Exhibit 6-3 Unemployment categories

CategoryWorkers

Frictional unemployment250

Structural unemployment350

Cyclical unemployment600

Discouraged workers400

Underemployment450

73.According to data in Exhibit 6-3 and assuming the total number of workers is 8,400, the civilian labor force is:

a.7,550.

b.8,000.

c.8,400.

d.8,800.

e.9,250.

74.According to data in Exhibit 6-3 and assuming the total number of workers is 8,400, the unemployment rate is:

a.14 percent.

b.15 percent.

c.16 percent.

d.19 percent.

e.24 percent.

75.A person who has given up searching for work is called:

a.frictionally unemployed.c.a discouraged worker.

b.structurally unemployed.d.unemployed.

76.The number of people officially unemployed is not the same as the number of people who can't find a job because:

a.the armed forces is included.

b.some people have jobs but continue to look for a better one.

c.some people who can't find a job become discouraged and quit looking.

d.none of these.

77.The number of people officially unemployed is not the same as the number of people who can't find a job because:

a.people who have jobs continue to look for better ones.

b.the armed forces is included.

c.discouraged workers are not counted.

d.none of the above.

78.Brian Vargo, an auto repair mechanic who remains unemployed because he refuses to work for less than $1,000 an hour, is:

a.counted as part of the labor force.

b.considered frictionally unemployed.

c.an underemployed worker.

d.not counted as part of the labor force.

e.considered as productively active.

79.John Steinbeck's Cannery Row describes a character who takes his own life because of poor job prospects. If he was an unemployed person who gave up looking for work, he would be considered:

a.chronically unemployed.c.a member of the labor force.

b.a discouraged worker.d.frictionally unemployed.

80.Elisa Kilhafer, a housewife in St. Louis, Missouri, who claims on a Bureau of Labor Statistics (BLS) survey that she is neither gainfully employed nor looking for work, is, according to the BLS,

a.considered retired.

b.counted as unemployed.

c.considered reemployable.

d.counted as a member of the labor force.

e.not counted as a member of the labor force.

81.Andrea Burris lost her job in a company layoff 5 months ago. She would take a job if one was offered, but she has given up looking for work until the economy improves. She is:

a.a member of the civilian labor force who is employed.

b.a member of the civilian labor force who is unemployed.

c.a member of the civilian labor force who is underemployed.

d.a discouraged worker who is not a member of the labor force.

e.now structurally unemployable.

82.The presence of discouraged workers may cause:

a.the employment rate to be overstated.

b.the employment rate to be understated.

c.the unemployment rate to be overstated.

d.the unemployment rate to be understated.

e.GDP to be too large.