Hiring one currently officially unemployed full-time worker to replace three current part-time...
Question:
Hiring one currently officially unemployed full-time worker to replace three current part-time workers, other things equal, would tend to:
a. increase both the employment and unemployment rates.
b. decrease both the employment and unemployment rates.
c. decrease the employment rate and increase the unemployment rate.
d. increase the employment rate and decrease the unemployment rate.
Employment and Unemployment:
The unemployment rate is an important piece of macroeconomic data because it is an indicator of the strength of the economy. The US Bureau of Labor Statistics reports the rate on the first Friday of each month.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answerHiring one currently officially unemployed full-time worker to replace three current part-time workers, other things equal would tend to c. decrease...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Defining and Measuring the Unemployment Rate
from
Chapter 6 / Lesson 1
104K
What is the unemployment rate formula? Learn how to figure out, determine, and calculate the unemployment rate. See the unemployment rate equation and measures.
Related to this Question
- Suppose there are 10 million part-time workers and 90 million full-time workers. Five million of the full-time workers switch to part-time work. As a result, the unemployment rate will: A. increase B. decrease C. remain unchanged D. increase, then decreas
- Unemployment benefits paid to the unemployed: A) help the unemployed maintain their income and spending. B) increases the amount of time the unemployed spend searching for a job. C) increases the level of frictional unemployment. D) All of these options a
- The unemployment rate may underestimate the true extent of unemployment if: A) many part-time employees would like to work full-time, but are unable to get the additional work. B) employees increase the number of hours they work overtime. C) there are
- The unemployment rate will decrease when: A. the duration of unemployment increases. B. the average workweek decreases from 40 to 39 hours. C. the age of the labor force increases. D. people get discouraged and quit looking for work. E. none of the above
- A decrease in workers' effective real incomes while they are unemployed will: a. lower the job-finding rate and raise the expected duration of unemployment. b. lower the job-finding rate and the expected duration of unemployment. c. raise the job-finding
- Increases in unemployment benefits will ____ the opportunity cost of job search to an unemployed worker and thereby encourage _____ lengthy periods of unemployment. a. increase; more b. increase; less c. decrease; more d. decrease; less
- The unemployment rate is declining in the USA; it is around 5%. But many people complain about underemployment, which means that they want to work full time, but they can find only a part-time job. So
- Part-time workers are counted as: A. unemployed, and therefore the unemployment rate may overstate the level of unemployment. B. unemployed, and therefore the unemployment rate may understate the level of unemployment. C. fully employed, and therefore the
- Higher unemployment benefits create: a) higher seasonal unemployment as workers switch jobs. b) a lower number of job leavers. c) incentives for longer job searches and higher frictional unemployment. d) incentives for shorter job searches and higher stru
- A worker who loses his or her job as a consequence of a decline in aggregate demand in the economy is experiencing: A. disguised unemployment B. underemployment C. cyclical unemployment D. frictional unemployment E. seasonal unemployment
- Higher unemployment benefits tend to: a) reduce the unemployment rate. b) increase the unemployment rate. c) have an unpredictable impact on the unemployment rate. d) have no impact on the unemployment rate.
- The unemployment rate will definitely rise when A.) the average work week falls from 40 hours to 39 hours. B.) the duration of unemployment increases. C.) the size of the labor force increases. D.
