ECON HW 6

Which of the following would increase the unemployment rate?

an increase in unemployment insurance payments

A student who just graduated from college but has not found a job would most likely be

frictionally unemployed.

An advantage of the establishment survey over the household survey of the labor market is that the establishment survey

is based on actual payrolls, rather than on unverified answers.

Which of the following labor market statistics best indicates the amount of labor that is available to the economy from a given working-age population?

labor force participation rate

If firms pay what are called "efficiency wages," they pay wages that

motivate workers to increase their productivity.

The Bureau of Labor Statistics would categorize a retiree who is not working as

out of the labor force.

Suppose the labor force stays constant, and the working-age population stays constant, but a greater number of persons who were unemployed become employed. The labor force participation rate will

remain constant.

Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called

structural unemployment

The unemployment rate is an important economic statistic that can tell us about the health of the economy. If the unemployment rate turns out to be high or higher than anticipated, we would expect

that stock prices are more likely to fall.

If cyclical unemployment is eliminated in the economy, then

the economy is considered to be at full employment.

The unemployment rate is

the percentage of the labor force that is unemployed.

Suppose that the labor movement has a revival in the United States and the majority of workers join labor unions. As a result we would expect

the unemployment rate to rise.

When the labor market is at full employment

there is no cyclical unemployment in the economy.

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

If the number employed is 190 million, the number unemployed is 10 million, and the working-age population is 250 million, then the labor force participation rate is

80%.

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

Discouraged workers are not counted as unemployed.

Efficiency wage is another name for the minimum wage.

False

Eliminating frictional unemployment would be good for the economy.

False

The household survey asks adults about their employment status and is used to compile the monthly unemployment rate.

True

Which of the following explains the changes in the U.S. adult male labor force participation rate since 1948?

Younger men are remaining in school longer as compared to the past.