Question : 51) If 27 million people employed and 3 million people : 1384346

51) If 27 million people are employed and 3 million people are unemployed, what is the unemployment rate?

A) 11%

B) 89%

C) 10%

D) 90%

E) Not able to determine from the information provided

52) Which of the following is the best example of frictional unemployment?

A) A worker is laid off because his firm has to reduce production due to reduced demand.

B) A worker quits her current job to search for a better one.

C) An ironworker cannot find a job in Ottawa because all job vacancies are in Alberta.

D) Bank tellers are unable to find jobs due to technological advances in the banking system.

E) Inflationary pressures have led to higher wages for all jobs.

53) Which of the following is the best example of cyclical unemployment?

A) A worker is laid off because his firm had to reduce production due to reduced demand.

B) A worker quits her current job to search for a better one.

C) An ironworker cannot find a job in Ottawa because all job vacancies are in Alberta.

D) Bank tellers are unable to find jobs due to technological advances in the banking system.

E) Inflationary pressures have led to higher wages for all jobs.

54) Economists expect some unemployment to exist even at times of “full employment” for, among others, the following reasons:

1) actual GDP is rarely equal to potential GDP;

2) as the economy changes, the structure of the existing labour force is not the same as the structure of labour demand;

3) people entering the labour force typically take some time to find a job.

A) 1 only

B) 2 only

C) 3 only

D) 2 and 3

E) 1 and 2

55) The unemployment rate will understate the true amount of unemployment if

A) the unemployment rate is rising.

B) crime, divorce, and social unrest are all positively correlated with unemployment.

C) the official unemployment figure excludes discouraged workers who have stopped actively looking for work.

D) the labour force has grown more rapidly than output.

E) the actual unemployment rate is greater than the natural rate of unemployment.

56) Cyclical unemployment is associated with

A) changes to the economy’s industrial structure resulting from growth in some industries and decline in others.

B) an output level different from the economy’s potential output.

C) differences between the characteristics of the supply of labour and the demand for labour.

D) people entering the labour force typically take some time to find a job.

E) people quitting their present jobs to look for other jobs.

57) Workers with experience and skills sometimes lose their jobs and become unemployed due to changing technology or market conditions, even while firms in other industries or regions are looking to hire more workers. This type of unemployment is called

A) cyclical unemployment.

B) frictional unemployment.

C) historical unemployment.

D) natural rate of unemployment.

E) structural unemployment.

58) Workers with marketable skills sometimes quit a job and become unemployed, with the expectation of soon finding a better job. This type of unemployment is called

A) cyclical unemployment.

B) frictional unemployment.

C) historical unemployment.

D) overly-optimistic unemployment.

E) structural unemployment.

59) Suppose the unemployment rate is 8.5% and we know that frictional and structural unemployment together account for 5.5%. The cyclical unemployment rate is then

A) 14%.

B) 8.5%.

C) 5.5%.

D) 3.0%.

E) -3.0%.

60) If the cyclical unemployment rate is negative, then the

A) economy is operating beyond full employment.

B) economy is operating at less than full employment.

C) frictional unemployment rate is negative.

D) frictional unemployment rate is greater than the structural unemployment rate.

E) real-wage unemployment rate is negative.