Principles of Macroeconomics: MCQ

Principles of Macroeconomics, 9e - TB1 (Case/Fair/Oster)
Chapter 14

The Labor Market in the Macroeconomy

14.1

The Labor Market: Basic Concepts

1

Multiple Choice

1)

The functioning of the labor market primarily affects the shape of the
A)

aggregate demand curve.
B)

money demand curve.
C)

aggregate supply curve.
D)

planned investment curve.
Answer:

C
Diff: 1
Topic:

The Labor Market: Basic Concepts
Skill:

Conceptual
AACSB:

Reflective Thinking

2)

The type of unemployment that is due to changes in the structure of the economy is
A)

adjustable unemployment.
B)

structural unemployment.
C)

frictional unemployment.
D)

cyclical unemployment.
Answer:

B
Diff: 1
Topic:

The Labor Market: Basic Concepts
Skill:

Definition

3)

The type of unemployment that arises during recessions is known as
A)

the natural rate of unemployment.
B)

cyclical unemployment.
C)

structural unemployment.
D)

frictional unemployment.
Answer:

B
Diff: 1
Topic:

The Labor Market: Basic Concepts
Skill:

Definition

4)

The type of unemployment that is most likely to arise as a result of technological changes is
A)

cyclical unemployment.
B)

seasonal unemployment.
C)

frictional unemployment.
D)

structural unemployment.
Answer:

D
Diff: 1
Topic:

The Labor Market: Basic Concepts
Skill:

Definition

5)

If you hear a person saying "I lost my job because I was replaced by a machine," you should conclude that this person is ________ unemployed.
A)

cyclically
B)

structurally
C)

frictionally
D)

seasonally
Answer:

B
Diff: 1
Topic:

The Labor Market: Basic Concepts
Skill:

Conceptual
AACSB:

Reflective Thinking

6)

If you hear a person saying "I lost my job at the GM plant because car manufacturing is slow due to a