- Increases in the duration of unemployment may: a. reflect a general downturn in economic activity that depresses job openings. b. increase the unemployment rate. c. increase the number of discouraged workers. d. all of the above
- Holding all else constant, if people who are currently unemployed become discouraged workers, you will see: a) an increase in the unemployment rate. b) an increase in the labor force participation rate. c) no effect on the unemployment rate. d) no effect
- Holding all else constant, if people who are currently unemployed become discouraged workers, you will see A. an increase in the unemployment rate. B. an increase in the labor force participation rate. C. no effect on the unemployment rate. D. no effe
- If the steady-state rate of unemployment equals 0.125 and the fraction of unemployed workers who find jobs each month (the rate of job findings) is 0.56, then the fraction of employed workers who lose their jobs each month (the rate of job separations) mu
- If the steady-state rate of unemployment equals 0.10 and the fraction of employed workers who lose their jobs each month (the rate of job separations) is 0.02, then the fraction of unemployed workers who find jobs each month (the rate of job findings) mus
- The unemployment rate will rise when the duration of unemployment increases. people get discouraged and quit looking for a job. the average work week falls from 40 hour to 39 hours. the size of the l
- The unemployment rate may overestimate the true extent of unemployment if: A. many part-time employees would like to work full-time but are unable to get the additional work. B. many people who claim to be unemployed actually work in the underground e
- If unemployment equals the natural unemployment rate, then there: a. is zero unemployment. b. is only frictional or structural unemployment. c. are no job openings existing at the time. d. is less than full employment.
- The economy is at full employment when the actual rate of unemployment equals the A. labor force minus the number of discouraged workers. B. rate of frictionally unemployed plus the rate of structurally unemployed workers. C. rate of cyclically unemployed
- Unemployment that is of a short duration to allow a person time to find a new job is a. structural unemployment. b. cyclical unemployment. c. frictional unemployment. d. durational unemployment.
- During a recession, some individuals who have lost their jobs may get discouraged from not being able to find a new job. If these individuals stop looking for a job altogether, ceteris paribus, (and assuming the current unemployment rate is less than 100%
- An increase in cyclical unemployment will result in: a. an increase in the unemployment rate b. an increase in the natural rate of unemployment c. an increase in structural unemployment d. a decrease in frictional unemployment
- If some unemployed individuals became discouraged workers, which of the following would result? a. The labor force would decrease and the unemployment rate would decrease. b. The labor force would decrease and the unemployment rate would remain the same.
- The economy is considered to be at full employment when: A. Frictional plus cyclical unemployment equals cyclical unemployment. B. Cyclical unemployment is 5% or less. C. There is no less than 100% of the workforce employed. D. There is no cyclical unempl
- Holding all else constant, if workers who are currently discouraged decide to start looking for jobs again, you will see a. an increase in the unemployment rate. b. a decrease in the unemployment rate. c. no effect on the unemployment rate. d. no effe
- If a sizeable number of workers were switched from full-time to part time employment, then the official unemployment rate would: a. Fall b. Remain unchanged c. Rise d. None of the above
- The variation in unemployment caused by the economy moving from expansion to recession or from recession to expansion is known as: a) Cyclical employment. b) Unemployment. c) Cyclical unemployment. d) Full employment.
- Other things equal, an increase in the number of "discouraged workers" will: a) destroy jobs. b) raise the participation rate. c) decrease the size of the labor force. d) raise the measured unemployment rate.
- If the unemployment rate is decreasing and at the same time the labor force participation rate is decreasing too, is this good news for the economy? Why or why not?
- The increase in unemployment associated with a recession is called a. structural unemployment. b. frictional unemployment. c. discouraged unemployment. d. cyclical unemployment.
- Unemployment insurance programs will quite possibly result in: A. Longer lasting periods of unemployment. B. Less urgency on the part of unemployed workers to find jobs. C. Workers being more selective in taking jobs that make good use of their skills and
- Cyclical unemployment is: a) unemployment caused by time delays in matching available jobs and workers. b) unemployment caused by changes in the industrial makeup of an economy. c) unemployment caused by economic downturns. d) when workers stop looking fo
- Cyclical unemployment is A. unemployment caused by time delays in matching available jobs and workers. B. unemployment caused by changes in the industrial makeup of an economy. C. unemployment caused by economic downturns. D. when workers stop looking
- 1. If the unemployment rate falls from 6% to 5%: a. The unemployment rate has fallen by 1% b. The unemployment rate as fallen by 1 percentage point c. The rate of the increase in unemployment has decr
- Holding all else constant, if people who are currently discouraged workers decide to start looking for jobs again, you will see: a) an increase in the unemployment rate. b) a decrease in the unemployment rate. c) no effect on the unemployment rate. d) no
- Unemployment insurance programs will quite possibly result in: A. Longer-lasting periods of unemployment B. Less urgency on the part of unemployed workers to find jobs C. Workers being more selective in taking jobs that make good use of their skills and a
- In the official unemployment statistics, part-time workers who want full-time work are counted as A) discouraged. B) only partially employed. C) unemployed. D) employed.
