
D)   cyclical unemployment.E) None of the above
F) B) and C)

Question 5

The unemployment rate tends to move inversely with real GDP growth in an economy.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following tends to increase unemployment?

Accepted Answer

A)   unemployment benefits
B)   minimum wages
C)   labor unions
D)   unemployment benefits,minimum wages,and labor unionsE) C) and D)
F) A) and B)

Question 7

Oil shocks,the shift from manufacturing to service jobs,and the use of new technologies are reasons for _____ unemployment.

Accepted Answer

A)   frictional
B)   cyclical
C)   structural
D)   permanentE) A) and C)
F) A) and B)

Question 8

Which of the following would NOT be counted as employed?

Accepted Answer

A)   an underemployed person
B)   an employee working overtime every day
C)   a part-time worker
D)   a discouraged workerE) None of the above
F) A) and D)

Question 9

Which of the following does NOT raise structural unemployment?

Accepted Answer

A)   higher union membership
B)   more unemployment benefits
C)   higher minimum wages
D)   active labor market policiesE) All of the above
F) B) and C)

Question 10

More labor regulations are likely to raise structural unemployment.

Accepted Answer

A) True 
 B)False

Question 11

When the unemployment rate is equal to the natural rate,cyclical unemployment is zero.

Accepted Answer

A) True 
 B)False

Question 12

The natural unemployment rate is the rate of _____ unemployment plus the rate of _____ unemployment.

Accepted Answer

A)   cyclical;frictional
B)   structural;frictional
C)   cyclical;structural
D)   frictional and structural;cyclicalE) B) and D)
F) A) and B)

Question 13

Active labor market policies:

Accepted Answer

A)   cause riots in France.
B)   enforce collective bargaining over wages,benefits,and working conditions.
C)   state that an employee may quit and an employer may fire an employee at any time and for any reason.
D)   focus on getting unemployed workers back to work.E) All of the above
F) B) and D)

Question 14

Which of the following is TRUE of frictional unemployment?

Accepted Answer

A)   It arises as a result of too much market competition.
B)   It has a short duration.
C)   It is a result of the minimum wage law.
D)   It rises in a recession.E) B) and D)
F) None of the above

Question 15

Structural unemployment has been more of a problem in the United States than in Europe.

Accepted Answer

A) True 
 B)False

Question 16

Other things being equal,an increase in the number of discouraged workers raises the unemployment rate.

Accepted Answer

A) True 
 B)False

Question 17

The most basic U.S.employment law stipulating that an employee may quit and employer may fire at any time and for any reason is called:

Accepted Answer

A)   affirmative action.
B)   the employee privacy law.
C)   the Equal Employment Opportunity Act.
D)   the employment-at-will doctrine.E) B) and C)
F) A) and D)

Question 18

Structural unemployment is caused by:

Accepted Answer

A)   job rationing.
B)   the time that it takes to match workers and jobs.
C)   periodic declines in business activity that give rise to an inadequate demand for workers in the economy.
D)   long-lasting shocks to permanent features of an economy that make it more difficult for some workers to find jobs.E) C) and D)
F) A) and B)

Question 19

Frictional unemployment is best defined as:

Accepted Answer

A)   long-term unemployment caused by changing features of an economy.
B)   short-term unemployment caused by difficulties of matching employees to employers.
C)   unemployment caused by cyclical conditions of an economy.
D)   a normal level of unemployment caused by high wages.E) None of the above
F) A) and B)

Question 20

In a recession,the actual rate of unemployment in an economy is equal to its natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Exam 11: Unemployment and Labor Force Participation

The unemployment rate tends to move inversely with real GDP growth in an economy.

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The most basic U.S.employment law stipulating that an employee may quit and employer may fire at any time and for any reason is called:

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Changing demographics,cultural attitudes about women,and government tax policies all affect:

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In a recession,the actual rate of unemployment in an economy is equal to its natural rate of unemployment.

Correct AnswerverifiedShow Answer

Active labor market policies:

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Both highly specialized workers and highly specialized jobs might increase frictional unemployment.

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What are the different types of unemployment? Which type of unemployment is most likely to be higher during a recession? Explain your answers briefly.

Correct AnswerverifiedThe three types of unemployment are fric...View AnswerShow Answer

Which of the following is TRUE of frictional unemployment?

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More labor regulations are likely to raise structural unemployment.

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Which of the following tends to increase unemployment?

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When the unemployment rate is equal to the natural rate,cyclical unemployment is zero.

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Which of the following does NOT raise structural unemployment?

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Oil shocks,the shift from manufacturing to service jobs,and the use of new technologies are reasons for _____ unemployment.

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Structural unemployment is caused by:

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Structural unemployment has been more of a problem in the United States than in Europe.

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Which of the following would NOT be counted as employed?

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Other things being equal,an increase in the number of discouraged workers raises the unemployment rate.

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The natural unemployment rate is the rate of _____ unemployment plus the rate of _____ unemployment.

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Frictional unemployment is best defined as:

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The natural unemployment rate fluctuates very little over time.

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The three types of unemployment are fric...
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The natural unemployment rate is the rate of _ unemployment plus the rate of _ unemployment.

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