ECON 1020H Chapter Notes - Chapter 8: Interest Rate, Underemployment, Ob River

40 views3 pages

violetwasp748

21 Jan 2016

School

Department

Course

Professor

For unlimited access to Textbook Notes, a Class+ subscription is required.

Document Summary

Chapter 8 notes for exam. Chapter 8: unemployment and inflation. What you will learn in this chapter. The significance of the unemployment rate for the economy. The relationship between the unemployment rate and economic growth. The factors that determine the natural rate of unemployment. Labour force participation rate = (labour force / population aged 15 and older) * 100. We don"t want our youth to be neet. The natural rate of unemployment. Summary of chapter: natural unemployment = frictional unemployment + structural unemployment, actual unemployment = natural unemployment + cyclical unemployment. Inflation and unemployment are the main concerns of macroeconomic policy. It can understate because it ignores frustrated workers, such as discouraged workers, marginally attached workers, and the underemployed. The unemployment rate is affected by the business cycle. The natural rate of unemployment changes over time. Policy- makers worry about inflation, as well as unemployment. Inflation does not, as many assume, make everyone poorer by raising the level of prices.

Related Questions

Severe unemployment is socially catastrophic. Mark all items below that can occur due to unemployment.

Increased Spending

Increased work hours for other family members

Increased Savings

Uninterrupted schooling

Increased Stress

Postponed medical care

Utilities cut off

Flag this Question

Question 51 pts

What years was the unemployment rate equal to or great than 10%?

1929-1933, 1937-1938, 1981-1982, 2007-2009

1928-1932, 1936-1937, 1980-1981, 2008-2010

1929-1933, 1936-1937, 1980-1981, 2007-2009

1928-1930, 1937-1938, 1981-1982, 2008-2010

Flag this Question

Question 61 pts

The unemployment rate is understated due to:

None of the above.

Part-time workers being counted as unemployed

Discouraged workers not counted in the labor force

Underemployed workers being counted an unemployed

Flag this Question

Question 71 pts

True or False. The Labor force participation rate is the percentage of adults in an economy who are either employed or who are unemployed and looking for a job.

True

False

Flag this Question

Question 81 pts

True or False. The Bureau of Labor Statistics reports the percentage of labor force unemployed utilizing the current population survey.

True

False

Flag this Question

Question 91 pts

Mark all that apply. Over time the unemployment rate.....

does not fluctuate over time

an upward or downward trend in unemployment rates is apparent

never falls all the way to zero

the timing of rises and falls in unemployment do not match the timing of upswings and downswings in the overall economy

Flag this Question

Question 101 pts

According to the graphs presented by the author in this chapter, which group had the highest unemployment rate in 2010?

Flag this Question

Question 111 pts

According to the information presented by the author in this chapter, which group had the highest unemployment rate in 2015?

New entrants

Re-entrants

Job Losers: non-temporary

Job Leavers

Job Losers: temporary

Flag this Question

Question 121 pts

According to the information presented by the author in this chapter, which group had the highest unemployment rate in 2015?

Flag this Question

Question 131 pts

True or False. An international comparison of unemployment rates across countries can be easily accomplished.

True

False

Flag this Question

Question 141 pts

Mark all that apply. Wages are sticky downward due to:

Implicit contract

Insider-outsider model

Efficiency Wage Theory

Adverse selection of wage cuts argument

Flag this Question

Question 151 pts

Match the word to the correct definition.

Cyclical

[ Choose ] unemployment that occurs as workers move between jobs unemployment that occurs because individuals lack skills valued by employers or the Geographic distribution of jobs changes unemployment closely tied to the business cycle, like higher unemployment during a recession

Frictional

Structural

Flag this Question

Question 161 pts

A financial analyst who quits his/her job in Chicago and is pursuing similar work in Arizona. What type of unemployment occurred?

Structural

Cyclical

Frictional

Flag this Question

Question 171 pts

True or False. With productivity low, average levels of unemployment will tend to be somewhat higher on average.

True

False

Flag this Question

Question 181 pts

True or False. Unemployment benefits in the United States are only federally controlled.

True

False

Flag this Question

Question 191 pts

True or False. The natural rate of unemployment will never be zero due to cyclical and frictional unemployment.

True

False

Flag this Question

Question 201 pts

True or False. Public policies to assist the unemployed as it relates to the supply side of the labor market affect how eager people are to find work

True

False

crimsoncrab890

1) The working-age population includes

A) those in jails and hospitals.

B) youngsters between the ages of 14 and 16 if they are working at least part time.

C) employed and unemployed people over the age of 16.

D) only employed people over the age of 16.

