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Tutorial 9 Questions

The document discusses topics related to jobs and unemployment, including definitions of key terms like labor force, employment status classifications, and types of unemployment like frictional, structural, and cyclical unemployment.

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26 views

Tutorial 9 Questions

The document discusses topics related to jobs and unemployment, including definitions of key terms like labor force, employment status classifications, and types of unemployment like frictional, structural, and cyclical unemployment.

Uploaded by

marykara1915
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ECO501 – Principles of Economics

Tutorial 9

Topic 9: Jobs and Unemployment

1. The purpose of the Current Population Survey is to determine the


A) number of people in the population.
B) employment status of the population.
C) age structure of the population.
D) income level of the population.
E) prices consumers pay for the goods and services they buy.

2. The working-age population includes


A) those in jails and hospitals.
B) youngsters between the ages of 14 and 16 if they are working at least part time.
C) employed and unemployed people over the age of 16.
D) only employed people over the age of 16.
E) people over the age of 16 who are in the Army.

3) Which of the following is true? One way to be classified as employed is by


i. working 1 hour per week at a paid job.
ii. working 15 or more hours as an unpaid worker in family business.
iii. making specific efforts to find a job withi the last four weeks.
A) i only.
B) ii only.
C) iii only.
D) i and ii only.
E) If you are not working and turn down a job offer in the previous week, you are no longer classified i, ii,
and iii.

4) An unpaid worker in a family business is classified as


A) not in the labor force.
B) employed no matter how many hours the person worked in the previous week.
C) unemployed no matter how many hours the person worked in the previous week.
D) employed if the person worked at least 15 hours in the previous week.
E) unemployed only if the person worked no hours in the previous week.

5) The labor force is defined as the number of people who


A) are employed plus the number of people who are unemployed.
B) are available and looking for work but are unable to find employment.
C) would like to have a job but have stopped seeking work.
D) would like to have a full-time job but are working part time.
E) are employed minus the number of people who are unemployed.
6) The size of the labor force is
A) equal to the size of the population.
B) less than the number of employed workers if the number of unemployed workers is small enough.
C) less than the number of unemployed workers if the number of employed workers is small enough.
D) greater than the number of employed workers as long as there are some unemployed workers.
E) equal to the working-age population.

7) The unemployment rate is the


A) number of unemployed people.
B) percentage of the population that does not have a job.
C) percentage of the working-age population that does not have a job.
D) percentage of the labor force that does not have a job.
E) percentage of employed people that does not have a job.

8) The unemployment rate generally ________ during recessions and generally ________ during
expansions.
A) increases; decreases
B) decreases; increases
C) increases; increases
D) decreases; decreases
E) increases; does not change

9) During a recession the unemployment rate generally ________ and during an expansion the
unemployment rate generally ________.
A) rises; falls
B) rises; rises
C) falls; rises
D) rises; does not change
E) does not change; falls

10) During an expansion, the unemployment rate generally


A) rises.
B) falls.
C) is not affected.
D) is, by definition, below 5 percent.
E) is higher than during a recession.

11) Countries with higher than average unemployment rates have ________ compared to the United
States.
A) less regulated labor markets
B) lower levels of technology
C) higher levels of technology
D) more generous unemployment benefits and more regulated labor markets
E) a higher labor force participation rate
12) The unemployment rate generally ________ during recessions and generally ________ during
expansions.
A) increases; decreases
B) decreases; increases
C) increases; increases
D) decreases; decreases
E) increases; does not change

13) During a recession the unemployment rate generally ________ and during an expansion the
unemployment rate generally ________.
A) rises; falls
B) rises; rises
C) falls; rises
D) rises; does not change
E) does not change; falls

14) During an expansion, the unemployment rate generally


A) rises.
B) falls.
C) is not affected.
D) is, by definition, below 5 percent.
E) is higher than during a recession.

