Directions : Define each of the terms below and evaluate...

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ECO201—Module 2 Terminology Directions : Define each of the terms below and evaluate the significance of each term to the topics presented within the textbook. Chapter 7 Term Definition Significance Unemployment Unemployment is the total number of adults (aged 16 years or older) willing and able to work and who are actively looking for work but have not found a job. Rate is the % of workforce unemployed. Labor force The Labor Force are the individuals aged 16 years or older who either have jobs or who are looking and available for jobs Stock Unemployed don’t have a job but looking Flow Departing jobs Job Loser an individual whose employment was involuntarily terminated or who was laid off (40–60% of the unemployed) New entrant an individual who has never worked a full-time job for two weeks or longer (10 to 15% of the unemployed) Discouraged workers are individuals who have stopped looking for a job because they are convinced they will not find a suitable one. Labor force participation rate Is the proportion of non- institutionalized working-age individuals who are employed or seeking employment. Frictional unemployment results from the fact that workers must search for appropriate job offers. This takes time, so they remain temporarily unemployed.

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