ECON 200 Lecture Notes - Lecture 38: Efficiency Wage, Frictional Unemployment
ECON 200 Full Course Notes
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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Question 131 pts
True or False. An international comparison of unemployment rates across countries can be easily accomplished.
True |
False |
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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 |
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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
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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 |
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Question 171 pts
True or False. With productivity low, average levels of unemployment will tend to be somewhat higher on average.
True |
False |
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Question 181 pts
True or False. Unemployment benefits in the United States are only federally controlled.
True |
False |
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Question 191 pts
True or False. The natural rate of unemployment will never be zero due to cyclical and frictional unemployment.
True |
False |
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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 |
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