Chapter 7 - Unemployment Flashcards
The highest amount of skilled and unskilled labor that could be employed within an economy at any given time
Full employment
True or false: when there is full employment the number of jobseekers is approximately equal to the number of job vacancies
True
True or false: during periods of recession and economy usually experiences a relatively high unemployment rate
True
True or false: a recent college graduate who suddenly becomes available in the job market but has yet to find his first job is an example of cyclical unemployment
False
I don’t work or maybe laid off during a recession this is an example of what kind of unemployment?
Cyclical
Voluntary unemployment like a labor strike is an example of what kind of unemployment?
Frictional
John completed his Masters degree and waited for three months to get selected by a company as an assistant project manager. This three-month period of unemployment is called what kind of unemployment?
Frictional
What kind of unemployment occurs when available workers do not match the jobs available in terms of skills or location?
Structural
People who lose their job in one industry often do not have the skills to immediately get a job in a new industry
Structural Shift
What kind of unemployment occurs when workers are laid off because every fall into me and generally or specifically for the products they produce?
Cyclical
True or false: macro economics policies intending to reduce cyclical unemployment try to create jobs by increasing demand for total output
True
True or false: excess labor in Montana and a shortage of workers in Virginia is an example of structural unemployment
True
A measure of economic performance that shows changes in output per worker hour from one year to the next
Productivity
True or false. Unemployment allows for growth in the economy
True
True or false. The system of income distribution in a market economy is not dependent on employment
False
The policy of stealing employees away from jobs by offering them a higher salaries doesn’t lead to more production for the economy. Instead, this policy just rearrange is what is produced and leads to what?
Inflation
True or false. Full employment means that everyone in the population is employed or even that 100% of those who are able are willing to take a job
False
True or false. By definition and economy is at full employment with 93% to 94% of those who want to work are employed
True
What happens to output when unemployment happens for extended periods of time and who loses
Output is below its potential level and society as a whole loses
Costs of cyclical unemployment include?
output lost (economy not at full employment) and distributional impact (1% increase
True or False: Unemployment benefits increase the rate of unemployment
True
True or False: the replacement ratio creates less of an urgency for the unemployed to become employed
True
What is replacement ratio?
after-tax income while unemployed to after tax income while employed
True or False: Reducing minimum wage may be a way of reducing the teenage unemployment rate?
True
The phenomenon that extended periods of high unemployment raise the natural is known as
unemployment hysteresis
What are the determinants of the frequency unemployment
variability of demand for labor and the rate at which new workers enter the labor force.
What are the determinants of the natural rate
frequency and duration of unemployment
Spell unemployment is
period individual ramains continuously unemployed
unemployment that exists when the economy is at full employment
frictional
unemployment in excess of frictional unemployment: it occures when output is below its full-employment level
cyclical
the relation between job vacancies and the unemployment rate
beveridge curve
