SURVEY OF ECONOMICS CERTIFICATION
EVALUATION EXAMS SET FULL QUESTIONS
AND COMPLETE SOLUTION
●● unemployed
Answer: doesn't work but has searched for work within the past 4 weeks
●● not in labor force
Answer: have no job and not searching for a job
●● labor force
Answer: all potential workers, working and not working
●● unemployment rate
Answer: unemployed/labor force x 100 (U)
●● Labor force participation rate
Answer: % of the adult population in the labor force
●● natural rate of unemployment
Answer: nominal rate of unemployment around which the actual
unemployment rate fluctuates; made up of frictional and structural U
,●● frictional unemployment
Answer: unemployment that occurs when people take time to find a job;
short-term for most workers
●● Unemployment Insurance (UI)
Answer: a government program that partially protects workers' incomes
when they become unemployed
●● Cost of UI
Answer: increase in frictional unemployment
●● structural unemployment
Answer: unemployment that occurs when workers' skills do not match
the jobs that are available
●● unions
Answer: A worker association that bargains with employers over wages,
benefits, and working conditions
●● collective bargaining
Answer: negotiations between unions and employers over wages,
benefits, and working conditions
, ●● efficiency wage theory
Answer: firms voluntarily pay above equilibrium wages to boost worker
productivity
●● marginally attached workers
Answer: someone that is neither working nor looking for work but have
looked for work in the past 12 months
●● discouraged workers
Answer: would like to work but gave up looking; classified as not in the
labor force
●● under employment
Answer: people working below their skill level
●● cyclical unemployment
Answer: the deviation of unemployment from its natural rate; associated
with business cycles and deficient demand
●● employment situation summary
Answer: summary of:
- employment status
EVALUATION EXAMS SET FULL QUESTIONS
AND COMPLETE SOLUTION
●● unemployed
Answer: doesn't work but has searched for work within the past 4 weeks
●● not in labor force
Answer: have no job and not searching for a job
●● labor force
Answer: all potential workers, working and not working
●● unemployment rate
Answer: unemployed/labor force x 100 (U)
●● Labor force participation rate
Answer: % of the adult population in the labor force
●● natural rate of unemployment
Answer: nominal rate of unemployment around which the actual
unemployment rate fluctuates; made up of frictional and structural U
,●● frictional unemployment
Answer: unemployment that occurs when people take time to find a job;
short-term for most workers
●● Unemployment Insurance (UI)
Answer: a government program that partially protects workers' incomes
when they become unemployed
●● Cost of UI
Answer: increase in frictional unemployment
●● structural unemployment
Answer: unemployment that occurs when workers' skills do not match
the jobs that are available
●● unions
Answer: A worker association that bargains with employers over wages,
benefits, and working conditions
●● collective bargaining
Answer: negotiations between unions and employers over wages,
benefits, and working conditions
, ●● efficiency wage theory
Answer: firms voluntarily pay above equilibrium wages to boost worker
productivity
●● marginally attached workers
Answer: someone that is neither working nor looking for work but have
looked for work in the past 12 months
●● discouraged workers
Answer: would like to work but gave up looking; classified as not in the
labor force
●● under employment
Answer: people working below their skill level
●● cyclical unemployment
Answer: the deviation of unemployment from its natural rate; associated
with business cycles and deficient demand
●● employment situation summary
Answer: summary of:
- employment status
