ECO C.6

Between 1960 and 2011,

the male labor force participation rate decreased and the female labor force participation rate increased.

The unemployment rate equals:

(number of people unemployed ÷ labor force) × 100.

In 2011, part-time workers for noneconomic reasons were about ________ of total employment and part-time workers for economic reasons were about ________ of total employment.

13 percent; 6 percent

Suppose the population is 250 million people, the labor force is 150 million people, the number of people employed is 130 million and the working-age population is 200 million people. What is the unemployment rate?

13.3%

Assume the U.S. population is 300 million. If the working age population is 240 million, 150 million are employed, and 6 million are unemployed, what is the labor force?

156 million

From 1948 to 2011, the average unemployment rate in the United States was approximately

5.8%

While in school, Kiki spends 20 hours a week as a computer programmer for Microsoft and studies 30 hours a week.

Because Kiki is a student, she is not classified as working.

At full employment, there is no

cyclical unemployment

An increase in unemployment benefits ________ and an increase in international competition that changes the location of jobs ________.

increases frictional unemployment; increases structural unemployment

Discouraged workers and marginally attached workers are

not part of the labor force

In the United States, the percentage of part-time workers who would like full-time work

increases in recessions and decreases in expansions.

The number of part-time workers for economic reasons ________ during recessions and the number of part-time workers for noneconomic reasons ________ during recessions

increases; does not change

If real GDP exceeds potential GDP, then the unemployment rate ________ the natural unemployment rate.

is less than

During a recession, the unemployment rate ________ and the percentage of part-time workers who are involuntary part-time workers ________.

rises; rises

If an entire industry relocates to a foreign country, the relocation leads to a higher rate of ________ unemployment.

structural

When the economy is at full employment

the amount of cyclical unemployment equals zero

From 1981 to 2011, the unemployment rate in the United States

was generally lower than the unemployment rate in the Eurozone

Who is cyclically unemployed?

David, a new car salesman who lost his job because the economy went into a recession

Which of the following people is frictionally unemployed?

Eugene, a pharmaceutical drug salesman who was laid off when his company lost a large contract with an HMO

In a country with a working-age population of 200 million, 140 million people are employed and 20 million are unemployed. The size of the labor force is

160 million

If the working age population is 200 million, 150 million are employed, and 6 million are unemployed, the unemployment rate is ________.

3.8 percent

Tommy graduates from college and starts to look for a job. Tommy is

frictional unemployed

Which of the following statements is true regarding part-time workers?

Part-time workers are divided those who voluntary choose part-time work and those who work part-time due to economic reasons.

Which of the following people would be considered unemployed?

Victoria, who does not have a job and has been actively searching for work, but turned down a job paying less than she desired

When the unemployment rate is less than the natural unemployment rate, real GDP is ________ potential GDP.

greater than

To be counted as employed by the BLS, in the week before the survey the person must have worked for pay ________.

at lest 1 hour

The women's labor force participation rate is

higher in the US than in France

Since 1960, in the United States the labor force participation rate for men has ________ and for women has ________.

decreased; increased

Which of the following lowers frictional unemployment?

decreasing unemployment benefits.

The percentage of workers who work part time for noneconomic reasons

does not fluctuate much at all with the business cycle.