Question 1

Frictional unemployment is the result of

Accepted Answer

The answer of Frictional unemployment is the result of
...

Question 2

According to the text, economists consider full employment to occur when

Accepted Answer

Economists consider full employment to occur when the unemployment rate consists of only frictional and structural unemployment, excluding cyclical unemployment. This reflects a situation where all unemployment is due to the normal turnover in the labor market (frictional) or due to mismatches between workers' skills and job requirements (structural), rather than economic downturns.

Question 3

Article Summary
According to the President's Council of Economic Advisors, the labor force participation rate has significantly declined since the year 2000, due primarily to retiring baby boomers and the severity of the 2007-2009 recession. However, over the past couple of years, the labor force participation rate has held fairly steady, indicating that previously discouraged workers may be reentering the labor market. In June 2017, the labor force participation rate was 62.8%, roughly the same as it was a month earlier.

-Refer to the Article Summary. What is the labor force participation rate? What are discouraged workers? Explain how discouraged workers reentering the labor market would stop the decline of the labor force participation rate.

Accepted Answer

The answer of Article Summary
According to the President's Council of...

Question 4

In 2017, Boeing announced that it was laying off 1,800 employees in addition to the 7,000 workers it had cut the year before. The laid-off employees who were not able to find jobs at another aircraft manufacturer due to a permanent decline in employee demand in the aircraft industry would be considered

Accepted Answer

Structural unemployment occurs when there is a permanent decline in demand for a particular type of labor, which leads to job losses for workers with those skills. In this case, the announcement by Boeing about laying off more employees indicates a reduction in the demand for labor in the aircraft industry, which makes the workers who are unable to find jobs elsewhere in the industry structurally unemployed.

Question 5

A lumberjack loses his job because timber cutting restrictions were imposed by the EPA to protect the spotted owl habitat. This lumberjack would be

Accepted Answer

This is an example of structural unemployment because the job loss was due to changes in the structure of the economy, specifically the imposition of restrictions by the EPA. The lumberjack's skills may no longer be in demand in this new economic structure, and he may have to retrain or find a new career path. Frictional unemployment refers to temporary unemployment caused by individuals searching for better job opportunities, cyclically unemployment occurs due to fluctuations in the business cycle, and seasonally unemployment occurs when jobs are only available during certain times of the year (such as seasonal farm work or holiday retail jobs).

Question 6

How would the unemployment rate and the labor force participation rate change if discouraged workers were counted as unemployed rather than counted as not in the labor force? Show using the formula for both measurements.

Accepted Answer

The answer of How would the unemployment rate and the...

Question 7

The Bureau of Labor Statistics counts as employed people who work part-time, but would prefer to work full-time. Suppose the people who had part-time jobs, but wanted full-time jobs, were counted as unemployed. Explain how the unemployment rate and the labor force participation rate would change.

Accepted Answer

The answer of The Bureau of Labor Statistics counts as...

Question 8

The Bureau of Labor Statistics does not count discouraged workers as unemployed. Suppose discouraged workers were counted as unemployed. Explain how the unemployment rate and the labor force participation rate would change.

Accepted Answer

The answer of The Bureau of Labor Statistics does not...

Question 9

Suppose 180,000 people are employed, 20,000 people are unemployed, the working-age population is 250,000, and 50,000 people are not in the labor force. Calculate the unemployment rate.

Accepted Answer

The answer of Suppose 180,000 people are employed, 20,000 people...

Question 10

Fill in the missing values in the table of data collected in the household survey for December, 1996. The working-age population, employment, unemployment, and labor force are measured in thousands. Show your work.

Accepted Answer

The answer of Fill in the missing values in the...

Question 11

Cyclical unemployment is the result of

Accepted Answer

Cyclical unemployment is the result of a slowdown in the economy. When the economy experiences a downturn or recession, there is a decrease in demand for goods and services, which leads to a decrease in demand for workers. This can result in workers being laid off or having their hours reduced, causing cyclical unemployment.

Question 12

A student who just graduated from college but has not found a job would most likely be

Accepted Answer

Frictional unemployment occurs when people are transitioning between jobs or looking for their first job. It is a temporary and expected type of unemployment that occurs even in a healthy economy. Therefore, a college graduate who has not found a job yet would be considered frictionally unemployed.

Question 13

Suppose 180,000 people are employed, 20,000 people are unemployed, and 50,000 people are not in the labor force. Calculate the labor force participation rate.

