Modern Principles Of Economics 3rd Edition By Tyler Cowen – Test Bank

Overview

1. Why did 36,000 travel agents lose their jobs between 1999 and 2006?
A) There was a large decline in tourism in those years.
B) More people started making their travel arrangements online.
C) They spent too much time taking vacations of their own and got fired.
D) They became professional athletes.

2. Which of the following would be considered unemployed?
A) Mark, laid off from his job as a bricklayer, returned to school full-time.
B) Sarah, a stay-at-home mom who earned nearly $80,000 per year in her previous job.
C) Tim, a 13-year-old high school student, is looking for a part-time job.
D) Janice, a senior in college, started job hunting early in the hope that she would have secured a job by the time she graduates in May.

3. A country’s total civilian noninstitutionalized adult population is 1 million, and 500,000 people in this country are working, with another 20,000 people looking for work. Which of the following statements about the labor force statistics in this country is accurate?
A) The employment rate is 50% and the unemployment rate is 2%.
B) The unemployment rate is 2% and the labor force participation rate is 52%.
C) The employment rate is 96.15% and the labor force participation rate is 52%.
D) The labor force is 500,000 and the labor force participation rate is 50%.

4. The labor force consists of:
A) employed workers only.
B) adults who do not have a job but who are looking for work.
C) employed workers and adults who do not have jobs but who are looking for work.
D) all adult noninstitutionalized civilians.

5. A country has 50 million people, 30 million of whom are adults. Of the adults, 5 million are not interested in working, another 5 million are interested in working but have given up looking for work, and 5 million are still looking for work. Of those who do have jobs, 5 million are working part time but would like to work full time, and the remaining 10 million are working full time. How many people in this country are in the labor force?
A) 15 million
B) 20 million
C) 25 million
D) 30 million

6. A country has 50 million people, 30 million of whom are adults. Of the adults, 5 million are not interested in working, another 5 million are interested in working but have given up looking for work, and 5 million are still looking for work. Of those who do have jobs, 5 million are working part time but would like to work full time, and the remaining 10 million are working full time. What is this country’s unemployment rate?
A) 10%
B) 16.7%
C) 25%
D) 40%

7. A country has 50 million people, 30 million of whom are adults. Of the adults, 5 million are not interested in working, another 5 million are interested in working but have given up looking for work, and 5 million are still looking for work. Of those who do have jobs, 5 million are working part time but would like to work full time, and the remaining 10 million are working full time. What is this country’s labor force participation rate?
A) 50%
B) 66.7%
C) 75%
D) 83.3%

8. A country has 50 million people, 30 million of whom are adults. Of the adults, 5 million are not interested in working, another 5 million are interested in working but have given up looking for work, and 5 million are still looking for work. Of those who do have jobs, 5 million are working part time but would like to work full time, and the remaining 10 million are working full time. How many discouraged workers does this country have?
A) 5 million
B) 10 million
C) 15 million
D) 20 million

9. A country has 50 million people, 30 million of whom are adults. Of the adults, 5 million are not interested in working, another 5 million are interested in working but have given up looking for work, and 5 million are still looking for work. Of those who do have jobs, 5 million are working part time but would like to work full time, and the remaining 10 million are working full time. What is this country’s underemployment rate?
A) 20%
B) 25%
C) 40%
D) 60%

10. Which of the following is part of the labor force?
A) a homemaker
B) a full-time student
C) a person who was laid off and is now looking for work
D) a retiree

Answer Key

1. B
2. D
3. C
4. C
5. B
6. C
7. B
8. A
9. D
10. C