Unemployment Flashcards
The highest amount of skilled and unskilled labor that could be employed within an economy at any given time
Full employment
People who lose their job in one industry often do not have the skills to immediately get a job in a new industry
Structural shift
True or false: when there is full employment the number of jobseekers is approximately equal to the number of job vacancies
True
True or false: phone plan it means that everyone in the population is employed
False
True or false: during periods of recession and economy usually experiences a relatively high unemployment rate
True
True or false: national disasters such as hurricanes have wiped out entire industries in geographic regions leaving the workforce structurally unemployed
True
True or false: a recent college graduate who suddenly becomes available in the job market but has yet to find his first job is an example of cyclical unemployment
False
And I don’t work or maybe laid off during a recession this is an example of what kind of unemployment?
Cyclical
Voluntary unemployment like a labor strike is an example of what kind of unemployment?
Frictional
John completed his Masters degree and waited for three months to get selected by a company as an assistant project manager. This three-month period of unemployment is called what kind of unemployment?
Frictional
What kind of unemployment occurs when available workers do not match the jobs available in terms of skills or location?
Structural
What kind of unemployment occurs when workers are laid off because every fall into me and generally or specifically for the products they produce?
Cyclical
True or false: macro economics policies intending to reduce cyclical unemployment try to create jobs by increasing demand for total output
True
True or false: excess labor in Montana and a shortage of workers in Virginia is an example of structural unemployment
True
A measure of economic performance that shows changes in output per worker hour from one year to the next
Productivity
Wages that have been adjusted for inflation
Real wages
True or false: each period is a lost opportunity to develop skills and experience that may make a worker more valuable to an employer
True
True or false. Unemployment allows for growth in the economy
True
True or false. The system of income distribution in a market economy is not dependent on employment
False
The policy of stealing employees away from jobs by offering them a higher salaries doesn’t lead to more production for the economy. Instead, this policy just rearrange is what is produced and leads to what?
Inflation
True or false. Full employment means that everyone in the population is employed or even that 100% of those who are able are willing to take a job
False
True or false. By definition and economy is at full employment with 93% to 94% of those who want to work are employed
True
True or false. A situation in which all available labor resources are being used in the most economically efficient way is full employment
True
True or false. The unemployment rate is defined as the percentage of the labor force that is actively looking for a job.
False
In a certain year, 143,060 of the countries residents were employed and 11,844 were unemployed. Under the formal definition for being unemployed what is the unemployment rate for that year?
7.64%
If the unemployment rate is 3.5% in the labor force is 250,000 what is the number of unemployed workers?
8750
What is the formula to calculate the unemployment rate?
Unemployed workers divided by labor force times by 100
The percentage of the total labor force that is unemployed but actively seeking employment and willing to work.
Unemployment rate
True or false. The labor force consists of those who are working and those who are actively seeking work.
True
True or false. The presence of discouraged workers may cause the unemployment rate to be overstated
False
True or false. The unemployment rate is an accurate representation of the conditions in the economies labor market.
False
True or false. The labor force could be measured by door to door surveys.
True
Which of the following is one way that is primarily used to obtain the measures of the labor force in the number of people who are unemployed?
1) Gross national product
2) National income
3) payroll data from business firms
4) Per capita income
Payroll data from business firms
People who have looked for work in the past six months, but not in the past four weeks, are called what?
Discouraged workers
True or false. The labor force is the sum of employed workers and unemployed workers.
True
Which of the following people are part of the labor force?
1) A newly employed worker
2) A retiree spending their time traveling
3) A full-time student
4) A full-time homemaker
A newly employed worker
True or false. Part time workers who are working fewer hours than they would like and discouraged workers are workers who might cause unemployment to be understated.
True
True or false. Under employed workers and illegal workers are workers that may cause an appointment to be overstated.
False
True or false. Under reported legal workers and reported illegal workers are workers that cause employment to be overstated.
True
True or false. retired workers are not a limitation of the unemployment rate
True
True or false. The understated imperfections of the unemployment rate tend to be most pronounced during business cycle contractions.
True
True or false. The overstated imperfections of the unemployment rate tend to be most pronounced during business cycle expansions.
True
True or false. Involuntary part time workers are people who are willing and able to work full-time (35 to 40 hours per week) but are forced to work less because employers do not need their productive efforts.
True
What is the labor participation formula
Labor force divided by working age population times by 100
This rate measures the fraction of the adult population that is employed or actively seeking work.
Labor force participation rate
True or false. If the unemployment rate increases at the same time as the labor force participation rate declined the economy is in poor shape.
True
A declining labor force participation rate means fewer workers are supporting a decreasing number of non-workers
False
Increased likelihood that married women would enter the labor market when your husband became unemployed.
The added worker effect
True or false. As women entered the labor force real participation declined partially due to the increased safety net for married men.
True
True or false. 80 cleaning labor force participation rate means fewer workers are supporting an increasing number of non-workers
True
True or false. Total labor supply does not affect the unemployment rate over longer periods.
False
If the labor force is 250,000 and the working age population is 350,000 what is the labor force participation rate?
71.43%
An indicator that is helpful and sorting out the relative importance of changes in total demand for labor and total labor supply is the what?
1) overstated unemployment rate
2) help wanted index
3) Labor force participation rate
4) unemployment rate
Labor force participation rate
