Problem Of Unemployment

Question 1

Job loss results in loss of ______-_______.

Answer 1

Self-worth

Question 2

Producing at less than full production or under the production possibilities curve is critical for _______ resource.

Answer 2

Labor

Question 3

What year was the Employment Act passed stating we must establish a full employment objective?

Answer 3

1946

Question 4

In the US we calculate unemployment by starting with the population over ____ years old then determine how many of those people are working or trying to find work.

Answer 4

15

Question 5

What is the participation rate in the US?

Answer 5

63%

Question 6

Population x Participation Rate = ________ ________.

Answer 6

Labor Force

Question 7

To be in the labor force a person must have a job or be “_________ _________” work and be over the age of 15.

Answer 7

Actively seeking

Question 8

The people who were seeking a job but have given up are _____ included in the equation.

Answer 8

Not

Question 9

To find unemployment we take the number of unemployed, divided by the total ________ _______.

Answer 9

Labor force

Question 10

The lowest rate of unemployment we can enjoy without triggering inflation is the _________ ______ of ____________. (NRU)

Answer 10

Natural Rate of Unemployment

Question 11

In recent history anything under ____% is considered full employment.

Answer 11

5

Question 12

The highest rate of unemployment the US has seen is ___% during the depression and the lowest rate of unemployment was ____% during WWII.

Answer 12

25

1.2

Question 13

What are the three types of unemployment?

Answer 13

Frictional
Cyclical
Structural

Question 14

When people are unemployed because they are between jobs, entering or re-entering the work force they are considered what?

Answer 14

Frictionally unemployed

Question 15

Which unemployment is the least severe of the three types of unemployment?

Answer 15

Frictional unemployment

Question 16

Businesses laying off workers in the face of declining demand is considered what?

Answer 16

Cyclical unemployment

Question 17

As economic activity decreases, cyclical unemployment _________. As economic activity increases, cyclical unemployment __________.

Answer 17

Increases

Decreases

Question 18

Taking some pressure off price increases is a benefit of which unemployment?

Answer 18

Cyclical unemployment

Question 19

Which unemployment benefits society because it reallocated resources to more productive uses?

Answer 19

Frictional unemployment

Question 20

One way to control the severity of a recession is through the use of _______ _________.

Answer 20

Fiscal policy

Question 21

The first tool for the government in fiscal policy to solve unemployment is increasing government spending on _______ goods.

Answer 21

Public

Question 22

The second tool the government uses in fiscal policy to solve unemployment is ________ income taxes.

Answer 22

Reducing

Question 23

The second way we control recessions is through what policy?

Answer 23

Monetary policy

Question 24

Monetary policy is carried out by who?

Answer 24

Federal Reserve System

Question 25

Monetary policy means the Federal Reserve System places more _______ back into the economy.

Answer 25

Money

Question 26

What unemployment is caused by changes in the basic structure of the economy itself?

Answer 26

Structural unemployment

Question 27

What happens when buying patterns or new technologies eliminate the need for certain jobs?

Answer 27

Structural unemployment

Question 28

What is the most difficult psychologically of all unemployment types?

Answer 28

Structural unemployment

Question 29

The number of people in an economic system who are working or looking for work is what?

Answer 29

Labor Force

Question 30

The condition that exists when 96% of the labor force is employed is what?

Answer 30

Full employment

Question 31

People who are between jobs and know what the next job will be are what?

Answer 31

Frictionally unemployed

Question 32

People out of work because of a general drop in total production are what?

Answer 32

Cyclically unemployed

Question 33

A change in buying patterns or technology in which a workers skills are no longer needed is considered what unemployment?

Answer 33

Structural unemployment

Question 34

A loss of a persons power to have access to the economy through the ability to buy goods and services is considered what?

Answer 34

Economic disenfranchisement

Question 35

The lowest level of unemployment the economy can sustain without triggering an increase in inflation is considered what?

Answer 35

Natural Rate of Unemployment (NRU)

Question 36

Who relys on fiscal policy to help reduce the severity of a recession?

Answer 36

Keynesians

Question 37

Who relys on monetary policy to control the amount of money in the economy?

Answer 37

Monetarists

Question 38

In the _______ the US set up unemployment compensation and in the _______ is when we had social security programs.

Answer 38

1900’s 1930’s

Question 39

What are the two types of people who have the highest unemployment regardless of the economic situation?

Answer 39

Males with a high school education or less Racial minorities

Question 40

Who calculates the unemployment rate?

Answer 40

The Bureau of Labor Statistics