ECON 1500 Exam 2 questions and answers
2024\2025 A+ Grade
classical economics
- correct answer -focus on the long-run
-focus on trends
-focus on supply and productivity
-don't care about demand
-say's law (supply creates its own demand)
-labor markets are the same as wheat markets
-laissez faire
Keynesian economics
- correct answer -focus on short-run
-demand matters
-focus on up and down movement not trends
-the labor market is not like the wheat market
-unemployment is a problem
-laissez fair won't always work
-big government can help
employed
- correct answer you want a job and you have a job
unemployed
- correct answer -you want a job but you don't have a job
-you are in the labor force (aka you are an adult and you want a job)
, structural unemployment
- correct answer wrong skills
frictional unemployment
- correct answer matching time, waiting time
cyclical unemployment
- correct answer happens because of recessions
natural types of unemployment
- correct answer -structural
-frictional
target unemployment
- correct answer structural + frictional
unemployment rate
- correct answer unemployed/labor force
labor force
- correct answer employed + unemployed
labor force participation rate
- correct answer labor force / population (or # in chosen demographic group)
stock
- correct answer a given amount at a fixed point in time
flow
- correct answer a given amount over a period of time
2024\2025 A+ Grade
classical economics
- correct answer -focus on the long-run
-focus on trends
-focus on supply and productivity
-don't care about demand
-say's law (supply creates its own demand)
-labor markets are the same as wheat markets
-laissez faire
Keynesian economics
- correct answer -focus on short-run
-demand matters
-focus on up and down movement not trends
-the labor market is not like the wheat market
-unemployment is a problem
-laissez fair won't always work
-big government can help
employed
- correct answer you want a job and you have a job
unemployed
- correct answer -you want a job but you don't have a job
-you are in the labor force (aka you are an adult and you want a job)
, structural unemployment
- correct answer wrong skills
frictional unemployment
- correct answer matching time, waiting time
cyclical unemployment
- correct answer happens because of recessions
natural types of unemployment
- correct answer -structural
-frictional
target unemployment
- correct answer structural + frictional
unemployment rate
- correct answer unemployed/labor force
labor force
- correct answer employed + unemployed
labor force participation rate
- correct answer labor force / population (or # in chosen demographic group)
stock
- correct answer a given amount at a fixed point in time
flow
- correct answer a given amount over a period of time
