Labor Market Concepts and Unemployment

Who of the following is not included in the Bureau of Labor Statistics' "employed" category?

• Those who worked in their own business

• Those who were temporarily absent from work because of vacation

• Those who worked as unpaid workers in a family member's business

• Those waiting to be recalled to a job from which they had been laid off

The labor force equals the

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

• number of people employed.

• adult population.

• 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.

Suppose that the Bureau of Labor Statistics reported that there were 59 million people over age 25 whose highest level of education was some college or an associate degree. Of these, 42.6 million were employed and 10.2 million were unemployed. What were the labor-force participation rate and the unemployment rate for this group?

• 19.3% and 89.5%

• 111.7% and 19.3%

• 89.5% and 19.3%

• 89.5% and 111.7%

If the natural rate of unemployment is 5.7 percent and the actual rate of unemployment is 6.1 percent, then by definition there is

• frictional unemployment amounting to 0.4 percent of the labor force.

• structural unemployment amounting to 0.4 percent of the labor force.

• cyclical unemployment amounting to 0.4 percent of the labor force.

• search unemployment amounting to 0.4 percent of the labor force.

Which of the following is not correct?

• Most people who become unemployed will soon find jobs.

• . In an ideal labor market, wages would adjust to ensure that all workers are always fully employed

• The unemployment rate occasionally falls to zero.

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

The natural rate of unemployment includes

• both frictional and structural unemployment.

• neither frictional nor structural unemployment.

• structural but not frictional unemployment.

• frictional but not structural unemployment.

Sandy has graduated from college and is devoting her time to searching for a job. She has seen plenty of openings but has not yet been offered one that best suits her tastes and skills. Sandy is

• structurally unemployed. Structural unemployment exists even in the long run.

• structurally unemployed. There is no structural unemployment in the long run.

• . frictionally unemployed. Frictional unemployment can exist even in the long run.

• frictionally unemployed. There is no frictional unemployment in the long run.

Minimum wages create unemployment in markets where they create a

• shortage of labor. Unemployment of this type is called frictional.

• shortage of labor. Unemployment of this type is called structural.

• surplus of labor. Unemployment of this type is called frictional.

• surplus of labor. Unemployment of this type is called structural.

Over the past century in the United States, real GDP per person has grown, on average, by about

• 1 percent per year

• 2 percent per year.

• 3 percent per year.

• 4 percent per year.

The key measurement of the standard of living in a country is

• the real GDP per person.

• the real GDP.

• the nominal GDP per person.

• its growth rate of real GDP.