Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Unemployment Ch14
Vocabulary Terms
| Term | Definition |
|---|---|
| unemployed | Persons 16 or older actively searching for work in last 4 weeks and not currently employed |
| employed | Persons 16 or older working at least 1 hour in the previous 2 weeks |
| labor force | Number of employed plus unemployed persons (must meet unemployed/employed criterion) |
| unemployment rate | Percentage of labor force currently unemployed not percentage of the population |
| labor force participation rate | Percentage of working age population classified as employed or unemployed: LF/population * 100 = rate% |
| employment-to-population ratio | Percentage of working age population classified as employed: E/population * 100 = ratio% |
| marginally attached workers | People ready and available to work; have searched for a job in the past 12 months but not in the last 4 weeks; not included in unemployment rate |
| discouraged workers | People who stop searching for a job out of frustration; do not meet criterion for unemployed person |
| U1 Classification | Only includes people unemployed for 15 weeks or longer |
| U2 Classification | Only includes people who have lost a job as opposed to those who voluntarily quit or those who have entered/reentered the labor force |
| U3 Classification | Official Unemployment Rate; see unemployed |
| U4 Classification | Adds discouraged workers |
| U5 Classification | Includes all marginally attached workers |
| U6 Classification | All-inclusive; all previous Classifications plus part-time workers |
| Frictional Unemployment | Occurs when people voluntarily enter labor force or when they are between jobs that they are qualified for; Good for individual and society i.e. unemployment benefits |
| Structural Unemployment | Occurs when job seekers' skill set is not in demand because of geography and obsolescence; Bad for individual and Good for society *solution is education and retraining |
| creative destruction | Term coined by Joseph Schumpeter; cause of Structural Unemployment; innovation destroys old technologies and industries |
| efficiency wages | Wages exceed equilibrium market wage; encourages worker productivity |
| Cyclical Unemployment | Occurs because of contractions in business cycle; Bad for individual and society |
| Full Employment | Occurs when cyclical unemployment is not present in the economy |
| natural rate of unemployment | Level of unemployment in economy independent of inflation; suggested by Nobel economists Milton Friedman and Edmund Phelps |
Created by:
Gtwin4
Popular Economics sets