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Flashcards in Chapter 20 Deck (22)
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1
Q

Who measures unemployment?

A

The Bureau of Labor Statistics (BLS)

2
Q

How often does the BLS measure unemployment?

A

Every month

3
Q

Employed

A
  • Ppl who worked as paid employees
  • worked in their own business
  • worked as unpaid workers in a family member’s business
  • full and part time
  • Also includes those who are not working but had jobs from which they were temporarily absent because of vacation, illness, bad weather etc.
4
Q

Unemployed

A
  • Not employed and were available for work and had tried to find employment during the previous four weeks
  • Those waiting to be recalled to a job where they were laid off
5
Q

Not in the labor force

A

Those who don’t fit either of the first two categories, such as full-time students, homemakers, and retirees

6
Q

Labor force

A

the sum of the employed and the unemployed

7
Q

Labor force formula

A

Labor force=number of employed+ number of unemployed

8
Q

Unemployment rate

A

the percentage of the labor force that is unemployed

9
Q

Unemployment rate formula

A

Unemployment rate=number of unemployed/labor force X 100

10
Q

Labor-force participation rate

A

the percentage of the total adult population of the U.S. that is in the labor force

11
Q

Labor-force participation rate formula

A

Labor-force participation rate=labor force/adult population X 100

12
Q

Marginally attached workers

A

persons who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past

13
Q

Discouraged workers

A

are marginally attached workers who have given a job-market-related reason for not currently looking for a job

14
Q

Persons employed part-time for economic reasons

A

those who wants and are available for full-time work but have had to settle for a part-time schedule

15
Q

Frictional unemployment

A

unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills

16
Q

Structural unemployment

A

unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one

17
Q

Unemployment insurance

A

a government program that partially protects workers’ incomes when they become unemployed (the unemployed who quit their jobs, were fired for cause, or just entered the labor force are not eligible)

18
Q

A union

A

a worker association that bargains with employers over wages, benefits, and working conditions

19
Q

Collective bargaining

A

the process by which unions and firms agree on the terms of employment

20
Q

Right-to-work laws

A

laws that bar a union and employer from requiring workers to financially support the union

21
Q

Efficiency wages

A

above-equilibrium wages paid by firms to increase worker productivity

22
Q

4 reasons for unemployment

A
  1. frictional-it takes time for workers to search for jobs that best suit their tastes and skills
  2. minimum-wage laws
  3. market power of unions
  4. theory of efficiency-firms find it profitable to pay wages above the equilibrium level