Class Notes (839,626)
Canada (511,431)
York University (35,597)
Psychology (4,109)
PSYC 3420 (43)
Lecture

Econ 1010

31 Pages
30 Views

Department
Psychology
Course Code
PSYC 3420
Professor
Irwin Silverman

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Economics: Canada in the Global Environment, 7e (Parkin) Chapter 21 Monitoring Jobs and Inflation 21.1 Employment and Unemployment 1) The working-age population is the total number of people A) in the labour force. B) in the labour force who are employed. C) aged 15 years and over. D) in the labour force, aged 15 years and over. E) in the labour force, aged 15 years and over, and employed. Answer: C Diff: 1 Topic: Employment and Unemployment 2) Which one of the following people would be counted as unemployed in Canada? A) Veena is not working, but she is looking for a full-time job. B) Kathy has stopped looking for work since she was unable to find a suitable job during a one- month search. C) Sharon is a college student with a job. D) Christos has been laid off from his job a month ago, and has not been looking for a new job as he is waiting for a severance package from his former employer. E) Benoit who was laid off when his firm closed down 2 months ago and has not been looking for work as he is going back to school. Answer: A Diff: 2 Topic: Employment and Unemployment 3) Which one of the following people would be counted as unemployed in Canada? A) Doris works only 5 hours a week but is looking for a full-time job. B) Kanhaya has stopped looking for work since he was unable to find a suitable job during a two-month search. C) Sharon recently began looking for work after staying at home for 10 years to look after her children. D) Maurice is on a 2 month vacation out of the country but is still looking for a job using the internet. E) Taylor is a homemaker. Answer: C Diff: 2 Topic: Employment and Unemployment 1 © 2010 Pearson Education Canada 4) Which one of the following people would be counted as unemployed in Canada? A) Simone is currently working but expects to be laid off by the end of the month, before next month's survey can be completed. B) Ruth is a 14-year-old student and has been looking for an after-school job every day for the past month. C) Sarah has been looking for a job but is taking a month-long break from the job-seeking effort due to her lack of skills. D) Rebekah is a recent graduate looking for work. E) Ron has quit looking because he believes that there is no work available for him. Answer: D Diff: 2 Topic: Employment and Unemployment 5) Which one of the following people would be counted as unemployed in Canada? A) a part-time worker who repeatedly expresses a desire to become a full-time worker B) a person who has been seeking a job for the last six months, but recently gave up looking because he was discouraged by his job prospects C) a person who will be starting a new job in 6 months D) a person who expects to be laid off by the end of the month before next month's survey can be completed E) a person who has been laid off for 10 weeks and is not looking for a job because he is waiting to be called back to his old job Answer: E Diff: 2 Topic: Employment and Unemployment 6) The labour force is A) the total number of people employed. B) the total number of people aged 15 years and over. C) the total number of people in the working-age population who are employed. D) the total number of people in the working-age population who are either employed or unemployed. E) none of the above. Answer: D Diff: 1 Topic: Employment and Unemployment 7) The unemployment rate is defined as the number of A) unemployed people divided by the number of employed people. B) employed people divided by the number of people in the country. C) unemployed people divided by the number of people in the country. D) unemployed people divided by the sum of the people employed and the people unemployed. E) unemployed people divided by the number of people in the country who are employed. Answer: D Diff: 1 Topic: Employment and Unemployment 2 © 2010 Pearson Education Canada 8) Counting involuntary part-time workers as unemployed would A) not change the actual unemployment rate. B) lower the measured unemployment rate. C) raise the natural unemployment rate. D) raise the full employment rate. E) raise the measured unemployment rate. Answer: E Diff: 2 Topic: Employment and Unemployment 9) Who of the following