Unemployment Question Answer MCQ PDF

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Unemployment Multiple Choice Questions 1. Bob is unemployed if he A) is temporarily laid off. B) is not looking for a job. C) has looked for a job for two months and then quit looking. D) A and C are correct. Answer: A 2. For you to be considered out of the labor force, you can be A) a full-time student. B) a full-time retiree. C) a full-time volunteer. D) any of the above Answer: D 3) The number of people unemployed equals A) the number of people employed minus the labor force. B) the labor force plus the number of people employed. C) the labor force minus the number of people employed. D) the number of people employed divided by the labor force. Answer: C 4) When an individual quits his/her job and decides to stay at home for a while, the labor-force participation rate A) decreases. B) increases. C) stays the same. D) may increase or decrease, depending on the length of time he/she stays at home. Answer: A 5) Discouraged workers are A) considered cyclically unemployed. B) considered structurally unemployed. C) considered frictionally unemployed. D) not considered as part of the labor force. Answer: D

6) Which of the following statements is true? A) The unemployment rate does not tell us anything about the duration of unemployment. B) The duration of unemployment decreases during recessions. C) The duration of unemployment increases during economic expansions. D) The median duration of unemployment is usually greater than the average duration. Answer: A 7) Classifying discouraged workers as unemployed would A) increase the unemployment rate. B) decrease the unemployment rate. C) not change the unemployment rate. D) have an indeterminate impact on the unemployment rate. Answer: A 8) Structural unemployment is the A) portion of unemployment that is due to changes in the structure of the economy that result in a significant loss of jobs in certain industries. B) unemployment that occurs during recessions and depressions. C) portion of unemployment that is due to the normal working of the labor market. D) unemployment that results when people become discouraged about their chances of finding a job so they stop looking for work. Answer: A 9) The increase in unemployment that occurs during recessions and depressions is called A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) normal unemployment. Answer: C 10) The natural rate of unemployment is generally thought of as the A) ratio of the frictional unemployment rate to the cyclical unemployment rate. B) sum of structural unemployment and cyclical unemployment. C) sum of frictional unemployment and cyclical unemployment. D) sum of frictional unemployment and structural unemployment. Answer: D

11) When an individual quits his job and decides to look for a new job immediately, the labor-force participation rate A) decreases. B) increases. C) stays the same. D) may increase or decrease, depending on the length of time he/she stays at home. Answer: C 12) Unemployment that occurs during the normal workings of an economy as people change jobs and move across the country is called A) structural unemployment. B) frictional unemployment. C) natural unemployment. D) cyclical unemployment. Answer: B 13) The unemployment that occurs during recessions and depressions is A) the natural rate of unemployment. B) cyclical unemployment. C) frictional unemployment. D) structural unemployment. Answer: B 14) An auto worker in Ohio who loses her job because the company relocated the plant to another country represents an example of A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) seasonal unemployment. Answer: B 15) If you hear a person saying "I lost my job because I was replaced by a machine," you should conclude that this person is ________ unemployed. A) cyclically B) structurally C) frictionally D) seasonally Answer: B

16) Employment tends to rise when A) aggregate output falls. B) unemployment rises. C) aggregate output rises. D) labor productivity falls. Answer: C 17) Minimum wage laws contribute to a higher unemployment rate by A) raising wages above the market clearing level in some labor markets. B) pushing wages below the market clearing level in some labor markets. C) raising wages above the market clearing level in all labor markets. D) pushing wages below the market clearing level in all labor markets. Answer: A 18) Minimum wage is an example of a price ________, and results in a ________ of labor. A) floor; surplus B) ceiling; surplus C) floor; shortage D) ceiling; shortage Answer: A 19) Structural unemployment A) arises from recessions. B) is due to changes in the structure of the economy. C) arises from the time it takes employers to find appropriate employees. D) is due to seasonal changes. Answer: B 20) The labor force includes those people with a job and A) those people who are looking for work. B) those people training for a job. C) those people who formerly worked and are now retired. D) homemakers. Answer: A...