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Economic Theory

2. Assess which of the following would be qualified as “unemployed”:
a) a manufacturing worker whose factory just closed down;
b) a husband willingly stays home with children while his wife
works;

c) someone who has been out of work for two months but isn’t
looking for a job;

d) a retiree.

3. Who would be included in the labor force?
a) someone, who does not have a job, but is looking for work;

b) an unpaid homemaker;
c) a full-time student, who is not looking for work;
d) none of the above are included in the labor force.

4. Assess which of the following would be considered as “out of the
labor force”:
a) a husband willingly stays home with children while his wife

works;
b) someone who has been out of work for two years but keeps
looking for a job;

c) someone who decides to take a part time job because she could
not find a full time position;
d) someone who hates her present job and is actively looking for
another one.

5. What type of the following applies to frictional unemployment?

a) a financial analyst who quits his/her job in Chicago and is
pursing similar work in Arizona;
b) coal miners laid off due to EPA regulations that shut down coal
fired power;

c) landscapers laid off in response to drop in new housing
construction during a recession;
d) printers laid off due to drop in demand for printed catalogues

and flyers as firms go the internet to promote an advertise their
products.

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