Practice Module 2

Rob is considered unemployed in the Current Population Survey if he

has looked for a job in the last four weeks but has not found a job

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

rises; rises

In order to obtain the data used to calculate the unemployment rate, the Bureau of Labor Statistics

uses a survey from 60,000 households

Mary has decided that she does not like Iowa and has decided to quit her job as a medical technician and move to Arizona. Mary's unemployment as she searches for a new job is best classified as

frictional

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 % (150-130=20. 20/150= 13.3)

Which type of employment is a permanent and healthy phenomenon in a dynamic economy?

Frictional

Using the table above, the unemployment rate...

Is 5.71%. (Total labor force = Part time Workers + Full time Workers + Looking for work in the past 4 weeks= 175. Total unemployed people = 10 (looking for work in the past two weeks), so 10/175= 5.71%).

Which type of unemployment is most likely to lead unemployed workers to retrain or relocate?

Structural

The labor force is defined as the number of people who

are employed plus the number of people who are unemployed

Cyclical unemployment includes people who become unemployed from

changes in the business cycle

What type of unemployment is the consequence of downturns in the business cycle?

cyclical

A weakness that could be noted about the unemployment rate is that it

does not account for the underutilization of workers

Unemployment benefits in western Europe are more generous than in the United States. As a result, _______ in the United States

frictional unemployment is lower

The average duration of unemployment

increases during recessions and decreases during expansions

When the unemployment rate equals the natural unemployment rate, most likely the economy is producing

on the production possibilities frontier