#1
What is the unemployment rate?
The percentage of people in the labor force who are unemployed and actively seeking employment
ExplanationPercentage of actively seeking unemployed in labor force
#2
What is the significance of the labor force to the economy?
It represents the pool of resources available for production
ExplanationLabor force: resource pool for production
#3
What is the concept of the labor force?
It includes all individuals who are employed or actively seeking employment
ExplanationLabor force: employed or seeking employment
#4
What is the concept of labor force participation rate?
It measures the percentage of the working-age population who are in the labor force
ExplanationParticipation rate: % of working-age population in labor force
#5
What is the significance of the labor force participation rate?
It measures the percentage of the working-age population who are in the labor force
ExplanationSignificance: % of working-age population in labor force
#6
Which of the following is a frictional unemployment?
Unemployment caused by mismatch of skills and job openings
ExplanationUnemployment due to skill-job mismatch
#7
What does the labor force participation rate measure?
The percentage of the working-age population who are in the labor force
ExplanationPercentage of working-age population in labor force
#8
What is the natural rate of unemployment?
The level of unemployment that exists when the economy is at full employment
ExplanationUnemployment level at full employment economy
#9
What is the Phillips curve relationship?
There is an inverse relationship between inflation and unemployment
ExplanationInverse relation: inflation and unemployment
#10
What is the difference between structural and cyclical unemployment?
Structural unemployment is caused by a mismatch of skills and job openings, while cyclical unemployment is caused by fluctuations in the business cycle
ExplanationStructural: skills-job mismatch, Cyclical: business cycle fluctuations
#11
What is the discouraged worker effect?
When unemployed workers become discouraged and stop looking for work, they are no longer counted as part of the labor force
ExplanationDiscouraged workers: stop seeking, out of labor force
#12
What is the concept of labor market equilibrium?
It is the point where the supply of labor equals the demand for labor
ExplanationEquilibrium: labor supply equals demand
#13
Which of the following is not a determinant of labor supply?
Aggregate demand
ExplanationNot a determinant: aggregate demand
#14
What is the role of minimum wage laws in the labor market?
To create unemployment by pricing low-skilled workers out of the market
ExplanationMinimum wage: pricing low-skilled out, creates unemployment
#15
What is the Beveridge curve?
It shows the relationship between the unemployment rate and the vacancy rate
ExplanationBeveridge curve: unemployment rate vs vacancy rate