E202 Quiz 4
In an economy, the working-age population is 200200 million. Of this total, 160.0 million workers are employed. 6.0 million workers are unemployed. 28.0 million workers are not available for work (homemakers, full-time students, etc.). 4.0 million workers are available for work but are discouraged and thus are not seeking work. 2.0 million workers are available for work but are not currently seeking work due to transportation or childcare problems. The labor force participation rate in this economy is
83.0%
Which of the following is an example of structural unemployment?
Autoworkers lose jobs due to globalization and must retrain to find new jobs.
Suppose John Q. Worker is currently unemployed. Each day, John Q. Worker spends the entire day searching available job openings for an appropriate position given his set of skills, abilities, and interests. If someone asks John Q. what he does for work, he tells them that he is currently "in-between jobs." Which of the following best classifies John Q.'s unemployment status?
Frictionally unemployed
Calculate the missing values in the table below by using the provided data collected in the household survey for November 2016.
Working-age population 254,599 Employed 152,048 Unemployed 7,331 Unemployment rate 4.6% Labor force 159,379 Labor force participation rate 62.6%
An efficiency wage is
an above-market wage paid by a firm to maximize worker productivity.
Discuss the likely impact of the following event on the unemployment rate. If most U.S. workers join labor unions, then the unemployment rate will
increase
Creation Rate," New York Times, March 29, 2013. The reporter might consider this message to be contradictory because the The apparent contradiction could be explained if the
unemployment rate increased and employment increased. labor force also increased
What is the relationship between the unemployment rate and enacting or increasing a minimum wage? When a minimum wage is enacted or increased across a country, the unemployment rate
will increase some but the impacts will be much larger for some groups of workers.
Which one of the following accurately describes the relationship between frictional unemployment and job search?
People are said to be frictionally unemployed when they are between jobs and searching for new jobs.
The natural rate of unemployment is When the economy is at full employment, unemployment is equal to
the sum of structural unemployment and frictional unemployment. the natural rate of unemployment.
Which of the following is an example of cyclical unemployment?
In an economic downturn comma a manufacturing plant reduces production and temporarily lays off workers.In an economic downturn, a manufacturing plant reduces production and temporarily lays off workers.
[Related to Solved Problem #1] Currently, the Bureau of Labor Statistics does not include homemakers in its employment and labor force totals. What would happen to the unemployment rate and the labor force participation rate if homemakers were included in these numbers?
The unemployment rate would decrease and the labor force participation rate would increase.
The unemployment rate is calculated as follows: Which of the following is not one of the conditions someone needs to meet to be counted as unemployed?
Unemployment Rate= (Number of Unemployed/ Labor Force) x 100 They had worked only one hour per weed during the previous four weeks.
When the economy is at full employment, which types of unemployment remain? The "normal" underlying level of unemployment in the economy is
frictional and structural All of the above: (the sum of structural unemployment and frictional unemployment; the natural rate of unemployment; the full-employment rate of unemployment.)
The three types of unemployment are The type of unemployment most likely to result in hardship for the people who are unemployed is
frictional, structural, and cyclical unemployment. structural because this type of unemployment requires retraining to acquire new job skills.
[Related to the Making the Connection] A person who is in between jobs but actively engaged in a job search is considered to be Experts in hand-drawn animation who remain unemployed due to the film industry's switch to computer-generated animation are considered to be When a company reduces production and employment during economic recessions, those employees who lose their jobs are generally considered to be
frictionally unemployed structurally unemployed cyclically unemployed
All of the following are problems in measuring the unemployment rate except that When there are workers that drop out of the labor force, the official BLS measure of the unemployment rate _________ the true degree of unemployment.
people on active military service are included as unemployed understates
The employment-population ratio measures the When an unemployed person drops out of the labor force, the unemployment rate When an unemployed person drops out of the labor force, it
percentage of the working age population that is employed. understates the true degree of joblessness in the economy. does not affect the employment-population ratio.
The unemployment rate Suppose an economy is given by the following: Population = 250 million Labor force = 187 million The number of people employed = 172.0 million The number of people unemployed = 15.0 million Given the information above, the unemployment rate is
shows the percentage of the labor force that is considered unemployed. 8%
Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called
structural unemployment
