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| CHAPTER 3 l. The unemployment rate measures: a) the number of people uneznployed divided by the number of people mployed. b) unemployed workers as apercentage ofthe labor force. c) unemployed workers as a percentage of the population age overesixteen. d) unemployed workers as apercentage ofthe population. 2. Reginald looked for work for six months but could not nd a job to his liking. He now spends his time at the beach. For purposes ofemploymeu't he is considered: a) out of the labor force. b) unemployed. c) employed in the underground economy. d) underemployed. 3. Bob is unemployed if he a) is temporarily laid off. b) is not looking for job. c) looked forij for two months and then quit looking. d) A and C are correct. 4. Unemployment rate is dened as the ratio of which ofthese: a) labor force to the population 16 years old or older. b) number ofpeople unemployed to total population. c) rumba of people nnmnployed to the total population 16 years old or older d) none of the above 5. The unemploymmt rate in a town anhinh 65,400 persons are employed and 11,000 are unemployed equals: a)20.2 \"/0. (b)16.8%. (c)14.4%. (d)11\"/o. 6. Freelife New Hampshire has a labor force of 78,567 persons and employment of 74,382. The unemployment rate for the city is: a) 5.3%. (b) 5.6%. (c) 6.0%. (d)'1'.1\" 7. Craigm ha a worlcing age population of 20 mith O:l'those= 11 million are employed and 1 million are unmployod. The uneznployment rate is andthe participation rate is a)5%;55%. (b)8.3%;60%. [c)8.3%;55%. (d]5%;60%. 8. che unemployment rate is 6 percent and the number of persons unemployed is 6 million, thenthe number of people employed is equal to: a) 100 million. (b) 94 million. (c) 105 million. (d) 5 mith 9. Assume that in 2018, the population 16 years old or older in a small town was 15,500 people, the number of employed was 11,000 people, the number unemployed was 2,500 people, the lahoreforce participation rate in 2015 was "774%. a) 81.81% (b)90.91% (c)136.35% (d)71.43% 10. Which of the following represent the laboreparticipation rate? a) the ratio of employment to the labor force 13) the ratio of labor force to the population over 16 c) the ratio of employment to the population over 16 d) the ratio of the labor force to employment 1 l. 1fthe number ofunemployed equals 4.7 million, the number of employed equals 100.3 million, the labor force equals 125.8 million, and the total population 16 years of age and older is 150.6 million, the labor-force par1ioipajzion rate: a) is 3.1% b) is 66.6% c) is 3.7% d) is 83.5% 12. Joanne has just graduated 'om college and is now loolong for a job, but has not yet found one. This causesthe unemployment rate to and the labor-force participation rate to a) increase; decreases b) stay the same; stay the same c) inLrease; increase d't muease: stav the same 13. Mike has just graduated from college and is now looking for ajob, buthas not yet found one. This causes the unemployment rate to and the laboriforce participation to . a) increase; decrease 1)) stay the same; smy the same c) m inease d) increase; stay the same 14. The unemployment rate may underestimate the true extent of unanployment if: a) many partitime employees would like to work M are unable to get the additional work. 1)) employees increase the number of hours they work overtime. c) there are i_ _l_a_r_ge_ pumpergf people working in the underground economy. d) people are pretending to look for work so that they can continue receiving unemployment benets. 15. The extent of will depend onhnw easy it is for workers to learn about alternative jobs, which may reflect the ease of communications about job prospects Ln the economy. a) frictional unanployment b) cyclical unemployment c) seasonal unemploymmt d) cyclical employment 16. An individual worked for an airline that went out of business because the airline was unable to meet new federal safety standards. While the individual is unemployed, she will be classied as: a) frictional unemployed b) structural unemployed c) cyclical unemployed d) structural unemployed 17. A man is fired from hisjob because he was late for work too many times. While he is searching for another job he would be classied as a) natural unemployment. b) frictional memploymmt. c) seasonal unemployment. d) cyclical unemployment. 18. The natural rate of unemployment is generally thought ofas which one: a) ratio of the ctional unemployment rate to the cyclical unemployment rate. h) sun] of the structural unemployment and cyclical unemployment rates. (1) sum of the frictional unemployment and cyclical unemployment rates. d) sum of the frictional unemployment and structural unemploymmt rates 19. lfthe labor market becomes more elcient so that the unemployed are more quickly mamhed withjohs, this will a) increase the natural rate ofunmployment. 1)) decrease the natural rate ofunemploymait. c) not affect the natural rate of unemployment (I) could atherr increase or decrease the natural rate of unemployment. 20. Some unemployment is inimitable because: a) there are always individuals entering the labor force searching for a job at any point in time b) some individuals will stop searching ifthey cannot nd ajob c) the gains to firms and workers rarely exceed the costs nfsearching for workers or work d) ofthe existaiee ofdiseo'uraged workers