Question

11. What are discouraged workers? _____

12. What are some reasons the reported rate of unemployment may not accurately reflect the true rate of unemployment?___________

13.  What is frictional unemployment? _____

14. What is structural unemployment? _____

15. What does offering higher unemployment benefits do to search time for the unemployed? ______

Answer 1

Ans 11. A discouraged worker in economics refers to that person who is of legal employment age who is not actively seeking employment or who has not found employment after some long-term employment, but those who would prefer working.

Ans 12. The real unemployment rate is a broader definition of unemployment than the reported rate of unemployment. The reported rate of unemployment counts only people without jobs who are in the labor force. On the other hand, the real rate of unemployment incldues the underemployed, the marginally attached and the discouraged workers.

Ans 13. Frictional unemployment occurs due to voluntary employment transitions within an economy. Some workers choose to leave their jobs in search of new ones and workers entering the workforce constitute the frictional unemployment.

Ans 14. Structural unemployment ,unlike the frictional unemployment, is a long lasting unemployment that occurs due to shifts in an economy. This type of unemployment occurs even though jobs are available, there is a discrepancy between what the companies need and what the workers have to offer.

Ans 15. A higher unemployment benefit demotivates the workers to offer their services, This means they do not want to work as much as they would in case of a lower unemployment benefit. Thus, the search cost for the unemployed also increases when the unemployment benefits increases.