BUSN 6250 Quiz 6

 Question 1
2 out of 2 points
Phillip is a 22-year old who has no job and is available for work, but has not actively
looked for a job in the last month. The Current Population Survey identifies Phillip
as ________ , ________ the labor force, and ________ the working-age population.

Answers: not unemployed; part of; part of
not unemployed; not part of; not part of
unemployed; part of; not part of
unemployed; part of; part of
not unemployed; not part of; part of
 Question 2
2 out of 2 points
The average duration of unemployment

Answers: decreases all the time.
does not vary with the business cycle.
increases during recessions and decreases during expansions.
decreases during recessions and increases during expansions.
increases all the time.
 Question 3
2 out of 2 points
In August of 2013, the number of employed persons in the United States was 144.2
million, the number of unemployed persons was 11.3 million, and the number of
persons not in the labor force was 90.5 million. What was the labor force in August
of 2013?

Answers: 53.7 million
132.9 million
144.2 million
155.5 million
There is not enough information to answer this question.
 Question 4
2 out of 2 points
The labor force is defined as the number of people who
Selected Answer:

Answers: are employed minus the number of people who are unemployed.
would like to have a full-time job but are working part time.
are employed plus the number of people who are unemployed.
would like to have a job but have stopped seeking work.
are available and looking for work but are unable to find
employment.
 Question 5
2 out of 2 points
Janet calculated the GDP growth rates for France between 2012 and 2013. Using 2012
prices for both years, GDP increased 5 percent. Using 2013 prices for both years,
GDP increased 1 percent. Hence the chained-price method will calculate that
between these years, real GDP increased by

5 percent.
1 percent.
4 percent.
3 percent.
 Question 6
0 out of 2 points
The following are groups of individuals in the population:
1. Individuals who are under 16
2. Individuals in institutional care
3. Individual in the armed forces
4. Individuals working for pay at a fulltime job
5. Individuals who are employed
6. Individuals not employed but were available for work and were looking for work
7. Individuals not employed and looking for work
Using the table above, the Current Population Survey classifies the group of
individuals who are left after subtracting from the total population groups 1, 2, 3, 4,5, and 6 as

Answers: discouraged workers.
unemployed.
not in the labor force.
employed.
the labor force.
 Question 7
2 out of 2 points
A standard definition of recession is

Answers: an increase in unemployment from one month to the next.
an increase in GDP that lasts for at least 6 months.
a period of time when the unemployment rate exceeds 6.5
percent.
a period of expansion in many sectors of the economy.
a decrease in GDP that lasts for at least 6 months.
 Question 8
2 out of 2 points
In the table above, the size of the labor force is

Answers: 34 million.
80 million.
42 million.
40 million.
46 million.
 Question 9
2 out of 2 points
If you buy a five-year-old TV from a friend, the amount you paid for the TV is
Answers: always added to investment but not consumption.
added to investment if the TV is expected to last more than 5
additional years and added to consumption if the TV is expected to
last less than 5 additional years.
not included in this year's GDP.
included in this year's GDP only if the TV set was manufactured in the
United States.
always added to consumption expenditures but not investment.
 Question 10
2 out of 2 points
Beth has just quit her job, moved to a new city, and is looking for a new job. Beth is

Answers: structurally unemployed.
locationally unemployed.
cyclically unemployed.
distance unemployed.
frictionally unemployed.
 Question 11
2 out of 2 points
An employee who is fired from his or her job because he or she lacks the skills
required to accomplish the task, is part of ________ unemployment.

