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BUS400 Lecture Notes - Lecture 6: Unemployment, Frictional Unemployment, Technological Unemployment

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greenmuskrat329
11 Mar 2019
School
Seneca College
Department
BUS
Course
BUS400
Professor
Sandra Wellman

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Document Summary

Unemployment: unemployment: a situation in which workers who are, full employment does not mean all workers are willing and able to work can"t find jobs. employed. Types of unemployment: cyclical unemployment: due to decreases in aggregate, full employment: when there is no cyclical unemployment expenditures. The measurement of unemployment: the rate of unemployment: the number of people unemployed expressed as a percentage of the labour force. The official statistics do not accurately indicate unemployment or underemployment. The measurement of unemployment plus the number of people unemployed (un): labour force (lf): the number people employed (em, lf = em + un, unemployment rate (ur) is, ur = (un/lf)*100. The measurement of unemployment: the participation rate: the labour force expressed as a percentage of the adult population. Measuring unemployment overqualified for their jobs or work fewer hours than they would like to: discouraged workers: workers who have given up looking for work.

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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.

 

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?

  Hispanic
  Black
  Asian
  Whites

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?

  5 to 14 weeks
  Over 27 weeks
  15-26 weeks
  Under 5 weeks

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

[ 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

Structural

[ 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

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

1. Classify each of the types of unemployment described below as frictional, structural, or cyclical. Give a brief explanation of your characterization.

a) With the overall national unemployment rate at under 4%, hundreds of laid-off computer programmers cannot find new programming jobs.

b) A rise in oil prices brought about by a crisis in the Persian Gulf raises costs of production and reduces profits of U.S. manufactures and other firms which use inputs made from imported oil. The ensuing decline in business investment results in a recession, raising the unemployment rate from 4.5% to 9.5% over 18 months.

c)With the Massachusetts economy expanding and the Commonwealth's unemployment rate down to 2.5%, the state's only auto plant shuts down, idling 1,000 workers in Framingham. These workers had been employed at the plant for an average of 20 years, and as a result, had developed specialized skills which cannot readily be transferred to other occupations and industries.

2.Suppose, in April the number of employed stood at 137.7 million while the number of unemployed stood at 8.8 million. What was the unemployment rate in April?

3. In June there are 30,000 people classified as unemployed and the size of the labour force is 600,000. The only change between June and July is that 10,000 people give up looking for work. Compute the unemployment rate in July.