Podcast
Questions and Answers
What occurs when the economy is at full employment?
What occurs when the economy is at full employment?
Why might a college student apply for graduate school during a recession?
Why might a college student apply for graduate school during a recession?
The probability of finding a job is higher during economic expansion and lower during recession.
President Obama was referring to the slow job growth in the economy in 2011.
President Obama was referring to the slow job growth in the economy in 2011.
True
What is the natural rate of unemployment composed of?
What is the natural rate of unemployment composed of?
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When the economy is at full employment, unemployment is equal to?
When the economy is at full employment, unemployment is equal to?
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Economists define full employment as having an unemployment rate equal to zero.
Economists define full employment as having an unemployment rate equal to zero.
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How is the labor force participation rate calculated?
How is the labor force participation rate calculated?
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People are said to be frictionally unemployed when they are between jobs and searching for new jobs.
People are said to be frictionally unemployed when they are between jobs and searching for new jobs.
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In the journal article, what did the author find regarding job applications with white names?
In the journal article, what did the author find regarding job applications with white names?
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Which of the following is an example of structural unemployment?
Which of the following is an example of structural unemployment?
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What is the best classification of Sally J's unemployment status after losing her job as an underwater welder?
What is the best classification of Sally J's unemployment status after losing her job as an underwater welder?
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What classification applies to Rusty, who remained unemployed after losing his job at a delivery truck mechanic during a recession?
What classification applies to Rusty, who remained unemployed after losing his job at a delivery truck mechanic during a recession?
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What are the three types of unemployment?
What are the three types of unemployment?
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What does the employment population ratio measure?
What does the employment population ratio measure?
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When an unemployed person drops out of the labor force, what happens to the unemployment rate?
When an unemployed person drops out of the labor force, what happens to the unemployment rate?
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When an unemployed person drops out of the labor force, it affects the employment-population ratio.
When an unemployed person drops out of the labor force, it affects the employment-population ratio.
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What is a person called who is in between jobs but actively engaged in a job search?
What is a person called who is in between jobs but actively engaged in a job search?
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Experts in hand-drawn animation who remain unemployed due to the film industry's switch to computer-generated animation are considered to be?
Experts in hand-drawn animation who remain unemployed due to the film industry's switch to computer-generated animation are considered to be?
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What are employees considered when a company reduces production and employment during a recession?
What are employees considered when a company reduces production and employment during a recession?
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Why might the unemployment rate not fall when the number of people employed increases?
Why might the unemployment rate not fall when the number of people employed increases?
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How does the BLS calculate the unemployment rate?
How does the BLS calculate the unemployment rate?
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What relevant issue is ignored if Bob Wesley advocates for eliminating structural unemployment for a healthy economy?
What relevant issue is ignored if Bob Wesley advocates for eliminating structural unemployment for a healthy economy?
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During a recession, a person would prefer to work in an industry that produces?
During a recession, a person would prefer to work in an industry that produces?
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During an economic expansion, a person would prefer to work in an industry that produces?
During an economic expansion, a person would prefer to work in an industry that produces?
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Black teenagers have lower unemployment rates than white teenagers.
Black teenagers have lower unemployment rates than white teenagers.
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How does the US economy create and destroy millions of jobs each year?
How does the US economy create and destroy millions of jobs each year?
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Which of the following is an example of cyclical unemployment?
Which of the following is an example of cyclical unemployment?
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What is the best classification status for John Q, who spends the day searching for a job?
What is the best classification status for John Q, who spends the day searching for a job?
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In 2009, the ratio of women's earnings to men's was unequivocal evidence of gender discrimination.
In 2009, the ratio of women's earnings to men's was unequivocal evidence of gender discrimination.
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While studies find evidence of gender discrimination, the gender wage gap is also explained in part by women's lower level of work experience, relative to men's.
While studies find evidence of gender discrimination, the gender wage gap is also explained in part by women's lower level of work experience, relative to men's.
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Study Notes
Unemployment Concepts
- The economy at full employment is characterized by a natural rate of unemployment, with residual unemployment being frictional or structural.
- Full employment does not mean a zero unemployment rate; only cyclical unemployment is zero during this phase.
- Frictional unemployment occurs when individuals are temporarily between jobs and actively seeking new employment.
Types of Unemployment
- Types of unemployment include Frictional, Structural, and Cyclical.
- Structural unemployment results from changes in industry needs, such as technological advancements leading to job obsolescence.
- Cyclical unemployment is tied to economic downturns, where workers are laid off due to reduced production.
Measuring Employment
- Labor force participation rate is determined by the formula: (Labor force / Working age population) x 100.
- The employment-population ratio reflects the percentage of the working age population that is employed.
- The unemployment rate is calculated using the formula: (Number of employed / Number in labor force) x 100.
Job Market Dynamics
- Macro conditions influence job market decisions; graduates may seek further education during recessions due to lower job availability.
- Despite creating jobs, slow job growth can still signal economic challenges, as noted in historical contexts like 2011.
Labor Market Disparities
- Studies show discrimination in the hiring process; job applications with traditionally white names receive more callbacks compared to those with African-American names.
- Gender wage gap exists, attributed in part to disparities in work experience, alongside other factors like discrimination.
Economic Behavior During Recessions and Expansions
- Individuals prefer to work in industries producing inferior goods during recessions, while normal goods are favored during economic expansions.
- Job creation and destruction are constant in the economy, driven by business dynamics such as expansion and contraction.
Special Cases of Unemployment
- Situations like someone attending school after job loss classify the individual as structurally unemployed if the previous job becomes obsolete.
- An unemployed person dropping out of the labor force can understate true joblessness but does not affect employment-population ratios.
Employment Status Examples
- Frictional unemployment applies to someone actively searching for jobs, while cyclical unemployment applies during layoffs due to economic downturns.
- Bob Wesley's argument against structural unemployment overlooks its role in fostering innovation within the economy.
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Description
Explore the intricate concepts of unemployment, including frictional, structural, and cyclical types. Understand how full employment is characterized and learn about key measures used in assessing employment. This quiz will help solidify your knowledge of unemployment in the economy.
