Macroeconomics Ch.30 (Labor Market & Unemployment)

If employers can fire an employee for any reason, other things being equal:

It will be easier for job seekers to find employment.

Which of the following would be considered unemployed?

Janice, a senior in college, started job hunting early in the hope that she would have secured a job by the time she graduates in May.

What is the unemployment rate of the country in 2009?

3.9%

What is the labor force participation rate of this country in 2010?

76%

What is the labor force participation rate of this country in 2009?

77%

What is the employment rate of the country in 2009?

96%

Cyclical unemployment is:

Unemployment correlated with the business cycle

What is the quantity of labor that is unemployed as a result of the labor union's action to increase its wage demands to $11 an hour?

1,800

If the adult population of a country is 200 million, 100 million are employed, and 10 million are unemployed, this country's labor force is:

110 million ; (employed + unemployed)

A country has 50 million people, 30 million of whom are adults. Of the adults, 5 million are not interested in working, another 5 million are interested in working but have given up looking for work, and 5 million are still looking for work. Of those who do have jobs, 5 million are working part time but would like to work full time, and the remaining 10 million are working full time. How many people in this country are in the labor force?

20 million (30m adults - 5m looking - 5m work part time, but would like to work full time = 20m)

A country has 50 million people, 30 million of whom are adults. Of the adults, 5 million are not interested in working, another 5 million are interested in working but have given up looking for work, and 5 million are still looking for work. Of those who do have jobs, 5 million are working part time but would like to work full time, and the remaining 10 million are working full time. What is this country's unemployment rate?

25% (unemployed/labor force = 5/20 x 100)

What is the unemployment rate caused by the labor union's action to increase its wage demands to $11 an hour?

40%

A country has 50 million people, 30 million of whom are adults. Of the adults, 5 million are not interested in working, another 5 million are interested in working but have given up looking for work, and 5 million are still looking for work. Of those who do have jobs, 5 million are working part time but would like to work full time, and the remaining 10 million are working full time. How many discouraged workers does this country have?

5 million = (interested in working, but gave up looking for job)

What is the unemployment rate of the country in 2010?

5%

If the adult population of a country is 200 million, 100 million are employed, and 10 million are unemployed, this country's labor force participation rate is:

55%

A country has 50 million people, 30 million of whom are adults. Of the adults, 5 million are not interested in working, another 5 million are interested in working but have given up looking for work, and 5 million are still looking for work. Of those who do have jobs, 5 million are working part time but would like to work full time, and the remaining 10 million are working full time. What is this country's underemployment rate?

60%

A country has 50 million people, 30 million of whom are adults. Of the adults, 5 million are not interested in working, another 5 million are interested in working but have given up looking for work, and 5 million are still looking for work. Of those who do have jobs, 5 million are working part time but would like to work full time, and the remaining 10 million are working full time. What is this country's labor force participation rate?

66.7% (labor force/million of adults = 20/30 x 100)

If the adult population of a country is 200 million, 100 million are employed, and 10 million are unemployed, this country's unemployment rate is:

9.1% ; (unemployed/labor force) x 100

Which of the following is part of the labor force?

A person who was laid off and is now looking for work

Structural unemployment is:

Caused by long-lasting shocks or changes in permanent features of an economy.

Unemployment correlated with the business cycle is called:

Cyclical unemployment

Unemployment correlated with the ups and downs of the business cycle is called:

Cyclical unemployment

Higher GDP growth is generally associated with:

Decreases in the unemployment rate.

Individuals who have given up looking for work but still would take a job are considered:

Discouraged workers

An unemployed person is one who:

Does not have a job but is actively looking for one.

An unemployed person is best defined as an adult who:

Does not have a job but is looking for work

The labor force is made up of:

Employed and unemployed workers

The labor force consists of:

Employed workers and adults who do not have jobs but who are looking for work.

Someone who recently moved to Florida because of its warmer climate will need to spend some time looking for a new job. This is an example of:

Frictional unemployment

The short-term unemployment caused by the ordinary difficulties of matching employee to employee called:

Frictional unemployment

Which of the following is a case of cyclical unemployment?

Garret lost his job after the company closed during last year's recession.

Discouraged workers are workers who have:

Given up looking for work, but would still like a job.

Discouraged workers are people who:

Have given up looking for work but would still like to work.

During recessions the unemployment rate:

Increases

Which of the following is TRUE of frictional unemployment?

It has a short duration

Which of the following is considered unemployed?

John, on temporary layoff from his work, awaits recall.

The most likely influence of the Internet on the rate of frictional unemployment has been to:

Lower it

An increase in unemployment benefits tends to:

Lower the incentive to search for a job and raise structural unemployment

Frictional unemployment is best defined as:

Short-term unemployment caused by difficulties of matching employees to employers.

The natural rate of unemployment is defined as the rate of:

Structural plus frictional unemployment

The persistent, long-term unemployment caused by long-lasting shocks or permanent features of an economy is called:

Structural unemployment

A person is classified as unemployed only if he or she is:

Willing and able to work but cannot find a job.

Higher implicit tax rates tend to cause labor force participation rates to:

decrease

Which doctrine indicates that an employee may quit and an employer may fire an employee at any time for any reason?

employment-at-will