Ch 6 HW
Cyclical unemployment is the fluctuating unemployment over the business cycle that increases during _____ and decreases during _____. A. imports; exports B. an expansion; a recession C. technological stagnation; technological advancements D. a recession; an expansion
D. a recession; an expansion
The unemployment that arises from normal labor turnover—from people entering and leaving the labor force— and from the ongoing creation and destruction of jobs is ______. A. cyclical unemployment B. natural unemployment C. structural unemployment D. frictional unemployment
D. frictional unemployment
The BLS reported that in November 2016, the labor force was nbsp 159.9 million, employment was nbsp 152.0 million, and the working-age population was nbsp 254.1 million. Calculate the unemployment rate and the labor force participation rate.
The unemployment rate is 4.9 percent. The labor force is the sum of the number employed plus the number unemployed. So the number unemployed equals the labor force minus the number employed, which equals nbsp 159.9 million minus nbsp 152.0 million, or nbsp 7.9 million. The unemployment rate is the number unemployed as a percentage of the labor force. The unemployment rate = (nbsp 7.9 million ÷ nbsp 159.9 million) × 100, which is 4.9 percent The labor force participation rate is 62.9 percent. The labor force participation rate is the percentage of the working-age population who are in the labor force. Labor force participation rate = (nbsp 159.9 divided by ÷ nbsp 254.1) * 100, or 62.9 percent.
Which of the following statements illustrates structural unemployment? A. Outsourcing resulted in many job losses in the mid 2000s. B. Many women quit jobs to raise their kids. C. Dell laid off many employees when the company's profits dropped during the recession. D. Jen quit her current job and found another one with a better pay scale.
A. Outsourcing resulted in many job losses in the mid 2000s Structural unemployment is the unemployment that arises when changes in technology or international competition change the skills needed to perform jobs or change the locations of jobs. "Outsourcing resulted in many job losses in the mid 2000s," is about people losing jobs due to changes in the location of jobs. So it is an example of structural unemployment.
The labor force participation rate ______. A. has mild cyclical fluctuations that result from unsuccessful job seekers becoming discouraged workers B. cycles in phase with the unemployment rate C. increased by 5 percent between 2000 and 2013 D. shows a downward trend between 1960 and 2013
A. has mild cyclical fluctuations that result from unsuccessful job seekers becoming discouraged workers
When the unemployment rate ______ the natural unemployment rate, real GDP ______ potential GDP. A. is greater than; is less than B. equals; is greater than C. is less than; equals D. equals; is less than
A. is greater than; is less than When the unemployment rate exceeds the natural unemployment rate, real GDP is below potential GDP and the output gap is negative. When the unemployment rate is below the natural unemployment rate, real GDP is above potential GDP and the output gap is positive.
The natural unemployment rate ______. A. is the unemployment rate when there is no cyclical unemployment B. always equals zero C. is always less than the actual unemployment rate D. is equal to the amount of cyclical unemployment divided by the labor force
A. is the unemployment rate when there is no cyclical unemployment Natural unemployment is the unemployment that arises from frictions and structural change when there is no cyclical unemployment—when all the unemployment is frictional and structural.
Which of the following statements illustrates frictional unemployment? A.Robin is quitting his current job to find another that has better prospects. B. Thousands of employees were laid off during the 2008-09 recession. C. Many bank tellers lost their jobs due to the installation of ATM machines. D. Dave lost his job as he did not possess the technical skills required to do his duty.
A.Robin is quitting his current job to find another that has better prospects.
An economy is at full employment when ______. A.the unemployment rate is less than the natural unemployment rate B. all unemployment is frictional and structural C. all unemployment is structural and cyclical D. all unemployment is cyclical
B. all unemployment is frictional and structural An economy is at full employment when the unemployment rate equals the natural unemployment rate. There is no cyclical unemployment. All unemployment is structural and frictional.
A discouraged worker ______. A. is included in the labor force B. is a marginally attached worker who has not made specific efforts to find a job within the previous four weeks because previous unsuccessful attempts were discouraging C.is not included in the working-age population D. is someone who works part time but would like a full-time job
B. is a marginally attached worker who has not made specific efforts to find a job within the previous four weeks because previous unsuccessful attempts were discouraging
Who in the following statements is a discouraged worker? A. Nick is changing his job because he has had differences with his co-workers in his current company. B. Ned is available to work and has been sending job applications whenever he sees any suitable opportunity. C. Dan is available to work but has not looked for a job in the past eight weeks because of repeated applications but no single offer. D. Rachel does not find her current job profile interesting and is looking for alternate opportunities.
C. Dan is available to work but has not looked for a job in the past eight weeks because of repeated applications but no single offer.
The labor force is the number of people employed plus the _____. A. working-age population B. number of women unemployed C. number unemployed D. working-age population
C. number unemployed
The Labor Department said that the economy added 146,000 jobs in November, and the unemployment rate fell to 7.7% from 7.9% in October. But it fell mainly because workers dropped out of the labor force. New jobs ______ the labor force and _______ the unemployment rate.
Increase or does not change; lower The change in the labor force depends on whether these newly employed people were previously unemployed or whether they are entering the labor force. If they were previously unemployed, then the labor force does not change. If they are entering the labor force, then the labor force increases. If the labor force does not change and the number unemployed decreases, then the unemployment rate, which is equal to the number unemployed divided by the labor force, falls. And if the labor force increased, then the number unemployed is divided by a larger labor force and the unemployment rate falls.
The Bureau of Labor Statistics reported that in May 2009, the labor force in Michigan was 4,848 thousand and employment was 4,167 thousand. Calculate the unemployment rate in Michigan in May 2009.
unemployment rate is (681 thousand÷4,848 thousand)×100,which is 14.0 percent.