ECON B-252 Exam 1 Questions and Answers Already Passed

ECON B-252 Exam 1 Questions and Answers Already Passed Unemployed - Answers total number of adults (aged 16 years or older) who are willing and able to work and who are actively looking for work (prior four weeks) but do not have a job What are the costs of unemployment? - Answers 1) Loss of output/ productivity 2) Personal psychological impact - Divorce - Health of children Approximately how many people are unemployed each month? - Answers 110,000 Types of labor populations - Answers 1) Adult population 2) underemployed Adult population - Answers nonmilitary and non-institutionalized individuals aged 16years or older What are the requirements for the adult population? - Answers 16 years or older -non instututionalized - not in a nursing home - not in jail - not in the military Labor force equation - Answers Labor Force = employed + unemployed Underemployed - Answers Individuals aged 16 years or older who are either unemployed, part-time workers or marginally attached to the labor force Marginally attached - Answers Adults who are available and want to work but have not looked for work in thelast four weeks are marginally attached workers --> not unemployed because they have not looked for work (not in labor force) discouraged workers - Answers Adults who are available and want to work but have not looked for work because they believe there are no jobs available What is the unemployment rate in the U.S? - Answers 4% Normally a ______ in unemployment rate means the labor market is doing _______ - Answers decrease, better Why does sometimes the unemployment rate fall for the wrong reason? - Answers ex: people entering or leaving the workforce --> disocuraged workers included in unemployment rate By finishing your degree you make much more and have a ____ unemployment rate - Answers lower Always be careful using averages, use ____ - Answers medians What are the unemployment issues? - Answers 1) Variation in gender, race, and sex 2) Misleading --> inclusion of discouraged workers or not Underemployment rate - Answers (underemployed/(labor force + marginally attached)) x 100 labor force participation rate (LFPR) - Answers labor force/adult population x 100 How can the LFPR be misleading as a health indicator for the economy? - Answers We are an aging population with lots of people entering retirement = LFPR getting smaller generally every year Generally a _____ in LFPR correlates to the labor market doing better - Answers Rise What is the prime working years - Answers 25 to 54 years old Employment population rate - Answers Employed/ Adult population x 100 Types of unemployment - Answers frictional, structural, cyclical, seasonal Frictional unemployment - Answers unemployment that occurs when people are looking for work or between jobs --> short term unemployment What type of unemployment is part of frictional unemployment? - Answers seasonal unemployment Seasonal unemployment - Answers Unemployed people due to seasonal changes in particular jobs or industries --> longterm unemployment --> Bad after recessions Structural unemployment - Answers unemployment that occurs when workers' skills do not match the jobs that are available ** Painful Experience** What are the key culprits of structural unemployment? - Answers Technology and trade When unemployment durations _____ for everyone, the unemployment rate rises - Answers rise What unemployment type is usually painful for the employee? - Answers Structural