TAMU Econ 203- Edwardson Exam 2 questions with correct answers

What is the labor force? CORRECT ANSWER the sum of employed and unemployed workers in the economy; it includes adult (16+) non-institutional civilian population What does "not in the labor force" mean? CORRECT ANSWER they currently do not have a job and they are not currently actively looking for a job what are the to kinds of people included in the labor force? CORRECT ANSWER unemployed and employed what does it mean to be unemployed CORRECT ANSWER someone who is not working but is currently actively searching for work in the past 4 weeks What is the unemployment rate? CORRECT ANSWER the percentage of the labor force that is unemployed what is the "natural rate" of unemployment? CORRECT ANSWER the unemployment rate that occurs when cyclical unemployment is equal to 0 what are the different types of unemployment? CORRECT ANSWER frictional, seasonal, structural, cyclical What is frictional unemployment? CORRECT ANSWER unemployment due to workers transitioning between jobs or just entering the labor force; this kind of unemployment will always exist