UNEMPLOYMENT

Question 1

Unemployment rate

Answer 1

The percentage of the labor
force that is unemployed

Question 2

Unemployment Rate = ?

Answer 2

(Unemployed/Labor Force) × 100

Question 3

Labor Force =

Answer 3

= Employed + Unemployed

Question 4

Underemployed

Answer 4

Individuals who are employed in a job that is below their skills

Question 5

Discouraged workers

Answer 5

Those who have stopped
looking for employment due to the lack of suitable positions available

Question 6

Labor force participation rate

Answer 6

The percentage of adults in an economy who are either employed or who are unemployed and looking for a job

Question 7

Labor force participation rate = ?

Answer 7

(Labor Force / Adult Population)× 100

Question 8

Frictional Unemployment

Answer 8

Unemployment that
occurs as workers are moving between jobs

Question 9

Structural Unemployment

Answer 9

Unemployment that occurs because individuals lack skills valued by employers

Question 10

Cyclical Unemployment

Answer 10

Short-term unemployment that is associated with the ups and downs of the economy

Question 11

Natural rate of unemployment

Answer 11

Unemployment rate in a growing and healthy economy (frictional + structural unemployment)

Question 12

Why do we care about unemployment

Answer 12

Low unemployment → using labor resources
more efficiently → more goods and services will
be produced → scarcity will be reduced