Exam 10: Unemployment and Its Natural Rate

A survey showed that in each of the past 12 months there was one person who was unemployed who worked in all other months. There were also two people who were unemployed for all 12 months. What percentage of the unemployment spells during the year was short term, and what percentage of the unemployment in a given month was long term?

Who of the following are included in the Bureau of Labor Statistics' "employed" category?

When a minimum-wage law forces the wage to remain above the equilibrium level, it

The Bureau of Labor Statistics places people in the "employed" category if they

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is higher and the quantity demanded of labor is lower than at the equilibrium wage.

Unemployment numbers reported by the Bureau of Labor Statistics are reported based on a

The Bureau of Labor Statistics produces data on

Not all unemployment ends with the job seeker finding a job.

The Bureau of Labor Statistics reported in 2005 that there were 59.98 million people over age 25 whose highest level of education was a high school degree or equivalent, 36.40 million of whom were employed and 1.93 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group?

John is a stockbroker. He has had several job offers, but he has turned them down because he thinks he can find a firm that better matches his tastes and skills. Curtis has looked for work as an accountant for some time. While the demand for accountants does not appear to be falling, there seems to be more people applying than jobs available.

Christopher is an unpaid, stay-at-home father who works as a volunteer at the local Habitat for Humanity chapter. Currently, Christopher is not looking for a paid job. The Bureau of Labor Statistics counts Christopher as

The Bureau of Labor Statistics classifies people who would like to work but have given up looking for a job as

Within the U.S. population, teenagers ages 16-19) have lower rates of labor-force participation than adults of prime working age ages 25-54), regardless of race or gender.

Table 28-5 Labor Force Statistics by Age Suppose people in the adult population in a small country are classified based on their age. -Refer to Table 28-5. Suppose that the natural rate of unemployment is 5% for those under 55 and 3% for those 55 and older. The cyclical unemployment rate for those under 55 is

Which of the following is the correct formula for calculating the labor force participation rate?

The labor-force participation rate tells us the fraction of the population that has chosen to participate in the labor market.

The labor force minus the number of employed equals the number of unemployed.

Amy is working part-time. Tavaris is on temporary layoff. Who is included in the Bureau of Labor Statistics' "employed" category?

The natural rate of unemployment is any type of unemployment that does not go away on its own even in the long run.

The labor-force participation rate is computed as