Chapter 21 Unemployment

*Ch21 Unemployment*

*Multiple Choice Questions*

*1. *The unemployment rate measures:

A. the number of people unemployed divided by the number of people employed.
B. unemployed workers as a percentage of the labor force.
C. unemployed workers as a percentage of the population age over-sixteen.
D. unemployed workers as a percentage of the population.

Answer: B Reference:

Explanation:

Type: Multiple Choice

*2. *During the Great Depression of the 1930s, the unemployment rate reached more than _________ of the labor force.

A. 25%
B. 45%
C. 65%
D. 85%

Answer: A Reference:

Explanation:

Type: Multiple Choice

*3. *Reginald looked for work for six months but could not find a job to his liking. He now spends his time at the beach. For purposes of employment he is considered:

A. out of the labor force.
B. unemployed.
C. employed in the underground economy.
D. underemployed.

Answer: A Reference:

Explanation:

Type: Multiple Choice

*4. *The U.S. unemployment rate moves up and down as the economy moves in and out of recessions. But over time, the unemployment rate seems to return to a range of ____________.

A. 2%-4%
B. 4%-6%
C. 6%-8%
D. 8%-10%

Answer: B Reference:

Explanation:

Type: Multiple Choice

*5. *If the unemployment rate is 8 percent, then this means:

A. 8 percent of the population is unemployed.
B. 8 percent of the population age over sixteen is unemployed.
C. 8 percent of the labor force is unemployed.
D. the number of unemployed persons equals 8 percent of the employed persons.

Answer: C Reference:

Explanation:

Type: Multiple Choice

*6. *If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals:

A. 32%.
B. 25%.
C. 20%.
D. 8%.

Answer: B Reference:

Explanation:

Type: Multiple Choice

*7. *During the deep recessions of the early 1980s and of 2007-2009, unemployment reached roughly __________.

A. 10%
B. 20%
C. 30%
D. 40%

Answer: A Reference:

Explanation:

Type: Multiple Choice

*8. *A welder who quits his job and moves from Pittsburgh to Madison to try to get a better welding job is said to be:

A. frictionally unemployed.
B. underemployed.
C. cyclically unemployed.
D. structurally unemployed.

Answer: A Reference:

Explanation:

Type: Multiple Choice

*9. *Frictional unemployment is:

A. unemployment that is due to the friction of competing ideological systems.
B. unemployment caused by lack of training and education.
C. unemployment caused by automation in the workplace.
D. unemployment that is due to normal turnover in the labor market.

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