Question

The labour force participation rate is

Select one:

the percentage of the working-age population who are employed

the percentage of the labour force who are unemployed or employed

the percentage of the working-age population who are either unemployed or employed

the percentage of the labour force who are employed

equal to the employment rate plus the unemployment rate

Question 2

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Which one of the following people is structurally unemployed?

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a Saskatchewan welder who lost her job when her company relocated to B. C. and is currently looking for a job

a Nova Scotia fishery worker who is searching for a better job closer to home

a steel worker who is laid off but who expects to be called back soon

an office worker who has lost her job because of a general slowdown in economic activity

a student who recently graduated and is looking for work

Question 3

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If the people who take early retirement are not counted in the working-age population, then

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the unemployment rate would be lower

the labour force participation rate would be less

the unemployment rate would be higher

the labour force participation rate would be higher

the number of discouraged searchers would decrease

Question 4

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People become unemployed when they

Select one:

retire

are on maternity leave

quit working to go to university

leave college and start seeking work

become discouraged searchers

Question 5

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If the economy is at full employment, then

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the entire population is employed

the entire labour force is employed

the only unemployment is frictional unemployment plus discouraged searchers

the unemployment rate is less than 3 percent

all unemployment arises from normal frictions and structural change

Question 6

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If the economy is at full employment,

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the entire population is employed

the entire labour force is employed

the only unemployment is frictional unemployment plus discouraged searchers

real GDP equals potential GDP

all unemployment is cyclical and structural

Question 7

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In a recession, typically

Select one:

unemployment decreases

the labour force participation rate increases

the employment rate decreases

the employment rate increases.

the labour force participation rate does not change.

Question 8

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In a country with a working-age population of 20 million, 14 million are employed, 1.5 million are unemployed, and 1 million of the employed are working part-time, half of whom wish to work full-time. The size of the labour force is

Select one:

20 million

15.5 million.

14.5 million

14 million

12.5 million

Question 9

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In a country with a working-age population of 30 million, 20 million are employed, 2 million are unemployed, and 2 million of the employed are working part-time, half of whom wish to work full-time. The unemployment rate is

Select one:

10 percent

9.1 percent

13.6 percent

18.2 percent

2 percent

Question 10

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Which one of the following people would be counted as unemployed in Canada?

Select one:

Veena is not working, but she is looking for a full-time job.

Kathy has stopped looking for work since she was unable to find a suitable job during a one-month search.

Sharon is a university student with a job.

Christos was laid off from his job a month ago and has not been looking for a new job, as he is waiting for a severance package from his former employer.

Benoit was laid off when his firm closed down two months ago and has not been looking for work, as he is going back to school.

Answer 1

Ans 1: the percentage of the working-age population who are either unemployed or employed.

Ans 2: a Saskatchewan welder who lost her job when her company relocated to B. C. and is currently looking for a job

Ans 3: the labour force participation rate would be higher (as they would not be counted under labor force)

Ans 4: leave college and start seeking work (because now they will be counted under labor force and they are actively searching for jobs)

Ans 5: the only unemployment is frictional unemployment plus discouraged searchers (This is because the economy works at full employment level, only frictional unemplyoment exists means people are not working when they switch jobs).

Ans 6: the only unemployment is frictional unemployment plus discouraged searchers (Same ques as ques 5)

Ans 7: the employment rate decreases (In recession, firms employs less labor, so emplyoment rate falls and unemployment rate rises)

Ans 8: 15.5 million. (Labor force = employed + unemployed)

Ans 9: 9.1 percent {Labor force = 22 million. The unemployment rate = (unemployed/labor force)x100 }

Ans 10: Veena is not working, but she is looking for a full-time job. (This is because she is currently looking for job, others are not counted under labor force).