Econ 102, Unit 2 Chapter 8

The unemployment rate in a town in which 65,400 persons are employed and 11,000 are unemployed equals

14.4%

In November 2010 the labor force in Sioux town, was 14,800. There were 14,483 persons employed. The local unemployment rate was?

2.1%

If the number of employed persons in a country equals 24 million, the number of million, and the number of persons over age 16 unemployed persons equals 40 million, the unemployment rate equals:

25%

Freelife, New Hampshire has a labor of 78,567 persons and employment of 74,382. The unemployment rate is ______ and the participation rate is _____.

8.3%; 60%

If the unemployment rate is 6 percent and the number of persons unemployed is 6 million, then the number of people employed is equal to:

94 million

The development of a nationwide computerized job bank listing of all job opening would mostly likely to reduce:

Frictional unemployment

When the unemployment rate is lower than the natural unemployment rate, real GDP is

Greater than potential GDP

Insofar as government public policy is concerned, the best way to battle unemployment would be __________________.

To minimize recessions

The _______ argument points out that if an employer reacts to poor business conditions by reducing pay for all workers, then the best workers, with the best employment alternatives at other firms, are the most likely to leave and the least-attractive workers, with employment alternatives, are most likely to stay.

adverse selection of wage cuts

The labor force consists of:

all adults who are working actively seeking work

A forestry worker who is out of work because of the temporarily low demand for wood products associated with a recession is defined as:

cyclically unemployed

Karen chooses to go to university fulltime rather than to work. Karen:

is not part of the labor force

The unemployment rate may underestimate the true extent of unemployment if:

many part-time employees would like to work fulltime, but are unable to get additional work. // many people become discouraged and cease looking for work.

When the economy is at full employment, the

natural unemployment rate equals the unemployment rate.

A university student who is enrolled in school fulltime and not seeking employment is considered:

out of the labor force

After 15 years with Ford Motor Corporation, one summer Cameron loses his job. His boss explained that his position has been downsized after the technological advances in automobile production. Cameron is best considered

structurally unemployed

If a nation's labor force receives a significant influx of young workers:

the natural rate of unemployment is likely to increase

Gomer loses his job as a road construction worker and cannot find another position with equivalent pay and benefits. As a result, he is still checking the want ads and reporting to the unemployment office on a weekly basis. He is considered to be:

underemployed

Frictional unemployment is:

unemployment that is due to normal turnover in the labor market

Through good economic years and bad, many European economies had unemployment rates hovering near _________ since the 1970s.

10%

Cyclical unemployment arises when:

Business activity in the macroeconomy declines

The rise in unemployment that occurs because of a recession is known as cyclical unemployment, because it is closely tied to the _____.

Business cycle

The natural unemployment rate is the unemployment rate that exists when there is no

Cyclical Unemployment

Which type of unemployment is a permanent and healthy phenomenon in a dynamic economy?

Frictional

The most significant real economic cost of high unemployment is

The potential goods and services that might have been produced but weren't

Cyclical unemployment arises when:

business activity in the macroeconomy declines

The definition of market equilibrium states that at the _____, the quantity of labor demanded by employers will equal the quantity supplied.

equilibrium wage

The Natural Unemployment Rate

includes only frictional and structural unemployment

In 2011, real GDP in the United States was below potential GDP. This fact definitely means that

the unemployment rate was above the natural unemployment rate