- Unemployment that results from business recessions that occur when aggregate demand is insufficient to create full employment is: a. cyclical unemployment b. frictional unemployment c. structural unemployment d. seasonal unemployment
- When a minimum wage is set above the equilibrium wage rate, a) unemployment decreases. b) job search activity decreases. c) the supply of workers decreases. d) unemployment increases. e) the supply of workers increases.
- 1) As more unemployed persons become "discouraged workers," the unemployment rate [{Blank}] and the labor force participation rate[{Blank}]. a. increases/increases b. decreases/does not change c. d
- An increase in the marginal productivity of labor will tend to: a. shift the labor supply curve rightward if the change is temporary. b. result in an increase in employment if the change is temporary. c. result in an increase in employment if the change
- Unemployment means that: a) there are some people who will not work at the going wage rate. b) there is excess demand in the labour market. c) people are not willing to work at the going wage rate. d) at the going wage rate, there are people who want to w
- The unemployment rate increased to 6.8%, with employment rising by a big 0.6% or 68,000 during the month and the labor force increasing by _. a) less than 68,000 b) 68,000 c) more than 68,000 d) not enough information to tell
- If the labor force consists of 90 full-time workers, 10 part-time, workers and the number of people who are looking for jobs but cannot find them is 9, the unemployment rate can be represented by _____ A. 9 90 B. 9 9 + 90 + 10 C. 90 + 10 9 D. 9 +
- Structural unemployment is A. unemployment caused by time delays in matching available jobs with workers. B. unemployment caused by changes in the industrial makeup of an economy. C. unemployment caused by economic downturns. D. when a worker stops lookin
- If 21% of unemployed find jobs and 0.9% of the employed lose their jobs, the natural rate of unemployment will be? a) 3.1% b) 3.5% c) 4.1% d) 4.8%
- The unemployment rate is understated due to: a) None of the above. b) Part-time workers being counted as unemployed. c) Discouraged workers not counted in the labor force. d) Underemployed worked being counted a unemployed.
- All else equal, how would the unemployment rate and labor-force participation rate be an ected (increase, decrease, stay the same) if: (a) you find a job right after graduating from college (b) after graduating from college, you immediately join the arm
- Other things equal, an increase in the number of "encouraged workers" will: a) create jobs. b) lower the participation rate. c) decrease the size of the labor force. d) increase the measured unemployment rate.
- Sectoral shifts in demand for output. a) Create structural unemployment. b) Immediately reduce unemployment. c) Increase unemployment due to job search. d) Do not affect demand for labor.
- Frictional unemployment applies to: a. workers with skills not required for existing jobs. b. short periods of unemployment needed to match jobs and job seekers. c. people who spend long periods of time out of work. d. unemployment related to the ups and
- If over two periods, the unemployment rate had reduced from 6.5 percent to 5.5 percent and the measured labor underutilization rate had reduced from 14 percent to 12 percent, has the underemployment rate increased or decreased, and by what percentage?
