Question 1

What is unemployment?

Accepted Answer

When someone is actively searching for work, but in unable to get a job

Question 2

What is the labor force?

Accepted Answer

Anyone 16 years or older who is willing and able to work

(cannot be in the military, full-time students, retired, or institutionalized)

Question 3

What is the labor force participation rate?

Accepted Answer

The percent of the population in the labor force

(# of people in the labor force) / (total population)

Question 4

What is the unemployment rate?

Accepted Answer

The percentage of unemployed workers in the labor force

(# of unemployed workers) / (size of labor force)

Question 5

What is frictional unemployment?

Accepted Answer

Workers who are temporarily unemployed or in between jobs

Question 6

What is seasonal unemployment?

Accepted Answer

A type of frictional unemployment where jobs can only be done during certain parts of the year

(lifeguards are typically only hired in the summer)

Question 7

What is structural unemployment?

Accepted Answer

Workers who are unemployed because their skills have become obsolete due to technology

Question 8

What is cyclical unemployment?

Accepted Answer

Workers who are unemployed because their jobs have been lost due to economic recession

(these jobs will return when the economy improves)

Question 9

What is the natural rate of unemployment?

Accepted Answer

The total amount of frictional and structural unemployment

Question 10

What are discouraged workers?

Accepted Answer

People who have given up looking for work

(not counted in the labor force)

Question 11

How does unemployment affect the PPC?

Accepted Answer

Unemployment reflects less efficient points within the PPC

(does not shift the curve!)

2.3 Unemployment, AP Macroeconomics Flashcards