would be counted as unemployed in Canada? A) Doris only works five hours a week but is looking for a full-time job. B) Kanhaya has stopped looking for work since he was unable to find a suitable job during a two-month search. C) Sharon is a college student with no job. D) Maurice has been laid off from his job for 20 weeks but expects to be called back soon. E) Bogdan has been laid off from his job but does not expect to be called back, and is not looking. Answer: D Diff: 2 Topic: Employment and Unemployment Source: Study Guide 10) Who of the following would be counted as unemployed in Canada? A) Caitlin, who is 14 years old, and looking for a babysitting job. B) James, who is a full-time student looking for a part-time job. C) Youngmin, who is a part-time hamburger flipper looking for a full-time job. D) Emmanuel, who lost his job at the steel plant when an automated assembly line was introduced six months ago, and has been job searching every day. E) Vik, who has been staying at home watching "The Old and the Boring" soap opera, and not searching since he was laid off at the flour mill. Answer: D Diff: 2 Topic: Employment and Unemployment 11) If the working-age population increases, then A) the size of the labour force will increase. B) the number of people employed will increase. C) the unemployment rate will increase. D) the labour force participation rate will increase. E) the total number of people aged 15 years and above will increase. Answer: E Diff: 2 Topic: Employment and Unemployment 3 © 2010 Pearson Education Canada 12) In a country with a working-age population of 20 million, 13 million are employed, 1.5 million are unemployed, and 1 million of the employed are working part-time, half of whom wish to work full-time. The size of the labour force is A) 20 million. B) 15.5 million. C) 14.5 million. D) 13 million. E) 11.5 million. Answer: C Diff: 2 Topic: Employment and Unemployment Source: Study Guide 13) In a country with a working-age population of 20 million, 13 million are employed, 1.5 million are unemployed, and 1 million of the employed are working part-time, half of whom wish to work full-time. The labour force participation rate is A) 75.5 percent. B) 72.5 percent. C) 65 percent. D) 57.5 percent. E) none of the above. Answer: B Diff: 2 Topic: Employment and Unemployment Source: Study Guide 14) In a country with a working-age population of 22 million, 16 million are employed, 2 million are unemployed, and 1 million of the employed are working part-time, half of whom wish to work full-time. The unemployment rate is A) 10 percent. B) 10.3 percent. C) 11.1 percent. D) 15.4 percent. E) none of the above. Answer: C Diff: 2 Topic: Employment and Unemployment 4 © 2010 Pearson Education Canada 15) In a country with a working-age population of 22 million, 16 million are employed, 2 million are unemployed, and 1 million of the employed are working part-time, half of whom wish to work full-time. The employment-to-population ratio is A) 72.7 percent. B) 65 percent. C) 75.5 percent. D) 57.5 percent. E) none of the above. Answer: A Diff: 2 Topic: Employment and Unemployment 16) In a country with a working-age population of 22 million, 16 million are employed, 2 million are unemployed, and 1 million of the employed are working part-time, half of whom wish to work full-time. The involuntary part-time rate is A) 6.3 percent. B) 12.5 percent. C) 2.8 percent. D) 5 percent. E) none of the above. Answer: C Diff: 3 Topic: Employment and Unemployment 17) In a country with a working-age population of 30 million, 18 million are employed, 2 million are unemployed, and 2 million of the employed are working part-time, half of whom wish to work full-time. The labour force is A) 30 million. B) 18 million. C) 20 million. D) 22 million E) 16 million. Answer: C Diff: 1 Topic: Employment and Unemployment 18) In a country with a working-age population of 30 million, 18 million are employed, 2 million are unemployed, and 2 million of the employed are working part-time, half of whom wish to work full-time. The labour force participation rate is A) 73.3 percent B) 66.7 percent. C) 60 percent. D) 53.3 percent. E) none of the above. Answer: B Diff: 2 Topic: Employment and Unemployment 5 © 2010 Pearson Education Canada 19) In a country with a working-age population of 30 million, 18 million are employed, 2 million are unemployed, and 2 million of the employed are working