Macro Practice

According to 2009 data on the U.S. population, which of the following groups of adults (ages 20 and older) had the highest labor-force participation rate?
a. white males
b. white females
c. black males
d. black females

a

Consider two people who are currently out of work. Tim is not looking for work because there have been many job cuts where he lives and he doesn't think it likely that he will find work. Bev is not currently looking for work, but she would like a job and she has looked for work in the past. The Bureau of Labor Statistics considers
a. both Tim and Bev to be marginally attached workers.
b. neither Tim nor Bev to be marginally attached workers.
c. only Tim to be a marginally attached worker.
d. only Bev to be a marginally attached worker.

a

a

Consumers decide to ride bikes more and drive cars less. Bicycle companies expand produc-tion while automobile companies fire workers. This is an example of
a. frictional unemployment created by sectoral shifts.
b. frictional unemployment created by efficiency wages.
c. structural unemployment created by efficiency wages.
d. structural unemployment created by sectoral shifts.

a

Edgar is working part-time. Diane is on temporary layoff. Who is included in the Bureau of Labor Statistics' "employed" category?
a. only Edgar
b. only Diane
c. both Edgar and Diane
d. neither Edgar nor Diane

a

Evidence indicates that the typical person who becomes unemployed will
a. soon find a job.
b. find a job, but not before a year or more has gone by.
c. leave the labor force and never return.
d. retire soon after

a

For the Bureau of Labor Statistics to place someone in the "unemployed" category, that person must
a. be available for work.
b. have tried to find employment during the previous week.
c. have previously been employed.
d. All of the above are correct.

a

Frictional unemployment results from
a. job searching. It is often thought to explain relatively short spells of unemployment.
b. job searching. It is often thought to explain relatively long spells of unemployment
c. a surplus in the some labor markets. It is often thought to explain relatively short spells of unemployment.
d. a surplus in some labor markets. It is often thought to explain relatively long spells of unemployment.

a

If the natural rate of unemployment is 5.2 percent and the actual rate of unemployment is 5.7 percent, then by definition there is
a. cyclical unemployment amounting to 0.5 percent of the labor force.
b. frictional unemployment amounting to 0.5 percent of the labor force.
c. structural unemployment amounting to 0.5 percent of the labor force.
d. search unemployment amounting to 0.5 percent of the labor force.

a

In 2009, based on concepts similar to those used to estimate U.S. employment figures, the Italian adult non-institutionalized population was 51.070 million, the labor force was 24.710 million, and the number of people employed was 22.765 million. According to these numbers, the Italian labor-force participation rate and un-employment rate were about
a. 48.4% and 7.9%.
b. 48.4% and 3.8%.
c. 44.6% and 7.9%
d. 44.6% and 3.8%

a

In 2009, based on concepts similar to those used to estimate U.S. employment figures, the Swedish adult non-institutionalized population was 7.568 million, the labor force was 4.888 million, and the number of people employed was 4.486 million. According to these numbers, the Swedish labor-force participation rate and un-employment rate were about
a. 64.6% and 8.2%.
b. 64.6% and 5.3%.
c. 59.3% and 8.2%.
d. 59.3% and 5.3%.

a

In June 2009 the BLS reported an adult population of 234.9 million, unemployment of 12.4 million, and em-ployment of 141.6 million. Based on these numbers the labor-force participation rate was
a. 154/234.9.
b. 141.6/234.9.
c. 141.6/154.
d. None of the above are correct.

a

Jenna is searching for a job that suits her tastes about where to live. Mary is looking for a job that makes best use of her skills.
a. Jenna and Mary are both frictionally unemployed.
b. Jenna and Mary are both structurally unemployed.
c. Jenna is frictionally unemployed, and Mary is structurally unemployed.
d. Jenna is structurally unemployed, and Mary is frictionally unemployed.

