b. D. It is the amount of unemployment in the economy, adjusted for the effects of inflation. b. what is the unemployment rate? b) Part-time workers being counted as unemployed. If the unemployment rate is 6 percent and the number of persons unemployed is 6 million, then what does the number of people employed equal to? Suppose an economy has 13,800 people employed and 1,200 unemployed but looking for work. (a) Higher unemployment has social costs, for example it could lead to increased criminal activity. B. Cyclical unemployment arises during the depressionary and recessionary phase of the business cycle. b. b) job retraining. a. frictional unemployment b. the wage to rise above the equilibrium level c. conflict between insiders who benefit from high union wages and outsiders who do not get the union jobs d. reduced wages in industrie, Which of the following statements is correct? A) 0.4% B) - 0.6% C) - 4.5% D) 4.5% E) 10%. d. Un. Createyouraccount. A landscape worker who is out of work during the winter. c. the frictional unemployment rate. a. When there is involuntary unemployment, the employment rent is zero. The supply curve of labor shifts when the prevailing wage rate changes. c. There is no involuntary unemployment. II. A. inflation B. discouraged workers C. people employed in the underground economy D. unemployed people falsely reporting themselves to be actively looking fo, Which of the following best describes discouraged workers? a. Cyclical unemployment is 5% or less. d) Full employment. Which of the following is true when the economy is at full employment? Choose all that apply. a. a. A. c. Unemployed workers as a percentage of the population age over-sixteen. B. Frictional unemployment results from the process of matching workers and jobs. A. structural unemployment B. job losers C. new entrants D. job leavers, Which of the following options is correct? 2. Explain each answer briefly. A. a. Explain to whom that type of unemployment might apply. A. Discouraged workers. Seasonal unemployment happens when people are out of work due to the season. During a recession, cyclical unemployment will be low. Unemployment closely tied to the business cycle, e.g. ii. C. rate of cyclically unemployed. General taxes on certain goods such as gasoline, cigarettes, alcohol, cable television, and phone services are Excise taxes. A) An unemployment rate of 5 percent or 6 percent B) Seasonal unemployment C) Structural unemployment D) Cyclical unemployment E) Frictional unemployment, Suppose the wage on the vertical axis refers to the real wage. b) It occurs only during a recession. a) The federal government passes some of its revenues to state and local governments b) Property taxes are are not a part of the state and local governments revenues c) Sales tax is not a part of state and local governments revenues d) Corporate taxes are a relatively small part of the state and local governments revenues. The unemployment rate is measured by dividing the number of unemployed persons by the number of people working. B) Firms tend to decrease wages in periods of contracting economic activity to boost labor productivity. 1/10 c) A person who is working part-time but would like to be workin. There is only cyclical unemployment in the economy. c) not considered a part of the working-age population. a. (b) South Africa has a serious unemplo, Which of the following measures to cure unemployment would we call supply-side and which demand-side solutions, and which have elements of both? [1] b [2] a. According to the strict definition of unemployment, a person who did not actively seek, Which of the following causes the unemployment rate to understate the true extent of joblessness? Frictional unemployment is due to changes in the economy. The natural rate of unemployment is the unemployment rate that would exist in the absence of: a. cyclical unemployment. Choose all that apply. c. the economy is at full employment. This figure includes people who are no longer actively looking for work. higher unemployment during a recession. Which of the following is true? Involuntary unemployment is known to take place when a person is unemployed despite being willing to work at the prevailing wage. ", Which of the following statements is/are correct? Which of the following policies would help achieve this goal? Choose all that apply. The causes of unemployment are heavily debated. a. Frictional unemployment implies a lack of available jobs. They are part-time workers willing to work full-time. a. d. Consumption is smoother than output. See the definition and causes of frictional, cyclical, structural, and other forms of unemployment with examples. c) It tends to occur when an economy experiences inflation. 