BIOL 305 Lecture Notes - Lecture 2: Structural Unemployment, Aggregate Demand, Aggregate Supply

53 views38 pages
Published on 28 Feb 2020
Department
Course
Professor
1
Principles of Macroeconomics, 9e - TB1 (Case/Fair/Oster)
Chapter 14 The Labor Market in the Macroeconomy
14.1 The Labor Market: Basic Concepts
1 Multiple Choice
1) The functioning of the labor market primarily affects the shape of the
A) aggregate demand curve.
B) money demand curve.
C) aggregate supply curve.
D) planned investment curve.
Answer: C
Diff: 1
Topic: The Labor Market: Basic Concepts
Skill: Conceptual
AACSB: Reflective Thinking
2) The type of unemployment that is due to changes in the structure of the economy is
A) adjustable unemployment.
B) structural unemployment.
C) frictional unemployment.
D) cyclical unemployment.
Answer: B
Diff: 1
Topic: The Labor Market: Basic Concepts
Skill: Definition
3) The type of unemployment that arises during recessions is known as
A) the natural rate of unemployment.
B) cyclical unemployment.
C) structural unemployment.
D) frictional unemployment.
Answer: B
Diff: 1
Topic: The Labor Market: Basic Concepts
Skill: Definition
4) The type of unemployment that is most likely to arise as a result of technological changes is
A) cyclical unemployment.
B) seasonal unemployment.
C) frictional unemployment.
D) structural unemployment.
Answer: D
Diff: 1
Topic: The Labor Market: Basic Concepts
Skill: Definition
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 38 pages and 3 million more documents.

Already have an account? Log in
2
5) If you hear a person saying "I lost my job because I was replaced by a machine," you should
conclude that this person is ________ unemployed.
A) cyclically
B) structurally
C) frictionally
D) seasonally
Answer: B
Diff: 1
Topic: The Labor Market: Basic Concepts
Skill: Conceptual
AACSB: Reflective Thinking
6) If you hear a person saying "I lost my job at the GM plant because car manufacturing is slow
due to a slowdown in the economy," you should conclude that this person is ________
unemployed.
A) cyclically
B) structurally
C) frictionally
D) seasonally
Answer: A
Diff: 1
Topic: The Labor Market: Basic Concepts
Skill: Conceptual
AACSB: Reflective Thinking
7) The labor force includes those people with a job and
A) those people who are looking for work.
B) those people training for a job.
C) those people who formerly worked and are now retired.
D) homemakers.
Answer: A
Diff: 1
Topic: The Labor Market: Basic Concepts
Skill: Definition
8) The unemployment rate is
A) the number unemployed divided by the labor force.
B) the number unemployed divided by the number employed.
C) the number unemployed divided by the population.
D) the difference between the population and the number employed divided by the
population.
Answer: A
Diff: 1
Topic: The Labor Market: Basic Concepts
Skill: Definition
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 38 pages and 3 million more documents.

Already have an account? Log in
3
9) If a country has a population of 400 million, 160 million people employed and 40 million
people looking for work, then its unemployment rate is
A) 10%.
B) 20%.
C) 25%.
D) 40%.
Answer: B
Diff: 2
Topic: The Labor Market: Basic Concepts
Skill: Analytic
AACSB: Analytic Skills
10) Employment tends to rise when
A) aggregate output falls.
B) unemployment rises.
C) aggregate output rises.
D) labor productivity falls.
Answer: C
Diff: 2
Topic: The Labor Market: Basic Concepts
Skill: Conceptual
AACSB: Reflective Thinking
2 True/False
1) If a household member is not in the labor force, it is because he or she has decided his or her
time is more valuable in nonmarket activities.
Answer: TRUE
Diff: 1
Topic: The Labor Market: Basic Concepts
Skill: Conceptual
AACSB: Reflective Thinking
2) If a person is not employed but is looking for work, she is in the labor force.
Answer: TRUE
Diff: 1
Topic: The Labor Market: Basic Concepts
Skill: Conceptual
AACSB: Reflective Thinking
3) Frictional unemployment is the type that arises due to recessions.
Answer: FALSE
Diff: 1
Topic: The Labor Market: Basic Concepts
Skill: Definition
4) Structural unemployment arises when the economy changes making some jobs obsolete.
Answer: TRUE
Diff: 1
Topic: The Labor Market: Basic Concepts
Skill: Definition
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 38 pages and 3 million more documents.

Already have an account? Log in

Get OneClass Grade+

Unlimited access to all notes and study guides.

Grade+All Inclusive
$10 USD/m
This Study Guide
$25 USD
You will be charged $120 USD upfront and auto renewed at the end of each cycle. You may cancel anytime under Payment Settings. For more information, see our Terms and Privacy.
Payments are encrypted using 256-bit SSL. Powered by Stripe.