a

Jouke is on a temporary layoff from his factory job but has not looked for work in the last four weeks. The Bureau of Labor Statistics counts Jouke as
a. unemployed and in the labor force.
b. unemployed and not in the labor force.
c. employed and in the labor force.
d. employed and not in the labor force.

a

Mario was laid off two months ago. He has not searched for other work because he is expecting to be re-called to work. In the U.S. labor force statistics Mario is counted as
a. unemployed and in the labor force.
b. unemployed and not in the labor force.
c. employed and in the labor force.
d. not in the labor force.

a

Matt is waiting to be recalled to a job from which he was laid off. David was fired but hasn't looked for work during the last two months. Who does the BLS count as unemployed?
a. Matt but not David
b. David but not Matt
c. both David and Matt
d. neither David nor Matt

a

Sheamous loses his job and decides to sit on the beach rather than look for work during the next few months. Other things the same, the unemployment rate
a. increases and the labor-force participation rate decreases.
b. increases and the labor-force participation rate is unaffected.
c. is unaffected and the labor-force participation rate decreases.
d. and the labor-force participation rate are both unaffected.

a

Sirius has just finished high school and started looking for his first job, but has not yet found one. Other things the same, the unemployment rate
a. and the labor-force participation rate both increase.
b. increases and the labor-force participation rate is unaffected.
c. is unaffected and the labor-force participation rate increases.
d. and the labor-force participation rate are both unaffected.

a

Some persons are counted as out of the labor force because they have made no serious or recent effort to look for work. However, some of these individuals may want to work even though they are too discouraged to make a serious effort to look for work. If these individuals were counted as unemployed instead of out of the labor force, then
a. both the unemployment rate and labor-force participation rate would be higher.
b. the unemployment rate would be higher and the labor-force participation rate would be lower.
c. the unemployment rate would be lower and the labor-force participation rate would be higher.
d. both the unemployment rate and labor-force participation rate would be lower.

a

Teenagers have more frequent unemployment spells so on average they spend more time searching for jobs. Other thing the same this means that teenagers have a
a. higher unemployment rate. If a larger portion of the adult population were teenaged, the natural rate of unemployment would be higher.
b. higher unemployment rate. The portion of the adult population that is teenaged does not affect the natural rate of unemployment.
c. lower unemployment rate. If a larger portion of the adult population were teenaged, the natural rate of unemployment would be lower.
d. lower unemployment rate. The portion of the adult population that is teenaged does not affect the natural rate of unemployment.

a

The labor-force participation rate measures the percentage of the
a. total adult population that is in the labor force.
b. total adult population that is employed.
c. labor force that is employed.
d. labor force that is either employed or unemployed.

a

The natural unemployment rate includes
a. both frictional and structural unemployment.
b. neither frictional nor structural unemployment.
c. structural, but not frictional unemployment.
d. frictional, but not structural unemployment.

a

The reported unemployment rate should be viewed as
a. a useful but imperfect measure of joblessness.
b. clearly smaller than the true unemployment rate.
c. clearly larger than the true unemployment rate.
d. being very close to the true unemployment rate.

a

The unemployment rate is computed as the number of unemployed
a. divided by the labor force, all times 100.
b. divided by the number of employed, all times 100.
c. divided by the adult population, all times 100.
d. times the labor-force participation rate, all times 100.

a

Unemployment numbers reported by the Bureau of Labor Statistics are reported based on a
a. monthly survey of about 60,000 households
b. monthly survey of about 6,000 households
c. weekly survey of about 60,000 households
d. weekly survey of about 6,000 households

a

Who in the adult population is counted as employed in U.S. labor statistics?
a. people who are temporarily absent from their job and people who work without pay in a family member's business
b. people who are temporarily absent from their job but not people who work without pay in a family member's business
c. people who work without pay in a family member's business but not people who are temporarily absent from their job
d. neither people who are temporarily absent from their job nor people who work without pay in a family member's business

a

Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?
a. Julie, who is on temporary layoff
b. Andrew, who worked only 15 hours last week
c. Ellen, who neither has a job nor is looking for one
d. None of the above is correct.

