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ECON 131 HW 7
Terms in this set (20)
The unemployment rate measures:
Unemployed workers as a percentage of the labor force
Reginald looked for work for six months but could not find a job to his liking. He now spends his time at the beach. For purposes of employment he is considered:
Out of the labor force
The U.S. unemployment rate moves up and down as the economy moves in and out of recession. But over time, the unemployment rate seems to return to a range of ______.
4% - 6%
If the unemployment rate is 8%, then this means:
8% of the labor force is unemployed
If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals:
During the deep recessions of the early 1980s and of 2007-2009, unemployment reached roughly _____.
Frictional unemployment is:
Unemployment that is due to normal turnover in the labor market
The type of unemployment that occurs because of recession is called:
The definition of market equilibrium states that at the _____, the quantity of labor demanded by employers will equal the quantity supplied.
The rise in unemployment that occurs because of a recession is known as cyclical unemployment, because it is closely tied to the _____.
Karen chooses to go to university fulltime rather to work. Karen:
Is not part of the labor force
The unemployment rate in a town in which 65,400 persons are employed and 11,000 are unemployed equals
If the unemployment rate is 6 percent and the number of persons unemployed is 6 million, then the number of people employed is equal to:
Gomer loses his job as a road construction worker and cannot find another position with equivalent pay and benefits. As a result, he is still checking the want ads and reporting to the unemployment office on a weekly basis. He is considered to be:
Craigburg has a working age population of 20 million. Of those, 11 million are employed and 1 million are unemployed. The unemployment rate is _____ and the participation rate is _______.
8.3% ; 60%
Cyclical unemployment arises when:
Business activity in the macroeconomy declines
The development of a nationwide computerized job bank listing of all job opening would mostly likely to reduce:
The unemployment rate may overestimate the true extent of unemployment if:
Either many people who claim to be unemployed actually work in the underground economy or people falsely claim that they are actively seeking work in order to receive unemployment benefits.
The labor force consists of:
All adults who are working or actively seeking work
Suppose that everyone who has looked for a job for more than six months gave up in despair and stopped looking. What would happen to the unemployment rate?
It would fall