Question 1

Consider an economy made up of 100 people, 60 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The number counted as unemployed is:

Accepted Answer

A)   10.
B)   15.
C)   40.
D)   30.E) B) and C)
F) A) and D)

Question 2

Sam is a musician who is out of work because electronic equipment replaced live musicians. This is an example of:

Accepted Answer

A)   frictional unemployment.
B)   cyclical unemployment.
C)   structural unemployment.
D)   involuntary unemployment.E) All of the above
F) B) and D)

Question 3

Exhibit 12-1 Business cycle

In Exhibit 12-1, point E represents:

Accepted Answer

A)   recession and a trough.
B)   peak and a trough.
C)   recession and a peak.
D)   recovery and a peak.E) A) and B)
F) A) and C)

Question 4

The primary cause of frictional unemployment is:

Accepted Answer

A)   discouraged workers who give up looking for work.
B)   fluctuations in aggregate demand.
C)   the lack of training and marketable qualifications in job seekers.
D)   inaccurate information about job opportunities.E) B) and C)
F) None of the above

Question 5

Which of the following statements is true ?

Accepted Answer

A)   The four phases of the business cycle, in order, are: peak, recovery, trough, recession.
B)   When unemployment is rising then real GDP is rising.
C)   The economic problem typically associated with a recovery is rising unemployment.
D)   Full employment exists in an economy when the unemployment rate equals the sum of frictional, and structural unemployment rates.E) A) and D)
F) B) and D) D

Question 6

Full employment means which of the following is zero?

Accepted Answer

A)   structural unemployment
B)   cyclical unemployment
C)   frictional unemployment
D)   aggregate unemploymentE) C) and D)
F) B) and D)

Question 7

What does the GDP gap measure?

Accepted Answer

The GDP gap = potential real G...

Question 8

An individual who is employed part time, but is looking for a full-time job, is classified as:

Accepted Answer

A)   frictionally unemployed.
B)   cyclically unemployed.
C)   structurally unemployed.
D)   employed.E) A) and C)
F) None of the above

Question 9

Which of the following is a leading business cycle indicator?

Accepted Answer

A)   the unemployment rate
B)   the volume of outstanding commercial loans
C)   new building permits
D)   personal incomeE) A) and B)
F) None of the above

Question 10

Which of the following offers an example of structural unemployment?

Accepted Answer

A)   The rise in unemployment for stable workers after the development of gasoline-powered automobiles and the resulting long-term decline in horse-and- buggy transportation.
B)   The rise in unemployment among farm workers after harvest.
C)   The unemployment associated with workers changing jobs.
D)   The increase in unemployment during recessions.E) B) and C)
F) None of the above

Question 11

Which of the following demographic groups in the U.S. has the highest unemployment rates?

Accepted Answer

A)   college graduates
B)   white working-age people
C)   African-American teenage males
D)   all working-age people with a high school diploma but no collegeE) C) and D)
F) None of the above

Question 12

The GDP gap is the difference between:

Accepted Answer

A)   frictional unemployment and actual real GDP.
B)   unemployment rate and real GDP deflator.
C)   actual real GDP and full-employment real GDP .
D)   full-employment real GDP and real GDP deflator.E) B) and C)
F) B) and D)

Question 13

Full employment is the situation in which the economy operates at an unemployment rate equal to the sum of:

Accepted Answer

A)   structural and frictional unemployment.
B)   cyclical and frictional unemployment.
C)   structural and cyclical unemployment.
D)   structural, frictional, and cyclical unemployment.E) B) and D)
F) A) and B)

Question 14

The unemployment rate equals the number of persons:

Accepted Answer

A)   unemployed divided by the number employed.
B)   unemployed divided by the number in the labor force.
C)   unemployed divided by the population age 16 and over.
D)   not working divided by the population age 16 and over.E) None of the above
F) A) and B)

Question 15

Structural unemployment is unemployment caused by:

Accepted Answer

A)   temporary changes in jobs.
B)   discrimination.
C)   the time required to match employers and workers.
D)   a mismatch between worker skills and employer requirements.E) None of the above
F) A) and D)

Question 16

Which of the following is not  a valid explanation for the high unemployment rate among African American teens?