a

Who would be included in the labor force?
a. Homer, who is waiting for his new job to start
b. Michelle, who has become discouraged looking for a job and has quit looking
c. Derrick, an unpaid homemaker
d. None of the above would be included in the labor force.

b

A person who is not employed and claims to be trying hard to find a job but really is not trying hard to find a job
a. is counted as out of the labor force but should be counted as unemployed.
b. is counted as unemployed but should be counted as out of the labor force.
c. is correctly counted as out of the labor force.
d. is correctly counted as unemployed.

b

According to 2009 data on the U.S. population which of the following was correct?
a. Adults had higher labor-force participation rates and higher rates of unemployment compared to teenagers.
b. Adults had higher labor-force participation rates and lower rates of unemployment compared to teenagers.
c. Adults had lower labor-force participation rates and lower rates of unemployment compared to teenagers.
d. Adults had lower labor-force participation rates and higher rates of unemployment compared to teenagers.

b

According to 2009 data on the U.S. population, which of the following groups of adults (ages 20 and older) had the lowest labor-force participation rate?
a. white males
b. white females
c. black males
d. black females

b

According to 2009 data on the U.S. population, which of the following groups of adults (ages 20 and older) had the lowest unemployment rate?
a. white males
b. white females
c. black males
d. black females

b

According to 2009 data on the U.S. population, which of the following groups of teenagers (ages 16-19) had the highest labor-force participation rate?
a. white males
b. white females
c. black males
d. black females

b

According to 2009 data on the U.S. population, which of the following groups of teenagers (ages 16-19) had the lowest unemployment rate?
a. white males
b. white females
c. black males
d. black females

b

Every month, the Bureau of Labor Statistics surveys 160,000 business establishments to help determine
a. the number of people unemployed.
b. the number of jobs the economy has gained or lost.
c. the size of the labor force.
d. the number of people who own their own businesses.

b

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then there would be no
a. cyclical unemployment.
b. frictional unemployment.
c. natural rate of unemployment.
d. structural unemployment.

b

If an unemployed person quits looking for work, then, eventually the unemployment rate
a. decreases and the labor-force participation rate is unaffected.
b. and the labor-force participation rate both decrease.
c. is unaffected and the labor-force participation rate decreases.
d. and the labor-force participation rate are both unaffected.

b

Jill does not currently have a job, but has applied for several jobs in the previous week. Ken is an unpaid stay-at-home dad who has not searched for work in recent years. Who does the BLS count as out of the la-bor force?
a. Jill but not Ken
b. Ken but not Jill
c. Jill and Ken
d. neither Jill nor Ken

b

Just after World War II, the labor-force participation rate of women was
a. about 25 percent, and in 2009, it was about 50 percent.
b. about 33 percent, and in 2009 it was about 60 percent.
c. about 50 percent, and in 2009, it was about 70 percent.
d. about 60 percent, and in 2009, it was about 80 percent.

b

Marginally attached workers are people who
a. are looking for a better job than they currently have.
b. are not working and are not looking for work, but would work if asked.
c. are working part-time while they go to school or get training for a better job.
d. are only a few years from retirement.

b

Over the past several decades in the United States, the labor-force participation rate of women has
a. increased and the labor-force participation rate of men has increased.
b. increased and the labor-force participation rate of men has decreased.
c. decreased and the labor-force participation rate of men has increased.
d. decreased and the labor-force participation rate of men has decreased.

b

People who are unemployed because wages are, for some reason, set above the level that brings labor supply and demand into equilibrium are best classified as
a. cyclically unemployed.
b. structurally unemployed.
c. frictionally unemployed.
d. discouraged workers.

b

Since 1960, the natural rate of unemployment in the U.S. has been between
a. 0.4 and 0.6 percent.
b. 4 and 6 percent.
c. 6 and 12 percent.
d. 12 and 24 percent.

