Module 2.3 MCQ - Macro - Unemployment

To be considered unemployed, a person must

• collect unemployment insurance.

• work more than 30 hours per week.

• have been laid off from a job that was held for one year or longer.

• not be working but want to have a job.

• not be working but be available for and actively seeking a job.

The unemployment problem in an economy may be understated by the unemployment rate due to

• people lying about seeking a job.

• discouraged workers.

• job candidates with one offer but waiting for more.

• overemployed workers.

• none of the above.

What is the labor force participation rate?

• 70%

• 50%

• 20%

• 10%

• 5%

What is the unemployment rate?

• 70%

• 50%

• 20%

• 10%

• 5%

If real GDP is falling, which of the following is true?

• The economy is in an expansion.

• Unemployment is rising.

• The number of discouraged workers is decreasing.

• Underemployment is falling.

• None of the above are true.

What type of unemployment is created by a recession?

• frictional

• structural

• cyclical

• natural

• full

A person who is unemployed because of a mismatch between the quantity of labor supplied and the quantity of labor demanded is experiencing what type of unemployment?

• frictional

• structural

• cyclical

• natural

• full

Which of the following is true of the natural rate of unemployment?

• It includes frictional unemployment.

• It includes cyclical unemployment.

• It includes all types of unemployment.

• It is equal to 0%.

• All of the above are true.

Which of the following is an example of structural unemployment?

• an assembly line worker laid off during a recession

• a college graduate looking for their first job

• a cable TV installer laid off because people aren’t using cable

• a worker who quit their job to find another that is closer to family

• all of the above

Actual unemployment is equal to natural unemployment

• minus structural unemployment.

• plus cyclical unemployment.

• plus frictional unemployment.

• minus cyclical unemployment.

• minus frictional unemployment.