Labor Force
People who are not looking for a job and therefore not considered unemployed or employed.
What is discouraged workers?
Which of the following occupations would most likely be subject to seasonal unemployment?
a. Automobile mechanic.
b. Appliance salesperson.
c. Television repair-person.
d. Farm worker.
D. Farming is very subject to the seasons, the other possible answers are not subject to changes in the seasons.
Inflation is defined as a(n)
a. increase in some prices.
b. increase in the price of a specific commodity (or service).
c. sustained increase in the general price level.
d. sustained increase in the price of a specific commodity (or service).
C. Some prices always increase because of the workings of the price mechanism. Only when the general level of prices increase over time can we say that we have inflation.
The labor force is defined as
a. individuals over the age of 16 years
b. non-institutionalized individuals over the age of 16 years.
c. non-institutionalized individuals over the age of 16 years who are working.
d. non-institutionalized individuals over the age of 16 years who are working or looking for work.
d. non-institutionalized individuals over the age of 16 years who are working or looking for work.
Cost-push inflation is typically induced by
a. inward shift in the demand curve.
b. inward shift in the aggregate supply and demand curves.
c. outward shift in the demand curve.
d. inward shift in the supply curve.
D. If you draw a downward sloping demand curve and an upward sloping supply curve on a piece of paper and then move the supply curve to the left, you will see that prices will increase. This is called cost-push inflation.
Individuals are counted as unemployed if they have
a. no job.
b. no job and are not looking.
c. no job but looked for a job at least once in the last four weeks.
d. no job but looked for a job at least once in the last six months.
c. no job but looked for a job at least once in the last four weeks.
Demand-pull inflation typically follows which of the following patterns?
a. Aggregate demand decreases that ultimately causes the price level to increase.
b. Aggregate demand increases that ultimately causes the price level to increase.
c. Aggregate demand and aggregate supply both increases that ultimately causes the price level to increase.
B. Because the downward sloping demand curve is moving to the right along an upward sloping supply curve, the increase in demand will pull the general price level upward.
After months of searching, Steve did not find job that matched his interests and paid his desired salary, so he stopped searching and moved to his parents’ ranch where he serves as the caretaker for the property in return for room and board.
What is Not in Labor force?
Which of the following is an accurate definition of a self-employed person?
2. A self-employed person owns as well as operate a business
Which of these is likely to increase the most in a severe recession?
a. Frictional unemployment.
b. Seasonal unemployment.
c. Structural unemployment.
d. Cyclical unemployment.
D. Cyclical unemployment is the type of unemployment that is most susceptible to changes in the economy. Certain jobs are effected by economic downturns before others. For example, carpenters are normally the among the first to experience unemployment when the economy goes into a recession.
Workers temporarily unemployed but who normally find jobs quickly are called
a. frictionally unemployed.
b. cyclically unemployed.
c. seasonally unemployed.
d. structurally unemployed.
A. Frictional unemployment is the normal job search type of unemployment. Recent high school grads and college grads are examples of workers who are frictionally unemployed.
The Consumer Price Index measures the cost of
a. all goods and services produced in the U.S. economy.
b. all goods produced in the U.S. economy.
c. a fixed market basket of consumer goods and services produced in the U.S. economy.
C. The Consumer Price Index does not measure the prices of all goods and services, but only a particular basket of goods and services. As times change and consumers buying habits change, what goes into this basket changes.
Your 14-year-old cousin babysits her neighbors once per week
What is Not in Labor force?
2. A cashier in a bank
Which of the following about discouraged workers would be correct? They are
a. counted in the labor force.
b. not counted in the labor force or unemployment numbers.
c. counted in the labor force and the unemployment numbers.
d. not counted in the labor force but are counted in the unemployment numbers.
B. One of the weaknesses in using the unemployment rate as an indicator of how well the economy is doing is that it does not consider the discouraged worker.
Workers who are unemployed because they lack the skills needed by employers are called
a. frictionally unemployed.
b. cyclically unemployed.
c. seasonally unemployed.
d. structurally unemployed.
D. Improvements in capital and technology lead to more jobs, but the jobs may remain vacant if the people in the work force do not have the training and skills to meet the requirements for the jobs.
If the inflation rate is 14% per year, and your nominal income increases by 13% per year, your real income
a. declines slightly.
b. increases slightly.
c. increases substantially.
d. does not change.
With inflation increasing 1% more than your income increases, your buying power, or real income, goes down by 1%.