Question

7. Natural Rate of Unemployment usually means

Group of answer choices

Zero unemployment, i.e. no frictional, structural or cyclical unemployment.

Some frictional and cyclical unemployment, but no structural unemployment.

Some structural and cyclical unemployment, but no frictional unemployment.

Some frictional and structural unemployment, but no cyclical unemployment.

8. Which of the following individuals would be considered structurally unemployed?

Group of answer choices

a fork lift operator who quit her job to look for a similar position with better working conditions

a meatpacker whose job was eliminated when the company purchased automated packing equipment

a national sales representative who lost his job due to a general downturn in the overall economy

a recent college graduate who is trying to choose between three job offers

a former nurse who is thinking about looking for a job but whose skills are rusty from disuse.

9. If the Consumer Price Index is 80, then prices have

Group of answer choices

risen 80 percent in the last year.

risen 80 percent since the base year.

declined 20 percent since the base year.

declined 20 percent since the last year.

10. Use the following data to calculate the number of people in the labor force. Total population 3,810; population under age 16 and institutionalized, 960; also not in labor force, 850; unemployed, 150; workers with part-time jobs who are looking for full-time jobs, 1000.

Group of answer choices

3810

1810

1960

2000

3000

11. Use the following data to calculate the size of the official unemployment rate. Total population 3,810; population under age 16 and institutionalized, 960; also not in labor force, 850; unemployed, 150; workers with part-time jobs who are looking for full-time jobs, 1000.

Group of answer choices

3.9%

5.0%

7.5%

8.28%

Answer 1

Answer 7. Some frictional and structural unemployment, but no cyclical unemployment.

Reason- Natural rate of unemployment means there is no Cyclical unemployment. There can be some frictional, structural unemployment.

Answer 8. a meatpacker whose job was eliminated when the company purchased automated packing equipment

reason- Structural unemployment occurs due to structural changes in the job like use of automatic machines.

Answer 9. declined 20 percent since the base year.

reason- CPI is calculated at base year price oevel. CPI=80 Means there is a fall in price level by 20% from base year

Answer 10. 1810

reason- Labor force= 960+ 850= 1810

Answer 11. 7.5%

reason- Unemployment rate=( Unemployed/ Labor force)*100= (150/(3810-1810)*100)= 7.5%

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