AP®︎ Macroeconomics: Topic 2.3 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 2.3 of AP Macroeconomics – Unemployment.
Questions List
Topic 2.3
Question 1 Easy
This question tests the following: MEA-1.C
What is the labor force?
What You’re Being Tested On:
Explore the learning objectives taken directly from the College Board’s AP® Macroeconomics Curriculum. Ensure you’re prepared for the exact topics covered on the AP® exam, in-class tests, and quizzes, and gain confidence in your mastery of the material.
Topic 2.3: Unemployment
Learning Objective: MEA-1.C
a. Define the labor force, the unemployment rate, and the labor force participation rate. b. Explain how changes in employment and the labor market affect the unemployment rate and the labor force participation rate. c. Calculate the unemployment rate and the labor force participation rate.
Essential Knowledge: MEA-1.C.1
The unemployment rate is the percentage of the labor force that is out of work.
Essential Knowledge: MEA-1.C.2
The labor force participation rate is another measure of the labor market activity in an economy. The labor force participation rate is the percentage of the adult population that is in the labor force.
Learning Objective: MEA-1.D
Define the limitations of the unemployment rate.
Essential Knowledge: MEA-1.D.1
The measured unemployment rate is often criticized for understating the level of joblessness because it excludes groups such as discouraged workers and part-time workers.
Learning Objective: MEA-1.E
a. Define the types of unemployment and the natural rate of unemployment. b. Explain changes in the types of unemployment.
Essential Knowledge: MEA-1.E.1
Economists primarily focus on three types of unemployment: cyclical, frictional, and structural.
Essential Knowledge: MEA-1.E.2
The natural rate of unemployment is the unemployment rate that would exist when the economy produces full-employment real output. It is equal to the sum of frictional and structural unemployment.
Essential Knowledge: MEA-1.E.3
The deviation of the actual unemployment rate from the natural rate is cyclical unemployment.
Essential Knowledge: MEA-1.E.4
The natural rate of unemployment can gradually change over time because of such things as changes in labor force characteristics.
