revision questions chapter 21 pt2

Question 1

what can structural unemployment can be best associated with

Answer 1

the general decline of specific industries.

Question 2

The working-age population can be divided into two groups,

Answer 2

people in the workforce and people who are not in the workforce.

Question 3

If the economy enters a recession

Answer 3

cyclical unemployment increases.

Question 4

Suppose the number of people employed is 25 million and the working-age population is 75 million. What is the employment rate?

Answer 4

number of people unemployed/working age population x100

25mill /75mill x100
33 percent

Question 5

Suppose the economy is experiencing frictional unemployment of 1 percent, structural unemployment of 3 percent and cyclical unemployment of 4 percent. What is the natural rate of unemployment?

Answer 5

4% (frictional + structural)

Question 6

the duration of unemployment is

Answer 6

long when the unemployment rate is high

Question 7

Price indexes can overstate inflation because they

Answer 7

omit some quality improvements

Question 8

The real wage rate can be measured using average hourly earnings of adult manual workers, using total wages and salaries, and using total labour compensation. The real wage rat

Answer 8

has increased over the past 30 years regardless of which measure is used.

Question 9

Over the last forty years, the employment rate

Answer 9

increased slightly from about 59 percent to about 60 percent

Question 10

Which of the following people would be counted as is unemployed in the Labour Force Survey?

Answer 10

April, who just graduated from college and is looking for work.