Macro Chapter 7 & 8

"Discouraged workers" comprise the percentage of those in the

Adult population who want to be employed but have given up the search for a job

People who are not currently employed, but say they want a job, are counted as unemployed only if they

Are actively seeking employment

Consider an economy made up of 100 people sixteen years of age and older, 60 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The number of people in the labor force is

70

Consider an economy made up of 100 people, 60 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The number of unemployed people is

10

Unemployment rates ______ during contractions and ______ during expansions.

Rise, fall

A recent college graduate who is looking for her first job would be considered ______.

Unemployed

After graduating from Harvard Law School, Anne started looking for a job. She could not find a job after looking for one week. Which of the following is true in this case?

This is an example of frictional unemployment

Anne is an accountant who lost her job in the last recession and has given up looking for work after an unsuccessful job search. Which of the following is true in this case?

She is a discouraged worker

Consider an economy with an adult population of 100, 50 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The labor force participation rate is ______.

60 percent

According to Simon Kuznets, ______.

The main force behind economic growth is increases in the quality of inputs

Labor productivity in the United States has:

Been growing but at lower rates in the last 25 years compare to the 25 years immediately after World War II.

Inflation is

A general and continuing rise in the money prices of goods and services

Which of the following will be true if employment grows faster than the population as a whole?

The standard of living will increase

Which of the following does not contribute to an improved standard of living?

Higher prices for the necessities of life

If Q if total real output K is capital in use, and L is labor employed, then ______ is the formaul to calculate the productivity of labor.

Q/L

______can temporarily create dislocations as displaced workers try to find jobs elsewhere and, at the same time, make existing products more affordable.

Technological change

Which of the following would increase labor productivity?

An increase in the education level of per unit of labor

Which of the following world slow down productivity growth?

Firms starting to cut down the size of their labor force

The per-worker production function illustrates the fact that as the amount of capital per worker increases, output per worker

Increases but at a decreasing rate

Economies grow for a variety of reason. Which of the following is not a primary cause of economic growth?

Government regulation

The difference between basic and applied research is that

Basic research has less immediate payoff to society than applied research typically does

Which of the following would be likely to cause a decrease in the labor productivity growth rate?

A service sector that is growing as a percentage of GDP

Which of the following is the best indicator of the standard of living?

Real GDP per capita

In order for a society to have a rising standard of living, output per worker must grow

Faster than the population

The TransformNow Moving Company has 10 workers and 5 trucks and they can move 20 tons of furniture per day. The labor productivity is: (Labor Productivity is Q/L. 20/10=?)

2 tons of furniture per worker per day

The TransformNow Moving Company has 10 workers and 5 trucks and they can move 20 tons of furniture per day. The capital productivity is: (Capital (K) productivity is L/K. 10/5=?)

2 tons of furniture per worker per day

The country of MiddleTerra has 200 people, 100 of them are working, and the Real GDP is $5,000. What is the standard of living in MiddleTerra? (This question is looking for the standard of living for the country. So the country has 200 people and Real GDP is $5,000. $5,000/200=?)

$25 per capita

_____ unemployment is experienced by a customer service representative who is laid off from a job because new technology reduces the need for people to handle customer service inquiries.​

Structural

Which type of unemployment is likely to decrease the most during an economy's boom?​

Cyclical unemployment

Industrial market countries make up about _____ of the world population but produce more than _____ of the world's output.​

16 percent; 50 percent

Which type of unemployment is most likely to help an economy become more efficient?

Frictional unemployment