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%.

Tags: ,