WorksheetsUnemployment Test
Total questions: 50
Worksheet time: 25mins
Name
Class
Date
1.
What type of unemployment would this individual be experiencing? A software engineer is laid off because their company outsourced jobs to India.
a)
Frictional
b)
Structural
c)
Cyclical
d)
Seasonal
e)
Not counted in labor force
2.
What type of unemployment would this individual be experiencing? Workers lose their jobs at a paper factory due to a steep downturn in demand because of a recession.
a)
Frictional
b)
Structural
c)
Cyclical
d)
Seasonal
3.
What type of unemployment would this individual be experiencing? A single mother who has been out of the workforce decides to start looking again for part-time work when she finds that affordable childcare is available in her local town.
a)
Frictional
b)
Structural
c)
Cyclical
d)
Seasonal
e)
Not counted in labor force
4.
What type of unemployment would this individual be experiencing? Employees at a brick manufacturer are laid off following a recession in the housing market.
a)
Frictional
b)
Structural
c)
Cyclical
d)
Seasonal
e)
Not counted in labor force
5.
What type of unemployment would this individual be experiencing? A number of workers are laid off when General Motors incorporates robotic workers to replace the human assembly-line production.
a)
Frictional
b)
Structural
c)
Cyclical
d)
Seasonal
e)
Not counted in labor force
6.
What type of unemployment would this individual be experiencing? Employees at a brick manufacturer are laid off during the cold Chicago winter.
a)
Frictional
b)
Structural
c)
Cyclical
d)
Seasonal
e)
Not counted
7.
What type of unemployment would this individual be experiencing? A newly graduated college student decides to go back to school for a graduate degree rather than try to find a job during a down economy.
a)
Frictional
b)
Structural
c)
Cyclical
d)
Seasonal
e)
Not counted in labor force
8.
What type of unemployment would this individual be experiencing? A building firm lay off ten workers for three weeks and closes their existing building sites because of harsh weather in the winter.
a)
Frictional
b)
Structural
c)
Cyclical
d)
Seasonal
e)
Not counted
9.
What type of unemployment would this individual be experiencing? A former bank manager decides to leave her job and take early retirement in order to look after an elderly relative. She is not looking for a job.
a)
Frictional
b)
Structural
c)
Cyclical
d)
Seasonal
e)
Not counted in labor force
10.
Someone that is working a job that they have too much education, training or skills for would be considered
a)
Not in Labor Force
b)
Underemployed
c)
Underworked
d)
Discouraged Worker
11.
After spending six months job hunting and failing to find employment, Rob has given up searching, believing that there were no jobs available for him. According to the BLS he would be considered a
a)
Overqualified worker
b)
Underemployed worker
c)
Unemployed worker
d)
Discouraged worker
12.
True or false, zero unemployment is a possibility in the future of the United States.
a)
True
b)
False
13.
Determine the unemployment rate based on the following figures: Labor force: 160 million Unemployed: 16 million
a)
6%
b)
8%
c)
9%
d)
10%
14.
Determine the labor force in 2010 based on the following information: (Employed = 155 million) (Unemployed = 15.5 million) (Discouraged workers = 6 million) (Population = 307 million)
a)
170.5 million
b)
155 million
c)
307 million
d)
483 million
15.
Determine the unemployment rate in 2010 based on the following information: (Employed = 155 million) (Unemployed = 15.5 million) (Discouraged workers = 6 million) (Population = 307 million)
a)
4%
b)
6%
c)
2%
d)
9%
e)
1%
16.
The percentage of the labor force that is unemployed is the:
a)
unemployment population ratio
b)
unemployment rate
c)
employment rate
d)
labor force rate
17.
Cyclical unemployment is the:
a)
unemployment that results when people become discouraged about their chances of finding a job so they stop looking for work.
b)
portion of unemployment that is due to the normal working of the labor market
c)
unemployment that occurs during recessions and depressions
d)
portion of unemployment that is due to changes in the structure of the economy that results in a significant loss of jobs in certain industries
18.