part-time, half of whom wish to work full-time. The unemployment rate is A) 10 percent. B) 9.1 percent. C) 14.3 percent. D) 11.1 percent. E) none of the above. Answer: A Diff: 2 Topic: Employment and Unemployment 20) In a country with a working-age population of 30 million, 18 million are employed, 2 million are unemployed, and 2 million of the employed are working part-time, half of whom wish to work full-time. The employment-to-population ratio is A) 73.3 percent. B) 66.7 percent. C) 60 percent. D) 53.3 percent. E) none of the above. Answer: C Diff: 2 Topic: Employment and Unemployment 21) In a country with a working-age population of 30 million, 18 million are employed, 2 million are unemployed, and 2 million of the employed are working part-time, half of whom wish to work full-time. The involuntary part-time rate is A) 10 percent. B) 5 percent. C) 4.8 percent. D) 4.5 percent. E) none of the above. Answer: B Diff: 2 Topic: Employment and Unemployment 22) Which of the following reflects an increase in unemployment? A) an increase in the employment-to-population ratio B) a decrease in the unemployment rate C) an increase in the labour force participation rate D) an increase in the involuntary part-time rate E) none of the above Answer: E Diff: 2 Topic: Employment and Unemployment 6 © 2010 Pearson Education Canada 23) The labour force participation rate is A) the percentage of the working-age population who are employed. B) the percentage of the labour force who are unemployed or employed. C) the percentage of the working-age population who are unemployed or employed. D) the percentage of the labour force who are employed. E) none of the above. Answer: C Diff: 2 Topic: Employment and Unemployment 24) The employment-to-population ratio is A) the percentage of the working-age population who are employed. B) the percentage of the labour force who are unemployed or employed. C) the percentage of the working-age population who are unemployed or employed. D) the percentage of the labour force who are employed. E) none of the above. Answer: A Diff: 1 Topic: Employment and Unemployment 25) In a recession, typically A) unemployment rises. B) the employment-to-population ratio decreases. C) the employment-to-population rate rises. D) the labour force participation rate rises. E) both A and B are correct. Answer: E Diff: 2 Topic: Employment and Unemployment 26) In a recession, typically A) unemployment decreases. B) the labour force participation rate increases. C) the employment-to-population ratio decreases. D) the employment-to-population ratio increases. E) none of the above. Answer: C Diff: 1 Topic: Employment and Unemployment 7 © 2010 Pearson Education Canada 27) Complete the following sentence. In an expansion, typically A) unemployment increases. B) the labour force participation rate increases. C) the employment-to-population ratio decreases. D) employment decreases. E) both B and D are correct. Answer: B Diff: 1 Topic: Employment and Unemployment 28) Which of the following pieces of information do you need to calculate the labor force participation rate? I. the number of employed persons II. the number of unemployed persons III. the population IV.the working age population A) I and II B) I and III C) I, II and III D) I, II and IV E) all of the above Answer: D Topic: Employment and Unemployment Skill: Recognition AACSB: Reflective Thinking 29) Since 1960, Canadian labor force participation rate has ________ and the unemployment rate has ________. A) trended higher; trended higher B) trended lower; varied over the business cycle C) varied over the business cycle; trended higher D) trended higher; varied over the business cycle E) trended higher; trended lower Answer: D Topic: Employment and Unemployment Skill: Recognition AACSB: Reflective Thinking 8 © 2010 Pearson Education Canada 30) If the people who take early retirement are not counted in the working-age population, then A) the unemployment rate would be lower. B) the labor force participation rate would be less. C) the unemployment rate would be higher. D) the labor force participation rate would be higher. E) none of the above. Answer: D Topic: Employment and Unemployment Skill: Conceptual AACSB: Reflective Thinking 31) If the labor force participation rate is rising and the working-age population is not changing, then the A) size of the labor force is rising. B) number of unemployed people is