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Economists define the unemployed as individuals who are
Economists define the unemployed as individuals who are
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- not currently working.
- not currently working but are actively looking for work. (correct)
- working but looking for a different job.
- working less than their desired amount of time.
- none of the above.
The unemployment rate is the number of unemployed people
The unemployment rate is the number of unemployed people
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- divided by the number of people who are working.
- divided by the total working-age population. (correct)
- divided by the sum of the number of people who are working and the number of people who are looking for work.
- and the number of people working fewer than their desired number of hours, divided by the number of people who are working or looking for work.
- none of the above.
For the purpose of statistically reporting the unemployment rate, "discouraged workers" are
For the purpose of statistically reporting the unemployment rate, "discouraged workers" are
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- counted.
- not counted. (correct)
- offered other jobs.
- trained to do different work.
- none of the above
In December 2008, the U.S. labor force consisted of 154,447,000 employed and 11,100,000 unemployed. The U.S. unemployment rate for December 2008 was about
In December 2008, the U.S. labor force consisted of 154,447,000 employed and 11,100,000 unemployed. The U.S. unemployment rate for December 2008 was about
Customer service representatives who have lost their jobs as a result of call centers being outsourced to India are an example of
Customer service representatives who have lost their jobs as a result of call centers being outsourced to India are an example of
Unemployment occurs due to a mismatch between the jobs that are available and the skills of workers seeking jobs.
Unemployment occurs due to a mismatch between the jobs that are available and the skills of workers seeking jobs.
When displaced workers require retraining before entering the labor force again, it is the result of unemployment.
When displaced workers require retraining before entering the labor force again, it is the result of unemployment.
In periods when GDP fails to grow at its normal rate, the actual unemployment rate will be _____ than the natural rate of unemployment.
In periods when GDP fails to grow at its normal rate, the actual unemployment rate will be _____ than the natural rate of unemployment.
Actual unemployment can exceed the natural rate of unemployment due to
Actual unemployment can exceed the natural rate of unemployment due to
The consumer Price Index (CPI) relies on the calculation of
The consumer Price Index (CPI) relies on the calculation of
Cost-of-living adjustments are
Cost-of-living adjustments are
Union contracts with built-in cost-of-living adjustments and home mortgages that vary with the rate of inflation are:
Union contracts with built-in cost-of-living adjustments and home mortgages that vary with the rate of inflation are:
Price indexes like the CPI are calculated using a base year. The term base year refers to:
Price indexes like the CPI are calculated using a base year. The term base year refers to:
Suppose the consumer price index (CPI) stands at 250 this year. If the inflation rate is 10 per cent, then next year's CPI will equal:
Suppose the consumer price index (CPI) stands at 250 this year. If the inflation rate is 10 per cent, then next year's CPI will equal:
Consider an economy with only two goods: bread and wine. In 1982, the typical family bought 4 loaves of bread at 50c per loaf and 2 bottles of wine for $9 per bottle. In Year X, bread cost 75c per loaf and wine cost $10 per bottle. The CPI for Year X (using a 1982 base year) is:
Consider an economy with only two goods: bread and wine. In 1982, the typical family bought 4 loaves of bread at 50c per loaf and 2 bottles of wine for $9 per bottle. In Year X, bread cost 75c per loaf and wine cost $10 per bottle. The CPI for Year X (using a 1982 base year) is:
Suppose we shopped for a basket of goods in Year 1 and it cost $350. Suppose the same basket of goods adds up to $385 in year 2. If we use Year 1 as a base year, what would be the Year 2 CPI.
Suppose we shopped for a basket of goods in Year 1 and it cost $350. Suppose the same basket of goods adds up to $385 in year 2. If we use Year 1 as a base year, what would be the Year 2 CPI.
Deflation:
Deflation:
Disinflation means a decrease in:
Disinflation means a decrease in:
Which the following statements would come from someone classified as unemployed?
Which the following statements would come from someone classified as unemployed?
Brian Vargo, an auto repair mechanic who remains unemployed because he refuses to work for less than $1,000 an hour, is:
Brian Vargo, an auto repair mechanic who remains unemployed because he refuses to work for less than $1,000 an hour, is:
Flashcards
Unemployed individuals
Unemployed individuals
Individuals not currently working but actively seeking employment.
Unemployment rate calculation
Unemployment rate calculation
The number of unemployed divided by the total labor force (employed + unemployed).
Discouraged workers
Discouraged workers
Individuals who aren't counted as unemployed because they have stopped looking for work.
U.S. unemployment rate (Dec 2008)
U.S. unemployment rate (Dec 2008)
Approximately 6.3% in December 2008.
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Structural unemployment
Structural unemployment
Unemployment caused by a mismatch between available jobs and worker skills.
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Cyclical unemployment
Cyclical unemployment
Unemployment related to economic downturns or recessions.
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Frictional unemployment
Frictional unemployment
Temporary unemployment experienced while workers transition between jobs.
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Natural rate of unemployment
Natural rate of unemployment
The normal unemployment rate in a healthy economy.
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Consumer Price Index (CPI)
Consumer Price Index (CPI)
A measure of inflation based on a fixed basket of goods.
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Cost-of-living adjustments (COLAs)
Cost-of-living adjustments (COLAs)
Automatic wage increases based on inflation (CPI).
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Base year (CPI)
Base year (CPI)
Reference year used to calculate price indexes like the CPI.
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CPI calculation (inflation)
CPI calculation (inflation)
If inflation is 10%, next year's CPI is 10% higher than current.
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Practice Quiz-2: Key Concepts
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Unemployment Definition: Economists define the unemployed as individuals not currently working but actively seeking employment.
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Unemployment Rate Calculation: The unemployment rate measures the percentage of the working-age population who are unemployed and actively seeking employment. It's calculated by dividing the number of unemployed individuals by the total working-age population. Alternatively, it can be calculated by dividing the number of unemployed individuals by the sum of those who are employed and those actively seeking employment.
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Discouraged Workers: For unemployment rate calculations, discouraged workers are not counted. Discouraged workers are those who have stopped looking for work because they believe no jobs are available.
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Types of Unemployment: Different types of unemployment exist, including structural, cyclical, and frictional unemployment. Structural unemployment occurs when skills don't match available jobs. Cyclical unemployment follows the business cycle, rising during recessions and decreasing during expansions. Frictional unemployment is temporary and occurs when workers are between jobs.
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GDP and Unemployment: In periods when GDP growth is slower than usual, the actual unemployment rate is typically higher than the natural rate.
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Consumer Price Index (CPI): The CPI measures the average change over time in the prices paid by urban consumers for a basket of consumer goods and services. It uses a fixed or variable basket of goods and services, and calculates the change in their prices.
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Cost-of-Living Adjustments (COLAs): COLAs are automatic wage increases tied to changes in the CPI, often included in union contracts.
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Base Year: When calculating price indexes, the base year is a reference point for comparing changes in prices over time.
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Inflation Rate: This is the percentage rate of change in the general level of prices in an economy over a period of time. Inflation measures the increase in price of goods/services over time.
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Disinflation: A decrease in the rate of inflation, meaning prices are increasing at a slower rate.
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Unemployment Examples: Individuals who refuse jobs below a certain wage or are between jobs are examples of frictional unemployment and underemployment respectively.
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