b

Suppose some country had an adult population of about 25 million, a labor-force participation rate of 60 percent, and an unemployment rate of 6 percent. How many people were employed?
a. 0.9 million
b. 14.1 million
c. 15 million
d. 23.5 million

b

Suppose some country had an adult population of about 25 million, a labor-force participation rate of 60 percent, and an unemployment rate of 6 percent. How many people were unemployed?
a. 0.846 million
b. 0.9 million
c. 1.5 million
d. 6 million

b

Suppose some country had an adult population of about 46 million, a labor-force participation rate of 75 percent, and an unemployment rate of 8 percent. How many people were employed?
a. 2.76 million
b. 31.74 million
c. 34.5 million
d. 42.32 million

b

Suppose some country had an adult population of about 46 million, a labor-force participation rate of 75 percent, and an unemployment rate of 8 percent. How many people were unemployed?
a. 2.54 million
b. 2.76 million
c. 3.68 million
d. 8 million

b

Suppose some country had an adult population of about 50 million, a labor-force participation rate of 60 percent, and an unemployment rate of 5 percent. How many people were employed?
a. 1.5 million
b. 28.5 million
c. 30 million
d. 47.5 million

b

Suppose some country had an adult population of about 50 million, a labor-force participation rate of 60 percent, and an unemployment rate of 5 percent. How many people were unemployed?
a. 1.425 million
b. 1.5 million
c. 2.5 million
d. 5 million

b

Suppose that some people are counted as unemployed when, to maintain unemployment compensation, they search for work only at places where they are unlikely to be hired. If these individuals were counted as out of the labor force instead of as unemployed, then
a. both the unemployment rate and labor-force participation rate would be higher.
b. both the unemployment rate and labor-force participation rate would be lower.
c. the unemployment rate would be lower and the labor-force participation rate would be higher.
d. the unemployment rate would be higher and the participation rate would be lower.

b

Suppose that the adult population is 4 million, the number of unemployed is 0.25 million, and the labor-force participation rate is 75%. What is the unemployment rate?
a. 6.25%
b. 8.3%
c. 9.1%
d. 18.75%

b

Suppose that the adult population is 6 million, the number of employed is 3.8 million, and the labor-force par-ticipation rate is 70%. What is the unemployment rate?
a. 6.7%
b. 9.5%
c. 10.5%
d. 28%

b

The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least
a. 14 years old.
b. 16 years old.
c. 18 years old.
d. 21 years old.

b

The Bureau of Labor Statistics defines the unemployment rate as the percentage of
a. those unemployed relative to those employed.
b. the labor force that is unemployed.
c. the adult population that is unemployed.
d. the adult population that is unemployed or not in the labor force.

b

The Bureau of Labor Statistics places people in the "employed" category if they
a. are without a job, but are available for work and have tried to find a job during the previous 4 weeks.
b. work without pay in a family member's business.
c. are waiting to be recalled to a job from which they had been laid off.
d. All of the above are correct.

b

The Bureau of Labor Statistics produces data on unemployment
a. weekly.
b. monthly.
c. quarterly.
d. yearly.

b

The Bureau of Labor Statistics reported in 2005 that there were 50.40 million people over age 25 whose high-est level of education was some college or an associate degree, 33.86 million of whom were employed and 1.27 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group?
a. 69.7% and 2.5%
b. 69.7% and 3.6%
c. 67.2% and 2.5%
d. 67.2% and 3.6%

b

The labor force equals the
a. number of people employed.
b. number of people employed plus the number of people unemployed.
c. number of people employed plus the number of people unemployed plus teenagers between ages 14 and 16 who work at least 10 hours a week.
d. adult population.

