Session 4

Which one of the following people would be classified as being in the labor force in the Eurostat classification?

• A 14-year old who delivers newspapers a few mornings per week
• An individual serving in the Danish military
• A 70-year old who is looking for part-time employment
• A 40-year old who is not currently looking for work and is unable to work because of a recent injury
• An individual in a prison who does some work in the prison library

Eurostat bases its unemployment statistics on what population?

• All civilians over age 16
• All civilians over age 21
• All civilian, non-institutionalized people over age 15
• All civilian, non-institutionalized people over age 21
• All civilian, non-institutionalized, non-self-employed people over age 21

How would Eurostat classify a 20-year old individual enrolled in college full-time and working 5 hours per week in the campus bookstore?

• Not surveyed
• Not in the labor force
• A discouraged worker
• Unemployed
• Employed

How would Eurostat classify a 14-year old individual working 10 hours per week at a restaurant?

• Not surveyed
• Not in the labor force
• A discouraged worker
• Unemployed
• Employed

Which one of the following categories defined Eurostat contains the fewest number of people?

• Unemployed individuals
• Employed individuals
• Individuals in the labor force
• Individuals not in the labor force
• Individuals not surveyed by Eurostat

Suppose the population of the European Union is 500 million people. Of these, Eurostat classifies 120 million people as “not surveyed,” 130 million people as not in the labor force, and 230 million as employed. What would be the unemployment rate in this example?

• 0.02
• 0.04
• 0.06
• 0.08
• 0.1

Suppose the Eurostat classifies 135 million people as employed and the unemployment rate is 10%. How many people are in the labor force in this example?

• 140 million
• 148.5 million
• 150 million
• 165 million
• We don’t have enough information to determine the size of the labor force.

Which one of the following people would NOT be classified as unemployed according to Eurostat?

• Someone in the labor force who has just involuntarily lost their job, and is actively searching for a new one.
• Someone in the labor force who has just quit a job, and is actively searching for a new one.
• Someone who has just started actively searching for a job after graduating from college.
• Someone working 20 hours per week in a family business but is not being paid.
• Someone who took time off to raise a child and has just started actively searching for a job.

Consider the various types of unemployment discussed in the text, which type of unemployment is LEAST likely to be affected by government policies?

• Structural unemployment
• Frictional unemployment
• Recessionary unemployment
• Cyclical unemployment
• All of the above, since policies have no effect on unemployment

The introduction of MP3 players made tape recorders obsolete. To the extent this caused higher unemployment among workers who had manufactured audio tapes, which type of unemployment was created?

• Frictional unemployment
• Efficiency unemployment
• Underemployment
• Structural unemployment
• Cyclical unemployment