Quiz 7: Unemployment

The unemployment rate measures:

• A. the number of people unemployed divided by the number of people employed.

• B. unemployed workers as a percentage of the labor force.

• C. unemployed workers as a percentage of the population age over-sixteen.

• D. unemployed workers as a percentage of the population.

Reginald looked for work for six months but could not find a job to his liking. He now spends his time at the beach. For purposes of employment, Reginald is considered:

• A. out of the labor force.

• B. unemployed.

• C. employed in the underground economy.

• D. underemployed.

The U.S. unemployment rate moves up and down as the economy moves in and out of recessions. But over time, the unemployment rate seems to return to a range of ____________.

• A. 2%-4%

• B. 4%-6%

• C. 6%-8%

• D. 8%-10%

If the number of employed persons is 24 million, the number of unemployed persons is 8 million, and the number of persons over age 16 in the population is 40 million, what is the unemployment rate?

• A. 32%.

• B. 25%.

• C. 20%.

• D. 8%.

A welder who quits his job and moves from Pittsburgh to Madison to try to get a better welding job is said to be:

• A. frictionally unemployed.

• B. underemployed.

• C. cyclically unemployed.

• D. structurally unemployed.

If a nation's labor force receives a significant influx of young workers, what is likely to happen to the natural rate of unemployment?

• A. It is likely to increase.

• B. It is likely to decrease.

• C. It is unlikely to change.

• D. Frictional unemployment will likely decrease to zero.

The type of unemployment that occurs because of a recession is called:

• cyclical unemployment.

• the natural rate of unemployment.

• seasonal unemployment.

• frictional unemployment.

If Karen chooses to go to university full-time rather than work, what is her employment status?

• A. She is not part of the labor force.

• B. She is part of the labor force and what economists call a discouraged worker.

• C. She is part of the labor force, but not actively seeking work.

• D. She is considered employed.

In November 2010, the labor force in Siouxtown was 14,800. There were 14,483 persons employed. What was the local unemployment rate?

• A. 1.2%.

• B. 2.1%.

• C. 5.6%.

• D. 7.1%.

Freelife, New Hampshire has a labor force of 78,567 persons and employment of 74,382. What is the unemployment rate for the city?

• A. 5.3%.

• B. 5.6%.

• C. 6.0%.

• D. 7.1%.