Public Administration - Municipal BUS400 Lecture Notes - Lecture 6: Unemployment, Frictional Unemployment, Full Employment
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QUESTION 5
Which of the following statements has been proposed as a benefit of passive policy making?
Passive policy making utilizes the rational expectations hypothesis. | ||
Passive policy making allows for making immediate changes in response to an anticipated change in economic performance. | ||
When using passive policy making there is no tradeoff between price stability and unemployment. | ||
Passive policy making does not wait for the time lag between recognition of a problem and policy action before engaging in economic policies to stabilize the economy. |
1.47 points
QUESTION 6
The idea of policy making taking place in response to a predetermined set of rules is referred to as
discretionary policy making. | ||
passive policy making. | ||
Keynesianism. | ||
active policy making. |
1.47 points
QUESTION 7
What types of unemployment will still exist when the economy is at the natural rate of unemployment?
frictional and cyclical unemployment only | ||
frictional, structural, and cyclical unemployment | ||
frictional and structural unemployment only | ||
structural and cyclical unemployment only |
1.47 points
QUESTION 8
The natural rate of unemployment is
the unemployment rate that exists in long-run equilibrium, after adjustments to all changes have occurred. | ||
the unemployment rate when there is no structural unemployment. | ||
the unemployment rate when there is no structural or cyclical unemployment. | ||
zero. |
1.47 points
QUESTION 9
According to the text, minimum-wage laws cause increases in
employment possibilities. | ||
structural unemployment. | ||
poverty. | ||
productivity. |
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QUESTION 10
During a recession, the overall unemployment rate
exceeds the natural rate of unemployment. | ||
falls below the natural rate of unemployment. | ||
falls rapidly. | ||
equals the inflation rate. |
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QUESTION 11
Cyclical unemployment is
the unemployment due to the unemployment benefits and welfare programs of the government. | ||
the unemployment due to union activities and government-imposed restrictions to entry into specific occupations. | ||
the difference between the actual unemployment rate and the natural rate of unemployment. | ||
the difference between the unemployment rate when the economy is in a recession and the unemployment rate when the economy is at the peak of an expansion. |
1.47 points
QUESTION 12
Which of the following unemployment rates can be negative?
the natural unemployment rate | ||
the seasonal unemployment rate | ||
the official unemployment rate reported by the Bureau of Labor Statistics | ||
the cyclical unemployment rate |
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QUESTION 13
An unexpected increase in aggregate demand typically causes
the price level to increase but has no effect on the unemployment rate. | ||
frictional unemployment to increase but structural unemployment to decrease. | ||
the price level to increase and the unemployment rate to fall. | ||
the price level to increase and the unemployment rate to increase. |
1.47 points
QUESTION 14
The rate of unemployment below which the rate of inflation tends to rise and above which the rate of inflation tends to fall is known as the
non-accelerating-inflation rate of unemployment (NAIRU). | ||
contrary rate of unemployment. | ||
Phillips rate of unemployment. | ||
menu cost rate of unemployment. |
1.47 points
QUESTION 15
Based on the work of economist A.W. Phillips, economists concluded that
high inflation rates are associated with low unemployment rates. | ||
higher rates of inflation are associated with higher rates of unemployment. | ||
there is no trade-off between inflation and unemployment. | ||
unemployment can be effectively combated by raising wages. |
Severe unemployment is socially catastrophic. Mark all items below that can occur due to unemployment.
Ā | Increased Spending |
Ā | Increased work hours for other family members |
Ā | Increased Savings |
Ā | Uninterrupted schooling |
Ā | Increased Stress |
Ā | Postponed medical care |
Ā | Utilities cut off |
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Question 51 pts
What years was the unemployment rate equal to or great than 10%?
Ā | 1929-1933, 1937-1938, 1981-1982, 2007-2009 |
Ā | 1928-1932, 1936-1937, 1980-1981, 2008-2010 |
Ā | 1929-1933, 1936-1937, 1980-1981, 2007-2009 |
Ā | 1928-1930, 1937-1938, 1981-1982, 2008-2010 |
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Question 61 pts
The unemployment rate is understated due to:
Ā | None of the above. |
Ā | Part-time workers being counted as unemployed |
Ā | Discouraged workers not counted in the labor force |
Ā | Underemployed workers being counted an unemployed |
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Question 71 pts
True or False. The Labor force participation rate is the percentage of adults in an economy who are either employed or who are unemployed and looking for a job.
Ā | True |
Ā | False |
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Question 81 pts
True or False. The Bureau of Labor Statistics reports the percentage of labor force unemployed utilizing the current population survey.
Ā | True |
Ā | False |
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Question 91 pts
Mark all that apply. Over time the unemployment rate.....
Ā | does not fluctuate over time |
Ā | an upward or downward trend in unemployment rates is apparent |
Ā | never falls all the way to zero |
Ā | the timing of rises and falls in unemployment do not match the timing of upswings and downswings in the overall economy |
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Question 101 pts
According to the graphs presented by the author in this chapter, which group had the highest unemployment rate in 2010?
Ā | Hispanic |
Ā | Black |
Ā | Asian |
Ā | Whites |
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Question 111 pts
According to the information presented by the author in this chapter, which group had the highest unemployment rate in 2015?
Ā | New entrants |
Ā | Re-entrants |
Ā | Job Losers: non-temporary |
Ā | Job Leavers |
Ā | Job Losers: temporary |
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Question 121 pts
According to the information presented by the author in this chapter, which group had the highest unemployment rate in 2015?
Ā | 5 to 14 weeks |
Ā | Over 27 weeks |
Ā | 15-26 weeks |
Ā | Under 5 weeks |
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Question 131 pts
True or False. An international comparison of unemployment rates across countries can be easily accomplished.
Ā | True |
Ā | False |
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Question 141 pts
Mark all that apply. Wages are sticky downward due to:
Ā | Implicit contract |
Ā | Insider-outsider model |
Ā | Efficiency Wage Theory |
Ā | Adverse selection of wage cuts argument |
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Question 151 pts
Match the word to the correct definition.
Cyclical
[ Choose ] unemployment that occurs as workers move between jobs unemployment that occurs because individuals lack skills valued by employers or the Geographic distribution of jobs changes unemployment closely tied to the business cycle, like higher unemployment during a recession
Frictional
[ Choose ] unemployment that occurs as workers move between jobs unemployment that occurs because individuals lack skills valued by employers or the Geographic distribution of jobs changes unemployment closely tied to the business cycle, like higher unemployment during a recession
Structural
[ Choose ] unemployment that occurs as workers move between jobs unemployment that occurs because individuals lack skills valued by employers or the Geographic distribution of jobs changes unemployment closely tied to the business cycle, like higher unemployment during a recession
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Question 161 pts
A financial analyst who quits his/her job in Chicago and is pursuing similar work in Arizona. What type of unemployment occurred?
Ā | Structural |
Ā | Cyclical |
Ā | Frictional |
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Question 171 pts
True or False. With productivity low, average levels of unemployment will tend to be somewhat higher on average.
Ā | True |
Ā | False |
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Question 181 pts
True or False. Unemployment benefits in the United States are only federally controlled.
Ā | True |
Ā | False |
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Question 191 pts
True or False. The natural rate of unemployment will never be zero due to cyclical and frictional unemployment.
Ā | True |
Ā | False |
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Question 201 pts
True or False. Public policies to assist the unemployed as it relates to the supply side of the labor market affect how eager people are to find work
Ā | True |
Ā | False |