Question : 41) An economic recession produces A) an increase in cyclical unemployment. B) : 1240888

 

 

41) An economic recession produces

A) an increase in cyclical unemployment.

B) an increase in structural unemployment.

C) an increase in natural unemployment.

D) a decrease in cyclical unemployment.

E) a decrease in natural unemployment.

 

42) Cyclical unemployment

A) is always a constant amount of unemployment.

B) is higher during an expansion.

C) decreases during a recession.

D) fluctuates over the business cycle.

E) fluctuates but not in response to the business cycle.

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

•Darrelo was laid off from her technical support job because of a strike by production workers and is currently looking for a new job.

•Rita graduated from college and is currently looking for a job.

•Armondo quit his old job and will begin his new job in four days.

•Thorton was fired from his job as a steel worker because of massive imports of steel and he is looking for a new job.

•Jung was laid off from his job as an appraiser because the firm’s business declined because of a general downturn in the economy and he is currently looking for a new job as an appraiser.

 

43) According to the scenario above, in which of the following groups are all the people frictionally unemployed?

A) Rita and Darrelo

B) Chris, Rita, and Thorton

C) Rita and Jung

D) Darrelo and Jung

E) Jung

 

44) According to the scenario above, in which of the following groups are all the people cyclically unemployed?

A) Jung

B) Darrelo

C) Jung and Rita

D) Jung and Thorton

E) Thorton

45) According to the scenario above, in which of the following groups are all the people structurally unemployed?

A) Thorton

B) Jung

C) Thorton and Darrelo

D) Darrelo and Thorton

E) Rita, Armondo, and Chris

 

46) During a recession, the average duration of unemployment tends to

A) increase.

B) decrease.

C) remain constant.

D) be unpredictable.

E) be about the same as during an expansion.

 

47) During a recession, the duration of unemployment ________ and the unemployment rate is ________ the natural rate of unemployment.

A) lengthens; greater than

B) lengthens; less than

C) shortens; greater than

D) shortens; equal to

E) does not change; equal to

48) The average duration of unemployment

A) decreases during recessions and increases during expansions.

B) increases during recessions and decreases during expansions.

C) does not vary with the business cycle.

D) decreases all the time.

E) increases all the time.

 

49) Which is true regarding cyclical unemployment?

i)Cyclical unemployment is positive at business cycle peaks.

ii)Cyclical unemployment is negative at business cycle troughs.

iii)Cyclical unemployment is zero at full employment.

A) iii only

B) i, ii and iii

C) i and iii

D) i only

E) i and ii

 

50) At full employment there is no

A) unemployment.

B) cyclical unemployment.

C) avoidable unemployment.

D) frictional unemployment.

E) structural unemployment.