15) Countries with higher than average unemployment rates have ________ compared to the United
States.
A) less regulated labor markets
B) lower levels of technology
C) higher levels of technology
D) more generous unemployment benefits and more regulated labor markets
E) a higher labor force participation rate

16) Frictional unemployment is the result of


A) an economic recession.
B) the economic decline of major industries.
C) the normal process of jobs being created and destroyed.
D) people not getting along (having friction) with their employers.
E) changing weather throughout the year.

17) As firms search for the best employee to fill an opening and the unemployed search for the job that
best fits their skills, the economy experiences
A) structural unemployment.
B) frictional unemployment.
C) cyclical unemployment.
D) changes in the business cycle.
E) avoidable unemployment.
18) The ongoing normal creation and destruction of jobs creates
A) frictional unemployment.
B) structural unemployment.
C) avoidable unemployment.
D) cyclical unemployment.
E) destructive unemployment.

19) Which type of unemployment is a permanent and healthy phenomenon in a dynamic economy?
A) cyclical
B) avoidable
C) structural
D) frictional
E) unavoidable

20) Bill just graduated with his degree in economics. Through Career Services he submitted his resume to
several companies and he will visit them during the next two weeks. Bill is considered
A) not in the labor force.
B) frictionally unemployed.
C) structurally unemployed.
D) cyclically unemployed.
E) employed because he is visiting firms.

21) Jordan recently quit her job as a marketing consultant in Washington, D.C. and is looking for a better-
paying job with an advertising agency in New York. Jordan is considered to be
A) cyclically unemployed.
B) structurally unemployed.
C) not in the labor force.
D) frictionally unemployed.
E) a discouraged worker.

22) Structural unemployment includes people who become unemployed from


A) changes in the seasons.
B) normal changes in the labor force.
C) technological changes.
D) changes in the business cycle.
E) going back to school.

23) An employee who is fired from his or her job because he or she lacks the skills required to accomplish
the task, is part of ________ unemployment.
A) frictional
B) cyclical
C) unskilled
D) structural
E) withdrawal
24) John has been laid off from his job because of a general downturn in the economy. John's
unemployment is best classified as
A) cyclical.
B) full.
C) structural.
D) frictional.
E) avoidable.

25) Janae was fired from her job with Microsoft in the 2008-09 recession because Microsoft's sales dipped.
Janae's unemployment would be best classified as
A) frictional unemployment.
B) structural unemployment.
C) sales-related unemployment.
D) cyclical unemployment.
E) natural unemployment

26) At full employment, there is no


A) unemployment.
B) frictional unemployment.
C) structural and seasonal unemployment.
D) cyclical unemployment.
E) structural unemployment.

27) When the economy is at full employment,


A) the natural unemployment rate equals zero.
B) the amount of cyclical unemployment equals zero.
C) the amount of structural unemployment equals zero.
D) there is no unemployment.
E) the amount of frictional unemployment equals zero.

SHORT ANSWER

1. Consider the following people:


 Chris quits his job as an automobile mechanic to pursue his college education full-time.
 Darrelo was laid off from her technical support job because of a strike by production workers and
is currently looking for a new job.
 Rita graduated from college and is currently looking for a job.
 Armondo quit his old job and will begin his new job in four days.
 Thorton was fired from his job as a steel worker because of massive imports of steel and he is
looking for a new job.
 Jung was laid off from his job as an appraiser because the firm's business declined because of a
general downturn in the economy and he is currently looking for a new job as an appraiser.

a.) According to the scenario above, in which of the following groups are ALL the people frictionally
unemployed?

b.) According to the scenario above, in which of the following groups are ALL the people cyclically
unemployed?

c.) According to the scenario above, in which of the following groups are ALL the people structurally
unemployed?

2. Suppose that the population is 275 million. Also assume that the labor force is 135 million and
that 130 million people are employed. Calculate the unemployment rate.

3. Suppose there are 180 million employed people and 20 million unemployed people.
a. What is the unemployment rate?
b. Suppose that 5 million unemployed people give up their search for jobs and become
discouraged workers. What is the new unemployment rate?

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