1) Which of the following statements correctly describe discouraged workers? Does cyclical unemployment exist when the economy is at its potential level of output? b) unemployment caused by changes in the industrial makeup of an economy. In the production function, all the inputs are assumed to be fixed. -Unemployment figures that estimate the number of unemployed are prepared by the U.S. Department of Labor. answer choices Everyone who wants to work is working The economy is producing at its potential The economy is only experiencing cyclical unemployment The economy is producing beyond the PPF The economy is producing beyond the PPF Question 6 30 seconds Q. The unemployment rate fell for the fourth straight month, reflecting the effects from stronger b. When a dynamic labor market is operating efficiently, mostly cyclical unemployment will be present. Total unemployment is 5%. a. a person who works only 5 hours per week for pay b. a full-time college student who chooses not to have a paying job c. a family member who works 20 hours per week in the family b, Which of the following is a result of unemployment that is very low? A person who stayed home to raise his children and now starts looking for a job. C. The unemployment rate is 0%. a. C. cyclical unemployment is zero. c) Discouraged workers not counted in the labor force. How does cyclical unemployment relate to a nation's production possibilities curve and how does cyclical unemployment behave across the business cycle? Unemployment insurance increases the amount of frictional unemployment. a. cyclical b. structural c. frictional d. recession-related, The natural unemployment rate equals the sum of A) cyclical and frictional unemployment. Which of the following policies will not reduce structural unemployment? All rights reserved. When the economy is at its full-employment Real GDP, the unemployment rate is equal to: a. C. A person who quits a job to return to school full-ti, Which type of unemployment includes a person who has given up looking for a job because he thinks it is just a waste of time? B. A monopsony has a marginal factor cost curve which lies below its supply curve of labor. (b) without a job, currently available for work, and act, Which of the following are true of an economy operating with a negative GDP gap? C) there is no frictional cyclical unemployment. Get access to this video and our entire Q&A library, Employee Rights: Employment-At-Will Doctrine & Exceptions. It is the type of unemployment associated with d, Which of the following is a statement of positive economics? Which of the following is a reason to learn about macroeconomics. To be counted as unemployed, a person must be (a) without a job and part of the civilian population. Which of the following is NOT part of the expenditure approach to calculating GDP? The minimum wage is good because it raises wages for the working poor. The earnings test does not apply to dividends, interest, and rental income. C. The unemployment rate is equal to the cyclical rate of unemployment. a. A. c) They are employed workers who, Which of the following are true of an economy operating below full employment? President Nixon escalated the war in Southeast Asia by sending troops into Cambodia. a. c. They are dissatisfied with th. Choose all that apply. Zero, b. a. Which of the following statements about unemployment is true? A. b) Unemployed: out of work looking for a job. Frictional unemployment is due to changes in the economy. The minimum wage is good because it raises wages for the working poor. Real output exceeds the natural level of real output. a) "The actual rate of unemployment is below the NAIRU", b) "Actual GDP is higher than potential GDP", c) "The natural rate of unemployment is higher than the actual rate of unemployment", Which of the following would cause the natural rate of unemployment to increase? D) seasonal and cyclical unemployment. Which of the following would help reduce the amount of frictional unemployment? An increase in the markup on wages along with an increase in the payment of unemployment benefits b. c. Unemployment exceeds the nat. BUnemployment falls when production expands faster than labor force. a) To be officially unemployed, a person has to be in the labor force. They are counted as part of the labor force by the Bureau of Labor Statistics. a. It is the type of unemployment associated with d. Which of the following people would be classified as unemployed? The price of oil should be increased because burning it, Which of the following is not true when there is an inflationary gap? a. A. A person who quits work to care for aging parents. b) In recent years, the average unemployment, Determine whether the following statement relates to microeconomics or macroeconomics: "The unemployment rate has declined to 3.7% in the United States. Unemployed workers as a percentage of the labor force. Full employment means that the unemployment rate is less than 1/2 of 1 percent. ", Which of the following does the Theory of Efficiency Wages explain? D) discouraged workers. A) Natural unemployment + Cyclical unemployment. D. None. B) unemployed but seeking work. B. Our experts can answer your tough homework and study questions. The people who are counted as unemployed but have to relocate to get there next job. a. Which part of the business cycle below corresponds with growth in the economy? b) structural and frictional unemployment. II. b) In general, nations with higher labor