Exam 28: Unemployment and Its Natural Rate

Table 28-5 2015 Labor Data for Tajnia Number of adults employed 10,000 Number of adults unemployed 2,250 Number of adults not in the labor force 17,750 -Refer to Table 28-5. The unemployment rate in Tajnia in 2015 is about 7.5 percent.

Most spells of unemployment are short, and most unemployment observed at any given time is short-term.

Unemployment insurance increases frictional unemployment.

Suppose that some country had an adult population of about 47 million, a labor-force participation rate of 123.4 percent, and an unemployment rate of 31.0 percent. How many people were unemployed?

An important determinant of a country's standard of living is the amount of __________ it typically experiences.

If all workers and all jobs were the same such that all workers were equally well suited for all jobs, then job search would not be a problem.

Policies that reduce the time it takes unemployed workers to find new jobs can reduce the economy's natural rate of unemployment.

Teenagers have more frequent unemployment spells and spend more time searching for jobs. Other thing the same, this means that teenagers have a

The theory of efficiency wages explains why

The rate of unemployment in a country is unrelated to its level of GDP.

What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages.

The labor force equals the

The BLS reports the U-6 measure of labor underutilization. Which of the following is how it computes U-6?

The Bureau of Labor Statistics' "employed" category includes those who worked as paid employees, worked in their own business, or worked as unpaid workers in a family member's business.

It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment.

Even though the difference in labor-force participation rates of U.S. males and females has narrowed, the labor-force participation rate of males remains higher than that of females.

Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate.

Which of the following is an example of an efficiency wage?

Public policy can reduce frictional unemployment.

One reason economies always experience some unemployment is job search.