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
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
