Question 1

Exhibit 12-3 Unemployment categories
 
-According to data in Exhibit 12-3 and assuming the total number of workers is 8,400,the civilian labor force is:

Accepted Answer

A)   7,550.
B)   8,000.
C)   8,400.
D)   8,800.
E)   9,250.F) B) and E)
G) A) and B)

Question 2

The economy is considered to be at full employment when:

Accepted Answer

A)   the actual rate of unemployment is less than the natural rate.
B)   the leading economic indicators are unchanged for two consecutive quarters.
C)   structural unemployment is zero.
D)   frictional plus structural unemployment is less than the natural rate.
E)   the rate of cyclical unemployment is zero.F) A) and B)
G) C) and D)

Question 3

Which one of the following persons would be considered unemployed?

Accepted Answer

A)   A person not working who has given up searching for a job.
B)   A part-time worker looking for a full-time job.
C)   A construction worker who was laid off due to cold weather.
D)   A full-time college student who is not a member of the labor force.E) B) and D)
F) C) and D)

Question 4

Retired persons are officially classified as:

Accepted Answer

A)   unemployed.
B)   self-employed.
C)   underemployed.
D)   not in the labor force.E) A) and B)
F) B) and D)

Question 5

If you look for a job for eighteen months after graduation,but fail to generate an offer,even after lowering your expectations,the economy is probably in the business cycle phase called a:

Accepted Answer

A)   recession.
B)   peak.
C)   boom.
D)   recovery.
E)   trough.F) A) and E)
G) D) and E)

Question 6

What stage of the business cycle immediately follows the trough?

Accepted Answer

A)   Peak.
B)   Recovery.
C)   Recession.
D)   Depression.E) B) and D)
F) All of the above

Question 7

Which of the following groups of people are counted as employed?

Accepted Answer

A)   People who work at least one hour a week.
B)   People who work at least 15 hours a week as unpaid employees of a family business.
C)   People who are out of work due to bad weather.
D)   All of the above are counted as employed.E) A) and B)
F) None of the above

Question 8

Cyclical unemployment is primarily caused by:

Accepted Answer

A)   a large proportion of youthful workers in the labor force.
B)   fluctuations in aggregate demand.
C)   a lack of training on the part of job seekers.
D)   the failure of job seekers to search adequately for the available jobs.E) A) and C)
F) None of the above

Question 9

The type of unemployment that occurs because of a recession is called:

Accepted Answer

A)   frictional unemployment.
B)   seasonal unemployment.
C)   natural unemployment.
D)   cyclical unemployment.E) A) and C)
F) None of the above

Question 10

The number of people officially unemployed is not the same as the number of people who can't find a job because:

Accepted Answer

A)   people who have jobs continue to look for better ones.
B)   the armed forces is included.
C)   discouraged workers are not counted.
D)   none of the above.
E)   all of the above.F) C) and E)
G) B) and C)

Question 11

A general mismatch between the skills of unemployed workers and the skills needed by employers with job openings results in:

Accepted Answer

A)   frictional unemployment.
B)   structural unemployment.
C)   cyclical unemployment.
D)   a higher labor force participation rate.E) B) and D)
F) B) and C)

Question 12

As a general rule,a recession is a decline in real GDP lasting at least:

Accepted Answer

A)   one year.
B)   six months.
C)   three months.
D)   one month.E) B) and C)
F) A) and B)

Question 13

Which of the following will most likely occur during the expansionary phase of a business cycle?

Accepted Answer

A)   Real GDP rises, and unemployment falls.
B)   Real GDP declines, and inflation rises.
C)   Interest rates rise, and the number of business failures rise.
D)   Inflation rises, and employment falls.E) A) and D)
F) C) and D)

Question 14

The unemployment rate will decrease whenever there is a(n) :

Accepted Answer

A)   increase in the number of persons classified as unemployed.
B)   decrease in the number of unemployed relative to the size of the labor force.
C)   decrease in the size of the population and there is no change in the number of persons classified as employed.
D)   reduction in the size of the labor force.
E)   decrease in the number of unemployed and the population does not change.F) A) and B)
G) C) and D)

Question 15

Part-time workers who want full-time work are counted as only partially employed in the official unemployment statistic.

Accepted Answer

A) True 
 B)False

Question 16

Industrial production is not a coincident indicator.

Accepted Answer

A) True 
 B)False

Question 17

Exhibit 12-3 Unemployment categories
 
-According to data in Exhibit 12-3 and assuming the total number of workers is 8,400,the unemployment rate is:

Accepted Answer

A)   14 percent.
B)   15 percent.
C)   16 percent.
D)   19 percent.
E)   24 percent.F) A) and D)
G) B) and D)

Question 18

Any adult who does not have a job is counted as unemployed.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following offers an example of frictional unemployment?

Accepted Answer

A)   The rise in unemployment for stable workers after the development of gasoline-powered automobiles and the resulting long-tern decline in horse-and-buggy transportation.
B)   The rise in unemployment among farm workers after harvest.
C)   Unemployment resulting from the business cycle.
D)   None of the above are correct.E) None of the above
F) B) and C)

Question 20

A business cycle is the period of time in which:

Accepted Answer

A)   a business is established and ceases operations.
B)   there are four phases: peak, recession, trough and expansion.
C)   the price level varies with real GDP.
D)   expansion and contraction of economic activity are equal.
E)   none of the above are true.F) A) and E)
G) A) and C)

Exam 12: Business Cycles and Unemployment

Retired persons are officially classified as:

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Exhibit 12-3 Unemployment categories -According to data in Exhibit 12-3 and assuming the total number of workers is 8,400,the civilian labor force is:

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The number of people officially unemployed is not the same as the number of people who can't find a job because:

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As a general rule,a recession is a decline in real GDP lasting at least:

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Any adult who does not have a job is counted as unemployed.

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Industrial production is not a coincident indicator.

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Which one of the following persons would be considered unemployed?

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If you look for a job for eighteen months after graduation,but fail to generate an offer,even after lowering your expectations,the economy is probably in the business cycle phase called a:

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Cyclical unemployment is primarily caused by:

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The type of unemployment that occurs because of a recession is called:

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What stage of the business cycle immediately follows the trough?

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Part-time workers who want full-time work are counted as only partially employed in the official unemployment statistic.

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A general mismatch between the skills of unemployed workers and the skills needed by employers with job openings results in:

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Exhibit 12-3 Unemployment categories -According to data in Exhibit 12-3 and assuming the total number of workers is 8,400,the unemployment rate is:

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The unemployment rate will decrease whenever there is a(n) :

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Which of the following offers an example of frictional unemployment?

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The economy is considered to be at full employment when:

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A business cycle is the period of time in which:

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Which of the following groups of people are counted as employed?

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Which of the following will most likely occur during the expansionary phase of a business cycle?

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