TAMU ECON 203 EXAM 2 EXAM SCRIPT 2026
COMPREHENSIVE QUESTIONS AND
SOLUTIONS GRADED A+
◉ Working age population (calculation) Answer: Labor Force + Not
in the labor force
◉ Labor Force Answer: working-age people who are either
employed or unemployed
◉ Labor Force (calculation) Answer: employed + unemployed
◉ Employed Answer: 1)Everyone who during the week of survey
had worked at least
1 hour as paid employee
15 hours as unpaid employee in family business
2)Temporary absent (sick, vacation, maternity leave)
◉ the BLS defines Unemployment as Answer: persons aged 16 years
and older who had no employment during the reference (survey)
week
,were available for work, except for temporary illness
had made specific efforts to find employment sometime during the
4-week period ending with the reference week
◉ Unemployment Answer: a situation where someone wants to
work but cannot find a job in the current market.
◉ Not in the labor force Answer: people who do not have jobs and
who are not actively looking for work or are not available for work
homemakers
full-time students
retirees who choose not to work or cannot work
those who cannot work bc of disability
those who choose not to work
◉ Unemployment rate Answer: (number of unemployed/labor
force) x 100
◉ Labor-force participation rate (LFPR) Answer: indicates what
fraction of the population wants to be working, regardless of
whether or not they actually have a job
, ◉ Labor-force participation rate (LFPR) Answer: (labor
force/working-age population) x 100
◉ Marginally attached workers Answer: persons not in the labor
force who want and are available for work
who have looked for a job in the prior 12 months, but not in the 4
weeks preceding the survey.
(not counted in labor force)
◉ Discouraged workers Answer: persons not in the labor fore who
are not currently looking for a job because they believe there are no
jobs available to there are none for which they would qualify
◉ Underemployed workers Answer: people who are either working
less than they would like or in jobs below their skill level
◉ Unemployment occurs when: Answer: wage rate is higher then
the equilibrium wage
◉ Natural Unemployment Answer: unemployment that persists in
an economy in the long run
COMPREHENSIVE QUESTIONS AND
SOLUTIONS GRADED A+
◉ Working age population (calculation) Answer: Labor Force + Not
in the labor force
◉ Labor Force Answer: working-age people who are either
employed or unemployed
◉ Labor Force (calculation) Answer: employed + unemployed
◉ Employed Answer: 1)Everyone who during the week of survey
had worked at least
1 hour as paid employee
15 hours as unpaid employee in family business
2)Temporary absent (sick, vacation, maternity leave)
◉ the BLS defines Unemployment as Answer: persons aged 16 years
and older who had no employment during the reference (survey)
week
,were available for work, except for temporary illness
had made specific efforts to find employment sometime during the
4-week period ending with the reference week
◉ Unemployment Answer: a situation where someone wants to
work but cannot find a job in the current market.
◉ Not in the labor force Answer: people who do not have jobs and
who are not actively looking for work or are not available for work
homemakers
full-time students
retirees who choose not to work or cannot work
those who cannot work bc of disability
those who choose not to work
◉ Unemployment rate Answer: (number of unemployed/labor
force) x 100
◉ Labor-force participation rate (LFPR) Answer: indicates what
fraction of the population wants to be working, regardless of
whether or not they actually have a job
, ◉ Labor-force participation rate (LFPR) Answer: (labor
force/working-age population) x 100
◉ Marginally attached workers Answer: persons not in the labor
force who want and are available for work
who have looked for a job in the prior 12 months, but not in the 4
weeks preceding the survey.
(not counted in labor force)
◉ Discouraged workers Answer: persons not in the labor fore who
are not currently looking for a job because they believe there are no
jobs available to there are none for which they would qualify
◉ Underemployed workers Answer: people who are either working
less than they would like or in jobs below their skill level
◉ Unemployment occurs when: Answer: wage rate is higher then
the equilibrium wage
◉ Natural Unemployment Answer: unemployment that persists in
an economy in the long run