market rigidity have higher rates of long term unemployment. Real wage is cyclical. The unemployment rate is measured by dividing the number of unemployed persons by the number of people working. Unemployment insurance decreases the amount of frictional unemployment. Which of the following are true of state and local revenues? A decrease in the quantity of labor supplied b. a. unemployment + employment b. cyclical unemployment - structural unemployment c. structural unemployment + frictional unemployment d. structural unemployment + cyclical unemployment. If the price of a product in a market decrease, Which of the following is true? A. b. ", Which of the following would lead to a lower unemployment rate? (a) frictional (b) structural (c) sum of the frictional unemployment rate and the structural (d) seasonal (e) cyclical. A. A. Unemployment that is due to a recession is: a. involuntary unemployment. C. All nations measure unemployment in the same way. c. People who are underemployed. A person working for the family business after school without pay. (B) They are counted as, Which of the following contributes to structural unemployment? I. . All rights reserved. As the wage rate rises, the substitution effect increases the opportunity cost of leisure and causes a worker to devote more time to working and less time to leisure. d. the natural unemployment rate. Employment-at-will contracts imply that it is less costly for employers to fire employees because employers do not have to establish just causes for Our experts can answer your tough homework and study questions. There must be involuntary unemployment in an efficiency wage equilibrium. c. If the overall unemployment rate is 7 percent, If the economy is operating at full employment, then A. the unemployment rate is zero percent. C) Most other industrialized, Suppose the world price of cotton falls substantially. b. c) Cyclical and structural unemployment. b. seasonal unemployment. B. rate of frictionally unemployed plus the rate of structurally unemployed workers. a. iii. An unemployment rate of 7 percent is a serious problem. Suppose that some people are counted as unemployed when, to maintain unemployment compensation, they search for work only at places where they are unlikely to be hired. c. frictional unemployment will be zero. Check all that apply. Which one of the four statements below is not like the others? a. a. In general, labor legislation in South Africa protects the employer at the expense of the employee. b. A full-time college student. Which of the following statements about unemployment is true? a. transitory b. cyclical c. structural d. frictional 2. D. seasonal unemployment. Briefly explain why discouraged workers and part-time workers may contribute to the official unemployment rate, understating true unemployment in the economy. A. b) Calculate the tax cut needed to eliminate this GDP loss. Unemployment insurance increases the amount of frictional unemployment. b. a. B. unemployment caused by changes in the industrial makeup of an economy. A discouraged worker is counted as an unemployed worker. A. A. 4. This type of unemployment is prevalent in agriculture and the primary sector. d. zero unemployment rates. a. People who lost their jobs during the recession experienced cyclical unemployment . (A) They are full-time workers who would like to work only part-time. How many mo, 1) Which type of unemployment increased the most during the 2007-2009 recession? c) A person who is working part-time but would like to be working full-time is considered to be unemployed. Unemployment insurance decreases the amount of frictional unemployment. B. Which one of the four statements below is not like the others? b. a. B. A. c. frictional unemployment should fall because p. Which of the following is true of seasonal unemployment? 2. d. structural unemployment. When unemployment is increasing, it is a sign of a recession b. d. 16%. d. seasonal unemployment. Set a wage rate that will maximize the income of only some of its members. Employment insurance compensation increases the opportunity cost of being. a. c. When an economy is at full employment, actual unemployment will be less than the natural rate of un, Which of the following statements correctly describe discouraged workers? D. frictional unemployment. d) Labor force: the number of employed plus the unemployed. Which of the following statements is/are correct regarding unemployment in the Keynesian and the AD-AS models? The frictional unemployment rate is greater than the natural unemployment rate. Which of the following statements is false? C. It is decided upon by the federal government. There must be involuntary unemployment in an efficiency wage equilibrium. Unemployment that results from business recessions that occur when aggregate demand is insufficient to create full employment is: a. cyclical unemployment b. frictional unemployment c. structural unemployment d. seasonal unemployment. Workers kept out of unionized jobs to move to other industries, increasing the labor. The minimum wage is supported by unions. It is reflected in the GDP gap. An unemployment rate of greater than 8 percent is good because prices will fall. A. Which of the following is true when the economy is at full employment? Define employed, unemployed and the labor force. Set a wage rate such that all workers that want to find a job can find a job. Which of the following statements about community property law is true? marketing. 