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- 1. Multiple Choice
If an economy is at its Natural Rate of Unemployment...
Only Cyclical Unemployment would be present
There would be no frictional unemployment
Only frictional and structural unemployment would be present
Everyone is working Everyone is working
- 2. Multiple Choice
A labor force of 20 million people has 18.5 million people employed. Find the unemployment rate.
10%
8.5%
7.5%
6%
- 3. Multiple Choice
Discouraged workers in
the economy implies that the measurement of unemployment...
understates the true unemployment rate
overstates the true unemployment rate
correctly measures the true unemployment rate
doubles the unemployment rate
- 4. Multiple Choice
If operators are fired and replaced with computer technology, the operators would be considered
frictionally unemployed
structurally unemployed
cyclically unemployed
dissatisfiededly unemployed dissatisfiededly unemployed
- 5. Multiple Choice
Which of the following statements is true of an economy at its "natural
rate of unemployment"?
Everyone who wants to work is working
The economy is producing at its potential
The economy is only experiencing cyclical unemployment
The economy is producing beyond the PPF The economy is producing beyond the PPF
- 6. Multiple Choice
If actual GDP is less than potential GDP...
Actual unemployment exceeds the natural unemployment rate
Actual unemployment rate is less than the natural rate
No cyclical unemployment is present
Hyperinflation is present Hyperinflation is present
- 7. Multiple Choice
Cyclical unemployment
Describes recent college graduates
Lasts longer than 6 months
Describes employees moving from one job to another
Increases inflation Increases inflation
- 8. Multiple Choice
The unemployment rate is the ratio of
unemployed to labor force
employed to labor force
seeking employment to labor force
dissatisfied to labor force
- 9. Multiple Choice
Seasonal unemployment
Describes recent college graduates
Is predictable
Is a result of changes in technology
Slows the economy Slows the economy
- 10. Multiple Choice
The unemployment rate will drop if
A person is hired into a new job
Someone who was previously laid off is rehired
An unemployed person stops looking
ALL of these answers are CORRECT
- 11. Multiple Choice
The natural rate of unemployment is equal to
frictional plus cyclical
cyclical plus structural
frictional plus seasonal
structural plus frictional
- 12. Multiple Choice
Which of these people is officially unemployed
A secretary who took 6 months off for maternity leave
An aspiring actress who waits tables but would rather act
Maid who got fired and will start a new job in 2 weeks
A student who only works 4 hours a week in the library
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