EC 202 Lecture Notes - Lecture 2: Current Population Survey (Us), Environmental Quality, Three Steps

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yellowcamel892

30 May 2018

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Week 2

Lecture 3

● Types of Unemployment

○Frictional

■ The unemployment due to “normal” labor market turnover”

■ It always takes time to find a job after entering or reentering the labor

force

■ It takes time to hire workers

■ Things that affect frictional unemployment

● The internet, or any other informational things that reduce search

costs

● Unemployment benefits- may reduce the incentive to look for a job

or less likely to accept a low-paying job

● The rate at which people enter the labor force

○Structural

■ Unemployment that occurs due to changes in economy that change the

skill requirement to perform jobs or change the location of the job

■ Things that affect structural unemployment

● Job training program

● Things that help individuals relocate to where jobs are

● Things that incentivize people to acquire more education

- Altough unemployment is different for who are unemployed, the things that cause

frictional/structural unemployment are good

- They are a result of our economy growing and innovating

○ Cyclical

■ Created by business cycles

■ Increases during recessions and decreases during expansion

● Chapter 8 - The Price Level and Inflation

○Price level

● Chapter 6

○GDP per capita

■ Real GDP takes inflation into account

■ However, real GDP does not take population into account

● If two countries have the same real GDP, but one country has a

higher population it must have a lower standard of living than the

other country

■ Per capita GDP accounts for population

■ Real GDP per capita = real GDP/population

● Gives us the best idea of a country’s standard of living

○Growth Rate of GDP

■ We often want to know not only what a country’s GDP is but also its

growth rate

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Document Summary

The unemployment due to normal labor market turnover . It always takes time to find a job after entering or reentering the labor force. The internet, or any other informational things that reduce search costs. Unemployment benefits- may reduce the incentive to look for a job or less likely to accept a low-paying job. The rate at which people enter the labor force. Unemployment that occurs due to changes in economy that change the skill requirement to perform jobs or change the location of the job. Things that help individuals relocate to where jobs are. Things that incentivize people to acquire more education. Altough unemployment is different for who are unemployed, the things that cause frictional/structural unemployment are good. They are a result of our economy growing and innovating. Increases during recessions and decreases during expansion. Chapter 8 - the price level and inflation. However, real gdp does not take population into account.

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

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?

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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?

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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

Structural

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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

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

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EC 202 Lecture Notes - Lecture 2: Current Population Survey (Us), Environmental Quality, Three Steps

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