Macroeconomics chapter 8

Unemployment that is due to normal turnover in the labor market

Frictional unemployment is:

a worker decides to quit one job to seek a different job

Frictional unemployment occurs when

out of the labor force

A college student who is enrolled in school full time and not seeking employment is considered:

cyclically unemployed.

A forestry worker who is out of work because of the temporarily low demand for wood products associated with a recession is defined as:

8.3% ; 60%

Craigburg has a working age population of 20 million. Of those, 11 million are employed and 1 million are unemployed. The unemployment rate is _____ and the participation rate is _______.

25%

During the Great Depression of the 1930s, the unemployment rate reached more than_____ of the labor force.

10%

During the deep recessions of the early 1980s and of 2007-2009, unemployment reached roughly ______.

60,000

Each year the Census Bureau carries out the Current Population Survey (CPS) (which has been carried out every month since 1940). A total of ____ households are contacted every month.

Unemployed

Gomer loses his job as a road construction worker and cannot find another position with equivalent pay and benefits. As a result, he is still checking the want ads and reporting to the unemployment office on a weekly basis. He is considered to be:

the natural rate of unemployment is likely to increase

If a nation's labor force receives a significant influx of young workers:

25%

If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals:

94 million

If the unemployment rate is 6 percent and the number of persons unemployed is 6 million, then the number of people employed is equal to:

8 percent of the labor force is unemployed

If the unemployment rate is 8 percent, than this means:

Is not part of the labor force

Karen chooses to go to university fulltime rather to work. Karen:

It would fall

Suppose that everyone who has looked for a job for more than six months gave up in despair and stopped looking. What would happen to the unemployment rate?

It would fall.

Suppose that everyone who has looked for a job for more than six months gave up in despair and stopped looking. What would happen to the unemployment rate?

4%-6%

The U.S. Unemployment rate moves up and down as the economy moves in and out of recessions. But over time, the unemployment rate seems to return to a range of ___________.

Equilibrium wage

The definition of market equilibrium states that at the _____, the quantity of labor demanded by employers will equal the quantity supplied.

equilibrium wage

The definition of market equilibrium states that at the ______ the quantity of labor demanded by employers will equal the quantity supplied.

Business activity in the macroeconomy declines

The development of a nationwide computerized job bank listing of all job opening would mostly likely to reduce:

All adults who are working or actively seeking work

The labor force consists of:

Business cycle

The rise in unemployment that occurs because of a recession is known as cyclical unemployment, because it is closely tied to the _____.

cyclical unemployment

The type of unemployment that occurs because of a recession is called:

14.4%

The unemployment rate in a town in which 65,400 persons are employed and 11,000 are unemployed equals

Either many people who claim to be unemployed actually work in the underground economy or people falsely claim that they are actively seeking work in order to receive unemployment benefits.

The unemployment rate may overestimate the true extent of unemployment if:

unemployed workers as a percentage of the labor force.

The unemployment rate measures:

10%

Through good economic years and bad, many European economies had unemployment rates hovering near _____________ since the 1970s.

18%

Women composed ______ of the paid workforce in 1900 and 50% of the paid workforce in 2010.

Efficiency wage theory

______________ argues that the productivity of workers will increase if they are paid more, and so employers will often find it worthwhile to pay their employees somewhat more than market conditions.

The labor force

all adults who are working or actively seeking work.