Economics 2156A/B Chapter Notes - Chapter Most chapters: Budget Constraint, Reservation Wage, Indifference Curve
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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 |
Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following activities is either not accounted for or are measured inaccurately in calculations of GDP for the United States? Check all that apply.
-Funds spent by city governments to renovate their buildings
-The costs of air and water pollution
-The Brazilian wood that is used for flooring in a new U.S. house
-The leisure time enjoyed by Americans
-The value produced by doing your own laundry
2.
Consider a small economy composed of six people: Clancy, Eileen, Hubert, Kate, Poornima, and Manuel. Each person's employment status is described in the following table.
Based on the criteria used by the Bureau of Labor Statistics (BLS), identify each person's status as employed, unemployed, not in the labor force,ĀĀ if not in the civilian labor force but still part of the adult population, or not in the adult populationĀĀ if not in the civilian adult population.
Person | Status |
---|---|
-Clancy is a 20-year-old professional tennis player. When he's not competing, he works as a coach at a local tennis club. | Ā |
-Eileen is a 36-year-old autoworker who was just laid off by her employer. She is trying to find any kind of job to help make ends meet. |
Ā |
-Hubert is a 79-year-old retired professor. He enjoys volunteering at the local public library. |
Ā |
-Poornima is a 29-year-old who lost her job as an associate producer for a radio station. After spending a few weeks out of work and interviewing for several other positions, she gave up on her job search and decided to go back to grad school. She made that decision a few months ago. |
Ā |
-Manuel is a famous novelist. He is spending the summer at his lake house in upstate New York, doing a little writing each day but mostly spending his time gardening and reading. |
Ā |
-Kate is an 11-year-old student at East Valley Middle School. She baby-sits her younger brother and does other chores for which her parents give her an allowance of $30 per week. |
3.
Initially, Ana earns a salary of $300 per year and Yakov earns a salary of $200 per year. Ana lends Yakov $100 for one year at an annual interest rate of 16% with the expectation that the rate of inflation will be 12% during the one-year life of the loan. At the end of the year, Yakov makes good on the loan by paying Ana $116. Consider how the loan repayment affects Ana and Yakov under the following scenarios.
Scenario 1: Suppose all prices and salaries rise by 12% (as expected) over the course of the year. In the following table, find Ana's and Yakov's new salaries after the 12% increase, and then calculate the $116 payment as a percentage of their new salaries. (Hint: Remember that Ana's salary is her income from work and that it does not include the loan payment from Yakov.)
- Value of Ana's new salary after one year?
-The $116 payment as a percentage of Ana's new salary?
-Value of Yakov's new salary after one year
-The $116 payment as a percentage of Yakov's new salary
Scenario 2: Consider an unanticipated decrease in the rate of inflation. The rise in prices and salaries turns out to be 2% over the course of the year rather than 12%. In the following table, find Ana's and Yakov's new salaries after the 2% increase, and then calculate the $116 payment as a percentage of their new salaries.
-Value of Ana's new salary after one year
-The $116 payment as a percentage of Ana's new salary
-Value of Yakov's new salary after one year
-The $116 payment as a percentage of Yakov's new salary