Chapter Six: Module Quiz -- Unemployment

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  1. The BLS conducts a survey each month to determine unemployment rates. To determine the unemployment rate, the BLS classifies survey respondents into any of these categories except:

      not in the labor force
      employed
      unemployed
      part-time worker
      All of the above are valid classifications.

  2. Which of the following people would be counted as officially employed?

      Brandy worked one hour for pay the week of the survey week, but then was laid off.
      JoAnn worked 13 hours for her family business during the survey week but was not paid.
      Javier was available for work during the survey week, but could not find a job.
      None of the above would be classified as employed.

  3. To be counted as unemployed which of the following criteria must be true?

      Currently do not have a job.
      Have actively sought work in the past 4 weeks.
      Currently available for work.
      All of the Above

  4. Which of the following people would be classifed as officially unemployed?

      Darryl is involved in a union strike and has not worked in the past week. He did, however, work three days during the week of the survey.
      Diane is an at-home mom raising her children and spent the weekend looking at help wanted ads.
      Ken was laid off last week from his job. He made phone calls to potential new employers this week. However, Ken does not qualify for unemployment insurance.
      Barbara has not been able to find work for six months. Frustrated, she has given up looking.

  5. Suppose the BLS conducted a monthly survey of 1,000 individuals, and found that 400 are employed, 100 are unemployed, and 500 are not in the labor force. From this information, which of the following statements is false?

      The labor force consists of 500 people.
      The unemployment rate is 10 percent.
      Discouraged workers are included in the "not in the labor force" category.
      The employment rate is 80 percent.

  6. Critics complain that the unemployment rate understates the true unemployment rate because

      People only have to say they are activley seeking work.
      Discouraged workers are counted as not in the labor force instead of unemployed.
      Involuntary part-time workers are counted as employed even when they want to work full-time.
      All of the above
      Only (b) and (c) (i.e. the second and third choices listed here)

  7. Jane is laid off from her work because the firm is moving to Mexico. Jane is

      frictionally unemployed.
      structurally unemployed.
      cyclically unemployed.
      seasonally unemployed.
      None of the Above

  8. The natural rate of unemployment is currently estimated to be between

      3 and 4 percent.
      4 and 4.5 percent.
      5 and 5.5 percent.
      7 and 8 percent.
      None of the Above

  9. Unemployment rates are counter-cyclical and increase when the economy goes into recession, but they are not continually increasing.

      True
      False

  10. Our unemployment rates are misleading because we only count those who are receiving unemployment insurance. But many of those who are unemployed do not receive unemployment insurance at all.

      True
      False
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