Exam 9: Unemployment and Its Natural Rate

A) 1 / 3
B) 2 / 3
C) 3 / 4
D) 4 / 5

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A) Holly,instead of being paid,cares for children in exchange for room and board
B) Tiffany,a full-time student not looking for work
C) Cody,who does not have a job,but is looking for work
D) Kara,who has interrupted her career to raise her two children

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A) Job creation exceeded job destruction that year.
B) The economy had previously been in a recession but was now in recovery
C) Job destruction exceeded job creation that year.
D) Employees were in the process of moving from failing to growing firms.

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A) Unions decrease the natural rate of unemployment.
B) Unions decrease the wages of workers in the union.
C) Unions raise the profits of firms they work for.
D) Unions cause wages of nonunionized workers to fall.

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A) It would cause an increase in unemployment because people would quit jobs they thought were not secure.
B) It would cause an increase in unemployment because if the government didn't provide unemployment insurance,private firms would offer superior insurance.
C) It would cause a decrease in unemployment and an improvement in economic well-being.
D) It would cause a decrease in unemployment,but economists disagree about whether economic well-being would be enhanced by such a change.

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A) as the number of unemployed divided by the labour force times 100
B) as the number of unemployed divided by the number of people employed times 100
C) as the number of unemployed divided by the adult population times 100
D) as the number of unemployed times the participation rate times 100

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a.When the market wage is high compared ...

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A) agriculture
B) the public sector
C) oil and gas
D) food and accommodation

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A) Sectoral changes create frictional unemployment,while firms paying wages above equilibrium create structural unemployment.
B) Sectoral changes create structural unemployment,while firms paying wages above equilibrium create frictional unemployment.
C) Sectoral changes and firms paying wages above equilibrium both create structural unemployment.
D) Sectoral changes and firms paying wages above equilibrium both create frictional unemployment.

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A) It is the unemployment rate that would prevail with zero immigration.
B) It is the rate associated with the highest possible level of GDP.
C) It is the difference between long-run and short-run unemployment rates.
D) It is the amount of unemployment that the economy normally experiences.

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A) 4.76 percent
B) 5.56 percent
C) 7.14 percent
D) 8.33 percent

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A) It is likely that the person will be unemployed a long time and that most of the unemployed he or she joins have been unemployed a long time.
B) It is likely that the person will be unemployed for a long time,even though most of the unemployed he or she joins have been unemployed for a short time.
C) It is likely that the person will be unemployed for a short time,even though most of the unemployed he or she joins have been unemployed for a long time.
D) It is likely that the person will be unemployed for a short time,and that most of the unemployed he or she joins have been unemployed for a short time.

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A) Jay,who is on temporary layoff
B) Mike,who has retired and is not looking for work
C) Jane,who does not have a job,but has applied for several in the last week
D) Joan,who has a part-time job but is looking for a full-time one

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