Discouraged workers do not count towards the unemployment rate because they are not looking for work and have dropped out of the labor force. Classifying discouraged workers as unemployed would
a)
have an indeterminate impact on the unemployment rate.
b)
not change the unemployment rate.
c)
decrease the unemployment rate
d)
increase the unemployment rate.
19.
The demand for ice-cream falls when summer ends, causing lower demand for ice-cream salesmen. If they cannot find other work, this is called ____________ unemployment.
a)
structural
b)
seasonal
c)
regional
d)
frictional
20.
Determine the unemployment rate in 2013 based on the following information: (Employed - 175 million) (Unemployed - 14.5 million) (Discouraged workers - 6 million) (Population - 307 million)
a)
5
b)
6.8
c)
7.7
d)
9
21.
Which of the following WOULD be included as a member of the labor force?
a)
A full-time college student
b)
A recent high school graduate looking for a first job.
c)
A homemaker contributing 15 hours per week as a volunteer worker in a hospital
d)
A retired school teacher collecting social security benefits
22.
Which one of the following persons would NOT be considered unemployed?
a)
A construction worker who has given up looking for work after 18 months without a job.
b)
An elderly man actively looking for part-time work to supplement Social Security income.
c)
An auto worker was laid off before the production of new models begins next month. He does not know for sure whether he will be called back to work when this happens, and looked for a new job last week.
d)
A college student looking for a part-time job during the school year.
23.
The labor force participation rate measures the number of people
a)
in the labor force.
b)
in the labor force as a percentage of the total population.
c)
in the labor force as a percentage of the adult population at least sixteen years old.
d)
who are working.
24.
Frictional unemployment often occurs when
a)
The economy enters a recession
b)
People first enter the labor force
c)
People are discriminated against
d)
People lose a job because their skills are no longer needed
25.
Workers at a steel plant are laid off because the US companies import the steel instead of producing it domestically. What type of unemployment best describes the workers situation?
a)
Frictional Unemployment
b)
Cyclical Unemployment
c)
Structural Unemployment
d)
Seasonal Unemployment
26.
Suppose more women decide to stay at home and raise their pre-school aged children. We would expect:
a)
the labor force participation rate for females to rise.
b)
the labor force participation rate for females to fall.
c)
the labor force participation rate for females to remain the same
27.
The adult population (aged 16 and older) is 48 million. Of this total, 4 million are unemployed and 36 million currently hold jobs. What is the unemployment rate?
a)
4%
b)
7%
c)
10%
d)
22%
28.
Who would be included in the labor force?
a)
Bruce, a full-time student not looking for work
b)
Holly, an unpaid homemaker
c)
Dave, who does not have a job, but is looking for work
d)
Joe, a stay at home Dad who is not interested in returning to work
29.
Jordan loses his job and immediately begins looking for another. As a result,
a)
the unemployment rate is unaffected
b)
the unemployment rate decreases
c)
the unemployment rate stays the same
d)
the unemployment rate increases
30.
Frictional unemployment occurs when which of the following happens?
a)
A worker is replaced by robots on factory assembly lines.
b)
A worker voluntarily quits a job to search for a better one.
c)
A worker is laid off because of a downturn in economic activity.
d)
A worker undergoes on-the-job training.
e)
A worker switches from working full-time to part-time.
31.
An industry historically used employees with specific skills. If this industry experiences technological advance that requires new skills, there will most likely be
a)
cyclical unemployment
b)
frictional unemployment
c)
seasonal unemployment
d)
structural unemployment
e)
no change in unemployment
32.
Which of the following individuals is considered officially unemployed?
a)
James, who has not worked for more than three years and has given up looking for work
b)
Jorge, who is going to school full-time and is waiting until graduation before looking for a job
c)
Dan, who recently left a job to look for a different job in another town
d)
Shannon, who retired after turning 65 only five months ago
e)
Brian, who is working 20 hours per week and is seeking full-time employment
33.
The unemployment rate is calculated as
a)
Unemployed plus employed
b)
Unemployed divided by the adult population
c)
unemployed plus employed plus labor force.
d)
unemployed divided by the labor force.
34.
