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A.sum of the employed and the unemployed.






b.percentage of the labor force that is employed.

c.workers employed.

d.percentage of workers employed out of the total population.

114.

The unemployment rate is the:

a.number of people unemployed in the nation.

B.percentage of the labor force that is unemployed.

c.percentage of the population that is unemployed.

d.number of people unemployed in a given state.

115.

The normal rate of unemployment around which the unemployment rate fluctuates is called the ________ rate of unemployment.

a.cyclical

B.natural

c.frictional

d.structural

116.

The unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called ________ unemployment.

a.cyclical

b.natural

C.frictional

d.structural

117.

The unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one is called ________ unemployment.

a.cyclical

b.natural

c.frictional

D.structural

118.

Which of the following statements is true?

a.It is possible for an economy to completely and permanently eliminate unemployment.

b.It is possible for an economy to eliminate unemployment completely, but only temporarily.

C.It is impossible for an economy to eliminate unemployment completely.

d.It is possible for an economy to completely and permanently eliminate unemployment, but only if the government finds a way to avoid recessions altogether.

119.

Which of the following policies would be most effective in reducing the unemployment rate?

a.Pass laws that make it difficult for employers to fire workers.

B.Reduce the benefits to the unemployed (unemployment insurance).

c.Pass laws that force businesses to hire more workers.

d.Raise taxes on imports (tariffs), to protect American producers and workers.

120.

All of the following make it difficult for wages to go down when necessary, EXCEPT:

a.unions and collective bargaining.

b.minimum wage laws.

c.efficiency wages.

D.job search time.

The Monetary System

121.

The set of assets in an economy that people regularly use to buy goods and services form other people is most commonly called:

a.financial assets.

b.liquid assets.

c.exchange assets.

D.money.

122.

All of the following are functions of money, EXCEPT:

a.medium of exchange.

B.liquidity.

c.unit of account.

d.store of value.

123.

Which of the following is NOT a characteristic of commodity money?

a.It must have an intrinsic value.

b.It must be easily divisible, in order to make small payments.

c.It must be durable.


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