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Macroeconomics, 6e (Blanchard/Johnson)
Chapter 6: The Labor Market
6.1 Multiple Choice Questions
1) Which of the following is considered out of the labor force?
A) the unemployed
B) those temporarily laid off who will soon be recalled
C) those who worked full time, but in a family business
D) those individuals who have started searching for employment for the first time
E) none of the above
Answer: E
Diff: 1
Use the information provided below to answer the following questions.
The non-institutional civilian population is 250 million, of which 100 million are employed and 10 million are unemployed.
2) Based on the information above, the unemployment rate is
A) 4%.
B) 6.6%.
C) 9.1%.
D) 10%.
E) 11.1%
Answer: C
Diff: 2
3) Based on the information above, the labor force participation rate is
A) 36%.
B) 40%.
C) 44%.
D) 90.1%.
E) 66%.
Answer: C
Diff: 2
4) Based on the information above, the non-employment rate is
A) 4%.
B) 9.1%.
C) 10%.
D) 60%.
E) 66%
Answer: D
Diff: 2
5) Which of the following individuals would be considered unemployed?
A) an individual who works only part-time
B) an individual who works full-time in a family business, but is not paid
C) an individual who is not working and is not looking for work
D) all of the above
E) none of the above
Answer: E
Diff: 2
6) Data on labor-force flows show that
A) almost all separations are due to death.
B) almost all separations are due to serious illness.
C) almost all separations are quits.
D) almost all separations are layoffs.
E) none of the above
Answer: E
Diff: 2
7) Data on labor-force flows show that
A) in any given month, almost none of the unemployed gets jobs.
B) in any given month, almost all of the unemployed gets jobs.
C) the average duration of unemployment is about 2 weeks.
D) the average duration of unemployment is about 2 years.
E) in any given month, about one-fourth of the unemployed get jobs.
Answer: E
Diff: 2
8) Which of the following variables is most directly determined in the labor marke
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