1. In discussing the distribution of income among families, the term “lowest fifth” indicates

a. the poorest five percent of families

b. the poorest twenty percent of families

c. the smallest twenty percent of families

d. the percentage of families receiving one-fifth of the income

2. The New Economy is one of

a. durable goods

b. services

c. information

d. manufacturing

3.The organization that develops and recommends to the U.S. President national economic policies to foster maximum employment, production, and purchasing power is the

a. Joint Economic Committee

b. Bureau of Labor Statistics

c. Council of Economic Advisers

d. Full-Employment Council

4. Which of the following has not been outsourced from the U.S.?

a. customer service centers

b. data processing

c. residential construction

d. computer programming

5. Frictional unemployment is caused primarily by automation.

True or Flase

6. By the late 1950s, the unemployment rate generally accepted as consistent with full employment was about

a. 2%

b.3%

c.4%

d.5%

7. Unemployment caused by an imbalance between the skills possessed by workers and the skills demanded in labor markets is known as

a. structural unemployment

b. imbalance unemployment

c. frictional unemployment

d. cyclical unemployment

8. Since 1930, U.S. agriculture employment

a. has decreased while agricultural output has increased

b. has increased while agricultural output also has increased

c. has decreased while agricultural output also has decreased

d. has increased while agricultural output has decreased

9. The Council of Economic Advisers includes the Secretary of the Treasury and the Chairman of the Federal Reserve Board.

True or False

10. In recent years, the highest rate of unemployment among U.S. adults has been among

a. married men

b. adult females

c. adult males

d. black workers