- The amount of unemployment that arises because workers are temporarily between jobs or new entrants to the labor force is known as: a. structural unemployment b. cyclical unemployment c. frictional unemployment d. induced unemployment
- As the unemployment rate rises? A) the separation rate decreases. B) the young and unskilled experience lower-than-average increases in unemployment. C) the young and skilled experience larger-than-average increases in unemployment. D) the young and uns
- The unemployment problem in an economy may be understated by the unemployment rate due to: a) people lying about seeking a job. b) discouraged workers. c) job candidates with one offer but waiting for more. d) over-employed workers. e) none of the ans
- The difference between the official unemployment rate and the alternate measure of unemployment that includes discouraged workers and underemployed workers: a) equals zero when there is no cyclical unemployment. b) shows that there are no shortcomings wit
- If there are 10 job vacancies and 9 people unemployed, then there exists? a. only structural and frictional unemployment. b. only structural and cyclical unemployment. c. only structural unemployment and the economy is at full employment. d. only frict
- An increase in the number of encouraged workers: a) raises the unemployment rate and the participation rate. b) lowers the unemployment rate and the participation rate. c) lowers the unemployment rate and raises the participation rate. d) raises the unemp
- 1. Increases in the unemployment rate typically indicate: a. that workers are more confident about finding new jobs. b. that aggregate disposable income is increasing. c. periods of economic expans
- Lowering the discount rate can promote full employment because O employees are more likely to apply for multiple jobs. O employees are able to get better offers for hourly wages. O companies are more likely to expand and hire more workers. O companies are
- Full employment is the situation in which the economy operates at an unemployment rate equal to the sum of: a. structural and frictional unemployment. b. cyclical and frictional unemployment. c. st
- If the economy is operating at full employment, then A. the unemployment rate is zero percent. B. structural and frictional unemployment have been eliminated. C. the unemployment rate is equal to the natural rate. D. cyclical unemployment is greater than
- Cyclical unemployment refers to A. changes in unemployment due to changes in the natural rate of unemployment. B. the portion of unemployment created by the job search. C. the portion of unemployme
- An increase in the number of discouraged workers will: a) decrease the measured level of unemployment. b) increase the measured level of unemployment. c) not affect the measured level of unemployment, but change the participation rate. d) have no effect
- If discouraged job seekers re-enter the labor force but do not find work, they will: a. increase the measured unemployment rate b. increase the measured participation rate c. both (a) and (b) d. none of the above
- If labor productivity rises, then wages: (a) Will decrease and the number of jobs will decrease. (b) Will decrease, but the number of jobs will not change. (c) Can increase without a decrease in the number of jobs. (d) Can increase, but only if the number
- If the Bureau of Labor Statistics were to include discouraged workers in the official unemployment rate, the reported unemployment rate would: a. increase b. decrease c. stay the same
- The natural unemployment rate A. is the unemployment rate at full employment. B. is equal to the number of people cyclically unemployed divided by the number in the labor force. C. equals zero. D. is greater than the actual rate of unemployment.
- During healthy economic periods, cyclical unemployment A. rises. B. will equal structural unemployment. C. falls toward zero. D. will equal frictional unemployment. E. will equal the natural rate of unemployment.
- The Bureau of Labor Statistics counts discouraged workers as: a. employed. Including them as employed makes the unemployment rate lower than otherwise. b. unemployed. Including them as unemployed makes the unemployment rate higher than otherwise. c. ou
- If a sizable number of workers were switched from full-time to half-time employment, then the official unemployment rate would: a. rise b. fall c. remain unchanged d. react unpredictably
- If cyclical unemployment is eliminated in the economy, then A. the economy is considered to be at full employment. B. the unemployment rate is below the natural rate of unemployment. C. the unemployment rate is above the natural rate of unemployment. D. t
- Frictional unemployment, people just between jobs, maybe looking for their first job. Structural unemployment, people with obsolete or not-in-demand skills Cyclical unemployment, people out of work be
- If unemployment insurance was so generous that it paid unemployed workers 90% of their regular salary: A. the official unemployment rate would probably understate true unemployment. B. frictional unemployment would rise. C. structural unemployment would r
- Which of the following will not result in an increase in measured unemployment, ceteris paribus? a. extending the period for which one can collect unemployment benefits b. a recession c. an increase in the number of discouraged workers d. an increase in t
- Workers laid off as a result of a recession suffer A. frictional unemployment. B. structural unemployment. C. cyclical unemployment. D. seasonal unemployment. E. natural unemployment.