Accepted Answer

A)   discrimination
B)   concentration in inner cities where job opportunities for less-skilled workers are inadequate
C)   lack of desire to work
D)   minimum wage lawE) All of the above
F) C) and D) C

Question 17

Cyclical unemployment is primarily caused by:

Accepted Answer

A)   a large proportion of youthful workers in the labor force.
B)   fluctuations in aggregate demand.
C)   a lack of training on the part of job seekers.
D)   the failure of job seekers to search adequately for the available jobs.E) C) and D)
F) A) and C) B

Question 18

Andrea Burris lost her job in a company layoff 5 months ago. She would take a job if one was offered, but she has given up looking for work until the economy improves. She is:

Accepted Answer

A)   a member of the civilian labor force who is employed.
B)   a member of the civilian labor force who is unemployed.
C)   a member of the civilian labor force who is underemployed.
D)   a discouraged worker who is not a member of the labor force.E) C) and D)
F) B) and D)

Question 19

What is full employment? What are the different kinds of unemployment? What constitutes the natural (normal) rate of unemployment?

Accepted Answer

Full employment exists when approximatel...

Question 20

Exhibit 12-1 Business cycle

In Exhibit 12-1, the recession phase of the business cycle can be represented by point(s) :

Accepted Answer

A)   CDE.
B)   BCD.
C)   EFG.
D)   A and E.E) B) and C)
F) A) and D)

Exam 12: Business Cycles and Unemployment

Consider an economy made up of 100 people, 60 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The number counted as unemployed is:

Correct AnswerverifiedShow Answer

Sam is a musician who is out of work because electronic equipment replaced live musicians. This is an example of:

Correct AnswerverifiedShow Answer

Exhibit 12-1 Business cycle In Exhibit 12-1, point E represents:

Correct AnswerverifiedShow Answer

The primary cause of frictional unemployment is:

Correct AnswerverifiedShow Answer

Which of the following statements is true ?

Correct AnswerverifiedD

Full employment means which of the following is zero?

Correct AnswerverifiedShow Answer

What does the GDP gap measure?

Correct AnswerverifiedThe GDP gap = potential real G...View AnswerShow Answer

An individual who is employed part time, but is looking for a full-time job, is classified as:

Correct AnswerverifiedShow Answer

Which of the following is a leading business cycle indicator?

Correct AnswerverifiedShow Answer

Which of the following offers an example of structural unemployment?

Correct AnswerverifiedShow Answer

Which of the following demographic groups in the U.S. has the highest unemployment rates?

Correct AnswerverifiedShow Answer

The GDP gap is the difference between:

Correct AnswerverifiedShow Answer

Full employment is the situation in which the economy operates at an unemployment rate equal to the sum of:

Correct AnswerverifiedShow Answer

The unemployment rate equals the number of persons:

Correct AnswerverifiedShow Answer

Structural unemployment is unemployment caused by:

Correct AnswerverifiedShow Answer

Which of the following is not a valid explanation for the high unemployment rate among African American teens?

Correct AnswerverifiedC

Cyclical unemployment is primarily caused by:

Correct AnswerverifiedB

Andrea Burris lost her job in a company layoff 5 months ago. She would take a job if one was offered, but she has given up looking for work until the economy improves. She is:

Correct AnswerverifiedShow Answer

What is full employment? What are the different kinds of unemployment? What constitutes the natural (normal) rate of unemployment?

Correct AnswerverifiedFull employment exists when approximatel...View AnswerShow Answer

Exhibit 12-1 Business cycle In Exhibit 12-1, the recession phase of the business cycle can be represented by point(s) :

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified
The GDP gap = potential real G...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified
Full employment exists when approximatel...
View Answer

Correct Answer
verified