SOLVED

1) Those who just stop looking for employment are known as ________. A) cyclically unemployed. B) discouraged workers. C) frictionally unemployed. D) chronically unemployed 2) During a recession, when unemployment is rising, the number of new jobs created is, typically, ________. A) large, but smaller than the number of jobs lost B) small, and below the number of jobs lost C) small, but higher than the number of jobs lost D) large, but smaller than net entrants to the labor force 3) During a recession, when unemployment is rising, the number of new jobs created is, typically, ________. A) large, and higher than the number of jobs lost B) small, and below the number of jobs lost C) small, but higher than the number of jobs lost D) large, and higher than net entrants to the labor force 4) Net entrants to the labor force is likely to be highest when the economy ________. A) is entering a recession B) nears the peak of an expansion C) has passed the peak of an expansion D) begins to recover from a recession 5) The principal cause of falling unemployment is ________. A) an increase in net entrants to the labor force B) a decrease in net entrants to the labor force C) an increase in the number of new jobs created D) a decrease in the number of jobs lost 6) The employment ratio is always ________ than labor force participation, because only the latter ________ A) larger; omits discouraged workers B) smaller; includes the unemployed C) smaller; omits people too young to work D) larger; includes people looking for work 7) The label “discouraged worker” refers to a change of status from ________. A) employed to actively seeking employment B) unemployed to employed C) unemployed to not in the labor force D) not in the labor force to unemployed 8) The largest number of individuals of working age in the U.S. population are ________. A) discouraged workers. B) unemployed. C) employed. D) not in the U.S. labor force. 9) For most of the unemployed, unemployment spells are________. A) longer than a year. B) longer than 10 years. C) permanent. D) shorter than three months. 10) Individuals who suffer from unemployment spells lasting more than six months are ________. A) chronically unemployed. B) frictionally unemployed. C) discouraged workers D) no longer counted as part of the labor force 11) Suppose the marginal product of labor is , where Y is 12, and L is the quantity of workers. The supply of labor is given by L = 110 + 2.5 ∗ w. Calculate the changes that occur in (a) employment, (b) unemployment, and (c) the size of the labor force, when the real wage declines from 45 to 42. 12) Technical and “junior” colleges offering full-time degree programs that may be completed in two years or less are a rapidly growing segment of the U.S. economy. What are some likely impacts on aggregate flows into and out of employment status?