#1
What does the term 'full employment' signify in the context of the labor market?
Maximum utilization of labor resources
ExplanationAll available labor resources are utilized.
#2
Which of the following is NOT a component of Gross Domestic Product (GDP)?
Unemployment benefits
ExplanationTransfer payments, not production.
#3
What is the primary purpose of the Consumer Price Index (CPI)?
To measure changes in the prices of goods and services over time
ExplanationTracks inflation over time.
#4
What does the term 'labor force' refer to in economics?
All individuals who are willing and able to work, including both employed and unemployed
ExplanationIncludes all potential workers.
#5
What is the primary purpose of the unemployment rate?
To measure the percentage of the labor force that is unemployed
ExplanationIndicates unemployment levels.
#6
What does the term 'participation rate' refer to in the labor market?
The percentage of the working-age population that is in the labor force
ExplanationPortion of eligible workers active in the labor market.
#7
Which of the following is considered a lagging indicator in macroeconomics?
Unemployment rate
ExplanationReflects past economic conditions.
#8
Which of the following is NOT a measure of unemployment?
Natural rate of unemployment
ExplanationIt's a concept, not a measure.
#9
What does the term 'discouraged worker' refer to in the labor market?
A worker who has given up looking for employment due to lack of success
ExplanationWorkers who stopped seeking employment.
#10
What does the term 'underemployment' refer to in the labor market?
Workers who are employed part-time but desire full-time employment
ExplanationDesire for full-time employment while working part-time.
#11
What is the relationship between the unemployment rate and the natural rate of unemployment?
The unemployment rate fluctuates around the natural rate
ExplanationUnemployment settles around the natural rate.
#12
What does the term 'structural unemployment' refer to?
Unemployment caused by mismatch between skills and available jobs
ExplanationSkills don't match available job opportunities.
#13
What is the Phillips curve primarily used to explain?
The relationship between inflation and unemployment
ExplanationInverse relationship between inflation and unemployment.
#14
Which of the following is an example of a leading indicator in macroeconomics?
Stock market indices
ExplanationAnticipates changes in the economy.
#15
Which of the following best describes the term 'job polarization'?
A phenomenon where there is an increase in the number of high-skilled and low-skilled jobs, but a decline in middle-skilled jobs
ExplanationShift towards high and low-skilled jobs, away from middle-skilled.