Macro Chapter 7.1

An expansion in an economy is usually associated with:

A decline in unemployment in the economy.

_____ results in a better match between workers and jobs and improves the efficiency of an economy.

Frictional unemployment

Policy makers and economists are mostly concerned about:

Structural unemployment because workers either have to develop skills required in the local job market or leave the market.

A reduction in the demand for labor caused by changes in technology, taxes, and competition is likely to result in:

Structural unemployment.

Discouraged workers are:

Workers who have dropped out of the labor force.

The unemployment rate among teenage workers in the United States is higher than those among other workers because:

They usually take unskilled jobs and are the first to be laid off when the economy slows down.

Which of the following demographic groups in the United States reported the highest unemployment rate in 2012?

African American workers.

Which of the following is true of the labor force participation rate in the United States?

After World War II, the labor force participation rates for men and women have converged.

The labor force consists of:

People 16 years of age and older who are working or looking for work.

The unemployment rate measures the:

Percentage of those in the labor force who are not working but are looking for work.

A decrease in the demand for retail salespersons after Christmas and New Year can be categorized as:

Seasonal unemployment.

Why did the unemployment rate drop from the early 1980s to 2000 in the United States?

The U.S. economy generated an additional 37 million jobs as it was growing.

Which of the following is the correct formula for calculating the unemployment rate?

The number of unemployed, working-age people seeking work/The number of people in the labor force.

Which of the following is an example of structural unemployment?

The rise in the unemployment of horse trainers after the development of gasoline-powered automobiles.

Frictional unemployment is caused by:

The time required to bring together employers and job seekers.

Suppose the adult population in the country of Candora is 171 million. The number of adults in the labor force is 97 million, and the number of unemployed adults is 74 million. The labor force participation rate in Candora approximately equals _____.

56.73 percent

Cyclical unemployment implies that an economy is _____ its production possibilities frontier.

Operating inside

The _____ is the ratio of the number of people in the labor force to the total adult population.

Labor force participation rate

People out of work for 27 weeks or longer are said to be _____.

Long-term unemployed

Suppose Jane quit her job 4 weeks ago. She is currently looking for a job that matches her qualifications better. She has a few job offers she still hasn't accepted. Jane can be considered to be _____.

frictionally unemployed