ECO 111 Study Guide - Final Guide: Gross Domestic Product, Underemployment, Mixed Economy

70 views5 pages

azuremammoth471

8 Jan 2019

School

Department

Course

Professor

For unlimited access to Study Guides, a Grade+ subscription is required.

Document Summary

The study of the allocations of resources and time. Deals with choice made by economic actors (consumer, business and gov"t) Measured through the stock market (most people don"t look to this bc not everyone is involved), unemployment rate, gdp (gross domestic product: value of our products), inflation rate. In order to be unemployed by the govt you must: not working full time, actively seeking a job in your field, between 16 and 65, a us citizen. Always will be unemployment: people changing jobs and industries changing. 4. 5% are unemployed in the us = good for the economy. Types of unemployment/ why people become unemployed: These workers may have to adapt to improve their skills to find work. Seasonal: some jobs are only based on a particular time of year. Frictional: people who are either just entering the job market or who have left the market in the hopes of making a change, (college grads and elderly)

Related Questions

Unemployment and its types, and the Natural Rate of Unemployment.

1) Frictional unemployment is the result of

A) an economic recession.

B) the economic decline of major industries.

C) the normal process of jobs being created and destroyed.

D) people not getting along (having friction) with their employers.

E) changing weather throughout the year.

2) Bill has graduated with his degree in economics. Through Career Services he submitted his resume to several companies and he will visit them during the next two weeks. Bill is considered

A) not in the labor force.

B) frictionally unemployed.

C) structurally unemployed.

D) cyclically unemployed.

E) employed because he is visiting firms.

3) Structural unemployment includes people who become unemployed from

A) changes in the seasons.

B) normal changes in the labor force.

C) technological changes.

D) changes in the business cycle.

E) going back to school.

4) An employee who is fired from his or her job because he or she lacks the skills required to accomplish the task, is part of ________ unemployment.

A) frictional

B) cyclical

C) unskilled

D) structural

E) withdrawal

5) How would you best describe a manufacturing employee who has been fired because he was replaced by a robot (new technology) and does not have the skills necessary to help operate the robot?

A) job leaver

B) entrant/reentrant

C) cyclically unemployed

D) structurally unemployed

E) withdrawal

6) Seasonal unemployment includes people who become unemployed from

A) the seasonal weather patterns.

B) normal changes in the labor force.

C) technological changes.

D) changes in the business cycle.

E) changes in international competition.

7) Cyclical unemployment includes people who become unemployed from

A) changes in the seasons.

B) changes in international competition.

C) technological changes.

D) changes in the business cycle.

E) normal labor market turnover.

8) The type of unemployment that arises from a decrease in real GDP is called

A) frictional unemployment.

B) structural unemployment.

C) seasonal unemployment.

D) cyclical unemployment.

E) downturn unemployment.

9) John has been laid off from his job because of a general downturn in the economy. John's unemployment is best classified as

A) cyclical.

B) seasonal.

C) structural.

D) frictional.

E) avoidable.

10) Full employment means that

A) 100 percent of the labor force have jobs.

B) only those who are willing, able and looking for work are unemployed.

C) the cyclical unemployment rate is zero.

D) the natural unemployment rate is zero.

E) the frictional unemployment rate is zero.

11) The natural unemployment rate is the unemployment rate that exists when there is no

A) structural unemployment.

B) frictional unemployment.

C) cyclical unemployment.

D) cyclical or structural unemployment.

E) seasonal unemployment.

12) The natural unemployment rate equals the sum of

A) cyclical and frictional unemployment.

B) cyclical, seasonal, and structural unemployment.

C) frictional, seasonal, and structural unemployment.

D) seasonal and cyclical unemployment.

E) cyclical, frictional, seasonal, and structural unemployment.

browncamel558

During the course of a year, the labor force consists of the same 1054 people. Ofâ these, 21 lack skills that employers desire and hence remain unemployed throughout the year. At the sameâ time, every month during theâ year, 25 different people become unemployed, and 25 other different people who were unemployed find jobs. There is no cyclical unemployment.

a. Calculate the frictional unemployment rate. (Enter your response as a percentage rounded to two decimal places).

b. Calculate the unemployment rate. (Enter your response as a percentage rounded to two decimal places)

c. Suppose that a system of unemployment compensation is established. Each month, 25 new people (not including the 21 lacking required skills) continue to become unemployed, but each monthly group of newly unemployed now takes two months to find a job. Calculate the frictional unemployment rate after this change. (Enter your response as a percentage rounded to two decimal places).

d. After the change discussed in part calculate the unemployment rate. (Enter your response as a percentage rounded to two decimal places).

harlequinzebra224

QUESTION 1

Rosina Gonzales quit her job in Pennsylvania and moved to California to be close to her family. She is currently looking for work, so she would be considered

		frictionally unemployed.
		cyclically unemployed.
		a discouraged worker.
		seasonally unemployed.

1 points

QUESTION 2

Discouraged workers

		are counted as unemployed workers when the unemployment rate is calculated.
		would decrease the unemployment rate if they were added to the number of unemployed workers.
		are counted as one-half of a worker in the unemployment statistics.
		would increase unemployment rate if they were added to the number of unemployed workers.

1 points

QUESTION 3

In measuring the unemployment rate, part-time workers are ________ and discouraged workers are ________.

		included as employed; included as unemployed
		excluded; excluded
		excluded; included as unemployed
		included as employed; excluded

1 points

QUESTION 4

Mary has decided that the she does not like Iowa and has decided to quit her job as a medical technician and move to Arizona. Mary's unemployment as she searches for a new job is best classified as

		frictional.
		cyclical.
		structural.
		seasonal.