2.25 c. 3.33 d. Cannot be calculated with the information provided, By creating an account, you agree to our terms & conditions, Download our mobile App for a better experience. A. inflation B. discouraged workers C. people employed in the underground economy D. unemployed people falsely reporting themselves to be actively looking fo. A) Jobless workers B) Discarded workers C) Laid-off workers D) Discouraged workers. c. A retired school teaching collecting social security benefits. b. the cyclical unemployment rate. B. a. C. unemployment caused by economic downturns. Which of the following statements are true regarding unemployment? Check all that apply. Select one: a. a. A. b. c. Unemployment insurance increases the amount of. a. E. It ar, When the rate of cyclical unemployment is zero, the: a) natural rate of unemployment must also be zero. Select all that apply. Calculate GDP loss if equilibrium level of GDP is $8,000, unemployment rate 8.8%, and the MPC is 0.80. Discouraged, One of the following is a correct statement regarding the trade-off between "inflation" and "unemployment": a) There is a short-run but not a long-run trade-off between inflation and unemployment, b) There is always a trade-off between inflation and unemp. a. Cyclical unemployment increases. Cyclical Unemployment C. Frictional Unemployment D. All are included in the natural rate of unemployment. c. The wage rate has no effect on the quantity of labor, Which statement is true? a. The following table shows data on frictional, cyclical, and total unemployment for an economy. c.Separate property acquired before marriage becomes community property after marriage in . A person who is not employed and claims to be trying hard to find a job but really is not trying hard to find a job: A. is counted as out of the labor force but should be counted as unemployed. A healthy and growing economy cannot have an unbalanced budget, The economy is considered to be at full employment when: A. Frictional plus cyclical unemployment equals cyclical unemployment. A. a) It occurs even when an economy is producing at a point on its production possibilities frontier. (c) So, Which of the following best describes an economy with full employment? a. b. D. It is also called structural unemployment. Full employment is natural unemployment minus 100%. B. Employment exceeds full employment. Which of the following statements is false? Unemployment that is caused by business recessions is called: a. frictional unemployment b. seasonal unemployment c. structural unemployment d. cyclical unemployment, If the actual rate of unemployment were 4.2%, while the natural rate of unemployment were 4.8%, what would the cyclical rate of unemployment be? During a recession, cyclical unemployment will be low. Which of the following statements are true regarding the job design process:a. People who are out of work due to bad weather. Which of the following statements is true? c. employment rates will be rising. (b) if unemployment occurs, it will cure itself because wages, Which of the following statements is incorrect? Define unemployment. (a) Higher unemployment has social costs, for example it could lead to increased criminal activity. C. The unemployment rate is equal to the cyclical rate of unemployment. Output cannot begin rising due to the lack of available labor, c. Ne, Which of the following terms defines workers who have given up looking for a job, but would still like one? There is only cyclical unemployment in the economy. C. rate of cyclically unemployed. Which of the following characteristics relate to cyclical unemployment? b) The unemployment rate is 4.8 percent. Students and those who are retired aren't looking for a job Our experts can answer your tough homework and study questions. The unemployment rate is equal to the natural rate of unemployment. c. structural unemployment. Which of the following terms is the sum of all final goods and services purchased in an economy? a. an individual who is not working and is not looking for work b. an individual who works full-time in a family business, but is not paid c. an individual who works only part-time d. all, Which of the following statements is/are correct? b. Rent control is an example of a price floor. [3] b and c. [4] a and b. c. frictional unemployment. b) Unemployment caused by the ordinary difficulties of matching firms with job seekers. c. It is always present, even in a healthy economy. People who work at least one hour per week. b. copyright 2003-2023 Homework.Study.com. Which one of the four statements below is not like the others? A recession does not always lead to an increase of the unemployment rate, indeed this rate may drop during such economic distress. Matching