Macro Chapter 11

A country has 50 million people, 30 million of whom are adults. Of the adults, 5 million are not interested in working, another 5 million are interested in working but have given up looking for work, and 5 million are still looking for work. Of those who do have jobs, 5 million are working part time but would like to work full time, and the remaining 10 million are working full time. How many people in this country are in the labor force?

20 Million

A country has 50 million people, 30 million of whom are adults. Of the adults, 5 million are not interested in working, another 5 million are interested in working but have given up looking for work, and 5 million are still looking for work. Of those who do have jobs, 5 million are working part time but would like to work full time, and the remaining 10 million are working full time. What is this country's unemployment rate?

25%

Refer to the figure. What is the unemployment rate in this market as a result of the implementation of a $10 minimum wage?

50%

Refer to the figure. What is the number of people who are employed at the market wage? How many people end up unemployed due to the implementation of a $10 minimum wage?

60:40

Which of the following occurs when an economy is at Full Employment?

Cyclical Unemployment is zero

High Replacement Ratios result in which of the following?

High structural unemployment

Which of the following is NOT true of structural unemployment?

It results from scarcity of information.

Which of the following is considered unemployed?

John, on temporary layoff from his work, awaits recall.

Someone who burns down a factory because it uses new labor-saving technology that destroys jobs is known as a(n):

Luddite

Which of the following would the U.S. Bureau of Labor Statistics define as a discouraged worker?

Mary, who was laid off last year and who was looking for a full-time job until last month

Which of the following is equal to zero at Full Employment?

cyclical unemployment

Unemployment correlated with the business cycle is called:

cyclical unemployment.

As the baby boomers retire, the U.S. labor force participation rate will:

decrease

Discouraged workers are:

discouraged

An unemployed person is one who:

does not have a job but is actively looking for one.

During recessions the unemployment rate:

increases

Which of the following would be the most likely to be associated with reduced frictional unemployment?

indeed.com

Minimum wage laws and unions tend to:

raise wages and raise unemployment.

Frictional unemployment is best defined as:

short-term unemployment caused by difficulties of matching employees to employers.

The persistent, long-term unemployment caused by long-lasting shocks or permanent features of an economy is called:

structural unemployment.