Macroeconomic-Exam3b

Description:	bradley r. schiller
Category:	Business
Created by:	leepao07 on 2009-07-26

Question	Answer
calculated as the number of unemployed people divided by the size of the labor force.	unemployment rate
unemployment experienced by people moving between jobs	frictional unempolyment
the percentage of the population working or seeking work is the labor force	participation rate
the relocation of production to foreign countries	outsourcing
unemployment due to seasonal changes	seasonal unemployment
an individual who is not looking for a job but would accept a job if one were available	discouraged worker
can be represented by a rightward shift of the production possibilities curve	economic growth
situation in which people work at jobs below their capacity	underemployment
the rate of unemployment that prevails in the long run	natural rate of unemployment
alternative combinations of goods and services that can be produced with available resources and technology	production possibilities
the type of unemployment most often experienced by teenagers with few job skills and an inadequate education	structural unemployment
unemployment that occurs when there are not enough jobs	cyclical unemployment
quantifies the relationship between the shortfall in output and unemployment	Okun's Law
the lowest rate of unemployment compatible with price stability	full employment
includes everyone 16 and older who is working for pay or looking for a job	labor force
the inability of labor-force participants to find jobs	unemployment
jay says he wants a job but hasn't looked for one in 6 months. jay is part of the labor force and counted as unemployed when calculating the unemployment rate	false
when the absolute number of unemployed workers rises, the unemployment rate must also rises	false
when the economy is growing, the average duration of unemployment declines	true
a discouraged worker is one who is tired of his job and sees no possibility for advancement	false
the transition from manufacturing to service industries has accompanied GDP growth, but it has also led to greater frictional unemployment.	false
teenage unemployment tends to be high because they lack work experience and marketable skills	true
cyclical unemployment occurs because of insufficient aggregate demand	true
when an economy is producing at full employment, everyone willing and able to work has a job	false
one of the main reasons for raising the full-employment goal during the early 1980s was because the proportion of women and teenagers in the labor force had increased significantly.	true
outsourcing results in higher profits and increased productivity for US firms, ceteris paribus	true
people become labor force participants when they: a)take a full-time job b)go back to school c)return solely to household activities d)retire	a)take a full-time job
the macro consequence of unemployment is: a)lost income for the individual worker b)lost output for the economy c)a leftward shift in the institutional production possibilities curve d)a 4% decrease in GDP for every 1% increase in unemployment	b)lost output for the economy
which of the following functions as an institutional constraint and, in doing so, reduces the rate of economic growth? a)child labor laws b)restrictions on the usage of natural resouces c)restrictions on the usage of technology d)all of the above	d)all of the above
refer to question #4	a) production moves closer to the institutional production possibilities curve, but not beyond it
refer to question #5	c) the institutional production possibilities curve shifts outward
wen growth rate of labor force is more rapid than growth rate of unemployd workrs, then it's certain tat: a)unemployment rate is risin b)labor-force participate rate is risin c)% of labr force tat is employd is up d)labor-force participation rate is down	c) percentage of the labor force that is employed is rising
when an economy enters a recession, the: a)duration of unemployment rises b)number of discouraged workers rises c)unemployment rate rises d)all of the above	d) all of the above
according to Okun's Law, a 2% decrease in unemployment will result in a: a)2% increase in real output b)4% increase in real output c)1% increase in real output d)4% decrease in real output	b)4% increase in real output
individuals who are working part-time while seeking full-time employment are classified as: a)underemployed b)unemployed c)discouraged workers d)phantom unemployed	a)underemployed
the official unemployment statistics may exaggerate the significance of unemployment by including the: a)underemployment b)phantom unemployed c)discourage workers d)all of the above	b)phantom unemployed
which of the following are considered possible side effects of increased unemployment? a)suicides, homicides, and other crimes b)heart attacks and strokes c)admissions to mental hospitals d)all of the above	d) all of the above
when a person who worked as a camp counselor all summer seeks employment during the winter, the unemployment rate goes up. this situation is an example of: a)seasonal unemployment b)frictional unemployment c)structual unemployment d)cyclical unemployment	a)seasonal unemployment
frictional unemployment goes up when: a)a student quits work to return to school at the end of the summer b)a corporation transfers a worker to another city c)a worker quits one job in order to search for another d)there is inadequate demand for labor	c)a worker quits one job in order to search for another
which of the following is believed to have contributed to an increase in the level of structural unemployment during the 1970s and 1980s? a)more youth and women in the labor force b)increased tranfer payments c)structural changes in demand d)all above	d)all of the above
refer to question #15	d)there are too few chairs
which of followin govt programs wuld be most appropriate to counteract cyclical unemployment? a)those tat stimulate economic growht b)those tat provide additional health service c)those tat provide job placement services d)those tat provide job trainin	a)those that stimulate economic growth
the Employment Act of 1946: a)committed the gvt to pursue a goal of "maximum" employmnt b)implied tat the economy shuld avoid cyclical and structural unemploymnt c)implied tat frictional unemploymnt shuld be kept within a reasonable level d)all above	d)all of the above
refer to question #18	b)people who lose their jobs due to increased foreign competition and are looking for work
during which one of the following decades did unemployment levels first rise significantly above the 4% level as the result of increasing proportions of both teenagers and women entering the labor force? a)1960s b)1970s c)1980s d)1990s	b)1970s
refer to question #20	c)it allows the US firms to become more globally competitive
unemployment rate is calculated by what formula?	unemployed/labor force
an executive quits her current job and takes several months to find a new job. this is an example of a seasonal, frictional, structural, or cyclical unemployment?	Frictional
the economy is in a recession and one-fourth of the labor force is without work. this is an example of a seasonal, frictional, structural, or cyclical unemployment?	cyclical
there is a shortage of workers to fill positions in high-tech industries, while many unskilled workers are unemployed. this is an example of a seasonal, frictional, structural, or cyclical unemployment?	structural
a snowplow driver is unemployed during the summer months. this is an example of a seasonal, frictional, structural, or cyclical unemployment?	seasonal
labor force	all persons age 16 and over who are either working for pay or actively seeking paid employment
labor-force participation rate	the percentage of the working-age population working or seeking employment
limitation in production with wat two factors?	availability of factors of production. our technological know-how
economic growth	an increase in output (real GDP); an expansion of production possibilities
unemployment	the inability of labor-force participants to find jobs
Okun's Law	1% more unemployment results in 2% less output
unemployment rate	the proportion of the labor force that is unemployed
automatic stabilizers are?	1. personal income tax 2.unemployment 3.social security 4.social welfare