The study guide

The natural rate of unemployment includes

• neither frictional nor structural unemployment.

• both frictional and structural unemployment.

• structural but not frictional unemployment.

• frictional but not structural unemployment.

Suppose that some country had an adult population of about 50 million, a labor-force participation rate of 60 percent, and an unemployment rate of 5 percent. How many people were employed?

• 1.5 million

• 30 million

• 28.5 million

• 47.5 million

The BLS reports the U-6 measure of labor underutilization. Which of the following is how it computes U-6?

• (Total unemployed + Marginally attached workers)/Adult population

• (Total unemployed + Marginally attached workers + Part-time employed for economic reasons)/Adult population

• (Total unemployed + Marginally attached workers)/(Labor force + Marginally attached workers)

• (Total unemployed + Marginally attached workers + Part-time employed for economic reasons)/(Labor force + Marginally attached workers)

Suppose that the adult population in the country of Atlantis is 115 million. If 80 million people are employed and 5 million are unemployed, then

• 30 million are not in the labor force.

• 35 million are in the labor force.

• 75 million are in the labor force.

• 35 million are not in the labor force.

The amount of unemployment varies

•  

  little over time but substantially across countries.

• substantially over time and across countries.

•  

  substantially over time but little across countries.

• little over time and across countries.

Josh is a full-time college student who is not working or looking for a job. The Bureau of Labor Statistics counts Josh as

• employed.

• unemployed.

• marginally attached worker.

• not in the labor force.

In the 1990s Ireland made unemployment benefits less generous. This change would likely have reduced

• both structural unemployment and the natural rate of unemployment.

• both frictional unemployment and the natural rate of unemployment.

• frictional unemployment but not the natural rate of unemployment.

• structural unemployment but not the natural rate of unemployment.

Marginally attached workers are people who are

• working part-time while they go to school or get training for a better job.

• only a few years from retirement.

• looking for a better job than they currently have.

• not working and are not looking for work, but would work if asked.

To be counted as "employed" in the U.S. labor force statistics, a person

• must be working for pay and be working full time.

• does not have to be working for pay if they are working for a family business and does not have to be working full time.

• does not have to be working for pay if they are working for a family business but must be employed full time.

• must be working for pay but does not have to be working full time.

Collective bargaining refers to

• the process by which the government sets exemptions from the minimum wage law.

• setting the same wage for all employees to prevent conflict among workers.

• firms colluding to set the wages of employees below equilibrium.

• the process by which unions and firms agree on the terms of employment.