Question : 13.1   Measuring the Unemployment Rate, the Labor Force Participation Rate, : 1244709

13.1   Measuring the Unemployment Rate, the Labor Force Participation Rate, and the Employment-Population Ratio

1) Due to slowing growth in China and other developing countries, Caterpillar ________ the number of persons it employed in 2013 and this ________ the total number of persons unemployed in the economy.

A) decreased; increased

B) decreased; decreased

C) increased; decreased

D) increased; increased

2) The economy has gone into a recession. You have majored in computer science and, because of the recession, have difficulty in finding a job. Should you go back to school and get a second major?

A) Yes, the recession will ensure that you will never find a job as a programmer.

B) Yes, the recession will lower income in my field permanently.

C) No, the recession will most likely be short-lived and I can get a job after it is over.

D) No, the recession will have no impact on my ability to get a job or my future income.

3) The unemployment rate is an important economic statistic that can tell us about the health of the economy. If the unemployment rate turns out to be high or higher than anticipated, we would expect

A) it is more likely that an incumbent president will be re-elected.

B) that stock prices are more likely to fall.

C) that jobs are less difficult to find.

D) that investors will be more optimistic about the economy.

4) The Bureau of Labor Statistics would categorize a person as ________ if they were temporarily away from their job because they were ill.

A) employed

B) unemployed

C) a discouraged worker

D) out of the labor force

5) The Bureau of Labor Statistics would categorize a retiree who is not working as

A) employed.

B) unemployed.

C) a discouraged worker.

D) out of the labor force.

6) The labor force equals the number of people

A) employed.

B) unemployed.

C) employed plus unemployed.

D) in the working-age population.

7) Suppose that homemakers are included as employed in the labor force statistics, rather than being counted as out of the labor force. This would

A) increase the measured unemployment rate.

B) increase the measured labor force participation rate.

C) decrease the number of persons in the labor force.

D) decrease the number of persons in the working-age population.

Table 13-1

Total population

               20,000

Working-age population

               15,000

Employment

                 1,000

Unemployment

                    100

Consider the data above for a simple economy.

8) Refer to Table 13-1. The unemployment rate for this simple economy equals

A) (100/1,000) × 100.

B) (100/1,100) × 100.

C) (100/15,000) × 100.

D) (100/20,000) × 100.

9) Refer to Table 13-1. The labor force participation rate for this simple economy equals

A) (1,000/1,100) × 100.

B) (1,000/15,000) × 100.

C) (1,100/15,000) × 100.

D) (1,100/20,000) × 100.

10) Suppose the working-age population of a fictional economy falls into the following categories: 90 are retired or homemakers; 60 have full-time employment; 20 have part-time employment; 20 do not have employment, but are actively looking for employment; and 10A) (20/60) × 100.

B) (20/80) × 100.

C) (30/80) × 100.

D) (20/100) × 100.