- An economy is at full employment when. a. The unemployment rate equals the nature unemployment rate b. All unemployment is cyclical c. The unemployment rate is less than the natural unemployment rate d. There is no frictional unemployment
- If the labor force participation rate is increasing: a) unemployed workers are becoming discouraged. b) employed workers are working more hours. c) discouraged workers could be fewer. d) you must pa
- Discouraged workers: a) are counted as unemployed workers when the unemployment rate is calculated. b) would decrease the unemployment rate if they were added to the number of unemployed workers. c) are counted as one-half of a worker in the unemployment
- A reduction in the supply of labor will cause wages to: A. decrease and employment to decrease. B. increase and employment to decrease. C. increase and employment to increase. D. decrease and employment to increase.
- A reduction in the supply of labor will cause wages to: A. Decrease and employment to increase. B. Increase and employment to decrease. C. Increase and employment to increase. D. Decrease and employment to decrease.
- Frictional unemployment is present in an economy because A. workers often need to update their skills. B. workers take time to decide which job is best for them. C. firms often lay off workers due to economic recession. D. the unemployment rate is too low
- Do you think unemployment compensation tends to increase frictional unemployment, the amount of time it takes the unemployed to find a new job?
- The job finding rate discusses the effects on the job finding rate and the expected duration of the unemployment from the following: a. an increase in unemployment insurance benefits b. an increase in
- Involuntary part-time workers are workers who: a) work less than 35 hours but would like to work full time. b) work more than 35 hours but would like to work less than 35 hours. c) work less than 35 hours by choice. d) work, have lost their jobs within th
- The economy is fully employed when there is no: a. seasonal unemployment b. frictional unemployment c. structural unemployment d. cyclical unemployment
- The sum of the frictional and structural unemployment rates is equal to the: a. potential unemployment rate. b. actual unemployment. c. cyclical unemployment rate. d. full-employment unemployment rate.
- "Full employment" is said to exist when the unemployment rate equals a. zero. b. the cyclical unemployment rate. c. the structural unemployment rate. d. the natural unemployment rate.
- An increase in the employment rate implies that A. the unemployment rate must decline. B. the labor force participation rate must increase. C. employment growth exceeds the growth of the working-age population. D. employment growth exceeds the growth of u
- Natural unemployment is equal to: a) Unemployment + Employment b) Cyclical unemployment - Structural unemployment c) Structural unemployment + Frictional unemployment d) Structural unemployment + Cyclical unemployment
- Suppose an economy has 13,800 people employed and 1,200 unemployed but looking for work. a. According to the data, what is the unemployment rate for this economy? b. If 1,000 people lose their jobs and immediately begin looking for work, what is the new u
- Suppose that on average, unemployed workers find jobs at the rate of 30% per period, and employed workers lose jobs into unemployment at a rate of 2% per period. Assume the size of the labor force is forever fixed. 1. Beginning with an unemployment rate o
- Because of the _____, the unemployment rate as measured by the Bureau of Labor Statistics (BLS) tends to understate the extent of unemployment during a recession. a) counter-cyclical labor force participation rate b) added-worker effect c) decline in the
- The labor force is best described by: a. All employed workers plus unemployed worker plus discouraged workers. b. All full-time workers plus unemployed workers seeking full-time jobs. c. The working
- How do Sectoral Shifts in the economy affect Unemployment? a. They create Structural Unemployment. b. They reduce Unemployment. c. They increase Unemployment due to job search. d. Overall, they leave Unemployment unchanged.
- Unemployment arising from job search is called A) cyclical unemployment B) disguised unemployment C) frictional unemployment D) structural unemployment
- The natural unemployment rate is the unemployment rate that exists when there is no A) structural unemployment. B) frictional unemployment. C) cyclical unemployment. D) cyclical or structural unemployment. E) seasonal unemployment.
Explore our homework questions and answers library
Browse
by subject