Title: Calculating Unemployment
Course: TEST Course

Q: Reginald looked for work for six months but could not find a job to his liking. He now spends his time at the beach. For purposes of employment he is considered:
- unemployed.
- underemployed.
- out of the labor force.
A: out of the labor force.

Q: A year ago Parker reached his retirement and left the business to pursue other interests. He is now spending lots of time playing golf and visiting his grandchildren. For purposes of employment he is considered:
- unemployed.
- underemployed.
- out of the labor force.
A: out of the labor force.

Q: One of the criticisms about the unemployment rate is that it considers discouraged workers to be out of the labor force and
- over-reports the actual unemployment problem.
- includes people who are working in the informal (underground) economy.
- under-reports the actual unemployment problem.
A: under-reports the actual unemployment problem.

Q: Some critics of the unemployment rate say that it under-reports the actual unemployment problem by:
- overlooking people who are working in the informal (underground) economy.
- including people who are working in the informal (underground) economy.
- considering discouraged workers to be out of the labor force.
A: considering discouraged workers to be out of the labor force.

Q: What is excluded from the official calculation of the unemployment rate?
- Workers who have been looking for fewer than 4 weeks.
- Those who are looking for work but above the age of 55.
- Students who are attending to school full time and not working.
A: Students who are attending to school full time and not working.

Q: Calculations of the official unemployment rate exclude
- workers who have been looking for fewer than 4 weeks.
- those who are looking for work but above the age of 55.
- discouraged workers, who are no longer looking for work.
A: discouraged workers, who are no longer looking for work.

Q: Which of the following individuals would be excluded from the unemployment rate?
- Sharon who has been looking for work this last month.
- Devon who just turned 57 and is now older than 55 looking for work.
- George who is staying home to tend to his children while his partner works.
A: George who is staying home to tend to his children while his partner works.

Q: Which of the following individuals would be included in the unemployment rate?
- George who is staying home to tend to his children while his partner works.
- Devon an army officer in the U.S. Army on leave.
- Sharon who has been looking for work this last month.
A: Sharon who has been looking for work this last month.

Q: The unemployment rate measures:
- The percentage of working age adults who are unemployed.
- The percentage of working age adults who are unemployed but not looking for work.
- The percentage of working age adults who are employed.
- The percentage of the labor force who do not have a job, but are looking for one.
A: The percentage of the labor force who do not have a job, but are looking for one.

Q: What does the unemployment rate measure?
- The percentage of unemployed working age adults.
- The percentage of unemployed working age adults who are not looking for work.
- The percentage of employed working age adults.
- The percentage of the labor force who do not have a job, but are looking for one.
A: The percentage of the labor force who do not have a job, but are looking for one.

Q: What is the formula with which to calculate the official unemployment rate?
- The number in the labor force divided by the population.
- The number of discouraged workers divided by the number of civilian workers.
- The number of unemployed workers divided by the sum of employed and unemployed workers.
A: The number of unemployed workers divided by the sum of employed and unemployed workers.

Q: To find unemployment, you need to calculate
- The number in the labor force divided by the population.
- The number of discouraged workers divided by the number of civilian workers.
- The number of unemployed workers divided by the labor force.
A: The number of unemployed workers divided by the labor force.

Q: Calculate the unemployment rate based on the following data for a country: Population: 200, Employed workers: 140, Labor Force: 160, Discouraged workers: 10.
- 10%
- 7.15%
- 12.5%
A: 12.5%

Q: If out of 125 people in the labor force, the number of employed workers is 100 and number of unemployed workers is 25, then the unemployment rate is ________.
- 30%
- 25%
- 20%
A: 20%

Q: If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals ________.
- 32%
- 18%
- 25%
A: 25%

Q: The number of people employed in one country is 230 million, with a total number of unemployed people at 40 million. The total population for the country is 500 million. What is the unemployment rate?
- 22.2%
- 7.4%
- 14.8%
A: 14.8%

Q: In the far off kingdom of Viracien there is a healthy sized population of citizens over 16 years old. The last census indicated a total adult population of 5 million people. This year a recession hit and 237 thousand people were let go from their jobs and are on the hunt to find new work. Because of the recession many took early retirement and there is now a population of 1.3 million who are not working or looking for various reasons. Because of the unrest, the military of Viracein has increased its ranks and is now grown to a total of 50 thousand citizens serving the country. If Viracein uses the same calculation to find the unemployment rate, what is the country’s unemployment rate?
- 6.4%
- 4.7%
- 6.5%
A: 6.5%

Q: There is a small fictitious island country, called Noil, floating in the south Pacific ocean. Many years ago there was an abundance of fish and the population grew rapidly. Now the adult population has reached a total of 35 thousand people. This year fishing and other jobs have been on the decline and now 1 thousand people are looking to find work. With an increasing elderly population 3 thousand are now retired. Noil does not have an army, but it does have a small coast guard of 432 citizens serving the country and patrolling the waters where needed. What is the country of Noil’s unemployment rate?
- 3.1%
- 2.9%
- 3.2%
A: 3.2%

Q: Which of the following demographic has the highest unemployment rate according to U.S. Census Bureau data?
- Older caucasian men
- Middle-aged Hispanic Women
- Young African-American men
A: Young African-American men

Q: According to the U.S. Census Bureau data ________ have the lowest unemployment rate.
- young African-American women
- middle-aged Hispanic men
- older caucasian women
A: older caucasian women

Q: Fluctuations in the unemployment rates over the past 50 years can best be explained by
- growth and contraction of the labor force.
- worker productivity.
- cycles of economic expansions and recessions.
A: cycles of economic expansions and recessions.