rising and the size of the labor force is falling. C) size of the labor force is falling. D) number of unemployed people is falling and the size of the labor force is rising. E) number of employed people must be increasing. Answer: A Topic: Employment and Unemployment Skill: Analytical AACSB: Reflective Thinking 21.2 Unemployment and Full Employment 1) The largest source of unemployment is A) job leavers. B) job losers. C) entrants to the labour force. D) re-entrants to the labour force. E) involuntary part-time workers. Answer: B Diff: 2 Topic: Unemployment and Full Employment 2) In a country with a working-age population of 22 million, 16 million are employed, 2 million are unemployed, and 1 million of the employed are working part-time, half of whom wish to work full-time. If 500,000 of those unemployed are cyclically unemployed, what is the natural unemployment rate? A) 11.1 percent B) 5.6 percent C) 8.3 percent D) 9.4 percent E) none of the above Answer: C Diff: 3 Topic: Unemployment and Full Employment 9 © 2010 Pearson Education Canada 3) In a country with a working-age population of 30 million, 18 million are employed, 2 million are unemployed, and 2 million of the employed are working part-time, half of whom wish to work full-time. If 1 million of those unemployed are cyclically unemployed, what is the natural unemployment rate? A) 5.6 percent B) 5 percent C) 6.7 percent D) 11.1 percent E) none of the above Answer: B Diff: 3 Topic: Unemployment and Full Employment 4) Which one of the following people is structurally unemployed? A) a Saskatchewan welder who lost her job when her company relocated to B. C. and is currently looking for a job B) a Nova Scotia fishery worker who is searching for a better job closer to home C) a steel worker who is laid off but who expects to be called back soon D) an office worker who has lost her job because of a general slowdown in economic activity E) none of the above Answer: A Diff: 2 Topic: Unemployment and Full Employment Source: Study Guide 5) Unemployment caused by permanently decreased demand for horse-drawn carriages is an example of A) cyclical unemployment. B) seasonal unemployment. C) frictional unemployment. D) structural unemployment. E) discouraged unemployment. Answer: D Diff: 2 Topic: Unemployment and Full Employment Source: Study Guide 10 © 2010 Pearson Education Canada 6) Which one of the following people is cyclically unemployed? A) a Saskatchewan welder who lost her job when her company relocated to B. C. and is currently looking for a job B) a Nova Scotia fishery worker who is searching for a better job closer to home C) a steel worker who is laid off but who expects to be called back soon D) an office worker who has lost her job because of a general slowdown in economic activity E) none of the above Answer: D Diff: 2 Topic: Unemployment and Full Employment Source: Study Guide 7) Which one of the following people is frictionally unemployed? A steel worker who A) loses her job because of technological change. B) is laid off but expects to be called back soon. C) gives up her job because she retires. D) decides to leave the labour force and become a full-time ballet student. E) becomes discouraged and stops looking for a job. Answer: B Diff: 2 Topic: Unemployment and Full Employment Source: Study Guide 8) If the economy is at full employment, then A) the entire population is employed. B) the entire labour force is employed. C) the only unemployment is frictional unemployment plus discouraged workers. D) the unemployment rate is less than 3 percent. E) all unemployment arises from normal frictions and structural change. Answer: E Diff: 2 Topic: Unemployment and Full Employment 9) The natural unemployment rate is A) equal to 0 percent. B) the same as the cyclical unemployment rate. C) the rate at which cyclical unemployment is equal to 6 percent. D) the rate at which cyclical unemployment is equal to 0 percent. E) none of the above. Answer: D Diff: 1 Topic: Unemployment and Full Employment Source: Study Guide 11 © 2010 Pearson Education Canada 10) At full employment, there is no A) natural unemployment. B) unemployment. C) cyclical unemployment. D) structural unemployment. E) frictional unemployment. Answer: C Diff: 2 Topic: Unemployment and Full Employment Source: Study Guide 11) A zero percent unemployment rate A) is one of the economic goals of the Canadian government. B) would alleviate