TAMU ECON 203 EXAM 2 QUESTIONS
AND ANSWERS 100% PASS 2026/2027
Who is not in the working age population? - ANS Young (less than 16 years old)
Military
Institutionalized population (prison, mental hospitals)
Working age population (calculation) - ANS Labor Force + Not in the labor force
Labor Force - ANS working-age people who are either employed or unemployed
Labor Force (calculation) - ANS employed + unemployed
Employed - ANS 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 - ANS persons aged 16 years and older who had no
employment during the reference (survey) week
@2026 ALLRIGHTS RESERVED 1
,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 - ANS a situation where someone wants to work but cannot find a job in the
current market.
Not in the labor force - ANS people who do not have jobs and who are not actively looking
for work or are not available for work
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 - ANS (number of unemployed/labor force) x 100
Labor-force participation rate (LFPR) - ANS 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) - ANS (labor force/working-age population) x 100
Marginally attached workers - ANS 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.
@2026 ALLRIGHTS RESERVED 2
, (not counted in labor force)
Discouraged workers - ANS 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 - ANS people who are either working less than they would like or in
jobs below their skill level
Unemployment occurs when: - ANS wage rate is higher then the equilibrium wage
Natural Unemployment - ANS unemployment that persists in an economy in the long run
Cyclical unemployment - ANS unemployment caused by short-term economic fluctuations
(phases of business cycle)
Natural rate of unemployment - ANS normal level of unemployment that persists in an
economy in the long run
frictional unemployment
structural unemployment
real-wage or classical unemployment
Frictional unemployment - ANS caused by workers who are changing location, job, or career
Structural unemployment - ANS caused by a mismatch between the skills workers can offer
and the skills in demand
@2026 ALLRIGHTS RESERVED 3
AND ANSWERS 100% PASS 2026/2027
Who is not in the working age population? - ANS Young (less than 16 years old)
Military
Institutionalized population (prison, mental hospitals)
Working age population (calculation) - ANS Labor Force + Not in the labor force
Labor Force - ANS working-age people who are either employed or unemployed
Labor Force (calculation) - ANS employed + unemployed
Employed - ANS 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 - ANS persons aged 16 years and older who had no
employment during the reference (survey) week
@2026 ALLRIGHTS RESERVED 1
,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 - ANS a situation where someone wants to work but cannot find a job in the
current market.
Not in the labor force - ANS people who do not have jobs and who are not actively looking
for work or are not available for work
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 - ANS (number of unemployed/labor force) x 100
Labor-force participation rate (LFPR) - ANS 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) - ANS (labor force/working-age population) x 100
Marginally attached workers - ANS 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.
@2026 ALLRIGHTS RESERVED 2
, (not counted in labor force)
Discouraged workers - ANS 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 - ANS people who are either working less than they would like or in
jobs below their skill level
Unemployment occurs when: - ANS wage rate is higher then the equilibrium wage
Natural Unemployment - ANS unemployment that persists in an economy in the long run
Cyclical unemployment - ANS unemployment caused by short-term economic fluctuations
(phases of business cycle)
Natural rate of unemployment - ANS normal level of unemployment that persists in an
economy in the long run
frictional unemployment
structural unemployment
real-wage or classical unemployment
Frictional unemployment - ANS caused by workers who are changing location, job, or career
Structural unemployment - ANS caused by a mismatch between the skills workers can offer
and the skills in demand
@2026 ALLRIGHTS RESERVED 3
