TAMU ECON 203 EXAM 2 EXAMINATION TEST
2026 COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◉ labor force=. Answer: employed + unemployed
◉ unemployment. Answer: someone wants to work, but cant find a
job in the current market
◉ people who dont have jobs, and arent seeking a job or are unable
to work. Answer: Not in the labor force
◉ not in the labor force. Answer: -homemakers
-full time students
-retirees who choose not to or cant work
-those who cant work because of a disability
-those who choose not to work
◉ unemployment rate=. Answer: (unemployed/labor force)x100
◉ labor force participation rate=. Answer: (labor force/working age
population)x100
,◉ LFPR indicates. Answer: what fraction of the population wants to
be working, regardless of whether or not they actually have a job.
(LFPR falls during recession)
◉ marginally attached workers. Answer: -discouraged workers
-not in the labor force
-looked for a job in prior 12 months, but not in last 4 weeks
◉ underemployed workers. Answer: -people being extremely over
qualified for a job
-counted as employed
-working less than theyd like to be
◉ unemployment rate doesnt give a good indication of how many
people are. Answer: -marginally attached workers
-underemployed workers
◉ discouraged worker. Answer: -not in the labor force
-not currently looking for job
-believe there are no available jobs or none they qualify for
, ◉ unemployment rate may _______ the effect of the recession.
Answer: understate
◉ U3=. Answer: unemployed
◉ U6=. Answer: -unemployed
-discouraged workers
-marginally attached workers
-underemployed workers
◉ unemployment occurs when. Answer: -wage rate is higher than
equilibrium wage
-workers willing to provide more labor than what is needed
-labor market has surplus of workers
◉ natural unemployment. Answer: -the long run average of
unemployment
◉ cyclical unemployment. Answer: -unemployment caused by short
term economic fluctuations
-recessions are great example
2026 COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◉ labor force=. Answer: employed + unemployed
◉ unemployment. Answer: someone wants to work, but cant find a
job in the current market
◉ people who dont have jobs, and arent seeking a job or are unable
to work. Answer: Not in the labor force
◉ not in the labor force. Answer: -homemakers
-full time students
-retirees who choose not to or cant work
-those who cant work because of a disability
-those who choose not to work
◉ unemployment rate=. Answer: (unemployed/labor force)x100
◉ labor force participation rate=. Answer: (labor force/working age
population)x100
,◉ LFPR indicates. Answer: what fraction of the population wants to
be working, regardless of whether or not they actually have a job.
(LFPR falls during recession)
◉ marginally attached workers. Answer: -discouraged workers
-not in the labor force
-looked for a job in prior 12 months, but not in last 4 weeks
◉ underemployed workers. Answer: -people being extremely over
qualified for a job
-counted as employed
-working less than theyd like to be
◉ unemployment rate doesnt give a good indication of how many
people are. Answer: -marginally attached workers
-underemployed workers
◉ discouraged worker. Answer: -not in the labor force
-not currently looking for job
-believe there are no available jobs or none they qualify for
, ◉ unemployment rate may _______ the effect of the recession.
Answer: understate
◉ U3=. Answer: unemployed
◉ U6=. Answer: -unemployed
-discouraged workers
-marginally attached workers
-underemployed workers
◉ unemployment occurs when. Answer: -wage rate is higher than
equilibrium wage
-workers willing to provide more labor than what is needed
-labor market has surplus of workers
◉ natural unemployment. Answer: -the long run average of
unemployment
◉ cyclical unemployment. Answer: -unemployment caused by short
term economic fluctuations
-recessions are great example
