Exam 9: Unemployment and Its Natural Rate

Table 9-1 This table shows the 2013 data for males and females aged 15 and over in the country of Bolivar. -Refer to Table 9-1. What is the adult female population in Bolivar?

Table 9-1 This table shows the 2013 data for males and females aged 15 and over in the country of Bolivar. -Refer to the Table 9-1. What is the adult male population in Bolivar?

What would be associated with the type of unemployment created by the minimum-wage law?

Who is considered unemployed?

The unemployment rate is defined as the percentage of the labour force that is unemployed. The labour-force participation rate is the percentage of the adult population that is either employed or unemployed.

Suppose that some people report themselves as unemployed when, in fact, they are working in the underground economy. If these persons were counted as employed, how would the labour statistics change?

What does cyclical unemployment refer to?

How is unemployment data collected?

What is a rough estimate of the natural rate of unemployment in Canada?

Who would NOT be included in the labour force?

How is Latoya, a homemaker who works as a volunteer at the local police station and is currently not looking for a job, counted?

What impact does employment insurance have on the labour market?

In one year you meet 40 people who are each unemployed for one week, and 10 people who are each unemployed for the whole year. Which statistic best describes this situation?

How is the unemployment rate computed?

Union workers earn about 10 percent to 20 percent more than similar workers who do not belong to unions.

What is the approximate labour-force participation rate of the Canadian adult population (aged 15 and over)?

In 2014 in Japan, based on concepts similar to those used to compute Canadian employment statistics, the unemployment rate was about 3.4 percent, the labour force participation rate was about 59 percent, and the adult population was about 127 million. How many people were employed?

Suppose that consumers decide to buy more Blu-Ray players and fewer DVD players. As a result, Blu-Ray companies expand production while DVD companies lay off workers. What is this an example of?

Cyclical unemployment and the natural rate of unemployment are sometimes hard to distinguish from each other, so economists are not very confident about estimates of the natural rate of unemployment. Still, since unemployment rates are consistently higher in Canada and most Western European countries than in the United States, it appears that the natural rate of unemployment is lower in the United States. What might explain this difference?

Which term refers to unemployment that is the result of a well-functioning economy that rewards innovation and new ideas?