TAMU ECON 203 EXAM 2 2026 QUESTIONS AND ANSWERS | A+ GRADED | WITH EXPERT
SOLUTIONS
Who is not in the working age population? - (ANSWER)Young (less than 16 years old)
Military
Institutionalized population (prison, mental hospitals)
Working age population (calculation) - (ANSWER)Labor Force + Not in the labor force
Labor Force - (ANSWER)working-age people who are either employed or unemployed
Labor Force (calculation) - (ANSWER)employed + unemployed
Employed - (ANSWER)1)Everyone who during the week of survey had worked at least
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 - (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 - (ANSWER)a situation where someone wants to work but cannot find a job in the
current market.
Not in the labor force - (ANSWER)people who do not have jobs and who are not actively looking for
work or are not available for work
,TAMU ECON 203 EXAM 2 2026 QUESTIONS AND ANSWERS | A+ GRADED | WITH EXPERT
SOLUTIONS
homemakers
full-time students
retirees who choose not to work or cannot work
those who cannot work bc of disability
those who choose not to work
Unemployment rate - (ANSWER)(number of unemployed/labor force) x 100
Labor-force participation rate (LFPR) - (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) - (ANSWER)(labor force/working-age population) x 100
Marginally attached workers - (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)
Discouraged workers - (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 - (ANSWER)people who are either working less than they would like or in jobs
below their skill level
Unemployment occurs when: - (ANSWER)wage rate is higher then the equilibrium wage
Natural Unemployment - (ANSWER)unemployment that persists in an economy in the long run
, TAMU ECON 203 EXAM 2 2026 QUESTIONS AND ANSWERS | A+ GRADED | WITH EXPERT
SOLUTIONS
Cyclical unemployment - (ANSWER)unemployment caused by short-term economic fluctuations (phases
of business cycle)
Natural rate of unemployment - (ANSWER)normal level of unemployment that persists in an economy in
the long run
frictional unemployment
structural unemployment
real-wage or classical unemployment
Frictional unemployment - (ANSWER)caused by workers who are changing location, job, or career
Structural unemployment - (ANSWER)caused by a mismatch between the skills workers can offer and
the skills in demand
Real GDP per capita growth rate - (ANSWER)nominal GDP growth rate - inflation rate - population
growth rate
(Real GDP per capita (current year) - Real GDP per capita (previous year)/Real GDP per capita (previous
year)) x 100
What was the U.S. average annual growth in real GDP per capita last century? - (ANSWER)2%
How much larger was the 2010 real GDP per capita than in 1910? - (ANSWER)x7
Compounding Formula
(for GDP per capita in any year) - (ANSWER)GDP(year A)= GDP(year B) x (1+ (growth rate % / 100))^(year
A-year B)
Rule of 70 - (ANSWER)Years until income doubles= (70 / growth rate %)
SOLUTIONS
Who is not in the working age population? - (ANSWER)Young (less than 16 years old)
Military
Institutionalized population (prison, mental hospitals)
Working age population (calculation) - (ANSWER)Labor Force + Not in the labor force
Labor Force - (ANSWER)working-age people who are either employed or unemployed
Labor Force (calculation) - (ANSWER)employed + unemployed
Employed - (ANSWER)1)Everyone who during the week of survey had worked at least
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 - (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 - (ANSWER)a situation where someone wants to work but cannot find a job in the
current market.
Not in the labor force - (ANSWER)people who do not have jobs and who are not actively looking for
work or are not available for work
,TAMU ECON 203 EXAM 2 2026 QUESTIONS AND ANSWERS | A+ GRADED | WITH EXPERT
SOLUTIONS
homemakers
full-time students
retirees who choose not to work or cannot work
those who cannot work bc of disability
those who choose not to work
Unemployment rate - (ANSWER)(number of unemployed/labor force) x 100
Labor-force participation rate (LFPR) - (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) - (ANSWER)(labor force/working-age population) x 100
Marginally attached workers - (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)
Discouraged workers - (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 - (ANSWER)people who are either working less than they would like or in jobs
below their skill level
Unemployment occurs when: - (ANSWER)wage rate is higher then the equilibrium wage
Natural Unemployment - (ANSWER)unemployment that persists in an economy in the long run
, TAMU ECON 203 EXAM 2 2026 QUESTIONS AND ANSWERS | A+ GRADED | WITH EXPERT
SOLUTIONS
Cyclical unemployment - (ANSWER)unemployment caused by short-term economic fluctuations (phases
of business cycle)
Natural rate of unemployment - (ANSWER)normal level of unemployment that persists in an economy in
the long run
frictional unemployment
structural unemployment
real-wage or classical unemployment
Frictional unemployment - (ANSWER)caused by workers who are changing location, job, or career
Structural unemployment - (ANSWER)caused by a mismatch between the skills workers can offer and
the skills in demand
Real GDP per capita growth rate - (ANSWER)nominal GDP growth rate - inflation rate - population
growth rate
(Real GDP per capita (current year) - Real GDP per capita (previous year)/Real GDP per capita (previous
year)) x 100
What was the U.S. average annual growth in real GDP per capita last century? - (ANSWER)2%
How much larger was the 2010 real GDP per capita than in 1910? - (ANSWER)x7
Compounding Formula
(for GDP per capita in any year) - (ANSWER)GDP(year A)= GDP(year B) x (1+ (growth rate % / 100))^(year
A-year B)
Rule of 70 - (ANSWER)Years until income doubles= (70 / growth rate %)