1 points

QUESTION 5

When a golf caddy in Minnesota (where golf courses close in the winter) is unemployed in December, it is most likely the case that the golf caddy is

		cyclically unemployed during long droughts.
		frictionally unemployed during spring and summer.
		structurally unemployed during spring and summer.
		seasonally unemployed.

1 points

QUESTION 6

After graduating from college, Yunis, age 22, started working for his parent's real estate business as an unpaid assistant. He works 25 hours a week helping manage rental units . In the Current Population Survey, Yunis is considered

		part of the labor force and employed.
		part of the labor force and unemployed.
		a discouraged worker.
		not part of the labor force.

1 points

QUESTION 7

The working-age population includes

		youngsters between the ages of 14 and 16 if they are working at least part time.
		only employed people over the age of 16.
		those in jails and hospitals.
		employed and unemployed people over the age of 16.

1 points

QUESTION 8

Involuntary part-time workers are workers who

		work less than 35 hours but would like to work full time.
		work more than 35 hours but would like to work less than 35 hours.
		work less than 35 hours by choice.
		work have lost their jobs within the last four weeks and are seeking another job.

1 points

QUESTION 9

Frictional unemployment is the result of

		the normal process of jobs being created and destroyed.
		an economic recession.
		people not getting along (having friction) with their employers.
		the economic decline of major industries

1 points

QUESTION 10

Bill just graduated with his degree in economics. Through Career Services he submitted his resume to several companies and he will visit them during the next two weeks. Bill is considered

		not in the labor force.
		cyclically unemployed.
		frictionally unemployed.
		structurally unemployed.

1 points

QUESTION 11

Harry works at the video rental store for 20 hours per week. He's asked his boss to allow him to work 40 hours per week, but has been told that business is too slow. Harry is considered

		an involuntary part-time worker.
		a marginally attached worker.
		a discouraged worker.
		not in the labor force.

1 points

QUESTION 12

Discouraged workers who are over 16 years old are

i.not counted as unemployed.

ii.part of the working-age population.

iii.part of the labor force.

		i and ii
		ii and iii
		ii only
		i only

1 points

QUESTION 13

Higher unemployment benefits create

		higher seasonal unemployment as workers switch jobs.
		a lower number of job leavers.
		incentives for longer job searches and higher frictional unemployment.
		incentives for shorter job searches and higher structural unemployment.

1 points

QUESTION 14

Seasonal unemployment includes people who become unemployed from

		changes in the business cycle.
		technological changes.
		the seasonal weather patterns.
		normal changes in the labor force.

1 points

QUESTION 15

Cyclical unemployment is

		higher when the economy is expanding.
		always greater than the total of structural and frictional unemployment.
		the total of structural and frictional unemployment.
		created by a recession.

1 points

QUESTION 16

Which of the following people would be classified as employed in the Current Population Survey?

		April, who just graduated from college and is looking for work
		Jason, who was laid off from work less than 6 months ago but who has stopped looking for work
		Rich, who is working 20 hours a week but wants a full-time job
		Misty, who just quit her job to return full time to school

1 points

QUESTION 17

People who are willing and able to work but are not looking for work because they have been discouraged by their previous futile efforts are called

		discouraged workers.
		involuntarily unemployed.
		part-time lookers.
		unemployed workers.

1 points

QUESTION 18

Discouraged workers are included in the calculation of the

i.unemployment rate.

ii.labor force participation rate.

iii.working-age population.

		i and ii
		i only
		iii only
		ii only

1 points

QUESTION 19

As firms search for the best employee to fill an opening and the unemployed search for the job that best fits their skills, the economy experiences

		changes in the business cycle.
		cyclical unemployment.
		frictional unemployment.
		structural unemployment.

1 points

QUESTION 20

Suppose the U.S. population is 275 million. If 210 million people are of working age, 135 million are employed, and 6 million are unemployed, what is the labor force participation rate?

		64 percent
		67 percent
		76 percent
		49 percent

1 points

QUESTION 21

During a recession the unemployment rate generally ________ and during an expansion the unemployment rate generally ________.

		rises; rises
		rises; does not change
		falls; rises
		rises; falls

1 points

QUESTION 22

In January of 2001, the population of the United States was 276.8 million, the working-age population was 210.2 million, the total number of people employed was 140, and the total number of people unemployed was 5.0 million. What was the labor force participation rate?

		56 percent
		69 percent
		78 percent
		67 percent

1 points

QUESTION 23

If Brian, age 24, had no job but was available for work and had looked for a job the week before the survey, Brian is classified in the Current Population Survey as

		unemployed.
		employed.
		a discouraged worker.
		not in the labor force.

1 points

QUESTION 24

Julie works part-time for economic reasons. She would be considered

		an involuntary part-time worker.
		not in the labor force.
		a job seeker.
		a discouraged worker.

1 points

QUESTION 25

Suppose the population is 300 million people, the labor force is 200 million people, the number of people employed is 185 million, and the working-age population is 170 million people. What is the unemployment rate?

		5 percent
		7.5 percent
		8.8 percent
		92.5 percent

1 points

ECO 111 Study Guide - Final Guide: Gross Domestic Product, Underemployment, Mixed Economy

Document Summary

Get access

Related textbook solutions

Principles of Economics

Principles of Macroeconomics

Principles of Microeconomics

Related Documents

ECO 111 Lecture Notes - Lecture 1: Gross Domestic Product, Liquor License, Excise

ECO101H1 Lecture 14: Lecture 14

ECO102H1 Lecture Notes - Lecture 10: Unemployment, Nairu, Output Gap

Related Questions