Employment and Unemployment

Bob is unemployed if he

• is temporarily laid off

• is not looking for a job

• has looked for a job for two months and then quit lookin

• Unemployment Multiple Choice Questions

  1. Bob is unemployed if he

  A) is temporarily laid off.

  B) is not looking for a job.

  C) has looked for a job for two months and then quit looking.

  D)

For you to be considered out of the labor force, you can be

• a full-time student

• a full-time retiree

• a full-time volunteer

• any of the above

The number of people unemployed equals

• The number of people employed minus the labor force

• the labour force plus the number of people employed.

• the labour force minus the number of people employed.

• the number of people employed divided by the labour force

When an individual quits his/her job and decides to stay at home for a while, the labour-force participation rate

• decreases

• may increase or decrease, depending on the length of time he/she stays at home.

• increases

• Stay constant

Discouraged workers are

• Discouraged workers are

• not considered as part of the labour force

• considered cyclically unemployed

• considered frictionally unemployed

Which of the following statements is true?

• The duration of unemployment decreases during recessions.

• The duration of unemployment increases during economic expansions

• The unemployment rate does not tell us anything about the duration of unemployment

• The median duration of unemployment is usually greater than the average duration

Classifying discouraged workers as unemployed would

• decrease the unemployment rate.

• not change the unemployment rate

• have an indeterminate impact on the unemployment rate.

• increase the unemployment rate

Structural unemployment is the

• unemployment that occurs during recessions and depressions

• portion of unemployment that is due to the normal working of the labor market

• a portion of unemployment that is due to changes in the structure of the economy that result in a significant loss of jobs in certain industries

• unemployment that results when people become discouraged about their chances of finding a job so they stop looking for work

The increase in unemployment that occurs during recessions and depressions is

called

• cyclical unemployment

• frictional unemployment

• structural unemployment

• normal unemployment

The natural rate of unemployment is generally thought of as

• The ratio of the frictional unemployment rate to the cyclical unemployment rate

• The sum of frictional unemployment and structural unemployment

• The sum of structural unemployment and cyclical unemployment

• The sum of frictional unemployment and cyclical unemployment.