University of the Philippines

SCHOOL OF ECONOMICS
Economics 100.1
Fourth Long Exam
May 17, 2015
S.L. Quimbo

Feliciano/Inocencio/Mendoza/Pormon

Name: __________________________________________
Student No.: ____________________________

Discussion Class Section: _________

Set Name: ____________________

Instructions:

1. Among the population, 95 million people worked pay for in the past week, 5 million people did
not work for pay but had been seeking a job, 5 million people aged 16 to 65 did not work for pay
and had not been seeking a job for the past seven months, and 45 million were under age 16. The
unemployment rate, given these numbers, is approximately:
a. 5%
b. 8%
c. 10%
d. 20%
e. 45%
2. Which of the following does not help explain why the majority of the unemployed in a
developing country like Philippines are not poor?
a. The country does not provide unemployment insurance.
b. There are many low-productivity informal sector jobs that are easy to enter.
c. The poor cannot afford to be unemployed because they have no savings or social networks to
help them during job search:
d. Higher education among many job seekers makes them pickier about the jobs they accept.
e. (All the above are part of the explanation.)
refer to the table below based on the results of the July 2014 round of (Philippine) Labor Force Survey.

Category
Household population 15 years old and
above
Labor Force
Underemployed
Unemployed

July 2014
(Thousands
)
64,070

July 2013
(Thousands)

41,262
7,050
2,778

40,372
7,169
2,961

63,180

Notes: Details may not add up due to rounding. The figures exclude data from Leyte.
3. What is the labor force participation rate in July 2014?
a. 93.3 %
b. 64.4 %
c. 100 %

d. 75 %

e. (None of the above.)

4. What is the employment rate in July 2014?

a. 76.7 %
b. 60.1 %
c. 93.3 %

d. zero

e. (None of the above.)

5. What is the underemployment rate in July 2014?

a. 11.0 %
b. 17.1 %
c. 18.3 %

d. 7.0 %

e. (None of the above.)

6. Which of the following is NOT an aggregate supply shock?

a. A large oil-price increase
b. The introduction and greater availability of credit cards
c. A drought that destroys agricultural crops
d. Unions obtain a substantial wage increase
e. (None of the above. These are all supply shocks.)
7. When an individual is frictionally unemployed, the unemployment arises in part from

a. individuals searching for appropriate employment.

b. the permanent elimination of jobs because of a change in the structure of the economy.
c. a reduction in the overall demand for workers' skills.
d. a short-term elimination of jobs because of a slowdown in business activity.
e. (All of the above)
8. How would you best describe a manufacturing employee who has been fired because he
was replaced by a robot (new technology) and does not have the skills necessary to help
operate the robot?
a. structurally unemployed
d. seasonally unemployed
b. entrant/reentrant
e. job leaver
c. cyclically unemployed
refer to the table below