Chapter 08 Test Bank
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 Difficulty: Easy Category: Understand
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 Difficulty: Easy Category: Remember
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 Difficulty: Easy Category: Understand
This file is copyright 2023, Rice University. All Rights Reserved.
,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 Difficulty: Easy Category: Remember
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 Difficulty: Easy Category: Understand
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%.
Answer: B
Reference:
Explanation:
Type: Multiple Choice Difficulty: Medium Category: Apply
7. During the deep recessions of the early 1980s and of 2007-2009, unemployment reached
roughly __________.
A. 10%
B. 20%
C. 30%
This file is copyright 2023, Rice University. All Rights Reserved.
, D. 40%
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
8. A welder who quits his job and moves from Pittsburgh to Madison to try to get a better
welding job is said to be:
A. frictionally unemployed.
B. underemployed.
C. cyclically unemployed.
D. structurally unemployed.
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Medium Category: Understand
9. Frictional unemployment is:
A. unemployment that is due to the friction of competing ideological systems.
B. unemployment caused by lack of training and education.
C. unemployment caused by automation in the workplace.
D. unemployment that is due to normal turnover in the labor market.
Answer: D
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
10. If a nation's labor force receives a significant influx of young workers:
A. the natural rate of unemployment is likely to increase.
B. the natural rate of unemployment is likely to decrease.
C. the natural rate of unemployment is unlikely to change
D. frictional unemployment will likely decrease to zero.
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
This file is copyright 2023, Rice University. All Rights Reserved.
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 Difficulty: Easy Category: Understand
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 Difficulty: Easy Category: Remember
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 Difficulty: Easy Category: Understand
This file is copyright 2023, Rice University. All Rights Reserved.
,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 Difficulty: Easy Category: Remember
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 Difficulty: Easy Category: Understand
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%.
Answer: B
Reference:
Explanation:
Type: Multiple Choice Difficulty: Medium Category: Apply
7. During the deep recessions of the early 1980s and of 2007-2009, unemployment reached
roughly __________.
A. 10%
B. 20%
C. 30%
This file is copyright 2023, Rice University. All Rights Reserved.
, D. 40%
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
8. A welder who quits his job and moves from Pittsburgh to Madison to try to get a better
welding job is said to be:
A. frictionally unemployed.
B. underemployed.
C. cyclically unemployed.
D. structurally unemployed.
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Medium Category: Understand
9. Frictional unemployment is:
A. unemployment that is due to the friction of competing ideological systems.
B. unemployment caused by lack of training and education.
C. unemployment caused by automation in the workplace.
D. unemployment that is due to normal turnover in the labor market.
Answer: D
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
10. If a nation's labor force receives a significant influx of young workers:
A. the natural rate of unemployment is likely to increase.
B. the natural rate of unemployment is likely to decrease.
C. the natural rate of unemployment is unlikely to change
D. frictional unemployment will likely decrease to zero.
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
This file is copyright 2023, Rice University. All Rights Reserved.
