Chapter 13 Section 1: Unemployment in Today’s Economy

Is the percentage of the labor force that is jobless and looking for work.

• Cyclical unemployment

• Full employment

•   underemployed

•    Unemployment rate

Unemployment caused by a part of the business cycle with decreased economic activity.

• Cyclical unemployment

• Full employment

•   underemployed

•    Unemployment rate

It is unemployment linked to seasonal work.

• Cyclical unemployment

• Full employment

• Seasonal unemployment

•    Unemployment rate

It is temporary unemployment of people changing jobs.

• Cyclical unemployment

• Full employment

•   Frictional unemployment

•    Unemployment rate

They are part time workers who want to work full time or people working below their skill level.

• Unemployment rate

• Real GDP

• underemployed

• full employed

It means no unemployment caused by decreased economic activity.

• Unemployment rate

• Real GDP

• underemployed

• full employed

    People who are unemployed or underemployed for long periods may begin to lose faith in their abilities to get a job that suits their skills.

• True

• False

Unemployment is inefficient. IT wastes human resources, one of the key factors of economic growth.

• True

• False

Explain how outsourcing might change the American economy.

•    Outsourcing creates some structural unemployment, but ultimately makes the economy more efficient

• Outsourcing creates some structural employment, but ultimately makes the economy more inefficient

•   Neither of the above

• It will reduce economy

Unemployment rate measures the percentage of job force that wants to work but cannot find a job.

• True

• False