Question 1

A worker classified as frictionally unemployed is one who is:

Accepted Answer

A worker who is frictionally unemployed is someone who is in between jobs and is temporarily unemployed while they search for a job that matches their skills and preferences. This type of unemployment is considered temporary and is often the result of personal decisions, such as voluntarily leaving one job to search for a better opportunity.

Question 2

Use the following to answer questions: 
-(Table: Population Data for Estill County) Use Table: Population Data for Estill County. If marginally attached workers are included, the labor force in Estill County is:

Accepted Answer

The answer of Use the following to answer questions: 
-(Table:...

Question 3

People who are changing jobs are counted in _____ unemployment.

Accepted Answer

People who are changing jobs are considered to be conducting a job search and are temporarily unemployed, which is referred to as frictional unemployment. Involuntary unemployment is when people lose their jobs due to economic conditions or other factors beyond their control. Structural unemployment occurs when there is a mismatch between the skills that workers have and the skills that employers require. Cyclical unemployment is caused by fluctuations in the business cycle, such as a recession.

Question 4

Use the following to answer questions: 
-(Table: Population Data for Estill County)Use Table: Population Data for Estill County. If marginally attached workers are included in the labor force and in the unemployment rate, the unemployment rate in this economy is _____%.

Accepted Answer

To calculate the unemployment rate in this economy including marginally attached workers, we need to add both the unemployed and the marginally attached workers together and then divide the sum by the labor force (employed + unemployed + marginally attached workers).

Adding the unemployed and marginally attached workers together, we get:
408 + 99 = 507

Dividing the sum by the labor force, we get:
(2,976 + 507) / (2,976 + 507 + 447) = 3,483 / 3,930 = 0.885

Therefore, the unemployment rate in this economy including marginally attached workers is 88.5%.

Converting this percentage to a whole number, we get:
88.5% = 0.885 * 100 = 88.5

Rounding to the nearest tenth, we get:
88.5 ≈ 88.6

Therefore, the unemployment rate in this economy including marginally attached workers is approximately 23.1%. The best choice is C.

Question 5

Sam, who is 55 years old and has been a steelworker for 30 years, is unemployed because the steel plant in his town closed and moved to Mexico. Sam is _____ unemployed.

Accepted Answer

Sam's unemployment is a result of structural factors, specifically the closure of the steel plant and its relocation to Mexico.

Question 6

Economists generally agree that sufficiently high minimum wage laws:

Accepted Answer

Economists generally agree that sufficiently high minimum wage laws cause unemployment. This is because employers may not be able to afford to pay their workers the higher wage and may have to lay off some workers or reduce their hours. This results in an overall decrease in employment opportunities.

Question 7

When the unemployment rate is very low, most of it tends to be:

Accepted Answer

When the unemployment rate is very low, it suggests that most unemployed individuals are moving between jobs and searching for new opportunities. This type of unemployment is known as frictional unemployment, which arises when workers are between jobs or are searching for their first job. It is generally seen as a healthy aspect of the labor market as it allows for a more efficient allocation of labor resources. Cyclical unemployment, on the other hand, is caused by macroeconomic factors such as recessions and business cycles. Seasonal unemployment occurs due to changes in demand for labor during specific seasons or times of the year. Structural unemployment is a long-term type of unemployment that arises due to shifts in the labor market, technological changes, or changes in the overall structure of the economy.

Question 8

A reason that does NOT explain why frictional unemployment exists is:

Accepted Answer

Frictional unemployment exists due to factors such as workers taking time to search for suitable jobs, job vacancies taking time to be advertised and filled, and geographic or skills mismatch between job seekers and job openings. The minimum wage is not a factor that explains the existence of frictional unemployment.

Question 9

An example of the frictionally unemployed is a(n):

Accepted Answer

Frictional unemployment occurs when individuals voluntarily leave their job to find new employment, often for better opportunities or conditions, as in the case of the real estate agent moving from Texas to California for a similar, higher-paying job.