Structural unemployment is best described as unemployment arising from
a)
the elimination of jobs as a result of technological change
b)
an increase in the number of workers searching for better-paying jobs
c)
an increase in the number of jobs demanding unskilled labor
d)
the temporary reduction of jobs during a downturn in the business cycle
e)
the reduction in jobs due to a seasonal change
35.
The official unemployment rate might be considered understated because the official unemployment rate
a)
ignores how long people are unemployed
b)
ignores underemployed and discouraged workers
c)
includes jobs created by the underground economy
d)
excludes all unemployed teenagers
e)
excludes frictionally unemployed workers
36.
Which of the following individuals is considered underemployed?
a)
James, who has not worked for more than three years and has given up looking for work
b)
Jorge, who is going to school full-time and is waiting until graduation before looking for a job
c)
Dan, who recently left a job to look for a different job in another town
d)
Shannon, who retired after turning 65 only five months ago
e)
Brian, who is working 20 hours per week and is seeking full-time employment
37.
MORE THAN ONE ANSWER. The labor force is considered to be the total number of which of the following?
a)
unemployed workers that are actively looking for a job
b)
full-time workers
c)
part-time workers
d)
discouraged workers
e)
underemployed workers
38.
MORE THAN ONE ANSWER. Which of the following percentages would represent the natural rate of unemployment?
a)
5
b)
6
c)
4
d)
7
e)
8
39.
MORE THAN ONE ANSWER. Which of the following that would NOT be counted in the labor force.
a)
A full time college student
b)
A homemaker (father or mother)
c)
A retiree
d)
A person who lost their job at Wal-mart, but checked the classified section yesterday
40.
One argument against raising the minimum wage is that it will
a)
help low income workers too much
b)
cause unemployment to rise
c)
benefit the wealthy business owners by having skilled workers
d)
decrease efficiency wages
41.
Blockbuster closed down as a result of technological change and demand changes in the market. The ex-employees would be ____ unemployed as a result.
a)
frictionally
b)
structurally
c)
cyclically
d)
seasonally
42.
A previously unemployed worker gives up looking. How will this affect the unemployment rate?
a)
increase
b)
decrease
c)
remain the same
d)
increase but the labor force participation rate will increase
43.
The unemployment rate is the ratio of the unemployed to the
a)
labor force
b)
market basket
c)
adult population
d)
discouraged workers
e)
frictionally unemployed
44.
Imagine that you just graduated from college and you are entering the labor force for the first time. As you perform you job search you would be considered
a)
frictionally unemployed
b)
cyclically unemployed
c)
structurally unemployed
d)
seasonally unemployed
e)
not in the labor force
45.
People that have become frustrated with their inability to find a job are known as
a)
cyclically unemployed
b)
frictionally unemployed
c)
structurally unemployed
d)
discouraged workers
e)
underemployed workers
46.
Based on the following, what is the unemployment rate? Total Population = 600. Working-age Population = 400. Unemployed persons = 20. Employed persons = 180
a)
3.3%
b)
5%
c)
10%
d)
33.3%
e)
50%
47.
Out of the following, which would be considered unemployed by the Bureau of Labor Statistics?
a)
Someone that retired.
b)
Someone that fell ill and claimed disability insurance but is no longer looking for work.
c)
An individual who lost their job due when the local factory closed down and is actively seeking employment.
d)
A person that became frustrated with the labor market, went back to school, and quit looking for work.
e)
Individuals who quit their jobs to take on entrepreneurial endeavors.
48.
What is the unemployment rate for this country? Population = 360, Employed = 188, Unemployed = 12, Not in the labor force = 180
a)
4%
b)
5%
c)
6%
d)
7%
e)
8%
49.
A country has a working-age population of 200, 130 are employed, 10 are unemployed. What is the size of the unemployment rate?
a)
5%
b)
7.1%
c)
7.7%
d)
65%
e)
75%
50.
A country has a working-age population of 200, 130 are employed, 10 are unemployed. What is the size of the unemployment rate?
a)
100%
b)
70%
c)
65%
d)
5%
e)
10%
100 %
