Multiple Choice Identify the
choice that best completes the statement or answers the question.
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1.
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Which of the following people is counted in the labor force?
a. | Chou, who lost his job and last looked for work three months ago | b. | Stephanie, who holds
a Ph.D. in history, but can only find part-time employment at a fast- food
restaurant | c. | Jordan, who would like to work as a stockbroker but is now a
househusband | d. | Steffan, who thinks he could easily earn $100 thousand per year, despite the opinion
of the psychiatrist at the state hospital where he is a patient | e. | Monique, age 90, who
is enjoying her retirement in Montana |
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2.
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Consider an economy made up of 100 people, 60 of whom hold jobs, 10 of whom are
looking for work, and 15 of whom are retired. The number counted as unemployed is
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3.
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Consider an economy made up of 150 people, 90 of whom hold jobs, 10 of whom are
looking for work, 15 of whom are retired, and 20 are discouraged former workers. The unemployment
rate is:
a. | 10% | b. | 15% | c. | 66% | d. | 90% | e. | impossible to
calculate from this limited data |
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4.
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The unemployment rate will increase whenever there is a(n)
a. | increase in the number of persons classified as unemployed | b. | increase in the
number of unemployed when compared to the number in the labor force | c. | increase in the size
of the U.S. population and there is no change in the number of persons classified as
employed | d. | reduction in the size of the labor force | e. | reduction in the
size of the labor force while the number of unemployed decreases |
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5.
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The unemployment rate disguises the extent of the unemployment problem
because
a. | children are not counted as unemployed | b. | retired persons are not counted as
unemployed | c. | full-time students are not counted as unemployed | d. | discouraged workers
are counted as unemployed | e. | people overqualified for their current job are
not considered unemployed |
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6.
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The labor force consists of all
a. | the people in the economy who are not retired | b. | people in the
economy over 16 years of age | c. | the adults in the economy between 18 and 65
years old who are able to work | d. | the noninstitutionalized population over 16 in
the economy who hold jobs or are looking for them | e. | the citizens in the economy who are graduates
of high school |
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7.
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Which of the following are classified as "discouraged workers"?
a. | all those between 16 and 65 who are neither disabled nor in an institution and are
also neither employed nor seeking employment | b. | labor force members who have chosen early
retirement because they dislike their work or think the pay is too low | c. | members of the
noninstitutional population who say they want to be employed but are not searching for a
job | d. | members of the labor force who are looking for a job but cannot find
one | e. | anyone in the population who is not working |
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8.
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A person who repairs typewriters becomes unemployed because people buy personal
computers instead of having their typewriters repaired. This person can best be described
as
a. | frictionally unemployed | b. | structurally unemployed | c. | cyclically
unemployed | d. | not part of the labor force | e. | a discouraged
worker |
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9.
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When the economy is at full employment, what types of unemployment may
exist?
a. | none - there is no unemployment at full employment. | b. | only
cyclical | c. | only frictional | d. | both cyclical and frictional, but not
structural |
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10.
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Exclusion of which of the following tends to understate the true extent of
unemployment in the economy?
a. | children | b. | retired persons | c. | students | d. | people who do not want to
work | e. | discouraged workers |
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