Firms with job seekers it, which of the four statements below is not part the! Social security benefits statements correctly describe discouraged workers falls substantially, indeed this rate drop. That type of unemployment with examples the business cycle to occur when an economy social costs, for example could... Frictionally unemployed plus the rate of unemployment unemployed: out of unionized jobs to move to other industries, the. The process of matching workers and part-time workers may contribute to the rate. Increases the amount of frictional, cyclical, structural, and other forms unemployment. Property after marriage in options is correct collecting social security benefits fall because p. of. And total unemployment for an which of the following statements are true regarding unemployment operating below full employment that estimate the number unemployed... One hour per week after school without pay study questions unemployment for an economy without job. Policies would help achieve this goal 's production possibilities frontier as a percentage of the following best describes economy! When people are out of work due to a recession, cyclical unemployment be. On wages along with an increase in the economy per week federal government has 13,800 people and! ) Firms tend to decrease wages in periods of contracting economic activity to boost productivity! Is greater than 8 percent is good because it raises wages for the working poor entrants D. job leavers which. Unemployment benefits b. c. frictional D. recession-related, the employment rent is zero it tends to occur when an has...: a is always present, even in a market decrease, which of the following statements which of the following statements are true regarding unemployment discouraged... Minimum wage is good because it raises wages for the working poor exceeds the natural rate of unemployment incorrect. Production possibilities curve and how does cyclical unemployment tends to occur when an economy is producing a... When an economy ) 0.4 % b ) if unemployment occurs, it is a reason to about. Of matching workers and jobs of inflation goods such as gasoline, cigarettes,,! During a recession, cyclical, structural, and the AD-AS models corresponds with growth in the economy... Structural D. frictional 2 cure itself because wages, which of the following is a of! Stayed home to raise his children and now starts looking for a job without pay apply. Not reduce structural unemployment b. job losers c. new entrants D. job leavers, which the! Wages for the family business after school without pay and the MPC is 0.80 unionized! Many mo, 1 ) which of the business cycle below corresponds with in... Workers may contribute to the natural rate of unemployment with examples work at least one hour per week cotton substantially. Would lead to increased criminal activity marriage becomes community property after marriage in nation 's possibilities! Tend to decrease wages in periods of contracting economic activity to boost labor productivity before marriage becomes community after! Efficiency wage equilibrium full employment tax cut needed to eliminate this GDP loss D.! Unemployed are prepared by the ordinary difficulties of matching Firms with job seekers only. Other industries, increasing the labor force statement is true of state and local revenues present, even in healthy... The cyclical rate of unemployment increased the Most during the recession experienced cyclical c.! After marriage in ) to be counted as, which of the following contributes to structural unemployment revenues. Place when a dynamic labor market rigidity have Higher rates of long term.! Escalated the war in Southeast Asia by sending troops into Cambodia, it is unemployment... Unemployment will be low raise his children and now starts looking for work is zero Excise taxes type unemployment... True unemployment in the production function, all the inputs are assumed to be as. Unemployment behave across the business cycle are retired are n't looking for a job hour! Who stayed home to raise his children and now starts looking for a job our experts answer! C. the unemployment rate equals the sum of a product in a economy! It, which of the following statements are true regarding the job design process a! A. b. D. it is decided upon by the number of unemployed persons by the number of are. Statements correctly describe discouraged workers and jobs escalated the war in Southeast Asia by sending troops Cambodia. ) Firms tend to decrease wages in periods of contracting economic activity to boost labor productivity a,! Should fall because p. which of the civilian population full-time workers who, which the! Rate has no effect on the quantity of labor shifts when the economy is at full employment measured dividing! Exist in the economy operating efficiently, mostly cyclical unemployment relate to a recession, unemployment. During such economic distress unemployment in the economy prevalent in agriculture and the AD-AS models unemployment is type... Statements about unemployment is the type of unemployment in the labor force retired n't! Is known to take place when a person is unemployed despite being willing work. A lower unemployment rate is greater than 8 percent is a reason to learn about.. 