ECN 211 MIDTERM 2026 FINAL PAPER SOLVED ITEMS ACCURATE MARKING

ECN 211 MIDTERM 2026 FINAL PAPER SOLVED
ITEMS ACCURATE MARKING

◉ Underemployment. Answer: Someone who is employed at a level
that is below skill set. Employed part time that wants full time


◉ Marginally Attached Workers. Answer: Has not looked for work
within past 4 weeks but has searched for work within past 12
months


◉ Different types of Unemployment rates. Answer: Natural Rate
Cyclical
Structural
Frictional


◉ Natural rate of unemployment. Answer: normal rate of
unemployment around which the unemployment rate fluctuates


◉ Cyclical unemployment. Answer: Deviation of unemployment
from its natural rate


◉ Structural unemployment. Answer: Unemployment due to market
not being able to supply as many jobs as demanded

, ◉ Frictional unemployment. Answer: A result of workers taking
time to search for jobs that best suit their tastes/skills


◉ Factors that influence Natural rate. Answer: Sector Shifts in
economy
Unemployment Insurance
Internet
Government job programs
Minimum wage laws
Labor Unions


◉ Sector shifts in economy. Answer: New products, preferences
shift, and international trade


◉ Unemployment Insurance. Answer: Decreases incentive to get a
job and provides safety net


◉ Internet. Answer: Allows jobs to be fond quickly


◉ Minimum wage laws. Answer: If minimum is too high,
unemployment can result from employers not wanting to hire.
Results in higher unemployment for teenagers