Ch 6 question Flashcard Example #91824

The labor force is the number of people employed plus
A. The working age pop.
B. The number unemployed
C. Those who are underemployed
D. Those who are in the military
B. The number unemployed
The unemployment rate is the percentage of people in the ____ who are unemployed
A. Working age population
B. Labor force
C. Part-time for economic reasons
D. Aged 18 to 65
B. Labor force
The labor force participation rate is the percentage of people in the ____ who are members of the labor force.
A. Working age population
B. Number of men
C. Part-time for economic reasons
D. Aged 18 to 65
A. Working age population
A marginally attached worker is a person who does not have a? job, is? _____ and? _____ to? work, has? _____ specific efforts to find a job within the previous? _____ weeks, but has looked for work sometime in the recent past.
A. Not Available; not willing; not made; 6
B. Available; willing; not made; 4
C. Available; willing; not made; 6
D. Available; willing; made; 6
B. Available; willing; not made; 4
Who in the following statements is a discouraged worker??
A. Nick is changing his job because he has had differences with his? co-workers in his current company.
B. Rachel does not find her current job profile interesting and is looking for alternate opportunities.
C. Ned is available to work and has been sending job applications whenever he sees any suitable opportunity.
D. Dan is available to work but has not looked for a job in the past eight weeks because of repeated applications but no single offer.
D. Dan is available to work but has not looked for a job in the past eight weeks because of repeated applications but no single offer.
The BLS counts Jody as being unemployed if she ______.
A. has a job last month but not this month
B. doesn’t have a job because the U.S. factory where she worked cannot compete with cheap Chinese imports
C. wants a job and looked for a job last year but has now stopped looking
D. wants a job and is willing to take a job but after searching last week cannot find a job
D. wants a job and is willing to take a job but after searching last week cannot find a job
A marginally attached worker is a person who ______.
A. works part time for economic reasons
B. works part time for noneconomic reasons
C. doesn’t work, is available and willing to work, but hasn’t looked for a job recently
D. has no job but would like one and has gone back to school to retrain
D. has no job but would like one and has gone back to school to retrain
If the BLS included all marginally attached workers as being unemployed, the ______ would be ______.
A. unemployment rate; higher
B. labor force; unchanged
C. labor force participation rate; lower
D. unemployment rate; lower
A. unemployment rate; higher
When the economy goes into recession, the biggest increase in unemployment is ______.
A. structural because jobs are lost in most states
B. cyclical because jobs are lost in many industries as they cut production
C. frictional because the creation of jobs slows
D. the combination of structural and frictional as few new jobs are created
B. cyclical because jobs are lost in many industries as they cut production
The economy is at full employment when all unemployment is ______.
A. structural
B. cyclical
C. structural and cyclical
D. structural and frictional
D. structural and frictional
Potential GDP is the value of real GDP when ______.
A. the unemployment rate equals the natural unemployment rate
B. there is no frictional unemployment
C. there is no structural unemployment
D. the unemployment rate is zero
A. the unemployment rate equals the natural unemployment rate
When the unemployment rate ______ the natural unemployment rate, real GDP is ______ potential GDP and the output gap is ______.
A. exceeds; below; negative
B. is below; below; negative
C. exceeds; above; positive
D. is below; above; negative
A. exceeds; below; negative
Three labor market indicators
1. The unemployment rate
2. The employment-population ratio
3. The labor force participation rate
The unemployment rate
unemp. = (#unemp / #LF) x 100
The employment-population ratio
employment-population = (#emp / #working-age pop.) x 100
The labor force participation rate
labor force participation rate = (#LF / #working-age pop.) x 100
Three Types of Unemployment
1. Frictional Unemployment
2. Structural Unemployment
3. Cyclical Unemployment
Frictional Unemployment
normal turnover in the labor market; enter or leave the labor force
Structural Unemployment
results from changing technology (different still set requirements) or changes in the location of jobs + often retraining is required
Cyclical Unemployment
fluctuation of unemployment over the course of the business cycle. Lacking opportunity rises in unemployment during recession

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