ECON 2301 Chapter 6 – Flashcards
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Those that work part-time and do not desire full-time employment are referred to as:
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Employed
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Suppose a country has 1 billion people, 75 percent of whom are in the labor force, with 90 million unemployed. Full employment occurs at 2 percent. What is the unemployment rate?
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12 percent
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Automobile workers in Detroit who are unemployed because of foreign imports at the same time that job vacancies exist for coal miners in West Virginia would most likely be classified as:
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Structurally unemployed
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During an economic downturn, consumers spend considerably less on goods and services. This results in layoffs, and the laid off workers are classified as:
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Cyclically unemployed
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All of the following are considered to be possible side effects of increased unemployment except:
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Decreased stress levels
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Jack graduated from college last month, but he has not yet started looking for a job, Jack is:
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Not part of the labor force and is not counted in the unemployment rate
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What is the likely consequence of an unemployment rate falling below the rate at which "full employment" is achieved?
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Increased inflationary pressures
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Unemployment is defined as:
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The inability of labor force participants to find jobs.
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Suppose a country has 1 billion people, 75 percent of whom are in the labor force, with 90 million unemployed. Full employment occurs at 2 percent. Based on the information above, by what percentage has real output failed to reach its potential according to the revised Okun's Law?
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24%. Unemployment is 12%. Okun's law: 1 percent unemployment results in 2 percent less output.
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According to Okun's Law, if unemployment rises by 5 percent wihile imports and exports increase at roughly the same rate, the economy will lose output equal to:
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10 percent
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3.3 percent Unemployment = number/labor force
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What is the unemployment rate in 2004?
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Suppose a country has 10 million people, three-fourths of those individuals are in the labor force, with 500,000 unemployed. Full employment occurs at 5 percent. What is the unemployment rate?
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6.67 percent
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Unemployment was particularly high during:
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The Great Depression
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Which of the following is included in the labor force?
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The president of Microsoft
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17.5 percent
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What is the unemployment rate in 2006
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The labor-force participation rate is the number:
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In the labor force divided by the total population
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If the population of a country is 250,000 people, its labor force consists of 145,000 people, 35,000 people are unemployed, 10,000 are unable to work, and 5,000 are unwilling to work, the unemployment rate is:
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24.1 percent
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When the U.S. unemployment rate decreased in the late 1990s, so did all of the following except:
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Income per capita.
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Full employment in the U.S. economy means that:
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The economy has reached the lowest level of unemployment compatible with price stability.
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The type of unemployment that economists generally associate with normal growth of the labor force and expanding job opportunities in a dynamic economy is:
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Frictional unemployment.
