Unemployment EBE1083 (G02)

If an economy is at its Natural Rate of Unemployment...

• Only Cyclical Unemployment would be present

• There would be no frictional unemployment

• Only frictional and structural unemployment would be present

• Everyone is working Everyone is working

Discouraged workers in

the economy implies that the measurement of unemployment...

• understates the true unemployment rate

• overstates the true unemployment rate

• correctly measures the true unemployment rate

• doubles the unemployment rate

If operators are fired and replaced with computer technology, the operators would be considered

• frictionally unemployed

• structurally unemployed

• cyclically unemployed

• dissatisfied unemployed dissatisfied unemployed

Cyclical unemployment

• Describes recent college graduates

• Describes employees moving from one job to another

• Increases inflation Increases inflation

• Lasts longer than 6 months

The unemployment rate is the ratio of

• unemployed to labor force

• employed to labor force

• seeking employment to labor force

• dissatisfied to labor force

Which of these people is officially unemployed

• A secretary who took 6 months off for maternity leave

• Maid who got fired and will start a new job in 2 weeks

• A student who only works 4 hours a week in the library

• An aspiring actress who waits tables but would rather act

A labor force of 20 million people has 18.5 million people employed. Find the unemployment rate.

• 10%

• 8.5%

• 7.5%

• 6%

What is it called when a worker takes a lower skilled job when they are overqualified to earn money to pay bills?

• A discouraged worker

• Underemployed worker

• A structural worker

• A seasonal worker

Unemployment caused by an imbalance between the skills of workers and the requirements of employers

• Employed

• Structural unemployment

• Frictional unemployment

• Voluntary unemployment

• Cyclical unemployment

The image above summarize Labor Data for The United State for 2016; 

Determine the percentage of Labor Force

•  $\frac{Number\ of\ people\ in\ labor\ force}{total\ working-age\ population}\times100\ =\ 62.8\%$ 

•  $\frac{number\ of\ people\ out\ of\ labour\ force}{total\ working-age\ population}\times100\ =\ 37.2\%$ 

• $\frac{number\ of\ unemployed}{total\ labor\ force}\times100\ =\ 4.8\%$