Objective 3

Question 1

Labor force

Answer 1

The sum of all those employed and unemployed

Question 2

Discouraged worker

Answer 2

A person who is eligible for and able to work, is not in the labor force, but has looked for work in the past 12 months, but has not attempted to seek employment in the last four weeks. Discouraged workers are not looking for work because they believe no jobs are available for which they would qualify.

Question 3

Marginally attached worker

Answer 3

A person who is eligible for and able to work, is not in the labor force, but has looked for work in the past 12 months, but has not attempted to seek employment in the last four weeks. Marginally attached workers may not be looking for work because of family responsibilities, returning to school or retirement.

Question 4

Frictional unemployment

Answer 4

Unemployment that is associated with people searching for jobs or waiting to take jobs in the near future that better fit their skill set.

Question 5

Structural unemployment

Answer 5

Unemployment that is associated with a mismatch between available jobs and the skills or locations of those unemployed.

Question 6

Cyclical unemployment

Answer 6

Unemployment that is associated with the recessionary phase of a business cycle.

Question 7

Full employment

Answer 7

The level of employment when the economy is utilized all its resources efficiently; no cyclical unemployment.

Question 8

Labor productivity

Answer 8

Real output per hour of work (Real GDP / total labor hours)