Econ 102 Exam 2
In 2017, 10 million people did not have a job but were actively looking for employment, and 85 million people had either a full-time or part-time job. The unemployment rate in 2017 was
10.5 percent
(image) What is the size of the labor force at an efficiency wage of $16?
110,000
(image) The unemployment rate is
6.25 percent
(image) What will be the level of employment if firms decide to pay efficiency wage of $16?
80,000
If marginally attached workers are included in the labor force, the labor force and in the unemployment rate, the unemployment rate is
9.1 percent
Unemployment rates are usually highest for:
African American Teenagers
Which example illustrates cyclical unemployment?
An autoworker is laid off because a recession has caused a decline in sales.
Suppose that roughly 8 million people in the US were actively seeking jobs but had not found them this month, the same number as last month. Suppose that 2 million of the people who were unemployed last month gave up their search this month and stopped looking for work. What will happen to the official unemployment rate this month, all other things unchanged?
It will fall because 2 million people are not in the labor force this month and are not counted as unemployed.
The Bureau of Labor Statistics calls a person who is out of work, would like to work, but has given up looking for work:
a discouraged worker
Anna recently moved to Boston with her husband joe, who has 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
A recent college graduate with a major in economics attends a job fair but has not yet found a job. This graduate is counted as a
frictionally unemployed worker
Structural unemployment CANNOT be caused by:
fluctuations in the business cycle.
People who are changing jobs are counted in
frictional unemployment
You are a college student ans not working or looking for work. You are:
not part of the labor force
The labor force is the total:
number of people who are employed or unemployed
A survey reveals that, on a small island, initially 40 people have jobs, 10 people are not working but are looking or jobs, and 30 people are neither working nor looking for work. Suppose that 10 of the 30 people who weren't working or looking for work now being looking for work. there are now 20 people without jobs but looking for work and 40 people working. The unemployment rate:
rises to 33.3%
Structural unemployment consists of people who are unemployed because of:
there being more job hunters than there are jobs
Jim has a part-time job. He would prefer to have a full-time job but has been unable to find one. Jim is classified as:
underemployment
Unemployment rates are usually higher in Europe than they are in the United States because:
unemployment benefits are more generous in Europe than they are in the United States
During a recession:
unemployment increases and the growth rate of real GDP decreases
According to the Bureau of Labor Statistics, that actual unemployment rate was 8.3% in February 2012 and the natural rate of unemployment was 5.2%. The ___ unemployment rate was ____%.
cyclical; 3.1
Internet employment agencies have simplified the ob search for the applicants. They have also led to a
decrease in frictional unemployment
The natural rate of unemployment is:
equal to the sum of frictional and structural unemployment
A survey reveals that, on a small island, 40 people have jobs, 10 people are not working but are looking for jobs, and 20 people are neither working nor looking for work. The unemployment rate on the island is
20 percent
(image) What is the unemployment rate at an efficiency wage of $16, assuming all workers without a job are searching?
27%
(image) The labor force is
32 million
(image) If marginally attached workers are included in the labor force, the labor force is
33 million
If the actual unemployment rate is 7% and the cyclical unemployment rate is 2%, then the natural rate of unemployment is:
5%
Which statement is TRUE?
The labor force is the total number of people working plus those who are unempoyed
A binding minimum wage in a labor market is set ___ the equilibrium wage and causes a ___ of labor.
above; surplus
To be counted as unemployed, one must:
be out of work and be actively looking for a job during the past four weeks
The National Bureau of Economic Research announced that the U.S economic recession that began in December of 2007 hit a trough in June of 2009. During that period, which type of unemployment increased for sure?
cyclical
Unemployment is at its natural level if there is no:
cyclical unemployment
When the economy is at full employment, ____ is zero.
cyclical unemployment
An example of structural unemployment is a:
geologist who is permanently laid off because of an increase in wages won by labor unions
Generous unemployment benefits are likely to cause a:
increase in the unemployment rate
Firms pay an efficiency wage because:
it reduces the risk of losing the best workers
Sam, who is 55 years old and has been a steelworker for 30 years, is unemployed because the steel plant in his town closed and moved to Mexico. Sam is
structurally unemployed
Cyclical unemployment is the result of:
the business cycle
Which situation is likely to increase the natural rate of unemployment
the entrance of many new people into the labor force
The rate of unemployment when the economy is at full employment is:
the natural rate