Accepted Answer

The answer of Suppose 180,000 people are employed, 20,000 people...

Question 14

Full employment is not considered to be zero unemployment, because

Accepted Answer

Full employment acknowledges the existence of frictional unemployment, which occurs when people are between jobs or are entering the workforce. This means that even when the economy is at full employment, there will still be some level of unemployment because people are in the process of finding new jobs, not because there are no jobs available.

Question 15

If cyclical unemployment is eliminated in the economy, then

Accepted Answer

Cyclical unemployment refers to unemployment that occurs due to fluctuations in the business cycle. If it is eliminated, then the economy would be considered to be at full employment, meaning all individuals who are willing and able to work have jobs.

Question 16

Fill in the missing values in the table of data collected in the household survey for November, 2009. The working-age population, employment, unemployment, and labor force are measured in thousands. Show your work.

Accepted Answer

The answer of Fill in the missing values in the...

Question 17

The natural rate of unemployment is the amount of unemployment

Accepted Answer

The natural rate of unemployment is the amount of unemployment that exists due to structural and frictional factors in the labor market. It does not include cyclical unemployment that is caused by changes in the business cycle.

Question 18

During the Great Depression, cyclical unemployment increased as the recession continued. This increase in cyclical unemployment

Accepted Answer

Cyclical unemployment is directly related to the macroeconomic situation of an economy, such as a recession or a depression, and varies with the business cycle. The natural rate of unemployment, however, is determined by structural factors in the labor market, such as market inefficiencies, and is not affected by short-term cyclical fluctuations. Therefore, an increase in cyclical unemployment during the Great Depression would not have affected the natural rate of unemployment.

Question 19

The advice to "keep searching, there are plenty of jobs around here for which you are qualified," would be most appropriate for which of the following types of unemployment?

Accepted Answer

The advice to keep searching for jobs is most appropriate for frictional unemployment, which occurs when individuals are between jobs or are searching for better employment opportunities. This type of unemployment is typically short-term and is a result of a mismatch between the skills workers have and the skills employers are looking for, or simply the time it takes to find a suitable job. Providing encouragement to job seekers to continue their search is a helpful way to reduce frictional unemployment.

Question 20

Structural unemployment is the result of

Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills and characteristics of workers and the requirements of the jobs. This can be due to changes in the economy, technological advancements, or shifts in consumer demand. It is not caused by the search process of matching workers with jobs, fluctuations in inflation, or a general slowdown in the economy.

Quiz 20: Unemployment and Inflation

Frictional unemployment is the result of

According to the text, economists consider full employment to occur when

A lumberjack loses his job because timber cutting restrictions were imposed by the EPA to protect the spotted owl habitat. This lumberjack would be

How would the unemployment rate and the labor force participation rate change if discouraged workers were counted as unemployed rather than counted as not in the labor force? Show using the formula for both measurements.

The Bureau of Labor Statistics counts as employed people who work part-time, but would prefer to work full-time. Suppose the people who had part-time jobs, but wanted full-time jobs, were counted as unemployed. Explain how the unemployment rate and the labor force participation rate would change.

The Bureau of Labor Statistics does not count discouraged workers as unemployed. Suppose discouraged workers were counted as unemployed. Explain how the unemployment rate and the labor force participation rate would change.

Suppose 180,000 people are employed, 20,000 people are unemployed, the working-age population is 250,000, and 50,000 people are not in the labor force. Calculate the unemployment rate.

Fill in the missing values in the table of data collected in the household survey for December, 1996. The working-age population, employment, unemployment, and labor force are measured in thousands. Show your work.

Cyclical unemployment is the result of

A student who just graduated from college but has not found a job would most likely be

Suppose 180,000 people are employed, 20,000 people are unemployed, and 50,000 people are not in the labor force. Calculate the labor force participation rate.

Full employment is not considered to be zero unemployment, because

If cyclical unemployment is eliminated in the economy, then

Fill in the missing values in the table of data collected in the household survey for November, 2009. The working-age population, employment, unemployment, and labor force are measured in thousands. Show your work.

The natural rate of unemployment is the amount of unemployment

During the Great Depression, cyclical unemployment increased as the recession continued. This increase in cyclical unemployment

The advice to "keep searching, there are plenty of jobs around here for which you are qualified," would be most appropriate for which of the following types of unemployment?

Structural unemployment is the result of