Econ Exam 2 Ch.9

In January of 2001, the population of the United States was 276.8 million, the working- age population was 210.2 million, the total number of people "employed" and "unemployed" was 145.0 million, and the total number of unemployed people was 5.5 million. What was the unemployment rate?

3.8 percent

Using the above table, the unemployment rate is approximately

4.8%

In the table above, the size of the labor force is

42 million

*If the number of unemployed workers is 19 million, the number in the working-age population is 500 million, and the unemployment rate is 4%, how many workers are in the labor force?

475 million

The table above shows data reported by the Office for National Statistics for the United Kingdom in September 2000. In September 2000, the unemployment rate is approximately

5.5 percent

Refer to Table 6.2. The total number of people unemployed it approximately

6.83 million

If the number of unemployed workers is 30 million, the number in the working-age population is 500 million, and the unemployment rate is 10%, was is the labor force participation rate?

60%

Using the above table, the labor force participation rate is approximately

70%

If the number of unemployed workers if 50 million, the number in the working-age population is 500 million, and the unemployment rate is 12.5%, what is the labor force participation rate?

80%

Refer to table 6.4. The labor-force participation rate is approximately

83.5%

If the number of unemployed workers is 19 million, the number in the working-age population is 500 million, and the unemployment rate is 4%, what is the labor for participation rate?

95%

Which of the following is an example of a worker experiencing cyclical unemployment?

A Freightliner employee that got laid off because of the recession of 2001

Suppose that 100 people that were officially classified as "unemployed" quit looking for work in order to go back to school full-time. This change will cause:

a decrease in the unemployment rate and a decrease in the labor force participation rate

Minimum wage laws cause unemployment because the legal minimum wage is set

above the market wage, causing the quantity of labor demanded to be less than the quantity of labor supplied

Wages that are above the wage that workers would be willing to accept, where the premium is paid to increase worker productivity, are referred to as:

efficiency wages

We don't typically see wages _______ in response to an economic downturn because ________.

fall; they are "sticky" and are slow to respond to shifts in the economy

Establishing a state employment agency that speeds up the process of matching unemployed workers with unfilled jobs is an attempt to lower

frictional unemployment

The advice to "keep searching, there are plenty of jobs around here or which you are qualified," would be most appropriate for which of the following types of unemployment?

frictional unemployment

Ameer just quit his job as a shoe salesman and is looking for work as an accountant, which is what his college degree is in. Ameer would be considered

frictionally unemployed

Bill has graduated with his degree in economics. Through Career Services he submitted his resume to several companies and he will visit them during the next two weeks. Bill is considered

frictionally unemployed

Rosina Gonzales quit her job in Pennsylvania and moved to California to be close to her family. She is currently looking for work, so she would be considered

frictionally unemployed

An increase in the minimum wage causes the quantity supplied of labor to _____, the quantity demanded of labor ______, and thus cause a ________ of labor.

increase; decrease; surplus

In a recession, the number of "discouraged workers" is likely to _________. Thus, the actual unemployment situation is likely ________ the official unemployment numbers tell us during the recession.

increase; worse than

Which of the following has a tendency to raise the unemployment rate?

increasing the minimum wage in an economy

The labor demand curve:

is provided by firms who want to hire workers at each given wage

The trade-offs in the effect of unemployment insurance are:

it prolongs the job search, but reduces the number of job searches a person has to make.

Policies that make it more difficult to fire an employee are likely to:

lead to greater unemployment

We would expect that policies to protect workers would:

lead to greater unemployment

The natural rate of unemployment means that

only frictional, structural, and classical (real wage) unemployment exists

Discouraged workers are classified by the BLS as

out of the labor force

The labor supply curve:

shows that, all things being equal, more workers will want to work when wages are higher and less will want to work when wages are lower

In general, economists believe that the measured unemployment rate _______ the actual amount of joblessness in the economy

understates

When growth goes down, unemployment tends to go:

up shortly after, and vice versa

Which of the following is correct?

Adult not in the labor force = adult population - employed workers - unemployed workers

Which of the following is an example of a worker experiencing structural unemployment?

An assembly line worker who loses his job because of automation

Members of the military are currently not included in the employment, labor force, and working-age population statistics. What impact would including members of the military in these statistics have on the unemployment rate and the labor force participation rate?

Including members of the military would reduce the unemployment rate and increase the labor for participation rate.

Suppose that you suspect that the number of "discouraged workers" has increased over the last year. Which of the following piece of information would support your suspicion?

The labor force participation rate has fallen over the last year

Which of the following causes the unemployment rate to overstate the true extent of joblessness?

A drug dealer reports herself as unemployed

Which of the following is not the result of wage stickiness in an economic downturn?

A shortage of labor

Which of the following has a tendency to reduce the unemployment rate?

decreasing unemployment insurance in an economy

An economic slow-down would cause the labor:

demand curve to shift left

If there is frictional unemployment, then the number of available jobs is ______ the number of available workers.

Both of the above are possible -less than -equal to

Which of the following explains why frictional unemployment exists in an economy?

It arises because it takes time for an unemployed worker to find a firm with a well-matched job vacancy

Which of the following causes the unemployment rate to overstate the true extent of joblessness?

More than one of the above causes the unemployment rate to overstate the true extent of joblessness

Sarah is a full-time student who is not looking for work. What kind of unemployment is Sarah experiencing?

Sarah is not experiencing unemployment of any kind because she is not currently part of the labor force

How would you best describe a manufacturing employee who has been fired because he was replaced by a robot (new technology) and does not have the skills necessary to help operate the robot?

Structurally unemployed

If the working age population in an economy increases, while the size of the labor force remains unchanged, _______.

The labor force participation rate will fall

Which of the following statements correctly differentiates between unemployed workers and discouraged workers?

Unemployed workers are counted in the labor force, but discouraged workers are excluded from the labor force

Employers choose to offer efficiency wages because:

all of these are true -it will reduce turnover, saving the employer time and money to hire and train new workers -it has proven to make workers more productive -they give employees an incentive to work hard to keep their jobs

An increase in cyclical unemployment will result in

an increase in the unemployment rate

An increase in frictional unemployment will result in

an increase in the unemployment rate

For which type(s) of unemployment is it possible that the number of available workers and the number of available jobs are equal?

both frictional and structural unemployment

The demand for refrigerators falls when the economy enters a downturn. If a refrigerator manufacturer lays off workers during an economic downturn, this would be an example of:

cyclical unemployment

Economists say that the economy is at "the natural rate of unemployment" when:

cyclical unemployment is zero

Suppose that an economy moves from a recession to an expansion. As the economy improves, the number of discouraged workers likely _____. This change in the number of discouraged workers, other things equal, causes the unemployment rate to _______.

decrease; increase

People who lost their jobs as hand-drawn animators because of the popularity of computer-generated 3D animation are examples of persons who are suffering

structural unemployment