E) people over the age of 16 who are in the Army.

2) The labor force includes people who

i.are less than 16 years of age.

ii.are in institutions.

iii.are actively seeking a job but do not have a job.

A) i only

B) i and iii

C) i and ii

D) iii only

E) i , ii, and iii

3) Assume 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 size of the labor force?

A) 275 million

B) 141 million

C) 135 million

D) 210 million

E) 204 million

4) The unemployment rate is the number of people unemployed divided by the

A) population, then multiplied by 100.

B) labor force participation rate, then multiplied by the population.

C) labor force, then multiplied by 100.

D) number of people employed, then multiplied by 100.

E) working-age population, then multiplied by 100.

5) Suppose the population is 220 million people, the labor force is 150 million people, the number of people employed is 130 million, and the working-age population is 175 million people. What is the unemployment rate?

A) 9.0 percent

B) 13.3 percent

C) 11.4 percent

D) 15.4 percent

E) 20 percent

6) Suppose the working-age population is 220 million, the labor force is 150 million, and the unemployment rate is 10 percent. The number of unemployed people is

A) 15 million.

B) 22 million.

C) 37 million.

D) 7 million.

E) 70 million.

7) The labor force participation rate is the

A) labor force divided by the working-age population, then multiplied by 100.

B) number of people employed divided by the labor force, then multiplied by 100.

C) labor force divided by the population, then multiplied by 100.

D) discouraged workers divided by the labor force, then multiplied by 100.

E) number of people employed divided by the population, then multiplied by 100.

8) If the number of employed people is 150 million, the number of unemployed people is 50 million, and the working-age population equals 285 million people, the labor force participation rate is

A) 70.2 percent.

B) 81 percent.

C) 17.5 percent.

D) 25 percent.

E) 52.6 percent.

9) A discouraged worker is

A) a person who is not happy with his or her job.

B) someone who works part time but wants full-time work.

C) someone who is asked to work overtime everyday.

D) someone who does not have a job but has given up looking.

E) another name for an unemployed worker.

coppermarten219

1) The working-age population includes

A) those in jails and hospitals.

B) youngsters between the ages of 14 and 16 if they are working at least part time.

C) employed and unemployed people over the age of 16.

D) only employed people over the age of 16.

E) people over the age of 16 who are in the Army.

2) The labor force includes people who

i. are less than 16 years of age.

ii. are in institutions.

iii. are actively seeking a job but do not have a job.

A) i only

B) i and iii

C) i and ii

D) iii only

E) i , ii, and iii

3) Assume 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 size of the labor force?

A) 275 million

B) 141 million

C) 135 million

D) 210 million

E) 204 million

4) The unemployment rate is the number of people unemployed divided by the

A) population, then multiplied by 100.

B) labor force participation rate, then multiplied by the population.

C) labor force, then multiplied by 100.

D) number of people employed, then multiplied by 100.

E) working-age population, then multiplied by 100.

A) 9.0 percent

B) 13.3 percent

C) 11.4 percent

D) 15.4 percent

E) 20 percent

6) Suppose the working-age population is 220 million, the labor force is 150 million, and the unemployment rate is 10 percent. The number of unemployed people is

A) 15 million.

B) 22 million.

C) 37 million.

D) 7 million.

E) 70 million.

7) The labor force participation rate is the

A) labor force divided by the working-age population, then multiplied by 100.

B) number of people employed divided by the labor force, then multiplied by 100.

C) labor force divided by the population, then multiplied by 100.

D) discouraged workers divided by the labor force, then multiplied by 100.

E) number of people employed divided by the population, then multiplied by 100.

8) If the number of employed people is 150 million, the number of unemployed people is 50 million, and the working-age population equals 285 million people, the labor force participation rate is

A) 70.2 percent.

B) 81 percent.

C) 17.5 percent.

D) 25 percent.

E) 52.6 percent.

9) A discouraged worker is

A) a person who is not happy with his or her job.

B) someone who works part time but wants full-time work.

C) someone who is asked to work overtime everyday.

D) someone who does not have a job but has given up looking.

E) another name for an unemployed worker.

silvergnu415

ECON 1020H Chapter Notes - Chapter 8: Interest Rate, Underemployment, Ob River

Document Summary

Get access

Related Documents

ECON 1020H Chapter Notes - Chapter 16: Phillips Curve, Money Supply, Interest Rate

ECON 1020H Chapter Notes - Chapter 21: Labour Force Survey, Real Wages, Human Capital

ECON 1020H Lecture Notes - Lecture 4: Potential Output, Unemployment, Unemployment Benefits

Related Questions