Econ 2 Quiz - Unemployment

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

• frictionally unemployed

• structurally unemployed

• cyclically 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 beyond the PPF The economy is producing beyond the PPF

• The economy is only experiencing cyclical unemployment

• The economy is producing at its potential

Cyclical unemployment

• Lasts longer than 6 months

• Describes employees moving from one job to another

• Increases inflation Increases inflation

• Describes recent college graduates

Seasonal unemployment

• Describes recent college graduates

• Is predictable

• Is a result of changes in technology

• Slows the economy Slows the economy

The unemployment rate will drop if

• A person is hired into a new job

• Someone who was previously laid off is rehired

• An unemployed person stops looking

• All of the above

The natural rate of unemployment is equal to

• frictional plus cyclical

• cyclical plus structural

• frictional plus seasonal

• structural plus frictional

Which of these people is officially unemployed

• A lawyer who took 6 months off for maternity leave

• An aspiring actress who waits tables but would rather act

• Maid who got fired and will start a new job in 2 weeks

• A student who only works 4 hours a week in the library

If actual GDP is less than potential GDP...

• Actual unemployment exceeds the natural unemployment rate

• Actual unemployment rate is less than the natural rate

• No cyclical unemployment is present

• Hyperinflation is present

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

• 10%

• 7%

• 7.5%

• 2%

A labor force of 40 million people has 12.2 million unemployed people. Find the unemployment rate.

• 27%

• 69.5%

• 20%

• 30.5%