Question

How is the unemployment rate defined? a.      The rate at which workers are losing their jobs at a given time b.      The percentage of the population that is unemployed at a given time c.      The percentage of the labor force that is unemployed at a given time d.      The fraction of the working-age population who do not have a job, expressed as a percentage	__________
2.	Sources of growth in total factor productivity include all of the following except ____________. a.      technological innovation b.      better organization of production c.      accumulation of human capital d.      accumulation of financial capital	__________
3.	A recession is commonly defined as a _____________ that lasts at least ______ months. a.      trough; six b.      trough; nine c.      contraction; six d.      contraction; nine	__________
4.	In recent years, advanced economies have consistently grown _____ rapidly than emerging countries, and the difference in the growth rate has __________. a.      more; increased b.      more; decreased c.      less; increased d.      less; decreased	__________
5.	The business cycle reaches its highest level at the ________ and its lowest level at the ________ a.      peak; contraction b.      peak; trough c.      summit; contraction d.      summit; trough	__________
6.	Which of the following people would be counted as unemployed? a.      A person who works ten hours each week for pay but would like to work full time b.      A person who is not working but seeking employment c.      A person who was absent from a job because of bad weather d.      All of the above are counted as unemployed.	__________
7.	Which of the following people would be counted as unemployed? a.      A person who works ten hours each week for pay but would like to work full time b.      A person who is not working but seeking employment c.      A person who was absent from a job because of bad weather d.      All of the above are counted as unemployed.	__________
8.	During a recession, we expect to see output ________ and unemployment __________. a.      increase; increase b.      increase; decrease c.      decrease; increase d.      decrease; decrease	__________
9.	What is the rate of unemployment that prevails when the output gap is zero called? a.      The natural rate of unemployment b.      Structural unemployment c.      Cyclical unemployment d.      Countercyclical unemployment	__________
10.	The portion of the unemployed that is accounted for by people who are out of work for long periods of time because their skills do not match those that are required for available jobs is known as _________ unemployment. a.      frictional b.      structural c.      cyclical d.      functional

Answer 1

Answe 1

Option c.      The percentage of the labor force that is unemployed at a given time

The unemployment rate is the share of the labor force that is jobless, expressed as a percentage.

Answe 2

Option b.      better organization of production

Total factor productivity (TFP) is a measure of productivity calculated by dividing economy-wide total production by the weighted average of inputs i.e. labor and capital. Technological advancement also increaes the total factor productivity.

Answe 3

Option c.      contraction; six

In economics, a recession is a business cycle contraction when there is a general decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). It is defined as a negative economic growth for two consecutive quarters.

Answe 4

Option d.      less; decreased

The advances economies like USA (earlier) have grown at a very high rate but now the rate has become lower as compared to the growing economies like India.

Answe 5

Option b.      peak; trough

The business cycle is the upward and downward movement of gross domestic product (GDP) and consists of recessions and expansions that end in peaks and troughs.

Answe 6

b.      A person who is not working but seeking employment

Unemployment occurs when a person who is actively searching for employment is unable to find work.

Answe 7

b.      A person who is not working but seeking employment

Unemployment occurs when a person who is actively searching for employment is unable to find work.

Answe 8

c.      decrease; increase

A recession is a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Answe 9

c.      Cyclical unemployment

Cyclical unemployment refers to the increase in total unemployment that occurs when an economy is in recession. It is represented by difference between the unemployment rate and the natural rate of unemployment. Unemployment rate is never zero, not even at the peak of economic booms

Answe 10

b.      structural

It is the unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.