Q: What best explains the fluctuations in the unemployment rates over the past 50 years?
- The contraction and growth of the labor force.
- Worker productivity.
- The cycles of economic recessions and expansions.
A: The cycles of economic recessions and expansions.

Q: In the past 50 years the unemployment rate has only reached 10% on two occasions. When did these two unemployment spikes occur?
- The 1970s and early 2000s.
- The late 1980s and early 2010s.
- The early 1980s and 2007-2009.
A: The early 1980s and 2007-2009.

Q: In the past 50 years the unemployment rate has reached below 5% on only a few occasions. When did some of these under 5% unemployment dips occur?
- The 1978-1980 and 1993.
- The mid 1980s and 2007-2009.
- The early 1997-2000 and 1968-1970.
A: The early 1997-2000 and 1968-1970.

Q: While the U.S. unemployment rate fluctuates over time, it normally returns to a long-run average somewhere between
- 8% and 10%.
- 2% and 4%.
- 4% and 6%.
A: 4% and 6%.

Q: What does the US unemployment rate range normally return to as the long-run average?
- Somewhere between 5% and 7%.
- Somewhere between 2% and 4%.
- Somewhere between 4% and 6%.
A: Somewhere between 4% and 6%.

Q: As more women entered the workforce in the late 20th century the long-run US unemployment rate has
- increased.
- steadily decreased.
- remained mostly unchanged.
A: remained mostly unchanged.

Q: Women in Switzerland finally got the vote in 1971. As more and more women entered the workforce, Switzerland looked to the U.S. to see what kinds of changes this meant for the employment market and the unemployment rate. From these U.S. statistics, Switzerland learned that over time in the US as women entered the workforce in the late 20th century the long-run US unemployment rate
- increased.
- steadily decreased.
- remained mostly unchanged.
A: remained mostly unchanged.

Q: Cross-country comparisons of unemployment rates are difficult for all the following reasons except:
- Differing definitions of ‘unemployment’ between countries.
- Non-traditional labor markets (i.e. barter, subsistence agriculture) in many developing countries.
- Higher government employment in developed countries.
A: Higher government employment in developed countries.

Q: Why are cross-country comparisons of unemployment rates difficult?
- There is a unified definition of ‘unemployment’ between countries.
- There is higher government employment in developed countries.
- There are non-traditional labor markets (i.e. barter, subsistence agriculture) in many developing countries.
A: There are non-traditional labor markets (i.e. barter, subsistence agriculture) in many developing countries.

Q: Among all high-income countries, which consistently has the lowest long-run unemployment rate in the past 30 years?
- United States
- France
- Japan
A: Japan

Q: While Japan has enjoyed a persistent low unemployment rate compared to other high-income countries, this may paint too rosy a picture of unemployment in Japan because
- the Japanese labor force has been shrinking for 20+ years.
- Japan does not have a modern unemployment insurance program.
- Japanese employers are reluctant to formally lay off workers even when there is little real work.
A: Japanese employers are reluctant to formally lay off workers even when there is little real work.

Q: The consequences of unemployment are likely more serious in developing countries because…
- greater stigma surrounding unemployment.
- lower labor force participation rates in developing countries compared to developed ones.
- developing countries are more likely to lack unemployment assistance programs.
A: developing countries are more likely to lack unemployment assistance programs.

Q: Compared to developed countries, developing countries…
- enjoy lower official unemployment rates.
- spend greater sums on unemployment insurance.
- often lack reliable or regular unemployment statistics.
A: often lack reliable or regular unemployment statistics.

Q: Based on the following table comparing fictional international country unemployment rates, which country from the 1970s to 1985 had the best and healthiest economy?

International Comparison of Unemployment Rates
Country | 1970 | 1975 | 1980 | 1985
Ulidia | 4% | 2.8% | 3.4% | 6.0%
Agreriven | 7% | 6.0% | 5.7% | 4.5%
Saede | 3% | 4.5% | 3.4% | 5.2%
Galoiri | 5% | 7.0% | 5.5% | 2.5%
- Ulidia
- Saede
- It can’t be determined just by the information in the table.
A: It can’t be determined just by the information in the table.

Q: Based on the following table comparing fictional international country unemployment rates, the country of Ulidia seems to have had fairly low unemployment rate throughout the years until 1985. Ulidia is however, a developing country and with the Ministry of the Economy reporting there is 65% of the labor force participation and 6% unemployment rate in 1985. Knowing it is a developing economy, why might the 6% rate be inaccurate?

International Comparison of Unemployment Rates
Country | 1970 | 1975 | 1980 | 1985
Ulidia | 4% | 2.8% | 3.4% | 6.0%
Agreriven | 7% | 6.0% | 5.7% | 4.5%
Saede | 3% | 4.5% | 3.4% | 5.2%
Galoiri | 5% | 7.0% | 5.5% | 2.5%
- It is inaccurate because it is not adequate compared with other countries unemployment rates.
- It is inaccurate because it is not including the military jobs in the labor pool participation.
- It is inaccurate because Ulidia has a large portion of the working-age population that participates in the informal economy of short-term work, bartering, or other subsistence activities.
A: It is inaccurate because Ulidia has a large portion of the working-age population that participates in the informal economy of short-term work, bartering, or other subsistence activities.