Question

[16] The three major macroeconomic problems are:
A) debt, deficits, and taxation.
B) unemployment, inflation, and taxation.
C) unemployment, falling production, and deficits.
D) unemployment, falling production, and inflation.

[17] The economic term for a resource that is available for production but is not being utilized is:
A) idle.
B) wasted.
C) inefficient.
D) unemployed.

[18] Being unemployed can:
A) cause a person to alter spending patterns and lifestyle.
B) affect a person's self-esteem and relationships with others.
C) cause a person to experience depression and other psychological or physiological problems.
D) all of these answers are correct.

[19] A person who quits a job in Los Angeles to look for work in Chicago is:
A) not unemployed.
B) cyclically unemployed.
C) frictionally unemployed.
D) structurally unemployed.

[20] Full employment occurs when the unemployment rate falls to:
A) zero.
B) a level that includes only the frictionally unemployed.
C) a level that includes only the structurally unemployed.
D) a level that includes only the frictionally and cyclically unemployed.

[21] Which of the following types of unemployment is voluntary, where the person chooses to leave their job?
A) Cyclical unemployment.
B) Frictional unemployment.
C) Structural unemployment.
D) None of these answers are correct.

[22] Involuntary unemployment caused by a decrease in the overall level of economic activity is:
A) cyclical unemployment.
B) seasonal unemployment.
C) frictional unemployment.
D) structural unemployment.

[23] Unemployment that is due to a decrease in the demand for workers with a certain skill because of technological change is:
A) cyclical.
B) seasonal.
C) frictional.
D) structural.

[24] Musicians who are out of work because electronic equipment can produce the same sounds that live musicians produce are:
A) cyclically unemployed.
B) frictionally unemployed.
C) structurally unemployed.
D) none of these answers are correct.

[25] Cyclical and structural unemployment differ in that:
A) cyclical unemployment is involuntary, while structural unemployment is voluntary.
B) full employment occurs when everyone in the labor force other than the structurally unemployed is working.
C) cyclically unemployed persons have the possibility of regaining their jobs, while structurally unemployed persons have no possibility of regaining their jobs.
D) all of these answers are correct.

[26] The labor force consists of all persons:
A) 16 years of age and older.
B) 18 years of age and older (or 21 and older if attending college).
C) 16 years of age and older who are working or actively seeking work.
D) 18 years of age and older (or 21 and older if attending college) who are working or actively seeking work.

[27] A participation rate refers to:
A) the percentage of people in some specified group that are employed.
B) the total number of people in some specified group that are employed.
C) the percentage of people in some specified group that are in the labor force.
D) the total number of people in some specified group that are in the labor force.

[28] An unemployment rate of six percent means that six percent of the:
A) labor force is voluntarily unemployed.
B) labor force is involuntarily unemployed.
C) labor force is out of work and actively seeking employment.
D) population is out of work and actively seeking employment.

[29] A low unemployment rate provides no information about:
A) the types of jobs held by the employed.
B) whether the employed hold full-time or part-time jobs.
C) how many skilled people accepted unskilled jobs rather than be unemployed.
D) all of these answers are correct.

[30] People are considered to be "underemployed" if they work:
A) in a job that fully utilizes their skills.
B) in a job that does not fully utilize their skills.
C) one job and would like to work two jobs.
D) two jobs to make enough income but would prefer just to work one job.

Answer 1

16) Option D. Joblessness and inflation are two problems that are regularly discussed by the government. Falling output of GDP is another problem that occurs during recessionary phases and affect the entire nation.

17) Option A. Resources remain idle implying that they are not efficiently used under the economic activity.

18) Option D. This is because unemployment reduces wealth, and this brings other social issues such as trouble facing society and evolution of depression

19) Option C. This is because the person is looking for a job and is out of work due to market frictions.

20) B

21) B

22) A

23) D

24) C

25) C

26) C

27) C

28) C

29) D

30) B