Ch. 13 Economics HW quiz – Flashcards

The unemployment rate is an important economic statistic that can tell us about the health of the economy. If the unemployment rate turns out to be high or higher than anticipated, we would expect a) that stock prices are more likely to fall. b)it is more likely that an incumbent president will be re-elected. c)that investors will be more optimistic about the economy. d)that jobs are less difficult to find.

The labor force equals the number of people a) unemployed. b) employed. c) employed plus unemployed. d) in the working-age population.

Suppose that homemakers are included as employed in the labor force statistics, rather than being counted as out of the labor force. This would a) decrease the number of persons in the labor force. b) decrease the number of persons in the working-age population. c) increase the measured labor force participation rate. d) increase the measured unemployment rate.

Suppose the labor force stays constant, and the working-age population stays constant, but a greater number of persons who were unemployed become employed. The labor force participation rate will a) not change in a way that can be predicted. b) decrease. c) remain constant. d) increase.

Suppose the government launches a successful advertising campaign that convinces workers with high school degrees to quit their jobs and become full time college students. This would cause a) the number of discouraged workers to increase. b) the unemployment rate to decrease. c)the labor force participation rate to decrease. d) no change in the unemployment rate.

Since 1948, the labor force participation rate for adult men has ________ and for adult women has ________. a) decreased; increased b) decreased; decreased c) increased; decreased d) increased; increased

An advantage of the establishment survey over the household survey of the labor market is that the establishment survey a) includes persons employed at newly opened firms. b) includes the number of self-employed persons. c) is based on actual payrolls, rather than on unverified answers. d) provides an estimate of the number of persons unemployed.

Frictional unemployment is the result of a) the search process of matching workers with jobs. b) a slowdown in the economy. c) the ups and downs in inflation. d) a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs.

Cyclical unemployment is the result of a) a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs. b) the search process of matching workers with jobs. c) the ups and downs in inflation. d) a slowdown in the economy.

Structural unemployment is the result of a) the search process of matching workers with jobs. b) a slowdown in the economy. c) a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs. d) the ups and downs in inflation.

The natural rate of unemployment is the amount of unemployment a) associated with the business cycle. b) that exists when the economy is in an expansion. c) equal to frictional plus structural unemployment. d) that exists when the economy goes into recession.

Most of the unemployment that occurred during the Great Depression was a) cyclical unemployment. b) core unemployment. c) frictional unemployment. d) structural unemployment.

An increase in unemployment insurance payments would, in effect, ________ the amount of time spent searching for a job, which would increase ________ unemployment. a) increase; frictional b) increase; cyclical c) decrease; frictional d) decrease; cyclical

Which of the following policies would reduce structural unemployment? a) implementing an unemployment insurance policy b) a job retraining program c) building an on-line job database that helps workers find jobs d) an increase in the minimum wage

If firms pay what are called "efficiency wages," they pay wages that a) are lower than average to ensure maximum profit. b) motivate workers to increase their productivity. c) will eventually lower the unemployment rate. d) are mandated by the government.