Chapter 10

Question 1

Discouraged Workers

Answer 1

people who have looked for a job in the previous 12 months but have given up because they do not think there is any available

Question 2

Frictional Unemployment

Answer 2

normal workings of the labor force with people changing jobs and entering work force with skills that will yield a job

Question 3

Structural Unemployment

Answer 3

changes in the labor force that make some jobs useless

Question 4

Cycical Unemployment

Answer 4

arises due to contractions that occur during business cycle

Question 5

Full Unemployment

Answer 5

exists when there is no cycical unemployment

Question 6

Value Marginal Product

Answer 6

marginal product of worker * price of output

Question 7

VMP is the demand for…

Answer 7

Labor

Question 8

What direction does the VMP go?

Answer 8

Slopes downward

Question 9

Human Capital Theory

Answer 9

Education and training improve human capital, raising demand for individual’s labor

Question 10

Screening Theory

Answer 10

determines which employees will be good based off education and training

Question 11

Make Work Fallacy

Answer 11

jobs have value, regardless of whether the labor creates value

Question 12

Unemployment Rate

Answer 12

unemployed/ civilian labor force

Question 13

Civilan Non-Insitutional Population (CNIP)

Answer 13

members of the population that are 16+, not in the military, and not institutionalized

Question 14

You can be in the CNIP, but not in the labor force if…

Answer 14

retired people, stay at home parents, homeless people, bums, teens and college students who choose not to work

Question 15

Labor Force Participation Rate

Answer 15

those interested in having a job

Question 16

Unemployed Workers

Answer 16

Everyone who was not employed, but made specific, active efforts to find a job in the previous four weeks