ECON 22061 Macroeconomics Midterm Exam 3

Every adult who was not employed during the previous four weeks is included in the Bureau of Labor Statistics' “unemployed" category.

• True

• False

Workers with a job but temporarily absent from work due to maternity or paternity leave are included in the "employed" category.

• True

• False

Full-time students and homemakers are included in the "unemployed" category.

• True

• False

Discouraged workers, who want to work but have given up trying to find a job, are included in the "not in the labor force" category.

• True

• False

There are always some workers without jobs, even when the overall economy is doing well.

• True

• False

If the wage is kept above the equilibrium level for any reason, the result is frictional unemployment.

• True

• False

Three possible reasons for an above-equilibrium wage are minimum-wage laws, unions, and efficiency wages.

• True

• False

When a union is present in a labor market, wages are not determined by the equilibrium of supply and demand.

• True

• False

The labor force equals the

• number of people employed.

• number of people employed plus the number of people unemployed.

• number of people employed plus the number of people unemployed plus teenagers between ages 14 and 16 who work at least 10 hours a week.

• adult population.

The unemployment rate is computed as the number of unemployed

• divided by the labor force, all times 100.

• divided by the number of employed, all times 100.

• divided by the adult population, all times 100.

• times the labor-force participation rate, all times 100.