1. A difficult aspect of measuring the unemployment rate is:. a. each state uses a different process to calculate its unemployment data.
b. the survey response rate is low.
c. determining who is eligible and available to work.
d. making sure that all adults are included.
2. Which of the following illustrates the difficulty of distinguishing among frictional, structural, and cyclical unemployment?
a. A person quits his job in search of a better one, but the former job is in a declining industry and disappears completely.
b. A person quits her job in search of a better one and then finds one after the economy recovers from a recession.
c. A person loses her job during a recession and then starts her own business.
d. A person loses his job during a recession and finds another one in a different industry.
3. Unemployment is an economic problem because:.
a. there are additional expenses of helping unemployed family members.
b. there are costs of moving for unemployed persons.
c. unemployment benefits are paid.
d. a unit of labor resource that could be engaged in production is sitting idle.
4. The consequence of a negative GDP gap is that:.
a. people will not be able to afford to go to college.
b. interest rates will fall and lower national saving.
c. what is not produced is lost forever and future economic growth will be less.
d. it requires public policy to correct.
5. The noneconomic effects of unemployment include:.
a. a sense of failure created in parents and in their children.
b. the costs of moving for unemployed persons.
c. the additional expense of helping unemployed family members.
d. the unemployment benefits that are paid.