Dividing the number unemployed by the number of people in the labour force yields
A) the rate of unemployment.
B) the labour force participation rate.
C) the inflation rate.
D) the Help Wanted Index.
12) The rate of unemployment is found by
A) dividing the number unemployed by the number of people in the labour force.
B) dividing the number unemployed by the number employed.
C) dividing the number employed by the number of people in the labour force.
D) dividing the number employed by the number unemployed.
13) Unemployment implies that society is
A) on the wrong point on its production possibilities curve.
B) inside its production possibilities curve.
C) outside its production possibilities curve.
D) on an endpoint of the production possibilities curve.
14) Suppose that last week 100,000 people lost their jobs or quit. We can say that
A) the number of unemployed increased by 100,000 people.
B) the number of unemployed increased by less than 100,000 people because we should not count those who quit their jobs.
C) the 100,000 people represent a flow known as job leavers.
D) the 100,000 people represent a stock known as the new unemployed.
15) According to Statistics Canada, if you voluntarily leave your job, then
A) you are classified as unemployed.
B) you are eligible for unemployment compensation.
C) you may not re-enter the labour force for six months.
D) you are classified as a job loser.
16) Which of the following would not be considered unemployed?
A) a new entrant to the labour force
B) a job leaver who is looking for a better job
C) an individual fired by her employer
D) a newly retired worker
17) An increase in the duration of unemployment occurs when
A) business activity goes into a downturn.
B) employment increases.
C) the labour force shrinks.
D) the labour force grows.
18) The duration of unemployment tends to
A) increase when business activity goes into a downturn.
B) increase when employment increases.
C) increase when the labour force shrinks.
D) stay consistently the same over long periods of time.
19) The unemployment rate can increase when
A) the number of job finders increases.
B) the size of the military increases.
C) the proportion of 18-22 year olds who go to college increases.
D) the duration of unemployment increases.
20) The unemployment rate can decrease when
A) the number of job finders decreases.
B) the size of the military decreases.
C) the proportion of 18-22 year olds who go to college decreases.
D) the duration of unemployment decreases.
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