Economics: Section 3: Module 13

Question 1

Frictional Unemployment

Answer 1

unemployment due to the time workers spend in job search

Question 2

Job Search

Answer 2

workers who spend time looking for employment

Question 3

Structural Unemployment

Answer 3

unemployment that results when there are more people seeking jobs in a labor market than there are jobs available at the current wage rate

Question 4

Efficiency Wages

Answer 4

wages employers set above the equilibrium wage rate as an incentive for better employee performance

Question 5

Natural Rate of Employment

Answer 5

the unemployment rate that arises from the effects of frictional plus structural unemployment

Question 6

Natural Unemployment (Formula)

Answer 6

frictional unemployment + structural unemployment

Question 7

Cyclical Unemployment

Answer 7

is the deviation of the actual rate of unemployment from the natural rate

Question 8

Actual Unemployment (Formula)

Answer 8

natural unemployment + cyclical unemployment