Question

macroeconomic

Macroeconomics HW 6 Unemployment 1. How would you classify the labor-force status (employed, unemployed, not in LF) of the following? a. A bank manager who is currently not working because she took a year off to take care of a newborn child. b. A 14 year old who works 10 hours per week at Six Flags. c. A 16-year-old who is doing 20 hours per week of unpaid work in his father's business. d. An auto worker whose union is out on strike. e. An insurance broker who has been out of work for 8 months and could start work tomorrow, even though he has not been looking for a new job for the last month. f. A 68-year-old retired teacher, who does 20 h/week of unpaid volunteer work teaching older people how to use the Web. 2. Which of the following groups are classified as "unemployed" when calculating the unemployment rate? A. Underemployed workers. B. Discouraged workers. C. Children and elderly. D. Individuals who are neither employed nor actively seeking a job. E. Every person who is not working F. Individuals who are not employed and actively seeking a job. 3. Kevin has lost his job in an automobile plant because of the use of robots for welding on the assembly line. The type of unemployment Kevin is faced with is: a. cyclical b. frictional d. natural. c. structural. 4. To be considered employed, a person must have a. worked at least 1 h during the previous week b. searched at least 1 h for a job in previous week c. worked at least 2 hrs on the day he is surveyed d, earned at least min wage for 5 or more hrs per week 5. Find the labor force participation rate and unemployment rate given the following information about an economy: Population (working age) 120 Labor Force # Employed 80 70 6. Assume in the problem above 5 of the unemployed became discouraged workers. Calculate new official unemployment rate in this economy. Comment 7. How high is unemployment rate in the US right now? Bureau of Labor Statistics: http://www.bls.gov/ Explain why this official unemployment rate most likely underestimates actually rate of unemployment in the US. 8. Is it desirable to pursue a goal of zero unemployment? Why or why not?

Answer 1

It's mandatory to answer only first question

1) a) not in labor force : people not actively looking for job is not included in LF

B) not in LF: people with age less than 16 aren't part of LF

C) employed : 16 year older people , who did at least 15 hours of unpaid work in family work

D) unemployed:

E) not in LF : people not actively looking for job aren't part of LF

F) not in LF: retired people not included in LF

.

Q2) unemployed groups

A) unemployed workers

F) Individuals not employed but actively seeking a job

.

Q3) option C)

structural unemployment

its exists when there is mismatch between the qualifications possessed & qualifications Demanded for job

.