scarcity. C) is not consistent with the notion of full employment. D) was last achieved during World War II when everyone was willing to work at the going wage rate to end the war. E) is the only efficient unemployment rate. Answer: C Diff: 2 Topic: Unemployment and Full Employment 12) Complete the following sentence. Full employment A) occurs when all unemployment is cyclical and structural. B) occurs when all unemployment is frictional and discouraged. C) occurs when there is zero unemployment. D) occurs when there is zero frictional unemployment. E) occurs when there is zero cyclical unemployment. Answer: E Diff: 2 Topic: Unemployment and Full Employment 12 © 2010 Pearson Education Canada Use the table below to answer the following questions. Table 21.2.1 This table shows the answers given by interviewees to the Labour Force Survey Person A Now that kids are in school full-time, this person is looking for work and has been interviewed for three jobs over the past 2 weeks. Person B This person has been laid off but expects to be called back in a few weeks, just as soon as the economy improves. Person C This person has just graduated from university and will start a new job in 8 weeks. In the meantime, this person is surveying local drinking establishments. Person D This person was laid off last year when new equipment at the plant reduced the number of jobs. Since his layoff, this person has been constantly job searching. Person E This economics graduate is working two nights a week at the 7-11, but wants full-time work as an economist. 13) In Table 21.2.1, which person is frictionally unemployed? A) A B) B C) C D) E E) none of them Answer: A Diff: 2 Topic: Unemployment and Full Employment 14) In Table 21.2.1, which person is structurally unemployed? A) A B) B C) C D) D E) none of them Answer: D Diff: 2 Topic: Unemployment and Full Employment 13 © 2010 Pearson Education Canada 15) In Table 21.2.1, which person is cyclically unemployed? A) A B) B C) C D) D and B E) A and C Answer: B Diff: 2 Topic: Unemployment and Full Employment 16) In Table 21.2.1, which person is not included in the calculation of the natural unemployment rate? A) A B) B and E C) C D) D and B E) A and C Answer: B Diff: 2 Topic: Unemployment and Full Employment 17) In Table 21.2.1, which person is a discouraged worker? A) A B) B C) C D) D E) none of them Answer: E Diff: 2 Topic: Unemployment and Full Employment 18) Structural unemployment arises in part because A) there are not enough jobs available. B) of technological change. C) people become discouraged when they cannot find jobs. D) people will not quit their present jobs until they can find suitable employment elsewhere. E) of unrealistic wage expectations. Answer: B Diff: 2 Topic: Unemployment and Full Employment 14 © 2010 Pearson Education Canada 19) Full employment does not mean that there is zero unemployment because A) some cyclical unemployment is always present. B) some frictional unemployment is always present. C) business fluctuations are inevitable. D) of the existence of discouraged workers. E) of unrealistic wage expectations. Answer: B Diff: 2 Topic: Unemployment and Full Employment 20) In a dynamic economy under ideal conditions, the unemployment rate A) should be zero. B) is greater than zero percent due to natural unemployment. C) increases as the price level rises. D) decreases as the price level falls. E) averages 6 percent. Answer: B Diff: 2 Topic: Unemployment and Full Employment 21) If the economy is operating at full employment, then A) everyone who wants a job has one. B) the entire labour force is employed. C) the unemployment rate is approximately 3 percent. D) the unemployment rate is zero. E) none of the above. Answer: E Diff: 1 Topic: Unemployment and Full Employment 22) Jesse just graduated from university, and is looking for her first job. Jesse is A) frictionally unemployed. B) structurally unemployed. C) not unemployed. D) cyclically unemployed. E) not in the labour force. Answer: A Diff: 2 Topic: Unemployment and Full Employment 15 © 2010 Pearson Education Canada 23) Caitlin is working part-time at the Mr. G store, but wants to work full-time. She is A) frictionally unemployed. B) structurally unemployed. C) not in the labour force. D) cyclically unemployed. E) none of the above. Answer: E Diff: 2 Topic: Unemployment and Full Employment 24) Michae
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