Chapter 8 (8.1) Flashcards
The most difficult part of measuring the amount of unemployment is
deciding who to include in the Current Population Survey.
defining and measuring the working-age population.
defining and measuring who is in the labor force.
None of the above are correct.
defining and measuring who is employed.
defining and measuring who is in the labor force.
To be counted as unemployed, a person must
not currently be in the labor force.
have had a job sometime in the past.
be actively looking for work.
be looking for work for at least a week.
be looking for work for at least two weeks.
be actively looking for work.
In an economy, the working-age population is 150 million, the labor force is 95 million, and 75 million are employed. What is the unemployment rate?
10.2 percent
25.4 percent
21.1 percent
5.5 percent
12.8 percent
21.1
Discouraged workers are not part of the labor force.
true
false
true
If more women decide to enter the labor market,
the labor force participation rate will immediately decrease.
the employment-to-population ratio will immediately increase.
the labor force participation rate will immediately increase.
the employment-to-population ratio will immediately decrease.
the unemployment rate will immediately decrease.
the labor force participation rate will immediately increase.
If people have more children, the unemployment rate will increase when the children enter the work force.
true
false
false
Which of the following would cause aggregate hours to increase?
a decrease in the working-age population
a decrease in the number of hours worked per employed worker
an increase in the number of part-time workers
a decrease in the employment-to-population ratio
an increase in the employment-to-population ratio
an increase in the employment-to-population ratio
Cyclical unemployment can best be described as the
increase in unemployment above the natural rate during and in the aftermath of recessions.
increase in unemployment when the economy is in a boom.
amount of unemployment when real and potential GDP are equal.
amount of unemployment when real and nominal GDP are equal.
increase in unemployment when the economy is in a recession.
increase in unemployment above the natural rate during and in the aftermath of recessions.
The natural unemployment rate includes
real and nominal unemployment.
cyclical and natural unemployment.
cyclical and real unemployment.
frictional and structural unemployment.
real and natural unemployment.
frictional and structural unemployment.
The natural rate of unemployment is equal to zero when the economy is at full capacity.
true
false
false
