Chapter 15 Vocab Flashcards
(14 cards)
What is unemployment rate?
The percentage of the labor force that is unemployed
What is collective bargaining?
The process by which unions and firms agree on the terms of employment
What is labor force?
The total number of workers, including both the employed and the unemployed
Structural unemployment
Unemployment that results because the number of jobs available in some labor markets is insufficient isn’t to provide a job for everyone who wants one
What is a job search?
The process by which workers find appropriate jobs given their tastes and skills
What is frictional unemployment?
Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills
What is cyclical unemployment?
The deviation of unemployment from its natural rate
What is an efficiency wage?
Above equilibrium wages paid by firms to increase worker productivity
What is the labor force participation rate?
The percentage of the adult population that is in the labor force
What is a union?
A worker association that bargains with employers over wages, benefits, and working conditions
What is a strike?
The organized withdrawal of labor from a firm by a union
What are discouraged workers?
Individuals who would like to work but have given up looking for a job
What is the natural rate of unemployment?
The normal rate of unemployment around which the unemployment rate fluctuates
What is unemployment insurance?
A government program that partially protects workers’ incomes when they become unemployed
