Question 1

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 2

Use the following to answer questions: 
-(Table: Population Data for Estill County) Look at the 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

If we include marginally attached workers in the labor force and in the unemployment rate, the calculation would be:

Unemployment Rate = (Unemployed Workers + Marginally Attached Workers) / (Labor Force)

= (320 + 130) / (1,000 + 130)

= 450 / 1,130

= 0.3982

= 39.82%

Therefore, the unemployment rate in this economy would be 23.1% (rounded to the nearest tenth).

Question 3

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

Accepted Answer

Frictional unemployment occurs when workers are between jobs or in the process of searching for new employment. This type of unemployment is considered voluntary and is often a temporary situation.

Question 4

Use the following to answer questions: 
-(Table: Population Data for Estill County) Look at the table Population Data for Estill County. What is the labor force participation rate?

Accepted Answer

The labor force participation rate can be calculated by dividing the labor force by the total population aged 16 and over, and then multiplying by 100. In this case, the labor force is 7,734 and the total population aged 16 and over is 9,555, so the labor force participation rate is (7,734/9,555) x 100 = 81%. Therefore, the correct answer is B.

Question 5

Use the following to answer questions: 
-(Table: Population Data for Estill County) Look at the 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 6

All of the following are examples of job search EXCEPT:

Accepted Answer

Attending class to learn database management is not a job search activity. It is a way to gain skills for a potential job in the future. The other options involve actively seeking job opportunities or information about job opportunities.

Question 7

A worker classified as frictionally unemployed is one who is:

Accepted Answer

A worker classified as frictionally unemployed is someone who is currently between jobs but actively seeking employment that matches their skills and qualifications. This type of unemployment is considered to be short-term and typically occurs when individuals switch jobs or enter the labor force for the first time. Option A refers to cyclical unemployment, option B refers to discouraged workers and option D refers to underemployment.

Question 8

Frictional unemployment is considered to be:

Accepted Answer

Frictional unemployment occurs when individuals are temporarily between jobs because they are seeking better opportunities or transitioning between careers. This can be seen as a positive thing because it means that people are actively seeking job that matches their skills and ultimately finding a better job will lead to higher job satisfaction and productivity.

Question 9

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

Accepted Answer

The unemployment rate for Estill County is given as 17%.

Question 10

Anna recently moved to Boston, as her husband, Joe, 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 currently experiencing frictional unemployment, which is a temporary unemployment caused by the time it takes to match skilled workers with the appropriate job openings. She is actively seeking employment and is likely to receive a job offer soon.

Question 11

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 12

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 currently experiencing frictional unemployment, which refers to being temporarily unemployed while searching for a new job that matches her skills and qualifications. This is a common type of unemployment that occurs due to the time it takes for job seekers to find suitable job openings and go through the application process.

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 it easier for job seekers to find job openings and apply for them, reducing the amount of time it takes for them to find employment. This decreases frictional unemployment, which is the temporary unemployment that exists when workers are in the process of moving from one job to another. It is not likely to have an impact on cyclical unemployment, which is caused by fluctuations in the business cycle, or structural unemployment, which is due to a mismatch between the skills or location of the unemployed and the job openings available.

Question 14

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, as he is in transition between jobs and actively searching for new employment.

Question 15

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

Accepted Answer

When the unemployment rate is very low, it indicates that there are more job openings and opportunities available, which typically results in a greater number of people actively seeking employment (frictional unemployment). Cyclical and structural unemployment tend to be prevalent during times of economic recession and can lead to higher levels of unemployment, while seasonal unemployment is specific to certain industries or occupations that experience fluctuations in demand throughout the year.

Question 16

People who are changing jobs are counted in _____ unemployment.

Accepted Answer

Frictional unemployment refers to the temporary and voluntary unemployment that arises from people moving between jobs. Hence, people who are changing jobs are included in frictional unemployment.

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

A recent college graduate who is looking for a job but has not yet found one is an example of frictional unemployment. Frictional unemployment refers to the temporary unemployment that arises when workers are searching for jobs or transitioning between jobs.

Question 18

Frictional unemployment exists because of all of the following reasons EXCEPT:

Accepted Answer

Frictional unemployment is the result of people transitioning between jobs or entering the labor market for the first time. It is not caused by the minimum wage, which is a policy that sets a legal minimum for wages paid by employers to employees.

Question 19

Economists generally agree that sufficiently high minimum wage laws:

Accepted Answer

Economists generally agree that minimum wage laws cause unemployment. This is because when the minimum wage is set higher than the market equilibrium wage rate, it becomes more expensive for employers to hire workers. As a result, some employers may reduce their workforce, while others may reduce the hours worked by their employees. This means that some workers may lose their jobs, particularly those who are low-skilled or otherwise marginalized in the labor market.

Question 20

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

Accepted Answer

Frictional unemployment occurs when workers are in between jobs or entering the workforce for the first time, and are in the process of searching and applying for jobs. It is a temporary form of unemployment that is not caused by economic conditions but rather the normal functioning of the job market.

Quiz 8: Unemployment and Inflation