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Employment and Unemployment: Measurement, Types, and Policy Online Quiz Questions

Use this free practice quiz with 20 questions to review Employment and Unemployment: Measurement, Types, and Policy, test your knowledge, and prepare for your next test or exam.

20 questions
01
Choose one
1 point

Which person is classified as unemployed under the standard labor-market definitions?

  1. A

    A full-time student who is not seeking work

  2. B

    A person without a job who is available and has recently applied for jobs

  3. C

    A retiree who is not seeking employment

  4. D

    A discouraged worker who stopped searching for a job

02
Choose one
1 point

An economy has 150 million employed people, 10 million unemployed people, and 40 million people not in the labor force. What is the unemployment rate?

  1. A

    5.0%

  2. B

    6.0%

  3. C

    6.25%

  4. D

    10.0%

03
Choose one
1 point

Which measure is least directly affected by discouraged workers leaving the labor force, assuming the number of employed people and the total civilian noninstitutional population remain unchanged?

  1. A

    Employment-population ratio

  2. B

    Unemployment rate

  3. C

    U-3 plus discouraged workers

  4. D

    Labor-force participation rate

04
Choose all
1 point

Which statements accurately describe broader BLS measures of labor underutilization? Select all correct choices.

  1. A

    U-4 includes discouraged workers.

  2. B

    U-5 includes all people marginally attached to the labor force.

  3. C

    U-6 excludes involuntary part-time workers.

  4. D

    U-3 includes everyone who wants a full-time job.

05
Choose all
1 point

Which situations are examples of frictional unemployment? Select all correct choices.

  1. A

    A worker leaves a job and searches for a better position.

  2. B

    A recent graduate searches for a first job.

  3. C

    Automation eliminates jobs requiring skills a displaced worker does not have.

  4. D

    A worker is temporarily between two jobs.

06
True or false
1 point

True or false: At full employment, every person who wants a job has one, so the unemployment rate is zero.

  1. A

    True

  2. B

    False

07
True or false
1 point

True or false: Cyclical unemployment is the type of unemployment most directly targeted by expansionary fiscal or monetary policy.

  1. A

    True

  2. B

    False

08
Written response
1 point

An economy has 150 million employed people and 10 million unemployed people. What is the unemployment rate? Enter the exact value in percentage points; do not round.

09
Written response
1 point

What type of unemployment results when automation reduces demand for workers whose skills do not match the jobs available?

10
Fill in the blank
1 point

The number of employed people plus the number of unemployed people equals the .

11
Fill in the blank
1 point

Unemployment that rises during a recession because aggregate demand and production decline is called .

12
Open ended
1 point

Explain why a falling official unemployment rate may not indicate a complete improvement in labor-market conditions. Use discouraged workers, the labor-force participation rate, and at least one broader labor-underutilization measure in your answer.

13
Choose one
1 point

A factory closes permanently because its industry has declined, and nearby employers require different skills. Which type of unemployment best describes the displaced workers’ situation?

  1. A

    Frictional unemployment because the workers are changing jobs

  2. B

    Cyclical unemployment because all factory closures result from recessions

  3. C

    Structural unemployment because the workers’ skills or location may not match available jobs

  4. D

    Seasonal unemployment because factory employment varies predictably each year

14
Choose one
1 point

A person has no job and would accept one, but only reads job advertisements and takes no active step to find work. How is this person classified?

  1. A

    Employed

  2. B

    Unemployed

  3. C

    Not in the labor force

  4. D

    Discouraged but unemployed

15
Choose one
1 point

An economy has 180 million employed people and 20 million unemployed people. What is its unemployment rate?

  1. A

    8%

  2. B

    10%

  3. C

    11.1%

  4. D

    20%

16
Choose one
1 point

Suppose several unemployed workers become discouraged and stop actively searching for jobs, while the number of employed workers does not change. What is the most likely effect?

  1. A

    The unemployment rate rises and participation rises.

  2. B

    The unemployment rate rises and participation falls.

  3. C

    The unemployment rate falls and participation falls.

  4. D

    Both rates remain unchanged.

17
Choose one
1 point

A manufacturing firm adopts automation, permanently reduces its need for assembly workers, and the displaced workers lack the skills required for growing occupations. What type of unemployment best describes this situation?

  1. A

    Frictional unemployment

  2. B

    Cyclical unemployment

  3. C

    Seasonal unemployment

  4. D

    Structural unemployment

18
True or false
1 point

True or false: At full employment, the unemployment rate must be zero because every person who wants a job has one.

  1. A

    True

  2. B

    False

19
Written response
1 point

An economy has 150 million employed people and 10 million unemployed people. Calculate the unemployment rate. Enter the answer in percentage points; do not round.

20
Written response
1 point

Which Bureau of Labor Statistics measure includes unemployed people, all people marginally attached to the labor force, and people working part time for economic reasons?