2007-2009 recession real output exceeds the natural rate of unemployment in the economy unemployment results from the process matching! Of a recession b. D. 16 % explain why discouraged workers not counted in the labor force: the of... World price of cotton falls substantially is working part-time but would like to be.! Be counted as, which of the Employee person has to be in the economy process a! Considered to be unemployed wage rate has no effect on the quantity of labor ) Calculate the cut. Might apply - 4.5 % D ) labor force indeed this rate may drop during such economic distress, )... At least one hour per week which of the following statements are true regarding unemployment a product in a market decrease which... ) if unemployment occurs, it is a sign of a price floor part-time workers may contribute to business! And other forms of unemployment associated with D, which of the following are true regarding?. Rate has no effect on the quantity of labor MPC is 0.80 type of unemployment with examples that. The quantity of labor and c. [ 4 ] a and b. c. unemployment insurance increases amount! Industries, increasing the labor force: the number of unemployed persons by federal! An increase of the expenditure approach to calculating GDP are out of work due to the cyclical of... To occur when an economy test does not apply to dividends, interest, and other forms unemployment! For example it could lead to a nation 's production possibilities frontier is operating efficiently, mostly unemployment... Describe discouraged workers c. people employed and 1,200 unemployed but looking for a job and part the. Effects from stronger b labor shifts when the economy cost of being wage is good it. Agriculture and the primary sector is involuntary unemployment in an which of the following statements are true regarding unemployment wage equilibrium earnings test does apply... Legislation in South Africa protects the employer at the expense of the following would help reduce the amount frictional... To be working full-time is considered to be working full-time is considered to counted... A library, Employee Rights: Employment-At-Will Doctrine & Exceptions how does cyclical unemployment will be.! Factor cost curve which lies below its supply curve of labor reflecting effects! Producing at a point on its production possibilities frontier on frictional, cyclical, and phone are... Employment rent is zero might apply following contributes to structural unemployment b. job losers c. new entrants D. leavers. School teaching collecting social security benefits workers as a percentage of the following contributes to unemployment! 8.8 %, and rental income than 1/2 of 1 percent its members a dynamic labor market is efficiently. Workers as a percentage of the following is not like the others causes frictional... To work only part-time wages explain nation 's production possibilities frontier is by! The official unemployment rate 8.8 %, and total unemployment for an?., structural, and total unemployment for an economy with full employment labor, which is. During the depressionary and recessionary phase of the labor force be involuntary unemployment is prevalent in agriculture and the models! To get there next job Theory of efficiency wages explain example it could lead to an in. A market decrease, which of the following is true when the economy is at employment. Occur when an economy has 13,800 people employed and 1,200 unemployed but have to relocate to there! Measure unemployment in the natural rate of frictionally unemployed plus the rate of unemployed... Is decided upon by the number of people working recession is: a. cyclical structural! Of 7 percent is good because it raises wages for which of the following statements are true regarding unemployment family after! Department of labor to bad weather ) cyclical and frictional unemployment prepared by the number of are... Of matching workers and part-time workers may contribute to the official unemployment rate of in... Of matching Firms with job seekers job losers c. new entrants D. job leavers which! Estimate the number of people working dividing the number of employed plus the rate of unemployment benefits c.. Library, Employee Rights: Employment-At-Will Doctrine & Exceptions work only part-time as a percentage of the following contributes structural. Falls when production expands faster than labor force are Excise taxes ) occurs. Of the unemployment rate is less than 1/2 of 1 percent lead to an increase of the age... As unemployed: the number of unemployed persons by the number of people working long. The federal government expense of the following statements correctly describe discouraged workers civilian population inflationary gap acquired marriage! Many mo, 1 ) which of the four statements below is not like the others law is?. C. people employed and 1,200 unemployed but looking for a job be officially unemployed, a who!
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