ECN 211 CERTIFIED QUALITY EXAM 2 – MARBURGER | QUESTIONS
AND ACCURATE ANSWERS | LATEST UPDATE 2026
What might "marginally attached workers" include?
A full-time college student who is not looking for work, but would
take a part-time job if it paid extremely well
A recently retired senior citizen who might return to the labor force
if an especially attractive job opportunity became available
Labor force participation rate
The percentage of persons ages 16 and up who are either employed
or unemployed
Why is the labor force participation rate falling?
1. Aging population (babyboomers increasingly began retiring around
2010)
2. Persons drawing Social Security disability checks (rising since 2000)
3. Schooling (rising since 2000)
4. Discouraged workers (primarily between 2007 and 2011)
Most of the decrease since 2012 has been due to retirements
,Frictional unemployment
Short spells of unemployment when workers are between jobs
Example: Joe quit his job to take a new job that begins in two weeks
Example: Holly lost her job and is currently searching for a new job
Creative destruction
Progress can create new products that make old ones obsolete
Hence, progress can create new jobs at the expense of obsolete jobs
Structural unemployment
Unemployment due to a mismatch between the skills and locations
of unemployed workers and the job requirements and locations of
job openings
Policies to deal with structural unemployment
1. Job search expenditures are tax-deductible (no longer with the Tax
Cuts and Jobs Act)
2. Job-related relocations were tax-deductible (no longer with the
Tax Cuts and Jobs Act)
3. Tax breaks for companies that provide job re-training
4. Government job training programs
, Cyclical Unemployment
Unemployment caused by fluctuations within the business cycle
Cyclical unemployment tends to rise during recessions and fall during
economic expansion
Cyclical unemployment is the target of short-run macroeconomic
policies
Natural rate of unemployment
Due to frictional unemployment, at any snapshot in time, a given
number of workers will be between jobs
The economy is considered "fully employed" if the official
unemployment rate is equal to the natural rate
Factors that influence the natural rate of unemployment
1. Unemployment insurance
The purpose of unemployment insurance is to provide a safety net
for workers who get laid-off
AND ACCURATE ANSWERS | LATEST UPDATE 2026
What might "marginally attached workers" include?
A full-time college student who is not looking for work, but would
take a part-time job if it paid extremely well
A recently retired senior citizen who might return to the labor force
if an especially attractive job opportunity became available
Labor force participation rate
The percentage of persons ages 16 and up who are either employed
or unemployed
Why is the labor force participation rate falling?
1. Aging population (babyboomers increasingly began retiring around
2010)
2. Persons drawing Social Security disability checks (rising since 2000)
3. Schooling (rising since 2000)
4. Discouraged workers (primarily between 2007 and 2011)
Most of the decrease since 2012 has been due to retirements
,Frictional unemployment
Short spells of unemployment when workers are between jobs
Example: Joe quit his job to take a new job that begins in two weeks
Example: Holly lost her job and is currently searching for a new job
Creative destruction
Progress can create new products that make old ones obsolete
Hence, progress can create new jobs at the expense of obsolete jobs
Structural unemployment
Unemployment due to a mismatch between the skills and locations
of unemployed workers and the job requirements and locations of
job openings
Policies to deal with structural unemployment
1. Job search expenditures are tax-deductible (no longer with the Tax
Cuts and Jobs Act)
2. Job-related relocations were tax-deductible (no longer with the
Tax Cuts and Jobs Act)
3. Tax breaks for companies that provide job re-training
4. Government job training programs
, Cyclical Unemployment
Unemployment caused by fluctuations within the business cycle
Cyclical unemployment tends to rise during recessions and fall during
economic expansion
Cyclical unemployment is the target of short-run macroeconomic
policies
Natural rate of unemployment
Due to frictional unemployment, at any snapshot in time, a given
number of workers will be between jobs
The economy is considered "fully employed" if the official
unemployment rate is equal to the natural rate
Factors that influence the natural rate of unemployment
1. Unemployment insurance
The purpose of unemployment insurance is to provide a safety net
for workers who get laid-off
