Unemployment

Question 1

What is the labor force

Answer 1

sum of unem/employed workers

Question 2

What is the unemployment Rate

Answer 2

% of labor force that is unemployed

Question 3

To be determined employed you must meet what requirements?

Answer 3

worked the week before the survey OR currently employed

Question 4

To be determined unemployed you must meet what requirements?

Answer 4

Did not work week before BUT were available, OR actively looked for work within the last 4 weeks

Question 5

Problems with measuring unemployment?

Answer 5

1. Discouraged workers
2. Underemployment
3. Overemployment

Question 6

What are the three types of unemployment?

Answer 6

1. Frictional
2. Structural
3. Cyclical

Question 7

Define Frictional unemployment

Answer 7

Short term, matching workers with jobs

Question 8

Define Structural unemployment

Answer 8

Longer terms, persistent mismatch btwn worker skill and job requirements

Question 9

Define cyclical unemployment

Answer 9

Caused by business cycle recession

Question 10

What is the normal level of unemployment known as?

Answer 10

Natural rate of unemployment/full employment

Question 11

what is unemployment % averagely at

Answer 11

Never below 4%, believed to avg. 5%-5.5%