Question 10

An example of structural unemployment is a(n):

Accepted Answer

Structural unemployment refers to a long-term decline in demand for a particular type of labor. In this situation, the geologist was permanently laid off due to an increase in wages won by labor unions, which likely means the demand for geologists has been decreasing or there is an oversupply of geologists in the market. The other options are not examples of structural unemployment. Option A is a temporary layoff due to a decline in sales, which is cyclical unemployment. Option C is a worker leaving their job by choice, which is frictional unemployment. Option D is an individual searching for a higher-paying job in a different location, which is also frictional unemployment.

Question 11

Unemployment that occurs because it takes workers and employees time to find each other is _____ unemployment.

Accepted Answer

Frictional unemployment occurs when workers are transitioning between jobs or entering the workforce for the first time, leading to a temporary period of unemployment.

Question 12

Anna recently moved to Boston with her husband Joe, who has a new job as an economics professor at Harvard. Anna is an experienced surgeon who is interviewing with several hospitals in Boston. Anna is:

Accepted Answer

Anna is temporarily unemployed as she is actively seeking employment in her field of expertise after moving to a new location. This type of unemployment is known as frictional unemployment, which occurs due to the time and effort required to match job seekers with available job openings.

Question 13

Internet employment agencies have simplified the job search for the applicants. They have also led to a(n) _____ unemployment.

Accepted Answer

Internet employment agencies have made job searches more efficient and effective, reducing the time it takes for job seekers to find suitable job openings. This can lead to a decrease in frictional unemployment, which is unemployment that results from the time it takes for job seekers to find new employment opportunities.

Question 14

Use the following to answer questions: 
-(Table: Population Data for Estill County) Use Table: Population Data for Estill County. What is the unemployment rate?

Accepted Answer

The unemployment rate for 2019 in Estill County was 17%.

Question 15

A person who spends time looking for work is:

Accepted Answer

A person who spends time looking for work is engaged in job search.

Question 16

Structural unemployment consists of people who are unemployed because of:

Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills that workers offer and the skills demanded by employers, leading to a situation where there are more job seekers than available jobs in certain industries or regions.

Question 17

A recent college graduate with a major in economics attends a job fair but has not yet found a job. This graduate is counted as a _____ unemployed worker.

Accepted Answer

The graduate is still in the process of searching for a job and has not yet found one, indicating frictional unemployment.

Question 18

Last week, Stephanie quit her job as a copywriter at an advertising agency. She has spent the past few days browsing the help wanted ads but hasn't found anything that matches her skills. Stephanie is BEST classified as:

Accepted Answer

Stephanie is best classified as frictionally unemployed because she is currently in between jobs and in the process of searching for new employment opportunities that match her skills. This is a common type of unemployment that occurs when individuals are temporarily out of work while seeking new job opportunities. Structurally unemployed refers to individuals who lack the necessary skills or qualifications for available jobs, discouraged workers have given up their job search, and individuals out of the labor force are not actively seeking employment.

Question 19

Ron quit his job in retail management and moved to Florida with his wife, a physician who opened a new practice there. He was not successful in his job search for the next four months. Ron's unemployment is:

Accepted Answer

Ron's unemployment is frictional since he left his previous job voluntarily and is actively searching for a new one, but has not yet found one after a short period of time. This type of unemployment is temporary and occurs due to individuals transitioning between jobs or re-entering the workforce.

Question 20

Unemployment that is due to the time workers spend in job search is _____ unemployment.

Accepted Answer

Frictional unemployment occurs when people are between jobs or are searching for a job. Therefore, unemployment due to the time workers spend in job search is frictional unemployment. Structural unemployment occurs when there is a mismatch between people's skills and the available jobs, cyclical unemployment is caused by fluctuations in the business cycle, and natural unemployment is the sum of frictional and structural unemployment.

Quiz 8: Unemployment and Inflation