ECON 705 LSUS EXAM 3 2026 PRACTICE TEST
QUESTIONS AND DETAILED ECONOMIC
ANALYSIS BREAKDOWN FULL REVIEW
◉ Unemployment Insurance (UI). Answer: a government program
that partially protects workers' incomes when they become
unemployed
◉ Cost of UI. Answer: increase in frictional unemployment
◉ structural unemployment. Answer: unemployment that occurs
when workers' skills do not match the jobs that are available
◉ unions. Answer: A worker association that bargains with
employers over wages, benefits, and working conditions
◉ collective bargaining. Answer: negotiations between unions and
employers over wages, benefits, and working conditions
◉ efficiency wage theory. Answer: firms voluntarily pay above
equilibrium wages to boost worker productivity
, ◉ marginally attached workers. Answer: someone that is neither
working nor looking for work but have looked for work in the past
12 months
◉ discouraged workers. Answer: would like to work but gave up
looking; classified as not in the labor force
◉ under employment. Answer: people working below their skill
level
◉ cyclical unemployment. Answer: the deviation of unemployment
from its natural rate; associated with business cycles and deficient
demand
◉ employment situation summary. Answer: summary of:
- employment status
- unemployment rate
- reason for unemployment
- duration of unemployment
- % of workers that are part time
- persons not in labor force
◉ table A. Answer: employment situation summary table
QUESTIONS AND DETAILED ECONOMIC
ANALYSIS BREAKDOWN FULL REVIEW
◉ Unemployment Insurance (UI). Answer: a government program
that partially protects workers' incomes when they become
unemployed
◉ Cost of UI. Answer: increase in frictional unemployment
◉ structural unemployment. Answer: unemployment that occurs
when workers' skills do not match the jobs that are available
◉ unions. Answer: A worker association that bargains with
employers over wages, benefits, and working conditions
◉ collective bargaining. Answer: negotiations between unions and
employers over wages, benefits, and working conditions
◉ efficiency wage theory. Answer: firms voluntarily pay above
equilibrium wages to boost worker productivity
, ◉ marginally attached workers. Answer: someone that is neither
working nor looking for work but have looked for work in the past
12 months
◉ discouraged workers. Answer: would like to work but gave up
looking; classified as not in the labor force
◉ under employment. Answer: people working below their skill
level
◉ cyclical unemployment. Answer: the deviation of unemployment
from its natural rate; associated with business cycles and deficient
demand
◉ employment situation summary. Answer: summary of:
- employment status
- unemployment rate
- reason for unemployment
- duration of unemployment
- % of workers that are part time
- persons not in labor force
◉ table A. Answer: employment situation summary table
