Download Week 8 In-Class Unemployment

In-Class: Chapter 15 Unemployment
____ 11. The deviation of unemployment from its natural rate is called
a. the unnatural rate of unemployment.
b. structural unemployment.
c. frictional unemployment.
d. cyclical unemployment.
____ 12. Cyclical unemployment refers to
a. the relationship between the probability of unemployment and a worker's changing level
of experience.
b. how often a worker is likely to be employed during her lifetime.
c. year-to-year fluctuations of unemployment around its natural rate.
d. long-term trends in unemployment.
____ 13. The designation "natural" implies that the natural rate of unemployment
a. is desirable.
b. is constant over time.
c. is impervious to economic policy.
d. does not go away on its own even in the long run.
____ 14. Egzon is working part-time. Dijana is on temporary layoff. Who is included in the Bureau of Labor
Statistics’ “employed” category?
a. only Egzon
b. only Dijana
c. both Egzon and Dijana
d. neither Egzon nor Dijana
____ 16. If an unemployed person quits looking for work, then, other things the same, the unemployment rate
a. decreases and the labor-force participation rate is unaffected.
b. and the labor-force participation rate both decrease.
c. is unaffected and the labor-force participation rate decreases.
d. and the labor-force participation rate are both unaffected.
____ 17. The Bureau of Labor Statistics reported in 2005 that there were 28.19 million people over age 25 who had
no high school degree or its equivalent, 11.73 million of whom were employed and 1.04 million of whom
were unemployed. What were the labor-force participation rate and the unemployment rate for this
group?
a. 41.6% and 3.7%
b. 41.6% and 8.1%
c. 45.3% and 3.7%
d. 45.3% and 8.1%
____ 21. Some individuals would like to have a job, but they have given up looking for a job after an unsuccessful
search. These individuals are called
a. unattached workers, and they are classified by the Bureau of Labor Statistics as
unemployed.
b. unattached workers, and they are not classified by the Bureau of Labor Statistics as
unemployed.
c. discouraged workers, and they are classified by the Bureau of Labor Statistics as
unemployed.
d. discouraged workers, and they are not classified by the Bureau of Labor Statistics as
unemployed.
In-Class: Chapter 15 Unemployment
____ 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 unemployment.
b. frictional unemployment, which does not contribute to the natural rate of unemployment.
c. structural unemployment, which contributes to the natural rate of unemployment.
d. structural unemployment, which does not contribute to the natural rate of unemployment.
____ 25. Of the following groups, who is eligible for unemployment insurance benefits?
a. the unemployed who quit their jobs
b. the unemployed who were laid off because their previous employers no longer needed
their skills
c. the unemployed who were fired for cause
d. the unemployed who just entered the labor force
____ 27. Which of the following is not correct?
a. Frictional unemployment results from the process of matching workers and jobs.
b. Structural unemployment results when the number of jobs is insufficient for the number of
workers.
c. Minimum wages are the predominant reason for unemployment in the U.S. economy.
d. When a minimum-wage law forces the wage to remain above the level that balances
supply and demand, it raises the quantity of labor supplied and reduces the quantity of
labor demanded compared to the equilibrium level.