Love Chapter 14

Only available on StudyMode
  • Download(s) : 96
  • Published : January 20, 2013
Open Document
Text Preview
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

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

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)...
tracking img