Set 3 - Chapter 9 Flashcards
In calculating the unemployment rate, “discouraged” workers who are not actively seeking employment are:
A) Excluded from the labor force
B) Used to determine the size of the labor force
C) Treated the same as part-time workers
D) Included as part of the unemployed
Excluded from the labor force
A nation has a population of 260 million people. Of these, 60 million are retired, in the military, institutionalized, or under 16 years old. There are 188 million who are employed and 12 million who are unemployed. What is the unemployment rate?
A) 4 percent
B) 27 percent
C) 6 percent
D) 9 percent
6 percent
The full-employment rate of unemployment is also called the:
A) Natural rate of unemployment
B) Cyclical rate of unemployment
C) Potential rate of unemployment
D) Frictional rate of unemployment
Natural rate of unemployment
A trough in the business cycle occurs when:
A) Employment and output reach their lowest levels
B) The natural rate of unemployment is at a minimum point
C) The inflation rate is at its lowest level
D) Cyclical unemployment is at a minimum point
Employment and output reach their lowest levels
Which of the following groups declares the start and end of recessions in the U.S.?
A) The Business Cycle Monitoring Committee of the Federal Reserve System
B) The Business Cycle Dating Committee of the National Bureau of Economic Research
C) The Committee on Business Cycles of the Council of Economic Advisers
D) The Business Cycle Tracking Agency of the Department of Commerce
The Business Cycle Dating Committee of the National Bureau of Economic Research
Unemployment rates for skilled workers compared to unemployment rates for unskilled workers are:
A) Lower, because skilled workers tend to be employed in less cyclically vulnerable industries, such as the services and nondurable goods industries
B) Lower, because skilled workers tend to be primarily employed by government at the local, state, and Federal levels
C) Higher, because businesses are less likely to retain the more costly skilled workers no matter what type of industry
D) Higher, because skilled workers tend to be employed in more cyclically vulnerable industries, such as the durable goods industry
Lower, because skilled workers tend to be employed in less cyclically vulnerable industries, such as the services and nondurable goods industries
The recurrent ups and downs in the level of economic activity extending over several years are referred to as:
A) Business startups
B) Economic phases
C) Business cycles
D) Noncyclical fluctuations
Business cycles
Kevin has lost his job in an automobile plant because the company switched to robots for its welding step in the assembly line. Kevin plans to go to technical school to learn how to repair microcomputers. The type of unemployment Kevin is faced with is:
A) Structural
B) Natural
C) Frictional
D) Cyclical
Structural
Which phase of the business cycle would be most closely associated with an economic contraction?
A) Recession
B) Trough
C) Recovery
D) Peak
Recession
Which of the following is the correct way to calculate the unemployment rate?
A) [(unemployed)/(labor force)] × 100
B) [(labor force)/(population)] × 100
C) [(labor force)/(unemployed)] × 100
D) [(unemployed)/(population)] × 100
[(unemployed)/(labor force)] × 100
New college graduates still looking for their first jobs would be classified in the BLS data as:
A) Not yet in the labor force
B) Cyclically unemployed
C) Part of structural unemployment
D) Frictionally unemployed
Frictionally unemployed
A recession is a decline in:
A) The unemployment rate that lasts six months or longer
B) Real GDP that lasts six months or longer
C) The inflation rate that lasts six months or longer
D) Potential GDP that lasts six months or longer
Real GDP that lasts six months or longer
