Unemployment

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

The unemployment rate is the ratio of

• unemployed to labor force

• employed to labor force

• seeking employment to labor force

• dissatisfied to labor force

Farm helpers are unemployed when the cropping season is over.

• frictional

• cyclical

• structural

• seasonal

Which of the following best defines unemployment?

• The state of being able to work and actively seeking work, but unable to find employment

• The state of being able to work, but choosing not to

• The percentage of the labour force that is able and actively seeking work, but cannot find employment

• The total number of people who do not work

If auto workers lose their jobs as the industry becomes far more technically intensive and capital intensive, what form of unemployment occurs?

• Cyclical

• Seasonal

• Frictional

• Structural

What are the impacts of unemployment on the individual?

• Increase in welfare spending

• Loss of skill over time

• Increase in disposable income

• Increase in demand pull inflation

_______ occurs when people are in between jobs, entering and reentering the labor force.

• Cyclical unemployment

• Structural unemployment

• Frictional unemployment

• Seasonal unemployment

When individuals lose jobs due to a decline in the economy (aggregate demand), often during an economic recession.

• Structural Unemployment

• Cyclical Unemployment

• Frictional Unemployment

• Seasonal Unemployment