Macro Quiz 6

Frictional unemployment can be the consequence of

a. workers leaving existing jobs to find ones they like better. b. one industry declining while another is growing. c. changes in the working conditions offered by competing firms.

An economist claims that changes in information technology and unemployment insurance have reduced unemployment. Which of these changes affect frictional unemployment?

both the changes in information technology and unemployment insurance

A person who is not employed and claims to be trying hard to find a job but really is not trying hard to find a job is

counted as unemployed but should be counted as out of the labor force.

The deviation of unemployment from its natural rate is called

cyclical unemployment.

Suppose the demand for hard-wood flooring increases, while the demand for wall-to-wall carpeting decreases. Based on this change in consumer tastes, the demand for hard-wood-flooring factory workers in North Carolina increases, while the demand for carpet factory workers in Georgia decreases. This is an example of

frictional unemployment created by sectoral shifts.

Teenagers have more frequent unemployment spells so, on average, they spend more time searching for jobs. Other thing the same, this means that teenagers have a

higher unemployment rate. If a larger portion of the adult population were teenaged, the natural rate of unemployment would be higher.

Amy is working part-time. Tavaris is on temporary layoff. Who is included in the Bureau of Labor Statistics' "employed" category?

only Amy

Which of the following does not help reduce frictional unemployment?

unemployment insurance

Refer to Table 28-2. The labor-force participation rate of Aridia in 2012 was Table 28-2 Labor Data for Aridia Year 2010 2011 2012 Adult population 2,000 3,000 3,200 Number of employed 1,400 1,300 1,600 Number of unemployed 200 600 200

56.25

The adult population in the town of Shelbyville is 150 thousand. If 100 thousand people are employed and 20 thousand are unemployed, then the labor force participation rate is approximately

80%.

All else equal, which of the following would increase the unemployment rate? (i)an increase in the number of women who return to work after being stay-at-home mothers (ii)a preference among older men to retire early (iii)an increase in the maximum number of weeks for which someone can receive government unemployment benefits (iv)an increase in the number of previously unemployed women who stop looking for work and become discouraged workers

(ii)a preference among older men to retire early (iii)an increase in the maximum number of weeks for which someone can receive government unemployment benefits

Refer to Table 28-3. How many people were unemployed in Baltivia in 2009? Table 28-3 2009 Labor Data for Baltivia Number of adults 20,000 Number of adults who are paid employees 8,000 Number of adults who work in their own businesses 1,600 Number of adults who are unpaid workers in a family member's business 1,000 Number of adults who were temporarily absent from their jobs because of an earthquake 400 Number of adults who were waiting to be recalled to a job from which they had been laid off 200 Number of adults who do not have a job, are available for work, and have tried to find a job within the past four weeks 1,400 Number of adults who do not have a job, are available for work, but have not tried to find a job within the past four weeks 780 Number of adults who are full-time students 3,000 Number of adults who are homemakers or retirees 3,620

1,600

Refer to Table 28-2. The unemployment rate of Aridia in 2012 was Table 28-2 Labor Data for Aridia Year 2010 2011 2012 Adult population 2,000 3,000 3,200 Number of employed 1,400 1,300 1,600 Number of unemployed 200 600 200

11.1%.

Who would be included in the labor force?

Lisa, who is unhappy with her current job.