Question 1

Which of the following best describes the official definition of 'unemployed' according to the Bureau of Labor Statistics (BLS)?

Accepted Answer

A person who had no employment during the survey week, was available for work, and had made specific efforts to find employment during the previous four weeks or was waiting to be recalled to a job.

Question 2

Given the following data for July 2019: Unemployed = 6.1 million, Labor force = 163.4 million. What is the unemployment rate? Use the formula $$	ext{Unemployment Rate} = \frac{	ext{Number of Unemployed}}{	ext{Labor Force}} 	imes 100.$$

Accepted Answer

$$3.7\%$$

Question 3

Which of the following individuals would be classified as 'not in the labor force'?

Accepted Answer

A person of working age who has not looked for work in the past four weeks and is not waiting to be recalled to a job.

Question 4

If the working-age population is 259.3 million and the number of employed individuals is 157.3 million, what is the employment-population ratio? Use the formula $$	ext{Employment-Population Ratio} = \frac{	ext{Number Employed}}{	ext{Working-Age Population}} 	imes 100.$$

Accepted Answer

$$60.7\%$$

Question 5

Which of the following is an example of frictional unemployment?

Accepted Answer

A recent college graduate interviewing for their first job.

Question 6

Which type of unemployment increases during a recession and decreases during an expansion?

Accepted Answer

Cyclical unemployment

Question 7

If the labor force is 163.4 million and the working-age population is 259.3 million, what is the labor force participation rate? Use the formula $$	ext{Labor Force Participation Rate} = \frac{	ext{Labor Force}}{	ext{Working-Age Population}} 	imes 100.$$

Accepted Answer

$$63.0\%$$

Question 8

Which of the following best describes a discouraged worker?

Accepted Answer

A person who has not made specific efforts to find a job within the previous four weeks because previous unsuccessful attempts were discouraging.

Question 9

Which of the following statements about the U-3 and U-6 unemployment rates is correct?

Accepted Answer

U-3 is the official unemployment rate and is narrower than U-6, which includes discouraged workers and part-time workers for economic reasons.

Question 10

During the 2008–2009 recession, which of the following best describes the main cause of the economic downturn?

Accepted Answer

The collapse of the U.S. housing market bubble, leading to a global financial crisis.

Question 11

If the unemployment rate is above the natural unemployment rate, what can be said about real GDP and the output gap?

Accepted Answer

Real GDP is below potential GDP and the output gap is negative.

Question 12

Which of the following is a likely effect of mass deportation policies on the U.S. labor market, according to economists?

Accepted Answer

A labor shortage in industries like agriculture, leading to higher wages and increased consumer prices.

Question 13

Which of the following best explains why politicians often report the U-3 unemployment rate instead of broader measures like U-6?

Accepted Answer

U-3 is simpler and presents a more favorable picture of the labor market.

Question 14

Which of the following is an example of structural unemployment?

Accepted Answer

A bank teller losing their job due to the introduction of ATMs.

Question 15

Suppose the labor force participation rate remains constant, but the employment-population ratio decreases. What does this imply?

Accepted Answer

The unemployment rate has increased.

Question 16

Which of the following is NOT included in the official unemployment rate (U-3)?

Accepted Answer

Marginally attached workers who have not searched for work in the past four weeks.

Question 17

If the output gap is positive, which of the following must be true?

Accepted Answer

The unemployment rate is below the natural unemployment rate.

Question 18

Which of the following is a major influence on the natural unemployment rate?

Accepted Answer

The age distribution of the population.

Question 19

A person who works 20 hours per week but wants a full-time job is classified as:

Accepted Answer

Part-time for economic reasons (involuntary part-time worker).

Jobs and Unemployment: Labor Market Indicators, Trends, and Full Employment

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