Question

12) Assume the U.S. population is 300 million. If the working age population is 240 million, 150 million are employed, and 6 million are unemployed, what is the size of the labor force? A. 150 million B. 240 million C. 144 million D. 156 million E. 300 million 13) The unemployment rate generally A. decreases; decreases _during recessions and generally . during expansions. B. increases; increases C. increases; decreases D. increases; does not change E. decreases; increases 14) Frictional unemployment is the result of A. the economy entering a strong expansion. B. a slowdown in the rate of economic expansion C.normal labor market turnover. D. technological change or foreign competition. E. changes in the weather 15) Structural unemployment is the result of A. normal labor market turnover. B. irresponsible workers with poor work habits changing weather patterns through the year technological change or foreign competition a slowdown in the rate of economic expansion C. D. E. 16) Cyclical unemployment A. is higher during an expansion B. is always a constant amount of unemployment C. decreases during a recession D. fluctuates over the business cycle E. fluctuates but not in response to the business cycle. 17) Ann has just lost her sales job because of slower sales in the month of January. Ann is A. search unemployed B. cyclically unemployed. C. seasonally unemployed. D. naturally unemployed. E. structurally unemployed. 18) Which type of unemployment is the consequence of downturns in the business cycle? ) cyclical A) frictional B) natural D) structural E seasonal

Answer 1

12)

Labor Force = Number of Employed + Number of Unemployed

Number of employed= 150 million

Number of unemployed= 6 million

Labor force= 150 million + 6 million= 156 million.

13)

C) The unemployment rate generally increases during recession due to slowing down of the economy and increases during expansion.

14)

c) Normal labor market turnover as it takes time to find a new job.

B is wrong as it is cyclical unemployment.

D is wrong as it is structural unemployment.

15)

D.

Structural unemployment occurs when there are mismatches between the skills employers want and the skills workers have. Advances in technology and jobs moving abroad are examples of structural unemployment.