Econ 1040 chapter 10 – Flashcards
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An economy's natural rate of unemployment is the
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amount of unemployment that the economy normally experiences.
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The deviation of unemployment from its natural rate is called
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cyclical unemployment.
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The Bureau of Labor Statistics reported in 2005 that there were 53.23 million people over age 25 who had at least a bachelor's degree, 40.59 million of whom were employed and 0.98 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group?
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78.1% and 2.4%
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Suppose that some country had an adult population of about 50 million, a labor-force participation rate of 60 percent, and an unemployment rate of 5 percent. How many people were employed?
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28.5 million
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The natural unemployment rate includes
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both frictional and structural unemployment.
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From time to time, the demand for workers has risen in one region of the United States and fallen in another. This illustrates
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frictional unemployment created by sectoral shifts.
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Which of the following does not help reduce frictional unemployment?
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unemployment insurance
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When a union raises the wage above the equilibrium level, it
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raises the quantity of labor supplied and reduces the quantity of labor demanded.
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When a union bargains successfully with employers, in that industry,
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both wages and unemployment increase.