b

Tom was laid off and is expecting to be recalled. He has not looked for work since being laid off. Bill is not employed and not laid off. Who is counted as unemployed in the U.S. labor force statistics?
a. Tom and Bill even if he has not looked for work during the previous 4 weeks.
b. Tom and Bill if he has looked for work during the previous 4 weeks.
c. Not Tom. Bill even if he has not looked for work during the previous 4 weeks.
d. Not Tom. Bill if he has looked for work during the previous 4 weeks.

b

Unemployment data are collected
a. from unemployment insurance claims.
b. through a regular survey of about 60,000 households.
c. through a regular survey of about 200,000 firms.
d. using all of the above.

b

Which list contains two periods when the U.S. unemployment rate was below the natural rate of unemploy-ment?
a. 1965-1968, 1981-1984
b. 1965-1968, 1997-2000
c. 1981-1984, 1991-1994
d. 1991-1994, 1997-2000

b

Which of the following is not an explanation for the existence of structural unemployment?
a. efficiency wages
b. job search
c. minimum-wage laws
d. unions

b

Who is not included in the labor force by the Bureau of Labor Statistics?
a. Calvin, who is on temporary layoff
b. Michael, who has retired and is not looking for work
c. Lauren, who does not have a job, but has applied for several in the last week
d. None of the above is correct.

b

Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?
a. Cambry, a full-time student who is not looking for work
b. Eric, who is on temporary layoff
c. Carson, who has retired and is not looking for work
d. All of the above are correct.

c

According to 2009 data on the U.S. population, which of the following groups of adults (ages 20 and older) had the highest unemployment rate?
a. white males
b. white females
c. black males
d. black females

c

According to 2009 data on the U.S. population, which of the following groups of teenagers (ages 16-19) had the highest unemployment rate?
a. white males
b. white females
c. black males
d. black females

c

According to 2009 data on the U.S. population, which of the following groups of teenagers (ages 16-19) had the lowest labor-force participation rate?
a. white males
b. white females
c. black males
d. black females

c

Adam is looking for a job in marketing. He has had some offers and his prospects are promising but he's not yet accepted a job. Amanda lost her job working for Mercury Bicycles because many customers decided they prefer bicycles manufactured by Ultimate Bicycles instead. Who is frictionally unemployed?
a. Adam but not Amanda
b. Amanda but not Adam
c. Adam and Amanda
d. neither Amanda nor Adam

c

Andre owns his own business. Oscar is an unpaid worker in his family's business. Who is included in the Bu-reau of Labor Statistics' "employed" category?
a. only Andre
b. only Oscar
c. both Andre and Oscar
d. neither Andre nor Oscar

c

Ava owns her own business. The Bureau of Labor Statistics counts Ava as
a. unemployed and in the labor force.
b. unemployed and not in the labor force.
c. employed and in the labor force.
d. employed and not in the labor force.

c

Caitlin is an unpaid worker in her family's bakery. The Bureau of Labor Statistics counts Caitlin as
a. unemployed and in the labor force.
b. unemployed and not in the labor force.
c. employed and in the labor force.
d. employed and not in the labor force.

c

Danielle did not work last week because flooding forced an evacuation of her workplace. The Bureau of La-bor Statistics counts Danielle as
a. unemployed and in the labor force.
b. unemployed and not in the labor force.
c. employed and in the labor force.
d. employed and not in the labor force.

c

Economists at the Congressional Budget Office estimated that for 2009, the U.S. natural rate of unemployment was
a. 2.5 percent.
b. 3.0 percent.
c. 5.0 percent.
d. 6.5 percent.

c

Frictional unemployment is thought to explain
a. relatively short spells of unemployment, as is structural unemployment.
b. relatively long spells of unemployment, as is structural unemployment.
c. relatively short spells of unemployment, while structural unemployment is thought to explain relatively long spells of unemployment.
d. relatively long spells of unemployment, while structural unemployment is thought to explain relatively short spells of unemployment.

