1. Which phase of the business cycle would be most closely…

Question Answered step-by-step 1. Which phase of the business cycle would be most closely… 1. Which phase of the business cycle would be most closely associated with an economic contraction? A. PeakB. RecessionC. TroughD. Recovery2. A peak in the business cycle: A. Occurs when the unemployment rate is its greatestB. Occurs when the inflation rate is its lowestC. Is a temporary maximum pointD. Is a temporary minimum point3. Which is the correct way to calculate the unemployment rate? A. [(unemployed)/(population)] x 100B. [(unemployed)/(labor force)] x 100C. [(labor force)/(population)] x 100D. [(labor force)/(unemployed)] x 1004. Assuming the total population is 200 million, the labor force is 100 million, and 92 million workers are employed, the unemployment rate is: A. 4 percentB. 6 percentC. 8 percentD. 10 percent  5. Search and wait unemployment is another way to describe: A. Noncyclical unemploymentB. Cyclical unemploymentC. Frictional unemploymentD. Structural unemployment6. The unemployment rate in an economy is 6%. The total population of the economy is 290 million, and the size of the civilian labor force is 150 million. The number of unemployed workers in this economy is: A. 6 millionB. 9 millionC. 12 millionD. 24 million7. In calculating the unemployment rate, “discouraged” workers who are not actively seeking employment are: A. ExcludedB. IncludedC. Treated the same as part-time workersD. Used to determine the size of the labor force8. Official unemployment rate statistics may: A. Overstate the amount of unemployment by including part-time workers in the calculationsB. Understate the amount of unemployment by excluding part-time workers in the calculationsC. Overstate the amount of unemployment because of the presence of “discouraged” workers who are not actively seeking employmentD. Understate the amount of unemployment because of the presence of “discouraged” workers who are not actively seeking employment  9. The natural rate of unemployment: A. Means that the economy will always operate at its natural rateB. Means that the economy will always realize its potential outputC. Is equal to the total of frictional and structural unemploymentD. Is a fixed unemployment rate that does not change over time10. The rate of unemployment tends to be lowest for: A. Black teenagersB. White teenagersC. Black adult malesD. White adult malesThe descriptions give the responses of four individuals to a Bureau of Labor Statistics (BLS) survey of employment.1. Mollie just graduated from college and is now looking for work. She has had three job interviews in the past month.2. George works in an automotive assembly plant. He was laid off six months ago as the economy weakened. He expects to return to work in several months when national economic conditions improve.3. Jeanette worked as an aircraft design engineer for a company that produces military aircraft until she lost her job last year when the Federal government cut defense spending. She has been looking for similar work for a year but no company seems interested in her aircraft design skills.4. Ricardo lost his job last year when his company downsized and laid off middle-level managers. He tried to find another job for a year, but was unsuccessful and quit looking for work.11. Refer to the above information. Which individual is frictionally unemployed? A. 1B. 2C. 3D. 4 12. Refer to the above information. Which individual is structurally unemployed? A. 1B. 2C. 3D. 4 13. 46. Refer to the above information. Which individual is cyclically unemployed? A. 1B. 2C. 3D. 4  14. Refer to the above information. Which individual would be classified as a discouraged worker? A. 1B. 2C. 3D. 415. The phase of the business cycle in which real GDP is at a minimum is called: A. the peak.B. a recession.C. the trough.D. the pits.16. In calculating the unemployment rate, part-time workers are: A. Counted as unemployed because they are not working full-timeB. Counted as employed because they are receiving payment for workC. Used to determine the size of the labor force, but not the unemployment rateD. Treated the same as “discouraged” workers who are not actively seeking employment17. . The labor force includes: A. employed workers and persons who are officially unemployed.B. employed workers, but excludes persons who are officially unemployed.C. full-time workers, but excludes part-time workers.D. permanent employees, but excludes temporary employees.18. Alex works in his own home as a homemaker and full-time caretaker of his children. Officially, he is: A. unemployed.B. employed.C. not in the labor force.D. in the labor force.19. The government agency responsible for collecting and reporting unemployment data is the: A. Bureau of Labor Statistics.B. Bureau of Unemployment.C. Bureau of Economic Analysis.D. Bureau of Economic Research.  20. Which of the following statements is true about causes of business cycle fluctuations? A. Economists all agree that supply shocks are the cause of most business cycle fluctuations.B. Economists all agree that productivity shocks are the cause of most business cycle changes.C. Economists all agree that monetary changes are primarily responsible for business cycle fluctuations.D. There are a wide range of theories as to the underlying causes of business cycle movements.21. Innovations such as the microchip and the Internet lead to business cycle variations because: A. they cause prices to be sticky.B. significant innovations occur irregularly and unexpectedly.C. the central bank will often change the money supply in response.D. they cause prices to be flexible.22. In which industry or sector of the economy is output least likely to be affected by the business cycle? A. Housing constructionB. Automobile productionC. Agricultural commoditiesD. Capital goods production23. The production of durable goods varies more than the production of nondurable goods because: A. durables purchases are nonpostponable.B. durables purchases are postponable.C. the producers of nondurables have monopoly power.D. producers of durables are highly competitive.24. In the table below are statistics showing the civilian non-institutional population, the civilian labor force and total employment in year 1 and year 2. Make the computations necessary to complete the table. (Number of persons is in thousands.)Year 1 Year 2Civilian non-institutional population 209,699 211,864Civilian labor force 140,862 141,815Employed 135,208 135,973Unemployed _____ _____Unemployment rate(to one decimal place)        Foreign Language Spanish EC 202 Share QuestionEmailCopy link Comments (0)