Question : 6.4   Integrative Questions Consider the following people: •Chris quits his job as : 1240893

6.4   Integrative Questions

Consider the following people:

•Chris quits his job as an automobile mechanic to pursue his college education full-time.

•Arrelo is temporarily laid off from her technical support job because of a strike by production workers.

•Schurita graduated from college in May and is currently looking for a job.

•Bo quit his job on September 1 and then, after looking for a new job, will begin his new job on October 1.

•Terri retired from his job on May 1.

•Vicki works part-time at Bainen Press to help pay her college tuition.

1) Bo’s actions would

A) have no impact on the September unemployment rate or the October unemployment rate.

B) raise the September unemployment rate and lower the October unemployment rate.

C) raise the September unemployment rate and not change the October unemployment rate.

D) classify him as out of the labor force in September.

E) raise the September unemployment rate and the October unemployment rate.

2) Vicki would be classified as

A) a voluntary part-time worker.

B) unemployed.

C) an involuntary part-time work.

D) not in the labor force because she is a full-time student.

E) a discouraged worker.

3) When the unemployment rate equals the natural unemployment rate, most likely the economy is producing

A) on the production possibilities frontier.

B) within the production possibilities frontier.

C) beyond the production possibilities frontier.

D) either on or within the production possibilities frontier.

E) either on or beyond the production possibilities frontier.

4) Producing an amount of GDP equal to potential GDP is most consistent with the economy producing

A) on the production possibilities frontier.

B) within the production possibilities frontier.

C) beyond the production possibilities frontier.

D) either on or within the production possibilities frontier.

E) either on or beyond the production possibilities frontier.

5) After the passage of the North American Free Trade Agreement, which made it less expensive to import goods from Mexico, workers in some industries found their factories being relocated to Mexico to take advantage of lower labor costs. These workers experienced what type of unemployment?

A) cyclical

B) trade

C) structural

D) frictional

E) foreign

6) If the Federal government expands its support of education and retraining of workers who have been unemployed for a relatively long length of time, which type of unemployment would the education and retraining most likely be targeted?

A) cyclical

B) government

C) structural

D) frictional

E) discouraged

7) During the Great Depression of the 1930s when the unemployment rate was exceptionally high due to the Great Depression, the government had employment programs, such as the Civilian Conservation Corps, which built campsites and planted trees. These programs were aimed at reducing which type of unemployment?

A) cyclical

B) avoidable

C) structural

D) frictional

E) discouraged

8) Suppose people decide to buy fewer GE stoves. If General Electric reduces the number of its employees to reduce its costs but no other stove company does so, which type of unemployment results?

A) cyclical

B) marginal

C) structural

D) frictional

E) discouraged