ECON 2015 Chapter 21

When actual unemployment is less than its natural rate:

resources are employed at levels that are not sustainable in the long run. or the economy is expanding beyond its long-run capabilities.

Since 1948, female labor force participation has __________ and male labor force participation has __________.

risen; fallen

Cyclical unemployment:

rises during a recession.

Workers who lose their jobs because the skill set they possess is no longer required in the economy are considered to be:

structurally unemployed.

The Great Depression lasted most of which decade?

the 1930s

The Great Recession was most similar to which of the following downturns?

the 1982 recession

The recession of 2007-2009 has been dubbed:

the Great Recession.

To calculate the labor force participation rate, you only need to know:

the number of employed and the labor force.

The unemployment rate is:

the percent of the labor force that is unemployed

Natural unemployment is:

the sum of structural and frictional unemployment.

The labor force is:

the total of people employed and unemployed

The main statistic that is used to monitor unemployment in the economy is:

the unemployment rate

During periods of recession:

the unemployment rate rises.

Which of the following equations represents the unemployment rate?

(number of unemployed / labor force) 100

If a country has a working-age population of 200 million, 135 million people with jobs, and 15 million people unemployed and seeking employment, then its unemployment rate is:

10%

If the relevant population is 268 million people and the number of people in the labor force is 148 million, the number of people NOT in the labor force is equal to:

120 million.

One shortcoming of the official unemployment rate is that:

14 weeks or less

If a country has a working-age population of 200 million, 135 million people with jobs, and 15 million people unemployed and seeking employment, then its labor force is

150 million.

According to the table, the number of employed in this economy is equal to: given Relevant Population ???, Labor force 179, Not in Labor Force 95, Employed ???, Unemployed 18 (number in millions)

161 million.

(Table: Population Data for Estill County) Use the accompanying table, which summarizes the labor market status of the residents of Estill County. What is the unemployment rate in the county?

17%

A survey reveals that on a small island 100 people have jobs, 25 people are looking for jobs, and 45 people are neither working nor looking for work. The unemployment rate on the island is:

20%

If the relevant population is 268 million people and the number of people in the labor force is 148 million, the labor force participation rate is:

55.2%.

Between 1960 and 2012, the average unemployment rate in the United States was about:

6%

(Table: Population Data for Estill County) Use the accompanying table, which summarizes the labor market status of the residents of Estill County. How many people are in the labor force in the county?

6,000

According to the table, the number of people not in the labor force is equal to: given Relevant Population 215, Employed 138, Unemployed 9 (number in millions)

68 million.

According to the table, the labor force participation rate is: given Relevant Population 215, Employed 138, Unemployed 9 (number in millions)

68.4%

(Table: Population Data for Estill County) Use the accompanying table, which summarizes the labor market status of the residents of Estill County. What is the labor force participation rate in the county?

81%

According to the table, the employment rate in this economy is equal to: given Relevant Population 243, Labor force 154, Not in Labor Force 89, Employed 142, Unemployed 12 (number in millions)

92.2%

The 2007-2009 recession lasted for:

19 months.

Individuals who are not working but are willing to work and who have looked for a job in the past 12 months but have not sought employment in the past 4 weeks are defined as:

discouraged workers.

The definition of short-term unemployment is unemployment that lasts:

discouraged workers.

An increase in the number of discouraged workers in the economy tends to:

lower the official unemployment rate

Employment data is released ___________ gross domestic product (GDP) data.

more frequently than

If the unemployment rate is 5.8% and the number of unemployed persons is 15 million, the number of people who are employed is approximately:

243 million.

According to the table, the relevant population is equal to: given Relevant Population ???, Labor force 179, Not in Labor Force 95, Employed ???, Unemployed 18 (number in millions)

274 million.

(Table: Labor Force Distribution) Based on the accompanying table, the total population is:

278 million

(Table: Labor Force Distribution) Based on the accompanying table, the unemployment rate is:

3.85%

Which of the following is an example of frictional unemployment?

Chad graduates with his master's degree in economics and is searching for an analyst job.

When it is difficult to hire employees, firms take ____________ to hire, which increases ____________ unemployment.

longer; frictional

Which of the following two types of unemployment occur even when the economy is healthy and growing?

frictional and structural

Brian Murphy is a political consultant for a candidate in Massachusetts. Mr. Murphy's candidate is defeated in the November election, and as a result, Mr. Murphy finds himself unemployed. Mr. Murphy's unemployment is classified as:

frictional unemployment.

Which of the following is an example of structural unemployment?

Jasmine loses her job as a newspaper editor because the publication has gone digital.

Which of the following people would be officially considered unemployed?

Jenna, who just graduated college and is searching for a job that fits her graphic-design skills

(Figure: The Effect of a Minimum Wage) Suppose the labor market is in equilibrium at E when the government imposes a minimum wage of WF. Structural unemployment will equal:

QS - QD.

Which of the following statements about the composition of the labor force is correct?

Since 1948, the percentage of men participating in the labor force has decreased.

Asking whether people are unemployed for short spells or whether the duration of joblessness is long term is:

a question that can be answered because the Bureau of Labor Statistics keeps an alternative measure of unemployment that tracks the length of time workers have been unemployed.

Jim has a part-time job and would prefer to have a full-time job but has been unable to find full-time work. Jim is classified as:

an underemployed worker.

Anna recently moved to Boston in order for her husband Joe to begin a new job as an economics professor at Harvard. Anna is an experienced surgeon who is interviewing with several hospitals in Boston. Anna is:

frictionally unemployed.

Nina has a part-time job as she finishes her degree in fashion design. After obtaining her degree she decides to quit her part-time job to search for a job that better fits her now-improved skill set. Nina has a few interviews, but it is taking time to find the job that suits her best. Nina would be considered:

frictionally unemployed.

An example of structural unemployment is a(n):

geologist who is permanently laid off from an oil company because of an increase in wages won by labor unions.

Frictional unemployment is considered to be:

good, since that means people may be seeking for jobs that match their job skills.

Government policies such as unemployment compensation and government regulations related to hiring and firing employees result in:

higher frictional unemployment.

The natural rate of unemployment:

is composed of structural and frictional unemployment.

To be classified as unemployed, a person must be:

not working and actively looking for a job in the last four weeks.

Structural unemployment is:

unemployment caused by changes in the industrial makeup of an economy.

Cyclical unemployment is:

unemployment caused by economic downturns

Frictional unemployment is:

unemployment caused by time delays in matching available jobs and workers

A government program that reduces the hardship of being out of work by guaranteeing that unemployed workers receive a percentage of their former income while they are unemployed is referred to as:

unemployment insurance.

Economists claim that the unemployment rate can understate the true level of unemployment because none of the following groups is included, except:

workers without jobs who have looked for work in the last four weeks.