2.3 Unemployment

Ying has just graduated from college and is now interviewing for jobs. Ying would best be described as

• cyclically unemployed

• frictionally unemployed

• structurally unemployed

• not in the labor force

• a discouraged worker

Which type of unemployment would increase if workers lost their jobs because of a recession?

• Cyclical

• Frictional

• Seasonal

• Search

• Structural

Which of the following would cause the official unemployment rate to understate the problem of unemployment?

• Workers receiving unemployment compensation

• Cyclically unemployed workers

• Discouraged workers

• Recent college graduates looking for work

• Retirees

Which of the following will be counted as unemployed by the United States Bureau of Labor Statistics?

• Persons who quit their previous jobs to stay at home to care for sick parents

• Persons who were laid off from their previous jobs and have not applied for a job in two years

• Persons who were fired from their previous jobs and are actively applying for work

• Persons who have given up looking for jobs after long searches

• Persons who quit their previous jobs to start their own businesses

Which of the following statements exemplifies the concept of structural unemployment?

• New entrants into the labor force have trouble finding jobs.

• Workers leave their current jobs to find better jobs.

• Workers are laid off because aggregate demand has declined.

• Workers are fired because consumers have reduced their total expenditures.

• Workers are fired because their skills are no longer in demand.

If an economy is at its Natural Rate of Unemployment...

• Only Cyclical Unemployment would be present

• There would be no frictional unemployment

• Only frictional and structural unemployment would be present

• Everyone is working Everyone is working

A labor force of 20 million people has 18.5 million people employed. Find the unemployment rate.

• 10%

• 8.5%

• 7.5%

• 6%

Discouraged workers in

the economy implies that the measurement of unemployment...

• understates the true unemployment rate

• overstates the true unemployment rate

• correctly measures the true unemployment rate

• doubles the unemployment rate

If operators are fired and replaced with computer technology, the operators would be considered

• frictionally unemployed

• structurally unemployed

• cyclically unemployed

• dissatisfiededly unemployed dissatisfiededly unemployed

Which of the following statements is true of an economy at its "natural

rate of unemployment"?

• 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