Unemployment - Key terms

Using Fig.2, calculate Germany's unemployment rate in 2014. 

• 1%

• 2.5%

• 4.75%

• 5%

• 6.5%

There are 125,000 people in Hamiltonia. Of these, 25,000 are children. There are 50,000 people employed and 30,000 people unemployed.

• 80%

• 64%

• 20%

• 50%

• 30%

If unemployed workers decide to stop looking for a job and instead enroll in further education, how will the number of employed workers and the unemployment rate change?

• The number of employed workers does not change; the unemployment rate decreases.

• The number of employed workers does not change; the unemployment rate does not change.

• The number of employed workers increases; the unemployment rate decreases.

• The number of employed workers decreases; the unemployment rate increases.

• The number of employed workers does not change; the unemployment rate increases.

A country has a total population of 900,000 million people:

Children 0-15 years old - 200,000

Employed - 325,000

Unemployed 25,000

Discouraged adult workers 50,000

Full-time students over 15 - 100,000

Retired individuals - 100,000

Stay-at-home parents and other non-working civilians over 16. -100,000.

What is the country's labour force participation rate (LFPR)?

• 80%

• 41%

• 50%

• 32.5%

• 35%

Which of the following is a reason that the official unemployment rate can understate the actual unemployment situation in an economy.

• Noncitizens are not counted in the labour force.

• Part-time workers are not counted as employed.

• Discouraged workers are not in the labour force.

• Underemployed workers are counted as unemployed.

• Unemployed workers looking for work are not in the labour force.

Sam was out of a job for a year. He recently gave up looking for work because there were no jobs available.

Which of the following best describes the effect of Sam exiting the labour market?

• The unemployment rate decreases

• The unemployment rate will not change

• The size of the eligible population decreases

• The labour force participation rate increases

• The unemployment rate increases

Which of the following is the correct interpretation of an unemployment rate of 4%

• Four percent of the population is in the labour force.

• 4% of the population is out of work and looking for work.

• For percent of the population has given up looking for work.

• 4% of the population is looking for work.

• 4% of the labour force is out of work and looking for work.

James quit his job as a scientist to study full time to be a lawyer.

Which of the following best describes James' employment status?

• Not in the labour force

• Cyclically unemployed

• Frictionally unemployed

• Structurally unemployed

• Employed

Which of the following would most likely cause a nation's labour force participation rate (LFPR) to increase?

• Fewer parents choose to stay at home with their children and instead take part-time jobs.

• Paid workers leave their jobs to focus on full-time volunteer work instead of paid work.

• The retirement age is lowered, which leads more people to retire earlier.

• There is an increase in the number of people leaving jobs and going to college full-time.

• Employed workers lose their jobs and become unemployed.

• 150/600 x 100 = 25%

• 150/1,000 x 100 = 15%

• 600/1,000 x 100 = 60%

• 250/1,000 x 100 = 25%

• 150/750 x 100 = 20%