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TAMU ECON 203 EXAM 2 2026
QUESTIONS AND ANSWERS | A+
GRADED | WITH EXPERT SOLUTIONS
Who is not in the working age population? - correct answer-Young
(less than 16 years old)
Military
Institutionalized population (prison, mental hospitals)
Working age population (calculation) - correct answer-Labor
Force + Not in the labor force
Labor Force - correct answer-working-age people who are either
employed or unemployed
Labor Force (calculation) - correct answer-employed +
unemployed
Employed - correct answer-1)Everyone who during the week of
survey had worked at least
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1 hour as paid employee
15 hours as unpaid employee in family business
2)Temporary absent (sick, vacation, maternity leave)
the BLS defines Unemployment as - correct answer-persons aged
16 years and older who had no employment during the reference
(survey) week
were available for work, except for temporary illness
had made specific efforts to find employment sometime during the
4-week period ending with the reference week
Unemployment - correct answer-a situation where someone
wants to work but cannot find a job in the current market.
Not in the labor force - correct answer-people who do not have
jobs and who are not actively looking for work or are not available
for work
homemakers
full-time students
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retirees who choose not to work or cannot work
those who cannot work bc of disability
those who choose not to work
Unemployment rate - correct answer-(number of
unemployed/labor force) x 100
Labor-force participation rate (LFPR) - correct answer-indicates
what fraction of the population wants to be working, regardless of
whether or not they actually have a job
Labor-force participation rate (LFPR) - correct answer-(labor
force/working-age population) x 100
Marginally attached workers - correct answer-persons not in the
labor force who want and are available for work
who have looked for a job in the prior 12 months, but not in the 4
weeks preceding the survey.
(not counted in labor force)
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Discouraged workers - correct answer-persons not in the labor
fore who are not currently looking for a job because they believe
there are no jobs available to there are none for which they would
qualify
Underemployed workers - correct answer-people who are either
working less than they would like or in jobs below their skill level
Unemployment occurs when: - correct answer-wage rate is higher
then the equilibrium wage
Natural Unemployment - correct answer-unemployment that
persists in an economy in the long run
Cyclical unemployment - correct answer-unemployment caused
by short-term economic fluctuations (phases of business cycle)
Natural rate of unemployment - correct answer-normal level of
unemployment that persists in an economy in the long run
TAMU ECON 203 EXAM 2 2026
QUESTIONS AND ANSWERS | A+
GRADED | WITH EXPERT SOLUTIONS
Who is not in the working age population? - correct answer-Young
(less than 16 years old)
Military
Institutionalized population (prison, mental hospitals)
Working age population (calculation) - correct answer-Labor
Force + Not in the labor force
Labor Force - correct answer-working-age people who are either
employed or unemployed
Labor Force (calculation) - correct answer-employed +
unemployed
Employed - correct answer-1)Everyone who during the week of
survey had worked at least
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1 hour as paid employee
15 hours as unpaid employee in family business
2)Temporary absent (sick, vacation, maternity leave)
the BLS defines Unemployment as - correct answer-persons aged
16 years and older who had no employment during the reference
(survey) week
were available for work, except for temporary illness
had made specific efforts to find employment sometime during the
4-week period ending with the reference week
Unemployment - correct answer-a situation where someone
wants to work but cannot find a job in the current market.
Not in the labor force - correct answer-people who do not have
jobs and who are not actively looking for work or are not available
for work
homemakers
full-time students
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retirees who choose not to work or cannot work
those who cannot work bc of disability
those who choose not to work
Unemployment rate - correct answer-(number of
unemployed/labor force) x 100
Labor-force participation rate (LFPR) - correct answer-indicates
what fraction of the population wants to be working, regardless of
whether or not they actually have a job
Labor-force participation rate (LFPR) - correct answer-(labor
force/working-age population) x 100
Marginally attached workers - correct answer-persons not in the
labor force who want and are available for work
who have looked for a job in the prior 12 months, but not in the 4
weeks preceding the survey.
(not counted in labor force)
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Discouraged workers - correct answer-persons not in the labor
fore who are not currently looking for a job because they believe
there are no jobs available to there are none for which they would
qualify
Underemployed workers - correct answer-people who are either
working less than they would like or in jobs below their skill level
Unemployment occurs when: - correct answer-wage rate is higher
then the equilibrium wage
Natural Unemployment - correct answer-unemployment that
persists in an economy in the long run
Cyclical unemployment - correct answer-unemployment caused
by short-term economic fluctuations (phases of business cycle)
Natural rate of unemployment - correct answer-normal level of
unemployment that persists in an economy in the long run
