Macro Midterm Flashcards

1
Q

Employed

A

paid employees, both full and part-time workers are counted

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2
Q

Unemployed

A

are available for work, and had tried to find employment during the previous four weeks

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3
Q

Not in labor force

A

ex. full-time students, homemakers, and retirees

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4
Q

Labor force equation

A

labor force = number of employed + number of unemployed

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5
Q

Unemployment rate equation

A

Unemployment rate = (number of unemployed/labor force) x 100

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6
Q

Labor-force participation rate

A

Labor-force participation rate = (labor force / adult population) x 100

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7
Q

Cyclical unemployment

A

natural rate of unemployment

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8
Q

Discouraged workers

A

individuals may have given up looking for a job after an unsuccessful search

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9
Q

Duration of unemployment spells

A

most spells of unemployment are short, but most unemployment observed at any given time is long-term

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10
Q

Frictional unemployment

A

takes time for workers to find the jobs that best suit then and for firms to find the workers that best fill their needs, explains relatively short spells of unemployment

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11
Q

Structural unemployment

A

number of jobs available is less than the number of people looking for work

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12
Q

Job search

A

process of workers finding appropriate jobs

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13
Q

Unemployment insurance

A

offers workers partial protection against job loss

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14
Q

Minimum wage above equilibrium point

A

if wage is kept above the equilibrium level for any reason, unemployment results

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15
Q

Union

A

worker association that bargains with employers over wages, benefits, and working conditions

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15
Q

Collective bargaining

A

process by which unions and firms agree on the terms of employment

16
Q

Strike

A

union can organize a withdrawal of labor from the firm

17
Q

Efficiency wages

A

firms operate more efficiently if wages are above the equilibrium, level, more profitable for firms to keep wages high despite a surplus of labor

18
Q

Benefits of high wages

A

worker health, worker turnover, worker quality, worker effort, worker morale