c

From time to time, the demand for workers has risen in one region of the United States and fallen in another. This illustrates
a. frictional unemployment created by efficiency wages.
b. structural unemployment created by efficiency wages.
c. frictional unemployment created by sectoral shifts.
d. structural unemployment created by sectoral shifts.

c

If you were told that someone you knew nothing else about had just become unemployed, your best guess would be
a. that they would be unemployed for a long time, and that most of the unemployed they've joined have been unemployed for a long time.
b. that they would be unemployed for a long time, even though most of the unemployed they've joined have been unemployed for a short time.
c. that they would be unemployed for a short time, even though most of the unemployed they've joined have been unemployed for a long time.
d. that they will be unemployed for a short time, and that most of the unemployed they've joined have been unemployed for a short time.

c

In order, which group has the highest participation rate and which has the higher unemployment rate?
a. black males, black males
b. black males, white males
c. white males, black males
d. white males, white males

c

Jason works part-time as a babysitter. The Bureau of Labor Statistics counts Jason as
a. unemployed and in the labor force.
b. unemployed and not in the labor force.
c. employed and in the labor force.
d. employed and not in the labor force.

c

John is a stockbroker. He has had several job offers, but he has turned them down because he thinks he can find a firm that better matches his tastes and skills. Curtis has looked for work as an accountant for some time. While the demand for accountants doesn't appear to be falling, there seems to be more people applying than jobs available.
a. John and Curtis are both frictionally unemployed.
b. John and Curtis are both structurally unemployed.
c. John is frictionally unemployed, and Curtis is structurally unemployed.
d. John is structurally unemployed, and Curtis is frictionally unemployed.

c

Mary worked part-time for her mother's business without pay. Larry was absent from work because he had the flu. Who is counted as employed by the BLS?
a. Mary but not Larry
b. Larry but not Mary
c. both Marry and Larry
d. neither Mary nor Larry

c

Meredith is looking for work as a computer programmer. Although her prospects are good, she hasn't yet tak-en a job. Julie is looking for work in a steel mill. Every time she shows up for an interview, there are more people looking for work than their are openings. Someone waiting in line with her tells her it has been that way for a long time.
a. Meredith and Julie are both frictionally unemployed.
b. Meredith and Julie are both structurally unemployed.
c. Meredith is frictionally unemployed, and Julie is structurally unemployed.
d. Meredith is structurally unemployed, and Julie is frictionally unemployed.

c

Meredith recently graduated from college but has not yet started working. To be counted as unemployed she
a. does not have to have looked for work.
b. must have looked for work no more than a week ago.
c. must have looked for work no more than 4 weeks ago.
d. must have looked for work no more than 12 weeks ago.

c

Most spells of unemployment are
a. long, and most unemployment observed at any given time is long term.
b. long, but most unemployment observed at any given time is short term.
c. short, but most unemployment observed at any given time is long term.
d. short, and most unemployment observed at any given time is short term.

c

Over the past several decades, the difference between the labor-force participation rates of men and wom-en in the U.S. has
a. gradually increased.
b. remained constant.
c. gradually decreased.
d. been eliminated.

c

People who are unemployed because of job search are best classified as
a. cyclically unemployed.
b. structurally unemployed.
c. frictionally unemployed.
d. discouraged workers.

c

Recent entrants into the labor force account for about
a. 1/5 of those who are unemployed.
b. 1/4 of those who are unemployed.
c. 1/3 of those who are unemployed.
d. 1/2 of those who are unemployed.

c

Sandy has graduated from college and is devoting her time to searching for a job. She has seen plenty of openings, but has not yet been offered one that best suits her tastes and skills. Sandy is
a. structurally unemployed. Structural unemployment exists even in the long run.
b. structurally unemployed. There is no structural unemployment in the long run.
c. frictionally unemployed. Frictional unemployment exists even in the long run.
d. frictionally unemployed. There is no frictional unemployment in the long run.

