Which of these people is part of the labor force?

A.
an eighth-grader with a paper route

B.
a retired salesperson

C.
a full-time college student

D.
an auto mechanic

Which is the best example of frictional unemployment?

A.
a plumber’s contract with an apartment building ending

B.
college graduates looking for their first jobs after their internships

C.
workers being laid off during a period of recession

D.
a company moving to another state, leaving its workforce without jobs

Which are ways that the economy is affected when the unemployment rate goes up? Select the two correct answers.

A.
Fewer people pay income taxes.

B.
Sales tax rates go down.

C.
Many people refinance their houses.

D.
Less money is spent on investments.

E.
People spend more money on larger items.

Which is the most likely result of incomes not rising as quickly as inflation?

A.
People are able to buy fewer goods and services.

B.
The unemployment rate rises as more people look for jobs.

C.
Many people decide to leave the labor force.

D.
Consumers buy more goods before inflation raises prices more.

How has the standard of living in the United States generally changed over the past 100 years?

A.
It has stayed more or less the same.

B.
It has gotten much better.

C.
It has gotten a little better.

D.
It has gotten much worse.