Which of the following people would be counted in the labor force

| June 13, 2018

SCHOOL OF BUSINESS – 2013
(2012-2)
MACROECONOMICS 2013 HOME
WORK # 8
1. The
labor force consists of all

a.

the people in
the economy who are not retired

b.

people in the
economy over 16 years of age

c.

the adults in
the economy between 18 and 65 years old who are able to work

d.

the
noninstitutionalized population over 16 in the economy who hold jobs or are
looking for them

e.

the citizens
in the economy who are graduates of high school

2. Which
of the following people would be counted in the labor force?

a.

Chou, who lost
his job and last looked for work three months ago

b.

Stephanie, who
holds a Ph.D. in history, but can only find part-time employment at a
fast-food restaurant

c.

Jordan, who
would like to work as a stockbroker but is now a househusband

d.

Stefan, who
thinks he could easily earn $100,000 per year, despite the opinion of the
psychiatrist at the state hospital where he is a patient

e.

Monique, age
90, who is enjoying her retirement in Montana

3. With a total population of 1,000, in the country of Fictivia: 250 people
are working, 150 are retired, 45 people are not working but they are actively
looking for a job, 101 are children too young to work, 20 people dropped out of
the labor force because they won the lottery. How many people are considered
unemployed?

a.

20

b.

45

c.

150

d.

250

e.

295

4. People
who are not currently employed, but say they want a job, are counted as
unemployed only if they

a.

have
previously held a job

b.

are actively
seeking employment

c.

are willing to
accept a reasonable offer

d.

are between 16
and 65 years of age

e.

are willing to
accept any offer of employment

5. A
discouraged worker is one who

a.

is under
qualified for his current job

b.

dislikes his
current job but is afraid to quit

c.

drops out of
the labor force because he cannot find a job

d.

quits his job
because the possibility of advancement was very low

e.

is
overqualified for his current job

6. Suppose
the official unemployment rate is 10 percent. We can conclude without question
that

a.

the same 10
percent of the people in the economy were out of work for the entire year

b.

one of every
ten people in the labor force is currently unemployed

c.

the same 10
percent of the people in the labor force were out of work for the entire year

d.

every person
in the labor force was out of work for 10 percent of the year

e.

10 percent of
the people in the economy were each out of work for 10 percent of the year

7. The
labor force participation rate for women in the United States has

a.

stayed the
same over the last 30 years

b.

increased
significantly since the 1950s

c.

been
influenced by decreasing real wages since 1960

d.

fluctuated substantially
both upward and downward since the 1950s

e.

increased only
very slightly since the 1950s

8. The
labor force participation rate is the number of people

a.

employed
divided by the adult population

b.

employed
divided by the number of people in the labor force

c.

in the labor
force divided by the adult population

d.

unemployed
divided by the number of people in the labor force

e.

in the labor
force divided by the number of people employed

9. Different
demographic groups

a.

have identical
durations of unemployment

b.

have identical
unemployment rates

c.

are weighted
equally in the official unemployment rate

d.

have different
unemployment rates

e.

are weighted
more heavily in the official unemployment rate if they have larger unemployment
rates

10. Juanita
earned a B.S. in engineering and went to work for a defense contractor. When
the government cut spending, Juanita and 99 others were laid off. The only
other business in the town is growing grapes, but the growers refuse to hire
laid-off engineers, knowing they will leave at the first opportunity. The
unemployment Juanita is experiencing is

a.

Cyclical

b.

Structural

c.

Seasonal

d.

Frictional

e.

Voluntary

11. Frictional
unemployment refers to unemployment that results from

a.

a mismatch of
skills

b.

being in the
wrong geographical location

c.

taking the
time to find the best job

d.

seasonal
decreases in demand for labor

e.

a recession in
the economy

12. Seasonal
unemployment refers to unemployment that results from

a.

a mismatch of
skills

b.

being in the
wrong geographical location

c.

taking the
time to find the best job

d.

seasonal
decreases in demand for labor

e.

a recession in
the economy

13. Structural unemployment refers to
unemployment that results from

a.

inefficiencies
in the market for labor that prolong the job search

b.

being in the
wrong geographical location

c.

taking the
time to find the best job

d.

seasonal
decreases in demand for labor

e.

a recession in
the economy

14. Cyclical unemployment results from

a.

a mismatch of
skills

b.

being in the
wrong geographical location

c.

taking the
time to find the best job

d.

seasonal
decreases in demand for labor

e.

a recession in
the economy

15. Which
of the following types of unemployment is the hardest to reduce?

a.

Cyclical

b.

Structural

c.

Voluntary

d.

involuntary

e.

speculative

16. Which
type of unemployment is likely to increase the most in a recession?

a.

frictional
unemployment

b.

seasonal
unemployment

c.

structural
unemployment

d.

cyclical
unemployment

e.

employment

17. Full
employment

a.

exists when
everyone in the economy has a job

b.

exists when
everyone who wants a job has one

c.

exists when
the unemployment rate is zero

d.

exists when everyone
in the labor force has a job

e.

will always
include some unemployment

18. Which
of the following is not consistent with full employment?

a.

an
unemployment rate of 5 percent or 6 percent

b.

seasonal
unemployment

c.

structural
unemployment

d.

cyclical
unemployment

e.

frictional
unemployment

19. One consequence of an increase in the unemployment benefits is a reduced
incentive to find a job.

a.

True

b.

False

20. Because of the way discouraged workers
and part-time employment are measured, the official unemployment rate

a.

overstates the
unemployment problem

b.

understates
the unemployment problem

c.

truly reflects
the level of unemployment

d.

overstates the
size of the labor force

e.

understates
the size of the labor force

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