Answers: frictional
cyclical
structural
unskilled
withdrawal
 Question 12
2 out of 2 points
The amount of frictional unemployment depends on

Answers: the phase of the business cycle.
international competition.
the time of the year.
demographic factors and unemployment benefits.
Both answers A and B are correct.
 Question 13
2 out of 2 points
Bob's Funky T-shirts began the year with 1,000 shirts in inventory, produced 10,000
shirts during the year and ended the year with 1,100 shirts in inventory. The 100
shirts added to his inventory will be classified as

Answers: exports of goods and services.
net exports of goods and services.
consumption expenditure.
nondurable consumption goods.
investment.
 Question 14
2 out of 2 points
If Jose is 22-years old, is available to work but does not have a job and made no
specific efforts to find a job for the previous month, Jose is classified in the Current
Population Survey as

Answers: unemployed.
in the labor force but not in the working-age population.
not in the labor force.
employed.
not in the working-age population.
 Question 15
2 out of 2 points
In January of 2001, the population of the United States was 276.8 million, the
working-age population was 210.2 million, the total number of people employed was
140 million, and the total number of people unemployed was 5.0 million. What was
the labor force participation rate?

Answers: 78 percent
69 percent
67 percent
90 percent
56 percent
 Question 16
2 out of 2 points
Jane is a 25 year old, full-time student. She works part time in her school library and
is paid $7 an hour. She is considered to be

Answers: unemployed.
employed.
not in labor force.
not in the working-age population because she is in college.
in labor force but not working.
 Question 17
2 out of 2 points
The type of unemployment that arises from a decrease in real GDP is called

Answers: non-expansion unemployment.
downturn unemployment.
frictional unemployment.
structural unemployment.
cyclical unemployment.
 Question 18
2 out of 2 points
In the Current Population Survey, a person is considered unemployed if the person

Answers: is without a job.
is working anything less than 40 hours per week.
is working without pay.
does not have a job and is actively looking for a job.
is working less than 20 hours per week.
 Question 19
2 out of 2 points
Unemployment benefits in western Europe are more generous than in the United
States. As a result, ________ in the United States.

Answers: cyclical unemployment is higher
frictional unemployment is higher
frictional unemployment is lower
avoidable unemployment is lower
structural unemployment is higher
 Question 20
2 out of 2 points
After graduating from college, Yunis, age 22, started working for his parents' real
estate business as an unpaid assistant. He works 25 hours a week helping manage
rental units. In the Current Population Survey, Yunis is considered

Answers: part of the labor force and unemployed.
a discouraged worker.
part of the labor force but not part of the working-age population.
part of the labor force and employed.
not part of the labor force.
 Question 21
2 out of 2 points
Which of the following people would be classified as employed in the Current
Population Survey?

Answers: Jason, who was laid off from work less than 6 months ago but who
has stopped looking for work
Misty, who just quit her job to return full time to school
Laura, who is unpaid but is working 10 hours a week in the family
business she and her husband run
April, who just graduated from college and is looking for work
Rich, who is working 20 hours a week but wants a full-time job
 Question 22
2 out of 2 points
Wobet is a small country that produces only steak and potatoes. Steaks have a price
of $10 each and potatoes have a price of $1 each. Suppose that Wobet produces 10
steaks and 20 potatoes in 2010. Using ________, Wobet has GDP equal to ________.

Answers: market value; 30 units
a price index; $120
market value; $120
a market basket; 30 units
real value; $120
 Question 23
2 out of 2 points
Bananaland produces only bananas and sunscreen and the quantities and prices for
2012 and 2013 are given in the table above. The base year is 2012. In 2013, which is
larger, nominal GDP or real GDP?

Answers: Real GDP is larger.
Nominal GDP is larger.
Both are the same size.
The answer is ambiguous.
More information is needed to determine which is larger.
 Question 24
2 out of 2 points
Which type of unemployment is most likely to lead unemployed workers to retrain
or relocate?

Answers: frictional
forced
structural
search
cyclical
 Question 25
2 out of 2 points
Which of the following is NOT directly included in Canadian GDP?

Answers: bus tickets sold to tourists for a tour bus ride in Montreal
the purchase of tickets to a Kanye West concert in Montreal
gasoline purchased by a tour bus operator in Quebec
the sale of tickets to the Vancouver Olympics to U.S. citizens
All of the items would be included in Canadian GDP.