c

Satchel loses his job and immediately begins looking for another. Other things the same, the unemployment rate
a. increases and the labor-force participation rate decreases.
b. and the labor-force participation rate both increase.
c. increases and the labor-force participation rate is unaffected.
d. is unaffected and the labor-force participation rate decreases.

c

Sectoral shifts in demand for output
a. create structural unemployment.
b. immediately reduce unemployment.
c. increase unemployment due to job search.
d. do not affect demand for labor.

c

Some people who are employed or who are not making serious effort to find employment will report them-selves as unemployed. Some people who want to find work will be counted as out of the labor force.
a. Both the first and the second fact tend to make the reported unemployment rate lower than otherwise.
b. Both the first and the second fact tend to make the reported unemployment rate higher than otherwise.
c. The first fact tends to make the reported unemployment rate higher than otherwise, while the second fact tends to make the reported unemployment rate lower than otherwise.
d. The first fact tends to make the reported unemployment rate lower than otherwise, while the second fact tends to make the reported unemployment rate higher than otherwise.

c

Suppose there are a large number of men who used to work or seek work who now no longer do either. Other things the same, this makes
a. the number of people unemployed rise but does not change the labor force.
b. the number of people unemployed rise but makes the labor force fall.
c. both the number of people unemployed and the labor force fall.
d. the number of people unemployed fall but does not change the labor force.

c

The BLS classifies people who would like to work but have given up looking for a job as
a. unemployed. If they were classified as out of the labor force, the reported unemployment rate would be larger.
b. unemployed. If they were classified as out of the labor force, the reported unemployment rate would be smaller.
c. out of the labor force. If they were classified as unemployed, the reported unemployment rate would be larger.
d. out of the labor force. If they were classified as unemployed, the reported unemployment rate would be smaller.

c

The BLS counts discouraged workers as
a. employed. Including them as employed makes the unemployment rate lower than otherwise.
b. unemployed. Including them as unemployed makes the unemployment rate higher than otherwise.
c. out of the labor force. If the were counted as unemployed the unemployment rate would be higher.
d. None of the above is correct.

c

The Bureau of Labor Statistics is part of the U.S. Department of
a. the Treasury.
b. Commerce.
c. Labor.
d. the Interior.

c

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about
a. 600 households.
b. 6,000 households.
c. 60,000 households.
d. 6,000,000 households.

c

The deviation of unemployment from its natural rate is called
a. the normal rate of unemployment.
b. deviant unemployment.
c. cyclical unemployment.
d. fluctuating unemployment.

c

The labor-force participation rate is computed as
a. (Employed Adult Population) 100.
b. (Employed Labor Force) 100.
c. (Labor Force Adult Population) 100.
d. (Adult Population Labor Force) 100.

c

The labor-force participation rate tells us the fraction of the population that
a. is able to participate in the labor market.
b. has ever been employed.
c. has chosen to participate in the labor market.
d. has chosen not to participate in the labor market.

c

Unemployment that results because the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one is called
a. the natural rate of unemployment.
b. cyclical unemployment.
c. structural unemployment.
d. frictional unemployment.

c

Which of the following includes everyone in the adult population that the Bureau of Labor Statistics counts as unemployed?
a. anyone who is not employed
b. anyone who is not employed, is available for work, and has looked for work in the past 4 weeks
c. anyone who is not employed, is available for work, has looked for work in the past 4 weeks, and anyone who is waiting to be recalled from a job from which they have been laid off
d. anyone who is not employed, is available for work, has looked for work in the past 4 weeks, anyone who is waiting to be recalled from a job from which they have been laid off, and anyone who is employed part time and has searched for full time employment in the past 4 weeks

c

Which of the following is correct?
a. In the U.S. the natural rate of unemployment is frequently near 2%.
b. The natural rate of unemployment fluctuates more than the cyclical rate of unemployment.
c. The cyclical rate of unemployment is sometimes below the natural rate of unemployment.
d. None of the above is correct.