Problem Set 15

_________ is due to the time it takes for workers to search for jobs that best matches their skills

• cyclical unemployment

• frictional unemployment

• structural unemployment

• natural rate of unemployment

_______ is due to recessions.

• cyclical unemployment

• frictional unemployment

• structural unemployment

• natural rate of unemployment

____ exists because wages are set above equilibrium resulting in an excess supply of labor.

• cyclical unemployment

• frictional unemployment

• structural unemployment

• natural rate of unemployment

The natural rate of unemployment is the estimated rate of unemployment that would prevail when _______ is zero.

• cyclical unemployment

• frictional unemployment

• structural unemployment

• natural rate of unemployment

College students who graduate in the spring and look for work are one source of

• cyclical unemployment

• frictional unemployment

• structural unemployment

• natural rate of unemployment

Which of the following would most likely increase frictional unemployment?

• a more generous unemployment insurance program.

• An decrease in the number of high school dropouts.

• more effective Internet based job search engines.

• All of the above would increase frictional unemployment.

In the city of Reedley, the total population is 25,500. The total adult population (over age 16) is 19,000. 6,800 are not in the work force and 9,900 are employed. Using the above information, the unemployment rate is approximately

• 47.05%

• 18.85%

• 13.3%

• 23.23%

• 12.11%

Who of the following is counted as unemployed?

• Kia, a full-time student at Cal State Long Beach.

• Daisy, a retired stock broker.

• Samantha, who recently quit her job and is now looking for another job.

• Amsal, who has quit looking for work after 2 years of searching.

• All of the above individuals would be counted as unemployed.

According to the Bureau of Labor Statistics, a husband who chooses to stay home and take care of the children would be counted as

• unemployed

• employed

• not in the labor force

• a discouraged worker

Which of the following government policies would fail to lower the unemployment rate?

• reduction in unemployment benefits

• establishment of more employment agencies

• establishment of worker training programs

• lowering the minimum wage.

• requiring workers to join unions