ch7 Smartwork

imagine you have spent a year searching for a job and have become discourage, in the last six weeks, you have not looked for work. When numerous people are in the same situation as you, all else being equal, the unemployment rate

goes down

Which of the following would lead to a lower unemployment rate?

-a new company hires 1,000 college graduates -unemployment benefits are reduced from 26 weeks to 20 weeks -a large number of job seekers get discouraged and stop looking for work

Refer to the table above. What is the labor force participation rate for this economy? (Round to the nearest one-tenth of a percent.)

103 + 27=130 14 looking for work 314 -(16+40+20) = =238 130+14/ 238 x 100 60.50%

Which of the following would help reduce the amount of frictional unemployment?

Websites that advertise job openings across the country

of the people described below, who would be counted as unemployed

a student who quit college to look for a modeling job in New York a 17-year-old single parent who has just been laid off and is looking for a new job

data the natural rate of unemployment and actual employment are provided in the table below Natural rate of unemployment 5% Actual unemployment 7 %

based on these numbers, the amount of cyclical unemployment in the economy is positive

if 4 million of those who are currently unemployed become discouraged workers, the unemployment rate will ___ the unemployment rate is now___

decrease ???

below is data on the natural rate of unemployment and actual unemployment the information provided above reflects an economy this is ___

healthy

The unemployment rate is (give your answer to two decimals):

labor force- employed + unemployed full time workers + part time = employed 113+ 27= 140 looking for work ( unemployed)= 16 labor force= 140 + 16= 156 unemployment rate = unemployed / labor force x 100 16/156 x 100= 10.25%

You have been hired to determine if unemployment is running too high. First you must determine the natural rate of unemployment. You have been provided the data in the table below.

the natural rate of unemployment is 4% add frictional unemployment and structural unemployment

You have been asked by the king of the small island nation of Littleston to present the labor force data listed below.

number of unemployed people 32,000- 20,000= 12,000 unemployment rate 12,000/ 32,000 x 100= 37.5% labor force participation rate 32,000/ 40,000 x 100= 80%

Which of the following people are structurally unemployed?

- Your mechanic closes his shop because recent advances in technology mean that cars need much less servicing, and he doesn't have enough work to keep the business open. -A worker on an assembly line loses her job when the company outsources jobs to China. -A newspaper photographer loses his job due to decreased circulation of the physical newspaper. His boss says more people are using the Internet to get their news. -Two employees of a tax accounting firm are laid off because new tax software has made it easier for people to do their own taxes.

Which of the following situations would be considered frictional unemployment?

-A software development firm finds the perfect employee, but it waits to hire her because government regulations require the government to consider other candidates before the firm makes a job offer. -A worker with ten years of experience in finance gets laid off. He has rejected three job offers because they are below his skill level. -A recent college graduate takes a month off to travel while deciding between two job offers.

Which of the following situations would be considered cyclical unemployment?

A recent college graduate cannot find a job anywhere, despite excellent qualifications. The news media report that there are not enough jobs to go around in the economy. A worker on the assembly line at Ford is laid off due to a drop in car sales brought on by a weak economy.

Classify each of the following unemployment situations as either cyclical, frictional, or structural

Frictional Unemployment -Michael is temporarily out of work. He quit his job at Citibank to find another job as a financial analyst. -Mary graduated from college with an economics degree. She doesn't have a job yet, but she has six interviews lined up. Structural Unemployment -Paul lost his job six months ago. His employment counselor at the labor office advises him to retrain. -In 2011, Borders Books filed for bankruptcy, and 19,000 employees lost their jobs. -A data-entry employee loses his job because it was permanently outsourced to India. Cyclical Unemployment -Unemployment in Michigan increased as consumer demand for automobiles fell during the Great Recession. -Large numbers of construction workers lost their jobs after the collapse of the housing bubble.

The table below reports labor market data in the United States in June 2009 (the end of the last recession) and June 2016. The numbers are reported in millions of people. Use the information in the table to answer the questions below. Enter your answers to two decimal places.

From june 2009 to june 2016, the unemployment rate fell from ___ to ___ 15/ 155 x 100= 9.86 8/159 x 100 = 5.03 If discouraged workers were included, the unemployment rate would have been __ in June 2009 and ___ in june 2016 from june 2009 to june 2016, the labor force participation rate fell from __ to __ (15+8) / (159 + 5) x 100= 14.11 (5+8) / (159 + 5) x 100=7.93 155/ 235 x 100= 65.96 159/ 253 x 100= 62.85