Exam 15: Unemployment: Part B

Unions are often thought to cause conflict between different groups of workers -- between the insiders who benefit from high union wages and the outsiders who do not get the union jobs.

The deviation of unemployment from its natural rate is called cyclical unemployment.

Within the U.S.population,teenagers (ages 16-19)have higher rates of unemployment than adults of prime working age (ages 25-54),regardless of race or gender.

The labor-force participation rate equals the percentage of the total adult population that is in the labor force.

The unemployment that results from the quantity of labor supplied exceeding the quantity demanded is called frictional unemployment.

Measuring unemployment is the job of the Bureau of Labor Statistics.

If the number of people employed rises by 180,000 and the number of people unemployed falls by 200,000 while the adult population stays the same,then the labor force participation rate rises.

The Bureau of Labor Statistics produces data on unemployment based on the number of people collecting unemployment insurance.

The Bureau of Labor Statistics' household survey and establishment survey both yield the same results about total employment.

The destruction of manufacturing jobs and workers leaving their jobs to find better ones both contribute to structural unemployment.

An American worker who becomes unemployed typically receives 100% of her former salary during the first six months she is unemployed.

Most economists agree that eliminating unemployment insurance would increase the nation's overall level of well-being.

The Bureau of Labor Statistics computes unemployment rates for the entire adult population and for groups based on age,gender,and race.

The adult population must equal the sum of the employed,the unemployed,and those not in the labor force.

The Bureau of Labor Statistics' "unemployed" category includes those who were not employed,were available for work,and had tried to find employment during the previous four weeks.

Studies have shown that the design of the unemployment insurance system reduces the job search effort of the unemployed.

When unions raise wages in one part of the economy,the supply of labor increases in other parts of the economy,which reduces wages in industries that are not unionized.

There are always some workers without jobs,even when the overall economy is doing well.

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

Employment can rise in one region of the country while it falls in another.