BR13C: Bridge: Unemployment
Question 1
If the village of Happyville has 150 residents, of which 50 are children or senior citizens, 95 are working, and 5 are actively seeking work, the unemployment rate is:
A. 5%.
B. 33.3%.
C. 3.3%.
D. 36.7%.
Answer
A. 5%.Question 2
Which of the following persons would be considered unemployed?
A. Jack, not having worked in eight months, feels hopeless, which is why he does not bother applying for jobs.
B. None of the above are considered unemployed.
C. Beth, laid off from her job as a mechanic, chose to return to school instead of looking for another job.
D. Nick, a union member on strike at his factory because he demands better job benefits.
Answer
B. None of the above are considered unemployed.Question 3
Which of the following persons would be considered employed?
A. Sam, a 12 year old who helps his mom stock shelves at her gift shop.
B. Ron, a recently enrolled full-time college student in hopes of finding a well-paying job.
C. Jennifer, a teacher who is on a two month maternity leave but will return to work after.
D. All of the above persons are considered employed.
Answer
C. Jennifer, a teacher who is on a two month maternity leave but will return to work after.Question 4
Suppose that due to a poor economy, 1 million workers lost their jobs, causing the unemployment rate to increase to 10%. After a few months of searching, 300,000 of these unemployed workers give up looking for work. How would the decision by these 300,000 people affect the unemployment rate, all else equal?
A. The unemployment rate would increase.
B. There is not enough information to answer this question.
C. The unemployment rate would remain unchanged.
D. The unemployment rate would decrease.
Answer
D. The unemployment rate would decrease.Question 5
Chelsea was a manager at a vinyl records store who recently quit because she felt the recent popularity of vinyl is a current fad that will eventually fade away. She is now actively looking for a job in the hospitality industry. Chelsea is considered:
A. frictionally unemployed.
B. structurally unemployed.
C. cyclically unemployed.
D. not in the labor force.